Choose Your Place and Plant Your Flag: Positioning & USPs
Trying to be everything to everyone means you're nothing to anyone. Strong positioning and a sharp USP turn you from a generic vendor into the obvious choice for your ideal customer. The companies that own a specific corner of the market win decisively with their ideal customers.
Most B2B tech companies fail at go-to-market for one simple reason: they try to serve everyone. They build messaging that could describe any competitor in their space, hoping to cast the widest possible net. The result? They catch nothing.
The result? They catch nothing.
The truth is counterintuitive. The narrower your focus, the stronger your market position. The more specific your claim, the more compelling your value. This is where positioning and unique selling propositions come in. Get these right, and you transform from a vendor competing on price to a specialist commanding premium deals. Get them wrong, and you're just another option in a crowded field.
Understanding Positioning
Without clear positioning, you are a generic vendor, with price as the only differentiator. With positioning, you're the obvious choice for solving a specific problem for a specific buyer. This clarity matters because it simplifies buyer decisions, attracts the right customers whilst repelling poor fits, justifies premium pricing, and guides your entire go-to-market strategy.
Strong positioning has four core elements.
- Your target market segment. You're not building for everyone. You need a defined target customer with a particular challenge, so pick a specific industry, company size, or business challenge. The narrower your focus, the stronger your positioning.
- The core problem. What specific pain point keeps your target customer awake at night? It shouldn't be vague, like "improve efficiency," but precise, like "reduce time to detect threats in cloud infrastructure from hours to minutes." It's about the specific value you deliver and the pain you remove.
- Your unique value proposition. Why should the customer care about your solution at all? It’s the tangible and intangible benefits your solution delivers. It’s about the value you create for the buyer, independent of competition.
- Your proof points. Social proof that validates your positioning through customer case studies, analyst recognition, or specific metrics showing you deliver on your promise.
Let's examine a realistic example. Imagine a cloud security startup targeting the fintech sector. Weak positioning would sound like this: "We provide comprehensive cloud security solutions for enterprises." This tells the buyer nothing specific. It could describe 500 companies.
Strong positioning tells a different story: "We help fintech companies detect and respond to cloud infrastructure threats in minutes instead of hours. We're the only platform built specifically for API-driven architectures."
Breaking this down, the target market is fintech companies, not all enterprises or all industries. The specific problem is detecting and responding to threats to cloud infrastructure, not to broad "security." The differentiation comes from a speed advantage (minutes versus hours) and a specialised understanding of API-driven system architecture. It matters because fintech companies know their infrastructure is unusual, threats move fast, and speed to response directly impacts regulatory compliance and customer trust.
"This is built for us."
When a fintech CISO hears this positioning, they think: "This is built for us. They understand our infrastructure. They're not trying to be everything to everyone." Compare that to a generic vendor saying, "We secure enterprises." Why would they care?
Crafting Your Unique Selling Proposition
Your Unique Selling Proposition (USP) is the specific, compelling reason why a prospect should buy from you instead of your competitors. It's the one thing you own in the market that no one else can credibly claim. If positioning is where you play, your USP is why you win.
A genuine USP has four characteristics.
- It's credible and defensible. You can actually deliver it, and competitors can't easily copy it.
- It's specific, not generic. Not "better quality" or "great customer service" because everyone claims this.
- It directly addresses a high-value customer problem. It matters to your ideal customer profile, not just a vanity feature.
- It's provable. You have evidence through benchmarks, case studies, patents, or unique architecture.
What's not a USP? "Best customer service" because everyone claims this, and it's table stakes. "Innovative technology" is vague and unverifiable. "We care about our customers" because every company says this. A list of features, because features are what you do, whilst a USP is why it matters. "Best price" means you're commoditised, and it always loses in the long term.
Going back to our fintech security example, their USP might be: "The only platform purpose-built for API-driven financial systems. We detect threats that generic security tools miss because we understand fintech's unique infrastructure: microservices, real-time transaction processing, and regulatory audit trails."
This works because it's credible. The founders worked at fintech companies and coded for this specific architecture. It's specific. Not "better threat detection" but "detects threats invisible to generic platforms." It's of high value. Fintech CISOs know their infrastructure is different and a generic tool is fundamentally inadequate. It's provable. They have a case study showing a specific threat type they detected that a generic vendor missed, preventing a 2 million euros breach.
A strong USP changes how you sell. Without a USP, your sales rep says: "Our platform provides cloud security with advanced machine learning and great support." The prospect replies: "So does your competitor. What's the difference?" Your rep stumbles: "Our team is really responsive?" The deal is lost or won on price.
"That's exactly our problem."
With a strong USP, the conversation shifts. Your sales rep says, "We're the only platform built for fintech infrastructure. Your microservices and real-time transaction processing create threat patterns that generic security tools are blind to. Here's a case study of a breach we caught that your current vendor missed." The prospect responds: "That's exactly our problem. How do we get started?" The deal is won at premium pricing.
The Relationship Between Positioning and USP
Positioning is the container, while your USP is the sharpest point inside it. You position yourself in a market segment, then your USP is the reason you dominate that segment. Without positioning, your USP has no context. Without a USP, your positioning has no teeth.
Discovery plays a crucial role in connecting these elements to actual sales success. Through deep discovery questions, you uncover specific, nuanced pain points that prospects may not even be fully aware of. This allows you to identify areas where your solution offers distinct advantages. The insights gained from discovery enable you to tailor your demonstrations and messaging with precision. Instead of a generic pitch, you explicitly connect your unique strengths to the prospect's identified challenges, using their own language and metrics.
You explicitly connect your unique strengths to the prospect's identified challenges, using their own language and metrics.
For our fintech security company, discovery questions might reveal that a prospect recently experienced a near-miss security incident in their transaction processing system. The sales rep can then highlight how their platform is specifically designed to prevent exactly that type of threat, which generic tools miss because they don't understand fintech architecture patterns. This builds credibility and differentiates them from competitors who would give the same pitch to any company.
Building Your Own Positioning & USP
Get your positioning right first. This defines who you serve, what problem you solve, and why you're different. Then craft your USP as the sharp, defensible point that makes you irreplaceable for that target customer. Finally, prove it through differentiated value in real customer conversations and outcomes.
To develop credible positioning, ask yourself these questions:
- Can I describe my target customer in one sentence? If you need a paragraph, you're not focused enough.
- Can I name the specific problem I solve without using vague terms like "efficiency" or "productivity"? The more precise the pain point, the stronger your positioning.
- Would my target customer immediately recognise themselves in my positioning statement? You could test this by showing your positioning to prospects without context.
- Am I narrow enough that some prospects will self-disqualify? If everyone thinks you're for them, you're for no one.
- If I replaced my company name with a competitor's name in my positioning statement, would it still make sense? If yes, your positioning is too generic.
To develop a credible USP, ask yourself these questions:
- What can we do that competitors structurally cannot? Look for unique architecture, specific expertise, or exclusive data.
- What problem matters most to our ideal customer profile? Not all problems are equal in value or urgency.
- Where do we have an asymmetric advantage? This might come from the founder's expertise, the team's background, proprietary data, or a technology moat.
- Can we prove it with independent benchmarks, case studies, or metrics? If you can't prove it, it's not a USP.
- Can I explain why we're different in 15 seconds or less? If you need five minutes, you don't have a clear USP yet.
The companies that own a specific corner of the market win decisively with their ideal customers. They're not the biggest, but they're the obvious choice for a particular buyer solving a particular problem. That's worth more than being a generic option for everyone.