How to Position Your SaaS Product When You're Not "The First" in the Market
You've built a solution to a real problem. Your product works. But there's a nagging issue keeping you up at night: you're not the first. The market already has established players, and your CAC is climbing while conversions struggle to keep pace.
Many founders mistakenly believe being first is what matters. The reality? Being first often means educating the market on your dime while followers reap the benefits. The SaaS graveyard is filled with pioneers. The fortune often goes to those who position better.
The Late Mover Advantage You're Not Leveraging
When Slack entered the team communication space in 2013, HipChat and Campfire were already established. Dropbox wasn't the first cloud storage solution. Salesforce wasn't the first CRM.
What separated these winners wasn't being first—it was superior positioning.
Let's transform your "late arrival" from a liability into your greatest asset with actionable positioning strategies that actually reduce CAC, boost conversions, and fight churn.
1. Map the Competitive Gaps That Create Opportunity
Your established competitors have left gaps. It's not about doing everything they do—it's about finding the specific segment they're underserving.
Action step: Create a competitive matrix with these columns:
Competitor name
Primary customer segment they serve well
Customer segments they serve poorly
Features they excel at
Features they neglect
Pricing approach
Look for patterns. The intersection of underserved segments and neglected features is your positioning gold mine.
One fintech SaaS founder discovered competitors served enterprise clients well but neglected mid-market companies needing simpler implementation. By positioning specifically for this segment, they slashed CAC by 37% in three months.
2. Reframe the Category to Your Advantage
Don't compete on your competitors' terms. Reframe the conversation.
When HubSpot entered the crowded marketing tools space, they didn't position as "another marketing platform." They created the category of "inbound marketing" and owned the conversation.
Action step: List what your competitors call themselves. Now ask:
What broader transformation does your product enable?
What methodology does your approach represent?
What outdated approach are you replacing?
Use this to create a positioning statement: "We're not another [competitor category]. We're the first [new category] that helps [specific customer segment] achieve [specific outcome] without [common pain point]."
3. Weaponize Customer Frustrations With Incumbents
Your competitors' customers have accumulated frustrations. Use these as your positioning leverage.
Action step: Interview 5-10 customers who switched from competitors. Ask specifically:
"What finally pushed you to look for alternatives?"
"What did you wish the previous solution did differently?"
"What were the exact words you used when searching for alternatives?"
One B2B SaaS founder discovered customers hated the 6-week implementation timeline of the market leader. By positioning around "Live in 48 hours" and rebuilding their onboarding to deliver on this promise, they increased trial-to-paid conversion by 23%.
4. Turn Your Constraints Into Your Story
Your smaller size and resource constraints can become positioning advantages when framed correctly.
Basecamp famously positioned their constraints as benefits: "We're smaller, more focused, and don't try to be everything to everyone." This wasn't weakness—it was their strength.
Action step: Complete these sentences:
"Unlike larger competitors, our size allows us to..."
"We intentionally don't do [feature competitors offer] because..."
"We've chosen to focus exclusively on..."
5. Create Positioning That Reduces Churn From Day One
Strong positioning doesn't just acquire customers—it retains them by setting correct expectations.
Action step: Audit your current messaging against these questions:
Does our positioning promise outcomes we can actually deliver?
Are we attracting customers who truly fit our product?
Does our onboarding reinforce our positioning promise?
One SaaS founder reduced churn by 32% simply by narrowing their positioning to focus exclusively on e-commerce brands rather than "all online businesses." The more specific fit led to higher satisfaction and retention.
Implementation Timeline
Don't try to overhaul positioning overnight. Follow this 30-day plan:
Days 1-7: Complete your competitive analysis and customer interviews
Days 8-14: Draft your new positioning statements and test with 5 prospects
Days 15-21: Update your highest-impact touchpoints (homepage, ads, sales deck)
Days 22-30: Train your team and roll out systematically across channels
Remember: positioning isn't just marketing—it's the strategic foundation that determines your CAC efficiency, conversion rates, and ultimate retention. When you can't be first to market, be first to matter to your specific customer segment.
How Can We Help You?
If your SaaS business is stuck or struggling with inconsistent growth, ineffective marketing, or rising customer acquisition costs, continuing without action means you'll remain trapped with the same frustrating results.
We specialize in identifying your unique pain points and strategically crafting solutions that deliver predictable, profitable growth. Ready to transform your results?
👉 Book your no-obligation strategy session here
Or email me directly: admin@jeffriesdigitalmarketing.com
