Tips for Understanding Category Design

I've had the opportunity to work at multiple companies that have designed new categories. I've read pretty much everything I can find on the topic. I have found that the criteria for "when you need to create or design a category" is typically vague. Sort of you know it when you see it. This makes it challenging to discuss strategically with leadership if/when a category design strategy is necessary. It's less about "Let's create a category because we want to create a category" and more about "We need to create a category because if we don't, we won't maximize our growth potential." Therefore, here is a set of criteria I've found helpful in determining when creating or designing your category is necessary. 1️⃣ You are solving a massive untapped problem in a new way The initial litmus test. You need to have a hard discussion on whether you are solving a problem that is either not known or in a fundamentally new way. If you cannot get buy-in on this first point, the rest doesn't matter. 2️⃣ You don't fit into an existing market category This point isn't "we think we are different," but rather, we are struggling to explain what we do in the context of the existing market landscape. You consistently struggle to communicate what you do against your potential customers' current mental model. 3️⃣ You are Investing and building a differentiated product You are building a product where you struggle to identify competitive threats - either because none exist (most clear case) or because there are different markets where aspects of what you do exist - but not in a single product. 4️⃣ You are leveraging a disruptive business model Outside of (1) - this point may be the most important for designing and winning the category. Often, the best examples of category winners have as much to do with business model innovation as with product innovation. If you are not challenging the status quo on the business model, you may struggle longer-term. 5️⃣ Early market of super consumers - i.e., "fans" This point is telling in terms of "when you should focus on the category." If you have an idea but no "fans" - I'd maintain that you are too early. You want to see strong indicators across 1-4 AND a diehard group of customers who love you. When you are at this point, you can focus on category dominance. 6️⃣ Unique mission-driven culture Do your customers see you as "different," or do they lump you into a set of companies that all sound and look the same? Can you attract talent based on your mission and culture? Last and the most important takeaway. If you answer YES on the above criteria, I maintain that you MUST create or design the category to maximize your growth potential. Not doing it means you are swimming upstream against the market. It shifts the category discussion from a subjective strategy of desires and wants to an objective strategy of need. Assess your situation and let me know what you discover! #categorydesign #b2bmarketing

In tech, second place = you lose. Which is why I help my clients own their category. Like our clients Uber & urban logistics.
 Or like Qualtrics & Experience Management.
 Or Clari & RevOps. And while success is never guaranteed, great strategy gives our clients 𝗳𝗮𝗿 𝗯𝗲𝘁𝘁𝗲𝗿 𝗼𝗱𝗱𝘀 at success. If you want to do the same, the path to leadership starts with a single question: “𝗪𝗵𝗶𝗰𝗵 𝗰𝗮𝘁𝗲𝗴𝗼𝗿𝘆 𝗽𝗹𝗮𝘆 𝘄𝗶𝗹𝗹 𝘆𝗼𝘂 𝗿𝘂𝗻?” There are 4. 𝗖𝗥𝗘𝗔𝗧𝗘 e.g. Salesforce, OpenAI, Uber, Stripe, Google Docs, Figma, Shopify, AWS Category creators invent a completely new product that addresses unmet customer needs. This is the play most people know about (but not always the best move). Choose create if no existing category comes close to your product vision. 𝗧𝗥𝗔𝗡𝗦𝗙𝗢𝗥𝗠 e.g. Tesla, iPhone, Slack, Facebook, Chrome, Zoom Category transformers change an existing category to become its leader. Electric cars existed before Tesla. We had smartphones years before Apple’s iPhone. MySpace was huge before Facebook. These companies took an existing category and changed our image of what it could be - to become its leader.  𝗡𝗜𝗖𝗛𝗘 e.g. LinkedIn, Hubspot, Webflow Niche down so you own a subset of a larger category. This is the easiest, most straight-forward play - and because of this, there’s often less upside. Choose Niche if you don’t have the innovation to create a category or the juice to transform and overtake an existing category leader - but you can identify a segment or mindset in that category with unmet needs. 𝗦𝗢𝗟𝗢 e.g. Notion, Superhuman, Snap Solo is special. These are product and brand experiences that are so totally different, they become a category of one in the mind of the customers. Porsche is an example. Superhuman is another. They aren't #1 in their rational categories but for the right customer, there’s no replacement for what they do. These companies tend to be masters of vibe, voice, look and feel - stylistic things. Notion is a perfect example of how a tech company can win with style, not just features. Choose Solo if you’re building a product in an existing category, but you have an iconoclast founder that has a knack for doing everything in a unique way. Each play requires different strategy, product, and marketing. The goal of running these plays is to someday LEAD a category and become IRREPLACEABLE. Make sure you decide this before you write your strategic narrative. And remember: never mess with junk positioning that has you playing for second. #businessstrategy #categorydesign #startups

How your value fits within a category could make or break a customer’s interest. One of the first things we do when visiting a new site is figure out where this brand fits in our life. Or does it fit at all? Stating a category is a huge part of this equation. Categories give us a quick mental shortcut to understand: ✅ Which part of my job / life this impacts ✅ What type of value to expect from the solution ✅ Where the money to pay for this might come from… 👆 Those first two have a big impact on that initial stay vs. bolt decision. If it’s not clear that this product or service relates to my needs then no amount of features, benefits, or differentiation matter. This is why so many brands use the old eyebrow-copy technique to provide some category context *even before* the main headline (there are SEO benefits too...). The point is this: Categories create the context that customers crave. (alliteration 😀 ) Because of this there are a lot of advantages to leverage a known category. It provides support on both sides of the value coin:  🔄 Establishes a baseline of table stakes value ↔️ Creates context to emphasize points of differentiation Of course, there’s also the option to use that category space to forge something new. There are obvious benefits to owning a new category. In the quest to be top of mind for a specific audience with a specific need, being the only option in a category is appealing. This is the anti-context play. In exchange for owning a unique space, your audience may not understand: ⦿ What you are ⦿ How you fit in their lives ⦿ Which budget line item you fall under. Educating them on those points could be a long, expensive process. Not saying it’s a bad move – just important to know the tradeoffs. No matter which way you go you need a pov on category. It can give you a boost...or help to set you apart. It can make or break the whole connection. No matter what, always remember: Customers crave context. Categories help. #positioning #differentiation #category