Category positioning

In so many situations, software businesses have a common competitor – the mighty spreadsheet. And yet many of those businesses fail to recognise this, and even more don’t proactively position their solutions against them which I believe is doing a disservice to those using them inappropriately.

Whether it’s CRM systems, contact management, time tracking, sales forcecasting or data analysis – spreadsheets are the default, ubiquitous, inexpensive and often ‘good enough’ solution that can be difficult to compete against. And my examples are really just the tip of the iceberg.

Spreadsheets have become the bedrock of business operations worldwide, and for good reasons. They’re flexible, widely available, and universally understood. They offer a familiar interface for data analysis, budgeting, and planning, making them the go-to tool for countless tasks across various industries. However, as businesses evolve, the complexity and demands of modern workflows often outpace the capabilities of spreadsheets.

For marketing leaders trying to get their heads around this challenge, here’s some quick tips around how we can frame the process to develop our positioning against the mighty spreadsheet:

1. Understand and Respect the Spreadsheet’s Place: Before anything, it’s crucial to recognize why spreadsheets became so integral. Their ease of use, flexibility, and immediate availability have made them indispensable. Acknowledge these strengths while introducing your software solution.
2. Highlight the Benefits of Specialisation: While spreadsheets serve as a jack-of-all-trades, specialised software excels in specific functionalities. Emphasise how your product offers in-depth analysis, automation, and tailored insights that spreadsheets simply can’t match.
3. Educate on Scalability and Integration: As businesses grow, the limitations of spreadsheets become more apparent. Highlight how your software not only scales with ease but also integrates seamlessly with other business tools, enhancing overall productivity and reducing the margin for error.
4. Share Success Stories of Transition: Real-world examples of businesses that have successfully transitioned from spreadsheets to specialised tools can be incredibly persuasive. Share these stories to illustrate the tangible benefits of making the switch, including efficiency gains, enhanced collaboration, and improved data integrity.
5. Ease Transition Concerns: For many, the thought of moving away from spreadsheets is daunting. Offer clear, user-friendly pathways for transition, including data migration support, training resources, and robust customer service, to make the switch as smooth as possible.
6. Offer a Test Drive: Encourage potential customers to experience the advantages of your software firsthand through free trials and demos. Direct comparisons with their current spreadsheet-based processes can be a powerful motivator for change.
7. Customise Your Communication: Different sectors rely on spreadsheets for various reasons. Tailor your messaging to address the specific challenges and needs of your target audience, demonstrating a deep understanding of their unique workflows and how your solution can improve them.

Bridging the Gap: Positioning against spreadsheets isn’t about convincing your customers to discard a familiar tool but about helping them evolve with business needs. By acknowledging the foundational role of spreadsheets and clearly communicating the advantages of specialised software, we can guide businesses toward more efficient, scalable, and collaborative solutions.