When entering a space like internet security, you'd think that the best bet would be to rely on a stoic and staid brand. That is, of course, unless everyone else in your market is boring, difficult to work with, and doesn't provide any emotional value to the customer.
Dashlane is a password manager (I use them personally so I don't spend hours trying to get all of my passwords in a row). I've gotta say, having used their top competitor, LastPass, it's evident what makes Dashlane's positioning so potent: they made password protection snazzy and cool.
LastPass, the only major competitor to Dashlane, goes for $3 per month for the same features as Dashlane's $4 per month premium personal plan. Something they seem to be totally ok with given that they are pushing for a higher-end experience.
Smart move, here's why:
They win on a more refined experience instead of driving down prices within their market. Think about it, both of these softwares do the same thing, yet Dashlane earns an extra dollar over LastPass users. Sure, they might have less customers, but they earn 33% more money per user. In turn, LastPass' 16M users at $3 per month earn $48M compared to Dashlane's 10M users that earn them $40M in monthly revenue.
If Dashlane had gone the route of charging a dollar less their revenue would be cut in half. But by positioning the brand to be a premium alternative and an experience worth paying extra money for, they can compete. Clearly, there is some serious validity to playing up in a "downgraded" market.
With the numbers established, let's take a look at some brass tacks: who is this brand for and why they care.
This is all speculation, but given that I'd seen ads for Dashlane on several design-related YouTube channels, I'm guessing Dashlane's ideal user is someone in the tech scene with money to spare and willing to pay for an elevated experience. Why this matters to this user is the fact that they don't have time to fiddle in run-of-the-mill tech like LastPass and instead yearn for something fresh and easy to use. They are neophiles with a taste for well-designed software. Paying the extra dollar is worth the boost in esteem and status. Dashlane built their brand around this.
Compared to the consumer LastPass attracts (the person looking for a conservative, affordable option), this tech-savvy user base allowed Dashlane level up the market.
This is the fourth article in a small series of punches surrounding April Dunford's Obviously Awesome! and how good positioning relates to good branding. Please read the first article, second article, and third article, before jumping into this one.
You know what the alternatives are, you know the special things that your startup unique, and you've established what makes that valuable. All of these are great, but fall to pieces if no one buys.
The first approach most startups will take in finding customers is shotgunning any and every kind of market. Decent plan of action if you have time to experiment. Truth is, hardly anyone is capable of making this happen effectively, especially when concerned with time. It makes sense to be hyper-focused and test with less variables that you can either pursue further or pivot away from.
Because you need to communicate and trigger a response from someone who cares. Someone who feels that the solution you bring to the table is worth more than the dollars they will pay for it.
How do you do that? You think about them and craft messages around them that fit within their lifestyle.
What kind of person are they? Where do they work? What do they do for fun? What about their life sucks that they want to fix? Your goal is to get to know someone and find out if the solution you provide is of use to them. If not, it might be time to switch.
Tactically, you can do this with interviews within a particular segment or you can think of aspirational personas. The point is to have someone to make stuff for and be targeted. You're chances of hitting something become a lot higher if you know what you're aiming for.
In layman's terms, it means that certain things remind us of other things. Whether we like the certain thing is dependent upon whether we like the thing it reminds us of. More importantly, this varies from person to person and tribe to tribe.
After defining your software brand's personality, look, and feel, you can begin the hunt.
The hunt? Yes! The hunt.
The hunt for things that resemble those traits. They can be anywhere, you just have to find them. If possible, your ideal user will already have quite a few that you can reference. They're found in the things they eat, the clothes they wear, the gadgets they use, the movies they watch, the people they admire, and the beliefs they adhere to.
If you can find these things, apply their look, their language, and their attitude, then you are using semiotics to your advantage.