Sales positioning statement: How to Create a Compelling Sales Positioning Statement for Your Startup

1. What is a sales positioning statement and why does your startup need one?

In today's competitive market, it is not enough to have a great product or service. You also need to communicate its value to your potential customers in a clear and compelling way. This is where a sales positioning statement comes in handy. A sales positioning statement is a concise and catchy summary of what your startup offers, how it differs from the competition, and why it matters to your target audience. It helps you to:

- Attract attention and interest from your prospects by highlighting your unique selling proposition (USP) and benefits.

- Build trust and credibility by showing that you understand your customers' needs, challenges, and goals.

- Persuade and influence your customers to take action by providing a clear and compelling call to action (CTA).

A sales positioning statement is not only useful for your sales and marketing efforts, but also for your internal alignment and clarity. It helps you to:

- Define and communicate your startup's vision, mission, and values.

- Focus and prioritize your product development, feature selection, and customer feedback.

- Measure and evaluate your startup's performance, progress, and impact.

To create a sales positioning statement for your startup, you can follow these four steps:

1. identify your target market. Who are your ideal customers? What are their demographics, psychographics, and behaviors? What are their needs, challenges, and goals?

2. Define your value proposition. What is your product or service? What problem does it solve or what benefit does it provide? How does it differ from the competition? What is your USP?

3. Craft your sales positioning statement. Use the following formula to write a concise and catchy statement that summarizes your value proposition:

`For [target market], [startup name] is the [category] that [value proposition] because [reason to believe].`

For example, for a startup that offers a cloud-based accounting software for small businesses, a possible sales positioning statement could be:

`For small businesses, CloudAccount is the accounting software that simplifies and automates bookkeeping and tax compliance because it integrates with popular platforms and provides real-time insights.`

4. Test and refine your sales positioning statement. Validate your statement with your target market, your team, and your stakeholders. Ask for feedback and suggestions on how to improve it. Make sure it is clear, concise, catchy, and consistent with your brand voice and tone.

A sales positioning statement is a powerful tool that can help you to stand out from the crowd and win more customers. By following these steps, you can create a compelling sales positioning statement for your startup that showcases your value and drives action.

2. Target market, value proposition, differentiation, and proof points

A sales positioning statement is a concise and compelling way to communicate the value of your product or service to your target market. It helps you to differentiate your offering from your competitors and to persuade your prospects to choose you over them. A sales positioning statement consists of four elements: target market, value proposition, differentiation, and proof points. Let's explore each of these elements in more detail.

- Target market: This is the specific group of customers that you want to reach and serve with your product or service. You should define your target market based on their characteristics, needs, pain points, goals, and behaviors. For example, if you are selling a cloud-based accounting software for small businesses, your target market could be "small business owners who need a simple, affordable, and secure way to manage their finances online".

- Value proposition: This is the main benefit or outcome that your product or service delivers to your target market. It should answer the question: "What value do I provide to my customers?" Your value proposition should be clear, specific, and relevant to your target market's needs and goals. For example, the value proposition of the cloud-based accounting software could be "to help small business owners save time, money, and hassle by automating their accounting tasks and providing real-time financial insights".

- Differentiation: This is the unique feature or advantage that sets your product or service apart from your competitors. It should answer the question: "Why should my customers choose me over my competitors?" Your differentiation should be credible, defensible, and meaningful to your target market. For example, the differentiation of the cloud-based accounting software could be "to offer the most user-friendly, customizable, and secure accounting software in the market, with a 24/7 customer support and a 30-day free trial".

- Proof points: These are the evidence or testimonials that support your value proposition and differentiation. They should answer the question: "How do I prove that my product or service delivers the value and the difference that I claim?" Your proof points should be verifiable, quantifiable, and relatable to your target market. For example, the proof points of the cloud-based accounting software could be "to showcase the positive feedback and ratings from our existing customers, the number of users and transactions that we have processed, and the awards and recognition that we have received from the industry".

3. Who are your ideal customers and what are their pain points?

One of the most crucial steps in creating a compelling sales positioning statement is to identify your target market. This means finding out who are your ideal customers and what are their pain points. By doing so, you can tailor your message to address their specific needs, challenges, and goals, and show them how your product or service can solve their problems and deliver value.

To identify your target market, you can follow these steps:

1. Segment your market. This means dividing your potential customers into smaller groups based on common characteristics, such as demographics, geography, behavior, or psychographics. For example, if you are selling a fitness app, you can segment your market by age, gender, location, fitness level, lifestyle, etc.

2. Select your target segment. This means choosing the most attractive and profitable segment for your business, based on factors such as market size, growth potential, competition, and alignment with your value proposition. For example, if you are selling a fitness app, you can select the segment of young, urban, health-conscious women who are looking for a convenient and personalized way to exercise at home.

3. Create your buyer personas. This means creating detailed profiles of your ideal customers within your target segment, based on research and data. A buyer persona should include information such as name, age, occupation, income, goals, challenges, pain points, motivations, preferences, and buying behavior. For example, if you are selling a fitness app, you can create a buyer persona named Lisa, who is a 28-year-old marketing manager who wants to lose weight and tone up, but struggles to find time and motivation to go to the gym.

4. Validate your assumptions. This means testing and verifying your hypotheses about your target market and buyer personas, by conducting surveys, interviews, focus groups, or experiments with real or potential customers. This will help you gain insights, feedback, and validation from your target market, and refine your understanding of their needs, wants, and expectations. For example, if you are selling a fitness app, you can validate your assumptions by asking Lisa and other similar customers about their fitness goals, challenges, pain points, and preferences, and how they would use your app.

By following these steps, you can identify your target market and understand their pain points. This will enable you to craft a sales positioning statement that resonates with them and persuades them to buy your product or service.

4. How does your product or service solve your customers problems or needs?

One of the most important aspects of creating a compelling sales positioning statement is to craft your value proposition. This is the core message that communicates how your product or service solves your customers' problems or needs, and why they should choose you over your competitors. A value proposition should be clear, concise, and compelling, and it should answer three key questions:

- What is the main benefit or outcome that your product or service provides to your customers?

- How does your product or service deliver this benefit or outcome better or differently than your competitors?

- What is the proof or evidence that supports your claim?

To craft your value proposition, you can follow these steps:

1. Identify your target market and their main problems or needs. You can use market research, customer feedback, surveys, interviews, or other methods to gather this information. For example, if you are selling a cloud-based accounting software, your target market might be small and medium-sized businesses that need to manage their finances efficiently and securely.

2. List the features and benefits of your product or service that address these problems or needs. Features are the characteristics or attributes of your product or service, while benefits are the outcomes or results that your customers get from using them. For example, some features of your accounting software might be: easy-to-use interface, automated invoicing, real-time reports, data encryption, etc. Some benefits might be: saving time, reducing errors, improving cash flow, enhancing security, etc.

3. Compare your features and benefits with your competitors and identify your unique value proposition (UVP). This is the one thing that sets you apart from your competitors and makes you the best choice for your customers. You can use a SWOT analysis, a competitive matrix, or other tools to evaluate your strengths, weaknesses, opportunities, and threats in relation to your competitors. For example, your UVP might be: the most user-friendly and secure cloud-based accounting software for small and medium-sized businesses.

4. Write your value proposition statement using the formula: [Benefit] + [Differentiator] + [Proof]. You can also add a headline, a subheadline, and a visual element to make it more catchy and memorable. For example, your value proposition statement might be:

accounting made easy and secure.

The most user-friendly and secure cloud-based accounting software for small and medium-sized businesses.

- Save time and money with automated invoicing and real-time reports.

- Protect your data with state-of-the-art encryption and backup.

- Trusted by over 10,000 customers worldwide.

5. What makes your solution unique and superior?

One of the most important aspects of creating a compelling sales positioning statement is to clearly articulate how your startup stands out from the competition. You need to convince your potential customers that your solution is not only different, but also better than the alternatives available in the market. To do this, you need to identify and highlight your unique value proposition (UVP), which is the core benefit or advantage that your solution offers to your target audience.

There are several steps you can take to differentiate your startup from competitors and craft a strong UVP. Here are some of them:

- conduct a competitive analysis. The first step is to research and analyze your competitors, their products, their strengths, and their weaknesses. You can use tools such as SWOT analysis, Porter's five forces, or PESTEL analysis to evaluate the external factors that affect your industry and your position in it. You can also use tools such as Google Trends, SimilarWeb, or Alexa to compare the web traffic, keywords, and social media presence of your competitors. This will help you understand how they market themselves, what they offer, and how they perform.

- Identify your target market and customer persona. The next step is to define your target market and customer persona, which are the specific group of people and the ideal customer profile that you aim to serve with your solution. You need to understand their needs, pain points, goals, motivations, and behaviors. You can use tools such as surveys, interviews, focus groups, or online forums to gather feedback and insights from your existing or potential customers. You can also use tools such as Empathy Map, Value Proposition Canvas, or lean Canvas to map out your customer segments and value propositions.

- Determine your key features and benefits. The third step is to list the key features and benefits of your solution, which are the attributes and outcomes that your solution provides to your customers. You need to focus on the features and benefits that are relevant, valuable, and desirable to your target market and customer persona. You can use tools such as Feature Matrix, Benefit Ladder, or kano Model to prioritize and categorize your features and benefits based on their importance and satisfaction level.

- Find your unique selling point (USP). The final step is to find your unique selling point (USP), which is the single most compelling reason why your solution is better than the competition. You need to identify the feature or benefit that sets you apart from the rest, that solves a specific problem or fulfills a specific need that no one else can, and that appeals to your target market and customer persona. You can use tools such as USP Generator, Unique Value Proposition Formula, or Value Proposition Statement Template to craft your USP.

For example, let's say you are a startup that offers an online platform for freelancers to find and manage projects. Here is how you can differentiate your startup from competitors and create a strong UVP:

- Competitive analysis: You discover that there are many other platforms that offer similar services, such as Upwork, Fiverr, or Freelancer. However, you also notice that they have some common drawbacks, such as high fees, low quality, or poor customer service. You decide to position yourself as a premium platform that offers high-quality work, fair pricing, and excellent support.

- Target market and customer persona: You define your target market as small and medium-sized businesses that need professional and reliable freelancers for their projects. You create your customer persona as John, a 35-year-old entrepreneur who runs a digital marketing agency. He needs freelancers who can deliver high-quality work, meet deadlines, and communicate well. He is willing to pay a reasonable price for the value he receives. He is frustrated with the existing platforms that charge high fees, offer low quality, or have poor customer service.

- Key features and benefits: You list the key features and benefits of your platform, such as:

- A curated network of vetted and verified freelancers who have proven skills and experience in various fields and industries.

- A simple and transparent pricing system that charges a flat fee of 10% for both clients and freelancers, with no hidden or extra costs.

- A dedicated account manager who provides personalized support and guidance for each project, from start to finish.

- A secure and easy-to-use platform that allows clients and freelancers to communicate, collaborate, and manage projects online.

- Unique selling point: You find your unique selling point, which is:

- We are the only platform that offers a curated network of high-quality freelancers, a fair and transparent pricing system, and a dedicated account manager for each project.

This is your UVP, which you can use to create your sales positioning statement and attract your ideal customers.

6. What evidence can you use to back up your claims and build trust?

One of the most important aspects of a sales positioning statement is to provide proof points that support your claims and build trust with your potential customers. Proof points are specific pieces of evidence that demonstrate the value, quality, and credibility of your product or service. They can be based on data, testimonials, awards, endorsements, case studies, or any other source that validates your claims. Proof points are essential for convincing your prospects that you can deliver on your promises and solve their problems.

There are different types of proof points that you can use depending on your target audience, your product or service, and your unique selling proposition. Here are some examples of how to use proof points effectively:

- Data-driven proof points: These are quantitative indicators that show the impact, performance, or results of your product or service. They can include metrics such as revenue, growth, retention, conversion, satisfaction, or any other relevant measure that showcases your value proposition. For example, if you are selling a software solution that helps businesses optimize their online marketing campaigns, you can use data-driven proof points such as "Our customers have seen an average of 35% increase in ROI, 50% reduction in cost per lead, and 75% improvement in customer retention using our software."

- Testimonial proof points: These are statements from your existing or past customers that express their satisfaction, appreciation, or recommendation of your product or service. They can include quotes, ratings, reviews, or stories that highlight the benefits, features, or outcomes of your product or service. For example, if you are selling a fitness app that helps users achieve their health goals, you can use testimonial proof points such as "I love this app! It has helped me lose 10 pounds in 2 months and feel more energetic and confident. The workouts are fun and easy to follow, and the app tracks my progress and motivates me every day."

- Award or endorsement proof points: These are recognitions or validations from external sources that attest to the quality, excellence, or innovation of your product or service. They can include certificates, badges, rankings, ratings, or accolades from reputable organizations, publications, or influencers that endorse your product or service. For example, if you are selling a smart home device that automates and secures your home, you can use award or endorsement proof points such as "Our device has been awarded the Best Smart Home Product of 2024 by TechCrunch, rated 5 stars by Consumer Reports, and featured on The Oprah Winfrey Show as one of the must-have gadgets for modern living."

When using proof points, you should follow some best practices to make them more effective and persuasive. Here are some tips to keep in mind:

- Be specific and relevant: Use proof points that are directly related to your claims and your target audience. Avoid vague or generic statements that do not convey any meaningful information or differentiation. For example, instead of saying "Our product is trusted by thousands of customers worldwide", say "Our product is trusted by over 10,000 customers in 50 countries, including Fortune 500 companies such as Google, Amazon, and Netflix."

- Be credible and verifiable: Use proof points that are based on facts, data, or sources that can be verified and validated. Avoid making exaggerated or unsubstantiated claims that could damage your reputation or credibility. For example, instead of saying "Our product is the best in the market", say "Our product has been independently tested and proven to outperform our competitors by 25% in terms of speed, accuracy, and reliability."

- Be clear and concise: Use proof points that are easy to understand and communicate. Avoid using jargon, technical terms, or acronyms that could confuse or alienate your audience. For example, instead of saying "Our product uses a proprietary algorithm based on artificial intelligence, machine learning, and natural language processing to deliver optimal results", say "Our product uses smart technology to understand your needs and provide you with the best solutions."

By using proof points effectively, you can create a compelling sales positioning statement that showcases your value proposition, differentiates you from your competitors, and builds trust with your prospects. Proof points are powerful tools that can help you persuade and influence your potential customers to choose your product or service.

7. How to use your sales positioning statement in your sales and marketing efforts and measure its impact?

You have created a compelling sales positioning statement for your startup that clearly defines your target market, your unique value proposition, and your competitive advantage. But how do you use it effectively in your sales and marketing efforts and measure its impact? Here are some tips and best practices to follow:

- Use your sales positioning statement as a guide for creating your marketing materials. Your sales positioning statement should be the foundation of your marketing strategy, as it communicates the core message and benefits of your product or service to your potential customers. You can use it to craft your website copy, your social media posts, your email campaigns, your brochures, your presentations, and any other marketing collateral that you use to reach your target audience. Make sure that your marketing materials are consistent with your sales positioning statement and reinforce your unique value proposition and competitive advantage.

- Use your sales positioning statement as a tool for qualifying your leads. Your sales positioning statement can help you identify and attract the right prospects for your product or service, as it defines your ideal customer profile and their pain points. You can use it to create a lead magnet, such as a free ebook, a webinar, a case study, or a trial offer, that showcases how your product or service can solve their problems and deliver value. You can also use it to create a lead scoring system, where you assign points to your leads based on how well they match your target market criteria and how engaged they are with your marketing materials. This way, you can prioritize and focus on the most qualified and interested leads for your sales team.

- Use your sales positioning statement as a framework for delivering your sales pitch. Your sales positioning statement can help you structure and deliver a persuasive sales pitch that addresses your prospects' needs and objections and convinces them to buy from you. You can use it to create a sales script, where you introduce yourself and your company, state your sales positioning statement, ask open-ended questions to uncover your prospects' pain points and goals, present your product or service as the solution, demonstrate how it works and how it delivers value, handle any objections or concerns, and close the deal. You can also use it to create a sales presentation, where you use visuals, stories, testimonials, and data to support your sales pitch and engage your prospects.

- measure the impact of your sales positioning statement on your sales and marketing performance. Your sales positioning statement can help you track and improve your sales and marketing results, as it defines your goals and expectations. You can use it to set key performance indicators (KPIs), such as the number of leads generated, the conversion rate, the average deal size, the customer acquisition cost, the customer lifetime value, and the return on investment. You can also use it to conduct A/B testing, where you compare different versions of your sales positioning statement or your marketing materials and see which one performs better. By measuring the impact of your sales positioning statement, you can identify what works and what doesn't and optimize your sales and marketing strategy accordingly.

By following these tips and best practices, you can use your sales positioning statement effectively in your sales and marketing efforts and measure its impact. Your sales positioning statement is not a static document, but a dynamic and evolving one that reflects your market, your customers, and your product or service. You should review and update it regularly to ensure that it remains relevant and compelling. Your sales positioning statement is your key to success, as it helps you stand out from the crowd and win more customers.

Read Other Blogs