and defined success in a new way. And each performed improvement way things have always been done? Part II: different functions that existing products didn’t address. • Does your solution represent a different Category Design For those reasons, trying to compare ABM tools to philosophy and/or radically new approach to Is Powerful, but demand-gen tools, or customer success software to solving a problem? help desk software would be like comparing apples • Does your solution require a totally different way Not For All and oranges – an unfair comparison that would have of measuring value or defining success? only led to confusion. To avoid such a situation, both Terminus and Gainsight set up new categories where • Does new language need to be created to describe they could define the terms of competition in their favor. what you do? Is your solution different or better? • Would putting your solution in the framework of an existing category create confusion for These examples should make one thing clear. If you’re potential buyers? offering is truly different from other solutions out there, then you’re probably in a situation where you • When presenting your solution to potential need to create a category in order to avoid confusing buyers, do you need to spend more time teaching comparisons with products that solve other problems. them about the problem you solve than how you stack up against competitors? But if you’ve simply made an incremental improvement to something that already exists – a new feature, lower • Is there a sense that momentum is shifting cost, or faster performance – that usually doesn’t towards a “new” way of doing things (that you warrant a new category. That’s just a better version of represent) and away from an “old” way of (that something that already exists. contrasts with what you do)? There’s nothing wrong with creating something better. • If your solution went away, would customers have But trying to develop a new category when you haven’t a tough time finding a similar product they could actually built something different will only hurt you by easily switch to? confusing potential buyers. You’re better off competing • Do enough people experience the problem you for a unique position in an existing category, one that help them solve to warrant a legitimate market? buyers are already aware of and have demand for. • Are buyers generally unaware of the problem you Here’s how to understand whether your solution is help them solve? different or better • W ould comparing yourself to existing solutions While those examples from Terminus and Gainsight are make things more confusing? pretty clear cut, assessing this for yourself isn’t always so easy. Here are some questions you can ask yourself to • Would a buyer have a tough time making the find out if your solution is better or different... right comparisons to your product on their own? Would you need to teach them about a new way • Are buyers unfamiliar with solutions like yours? of looking at things? Does your solution represent something entirely new? • Is there a lack of industry or analyst coverage about your type of solution? • Does your solution represent a departure from the status quo, something bigger than an incremental If you answered yes to most of these questions, it’s likely that you’re in a situation where it’s more appropriate The Newcomer’s Guide to Category Design 15