Build Your Brand Narrative | Competitive Advantage

The Shifting Landscape of Competitive Advantage for Startups

Historically, possessing a truly unique product afforded startups a considerable period of market leadership. However, this advantage is diminishing rapidly, as evidenced by the swift replication of innovative concepts – consider how Twitter Spaces launched on Android before Clubhouse.

In this evolving environment, the question arises: how can companies maintain a competitive edge knowing that their most compelling features will inevitably be copied?

The Power of Strategic Messaging

Conversion optimization specialist Peep Laja posits that the answer lies in messaging. While features are easily replicated and become commodities, a well-defined and resonant narrative can provide a sustained advantage. He elaborates on this concept in the following interview, emphasizing the importance of developing this narrative from a startup’s earliest stages.

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Laja is the founder of multiple marketing and optimization ventures, including CXL, Speero and Wynter. He recently shared common startup narratives – such as “challenging established norms” or “embracing irreverence” – on Twitter, alongside examples of companies successfully employing these strategies. We invited him to expand on these ideas and offer guidance to startup founders.

(This interview has been condensed for brevity and clarity.)

Product Differentiation is Fading: Why Messaging Matters

Your company’s tagline suggests that “product-based differentiation is becoming obsolete” and advocates for “winning on messaging.” Could you explain the reasoning behind this assertion?

This idea was popularized by David Cancel, CEO of Drift, back in 2017.

Generally, startups compete on either innovation or messaging, and ideally, both. Initially, focusing on innovation – creating something new or significantly improved – is crucial. However, feature-based competition offers only a temporary advantage. Innovation is rarely sustainable; larger companies or other startups will eventually replicate your offerings. Features provide a transient benefit, typically lasting no more than two years. Conversely, a compelling narrative and effective messaging can deliver a lasting competitive advantage.

Startups that boldly compete on their story have a significant advantage, as larger corporations prioritize safety and often appear bland. No one will actively criticize a large company for being cautious, but a startup can intentionally be daring and even polarizing.

The ideal approach is to begin with innovation while simultaneously building your brand. Once competitors achieve feature parity, your brand becomes the deciding factor. Sustained, objective superiority is difficult to achieve, but being objectively worse is unacceptable.

Validating Your Strategic Narrative

You assist startups in researching and validating their strategic narrative. Can you elaborate on this process?

As startups scale, they must shift their communication focus from features to storytelling. This requires a strategic narrative – a compelling explanation of how the world has changed and how the startup provides a solution within this new context. It’s about framing the problem and positioning the startup as the answer.

For example, instead of simply promoting an AI course for marketers, the narrative could emphasize that AI and machine learning are transformative forces reshaping the industry. The message would be: “The future is here, but it’s not evenly distributed. Adapt or be left behind. Marketers must learn AI to remain competitive.” This approach is far more impactful than a feature list like “AI for marketers course. Seven hours of video. Top lecturers.”

This principle guides my own company, Wynter. The SaaS landscape has exploded, with 53 times more companies than a decade ago, and hundreds of tools available in every category – consider email marketing. A striking similarity among competitors is their sameness: they offer virtually identical features. Feature-based differentiation is no longer effective. Companies also look and sound alike. This sameness stems from a combination of similar offerings, poorly defined branding, and indistinct communication. Surprisingly, despite the emphasis on differentiation, companies are becoming increasingly homogenous.

Since feature-based differentiation is fleeting, companies must compete on brand. This is the new reality, and success requires understanding your audience’s needs and ensuring your messaging resonates with them. This is the core value proposition of Wynter, and it aligns with the narrative I’ve described: highlighting how the world has changed and explaining why traditional approaches are no longer sufficient.

Anchoring Success to Real-World Results

What advice would you offer founders on connecting their startup’s success to compelling case studies?

Present concrete evidence of the changing world – supported by data – and then demonstrate how a new strategy is required to succeed. Showcase examples of winners and losers based on their chosen strategies, using these examples as further validation for your approach. For instance, when advocating for product-led growth, provide evidence of its effectiveness as a go-to-market strategy, explaining how it aligns with a world where customers demand immediate product access. Tie your startup directly to these success stories.

Consider the work of HubSpot CTO Dharmesh Shah with community-led growth as another example.

Firstbase, a startup specializing in hardware for remote workers, provides a compelling example. Observe the Twitter feed of its CEO, Chris Herd, and note how he prioritizes selling a narrative – a perspective on the world – rather than simply promoting his company.

Prioritize selling a narrative, a viewpoint on the world. Then, and only then, explain how your company empowers customers to win using this new strategy. The narrative provides context for your features and offerings.

Avoiding Common Pitfalls

How can startups avoid missteps in their narrative development?

Your narrative may fail if it focuses solely on internal company matters rather than broader changes in the external world, or if you attempt to promote a change that isn’t credible. To succeed with branding, you must measure the effectiveness of your narrative.

Testing is straightforward in direct sales environments. During my sales demos, I present the narrative before showcasing the product. If prospects request a copy of my presentation, I know the message is resonating. I also actively solicit feedback, observe nonverbal cues, and gauge engagement. If you don’t engage in direct sales – for example, with product-led growth – you need to conduct message testing through one-on-one interviews or qualitative surveys. Crucially, test your messaging with your actual target audience.

Wynter facilitates both message testing and customer research, allowing you to assess how your messaging is perceived and compare it to competitors.

The Right Time to Focus on Messaging

When should startups begin developing their messaging?

Startups should define their narrative from day one, as innovation is inherently transient. Sustained competitive advantage through innovation alone is rare. Winning on brand is more attainable. Therefore, achieve message-market fit *before* product-market fit. Potential customers will evaluate this. A strong narrative can even create a competitive moat: instead of being perceived as a commodity (which happens when you compete solely on non-innovative features), you develop a story that resonates emotionally with your audience. A moat is established when you can charge a premium compared to competitors. This is unlikely with features alone, as they eventually become commoditized. A strong brand, however, mitigates this risk.

Narrative Evolution

How should a startup’s narrative evolve over time?

Your narrative must adapt as the world changes. Continuous monitoring of external trends and the broader context is essential. The rise of remote work is a prime example, as demonstrated by Lattice’s expansion from a single feature to a comprehensive offering.

This relates to a broader trend: a shift from mass markets to smaller, more focused clusters. We’ve moved from a shared viewing experience to a proliferation of niche content. This benefits startups, as mass-market appeal is often unattainable. However, as they grow, their narrative may need to evolve. A strategic narrative and a brand narrative can coexist, with the former being more dynamic.

Some of the stories I mentioned on Twitter are timeless, but even these may eventually lose their relevance. For example, the “David versus Goliath” narrative may feel inauthentic as you scale. Wise’s initial focus on “standing up for the people” and disrupting bank fees may need to be revisited as it faces its own disruption. Some companies can maintain their original narrative, while others must adapt.

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