"What do we actually do?" – The hidden cost of fuzzy positioning

B2B Positioning Strategy: Discover why 'fuzzy' messaging causes 40-60% of deals to stall in 'No Decision' and how CEOs can fix the 'Digital Transformation' trap to accelerate revenue.

Fuzzy positioning isn't a marketing annoyance, but a revenue killer. Learn how to fix the "My customers have no idea what we acutally do" trap and define a position that closes deals.

What are common mistakes in B2B Positioning?

Mistake 1: Positioning Your Roadmap Instead of Your Product

What it looks like: "We're building an AI-powered predictive analytics platform for enterprise resource planning."
The problem: You're selling vaporware. Buyers need solutions today, not promises for Q3 2026.
The fix: Position what you can deliver and prove this quarter.

Mistake 2: Fear of Narrowing (The "TAM Trap")

What it looks like: "We can't just target Fintech — we'd be leaving money on the table!"
The problem: You're so busy chasing everyone that you win no one.
The fix: Apply the Bowling Pin Strategy — dominate one niche, then expand to adjacencies.

Mistake 3: Copying Competitor Language

What it looks like: Every company in your space says "AI-driven insights" or "seamless integration."
The problem: You blend into the noise. Buyers can't tell you apart.
The fix: Find your unique angle. If everyone zigs, you zag.

Mistake 4: Leading with Features, Not Outcomes

What it looks like: "Our platform has real-time dashboards, API integrations, and role-based access."
The problem: Buyers don't buy features, they buy outcomes.
The fix: Lead with the pain you kill, then explain how features deliver that outcome.

Mistake 5: Assuming Your Team Understands the Positioning

What it looks like: The CEO knows the positioning, but Sales uses different messaging, and Marketing runs generic campaigns.
The problem: Market hears mixed messages. Brand integrity collapses.
The fix: Document positioning in a Messaging Framework. Train every team member. Audit consistency quarterly.

Positioning Implementation Checklist

Use this checklist to audit and fix your positioning:

  • [ ] Clarity Test: Can a new Sales Rep explain what you do in under 60 seconds?
  • [ ] ICP Definition: Have you documented your Ideal Customer Profile with 5+ specific criteria?
  • [ ] Differentiator Audit: Can you list 3 capabilities competitors don't have (verified, not assumed)?
  • [ ] Value Mapping: Have you translated each key feature into a business outcome?
  • [ ] Category Choice: Have you explicitly chosen which market category you compete in?
  • [ ] Messaging Consistency: Do your website, sales decks, and ads use the same positioning?
  • [ ] Sales Alignment: Do your Sales Reps use the official positioning, or do they "go rogue"?
  • [ ] Lead Quality Check: Are 70%+ of your inbound leads actually in your ICP?
  • [ ] Win/Loss Analysis: Do you track why deals are won, lost, or end in "No Decision"?
  • [ ] Positioning Documentation: Is your positioning captured in a Playbook (not just in the founder's head)?

Scoring:

  • 8-10 checked: Your positioning is sharp
  • 5-7 checked: Positioning needs refinement
  • 0-4 checked: Positioning is fuzzy; start with Step 1 of the framework

What is vague positioning?

Vague positioning is when a B2B company's value proposition is too broad or vague to communicate what they do, who they serve, and what problem they solve. This costs companies 40-60% of potential deals (lost to "No Decision"), forces price competition, and destroys valuation by making the business appear commodity rather than strategic.

The solution is the 5-Step B2B Positioning Framework:

  1. Let go of product baggage
  2. Isolate true differentiators
  3. Map features to business value
  4. Define best-fit customers, and
  5. Choose your market context.

The CEO's Nightmare: The "My customers have no idea what we acutally do"

Let me tell you a story about a company I worked with recently. It illustrates the single most expensive problem in the B2B mid-market.

They were a successful, tech-heavy consultancy with brilliant engineers and deep expertise. When I asked the CEO what they did, he pointed to their tagline: "We are Digital Transformation Consultants."

It sounded professional. It sounded big. But it was killing them.

Because when "Digital Transformation" means everything, it means nothing.

They offered knowledge base integrations, intranets, extranets, and cloud consulting. They did DevOps engineering and app development. They built complex engineering platforms. When AI became a buzzword, they added "AI Solutions" to the menu, even though nobody on the team had shipped an AI product.

The result was paralysis:

  • Existing customers loved them for their specific technical expertise in the one niche they knew
  • New prospects were overwhelmed, couldn't cut through the noise of 50 different service offerings
  • Sales calls weren't sales calls; they were educational seminars. Reps spent the first 20 minutes just explaining what the company actually did
  • Internal confusion was rampant. For one flagship product, an engineering platform—even their own employees couldn't explain its value proposition in one sentence

This isn't just a "branding issue." It's a capital destruction issue.

When your market context is fuzzy, you force your buyer to do the hard work of figuring out why they should care. Most won't bother. They'll ghost you, or they'll compare you to a cheaper commodity shop because they can't see the strategic value.

What is Fuzzy Positioning?

Definition: Fuzzy positioning occurs when a B2B company's market positioning lacks clarity about who they serve, what specific problem they solve, and what differentiates them from alternatives. Instead of occupying a clear category in the buyer's mind, the company attempts to be "everything to everyone," resulting in diluted messaging that confuses prospects and lengthens sales cycles.

Common indicators:

  • Generic taglines ("Digital Transformation Consultants," "Solutions Provider")
  • Service offerings spanning 5+ unrelated capabilities
  • Sales reps needing 15-20 minutes to explain what the company does
  • High volume of unqualified leads from diverse industries
  • Frequent deal outcomes of "No Decision" rather than win/loss

The Financial Impact: Why "Fuzzy" is Expensive

Most CEOs treat positioning as a marketing exercise, something to do with logos and taglines. In reality, positioning is business strategy. It dictates your pricing power, sales cycle length, and win rate.

If you cannot articulate your value in three seconds, you're paying a "Confusion Tax" on every single deal.

1. The "No Decision" Loss (40–60% of Deals)

Research data: Studies by CSO Insights and Forrester consistently show that 40% to 60% of B2B sales cycles end in "No Decision", meaning the prospect doesn't choose any vendor and sticks with the status quo.

Root cause: Root cause: Risk aversion. As outlined in our 90-Day Roadmap to a Predictable Pipeline, when buyers cannot clearly understand exactly what problem you solve and exactly what the outcome will be, they won't risk their political capital on you.

The positioning connection: Fuzzy positioning triggers buyer fear because it forces them to translate vague claims ("We drive digital transformation") into concrete business outcomes. Most buyers lack the time or expertise to do this translation work, so they default to doing nothing.

Cost calculation example:

  • 100 qualified opportunities per year
  • 50 end in "No Decision" due to positioning confusion
  • Average deal size: €50,000
  • Annual revenue loss: €2.5M

2. The Price War Trap

Principle: Differentiation is the only defense against commoditization.

Positioning comparison:

Positioning Type Market Context Competitive Set Pricing Model
Broad (Fuzzy) "We are a Software Development Shop" Every dev shop globally, including €20/hour offshore vendors Hourly rates, constant downward pressure
Narrow (Sharp) "We build high-security payment infrastructure for Fintechs" 3-5 specialized peers, no commodity alternatives Value-based, project pricing with 30-50% premiums

Why this happens: Fuzzy positioning forces you to compete on price because you haven't given the buyer any other metric to judge you by. When buyers can't assess strategic value, they default to cost comparison.

Industry benchmark: Companies with clear niche positioning command 2-3x higher pricing than generalist competitors in the same technical category (Source: B2B Positioning Research, April Dunford, "Obviously Awesome").

3. The ROI Black Hole

The mechanism: You can pour millions into performance marketing, but if your landing page greets traffic with generic "Solution Provider" copy, you're burning cash.

Conversion rate impact:

Positioning Clarity Typical Landing Page Conversion Rate Cost per Qualified Lead
Fuzzy positioning 0.5-1.5% (high bounce rate) €300-800
Sharp positioning 3-5% (message-market fit) €80-150

Why this matters: You're paying to rent eyeballs that bounce immediately because they don't see themselves in your story. This is the core of the Resource Efficiency Paradox: companies struggle to prove Marketing ROI because they're scaling traffic before they've nailed the message.

Marketing efficiency calculation:

  • €10,000 monthly ad spend
  • Fuzzy positioning: 12-15 qualified leads (€667-833 per lead)
  • Sharp positioning: 50-65 qualified leads (€154-200 per lead)
  • Efficiency gain: 4-5x improvement in CAC

The Positioning vs. Messaging Distinction

Positioning (Strategy) Messaging (Execution)
Who you serve The words you use on your website
What problem you solve Ad copy and sales deck language
What category you compete in Email campaigns and social posts
Your differentiated value Landing page headlines

Critical insight: If your positioning is fuzzy, no amount of clever copywriting will save you.  Messaging is how you communicate positioning, but as we explore in The Messaging Gap, if the positioning itself is unclear, the messaging just amplifies the confusion.

The Symptoms: Diagnosis of a "Fuzzy" Company

How do you know if you're suffering from this? You don't need a consultant to tell you "just look at your sales team."

Symptom 1: The "Rogue" Sales Force

Your Marketing team produces high-level brand decks about "Innovation" and "Partnership."

Your Sales team takes one look, laughs, and creates their own slide decks.

Why? Because the marketing fluff doesn't survive contact with a real buyer. The Sales Rep has to invent a pitch that actually explains the product.

The Cost: Your market hears two different stories. Brand integrity collapses.

Symptom 2: The "Everything to Everyone" Syndrome

Like the "Digital Transformation" consultancy, you're terrified of missing out on a single lead. So you list every feature, every service, and every possible use case on your website.

You think you're casting a wide net.

In reality, you're signaling a lack of expertise. Specialists get paid premiums; generalists get paid market rates.

Symptom 3: The Feature Dump

Your website lists what you build (features), not what problem you kill (value).

  • Feature: "We offer automated cloud governance"
  • Value: "We stop your engineers from accidentally spending €50k on AWS over the weekend"

If your positioning relies on the customer translating your features into their value, you've already lost.

The 5-Step B2B Positioning Framework

At Nima Labs, we use this systematic approach in Phase 1 (Diagnosis & Strategy) to fix fuzzy positioning in 30 days, based on the B2B Positioning System.

Step 1: Let Go of "Product Baggage"

The problem: Most companies position the product they intended to build five years ago, or the vision they have for five years from now, not what they have today.

The fix: Conduct an honest audit of what your product does right now that is undeniably awesome.

Framework questions:

  • What can your product do today that prospects care about?
  • What features do paying customers actually use (vs. roadmap promises)?
  • What capabilities are proven, not theoretical?

Real example: A client wanted to position as an "AI Company" because AI was trending. But their product was actually the best Engineering Knowledge Base on the market. We had to kill the "AI" dream to sell the "Knowledge" reality. Result: Deal velocity increased 40% within 60 days.

Step 2: Isolate Your True Differentiators

Definition: A differentiator is a capability you have that competitors (and manual alternatives like Excel or interns) absolutely do not have.

The test: Stick to facts, not opinions.

Differentiator examples:

Positioning (Strategy) Messaging (Execution)
Who you serve The words you use on your website
What problem you solve Ad copy and sales deck language
What category you compete in Email campaigns and social posts
Your differentiated value Landing page headlines

Why this matters: Vague claims like "innovative" or "best-in-class" are positioning poison. They force buyers to do the work of figuring out what makes you different.

Step 3: Map Features to Business Value

The translation framework: Most engineering-led founders can articulate features but struggle to connect them to business outcomes.

The Value Mapping Table:

Technical Feature Business Value (Buyer Language)
"Our platform has role-based access control" "You can pass your ISO 27001 audit without hiring a €50k consultant"
"We offer automated cloud governance" "We stop your engineers from accidentally spending €50k on AWS over the weekend"
"99.99% uptime SLA" "Your revenue operations never go dark during peak buying season"

The pattern: Feature describes "what it is." Value describes "what problem it kills."

Why buyers care: CFOs and CTOs don't buy features, they buy risk mitigation, cost reduction, and revenue acceleration.

Step 4: Define Your "Best-Fit" Customers (ICP)

The ICP narrowing process: Who cares deeply about the specific value you deliver?

Example progression:

Too Broad (Fuzzy) Still Too Broad Sharp (Ideal)
"B2B companies" "Tech companies" "CTOs at Fintech Scale-ups (Series A-C) who are preparing for SOC 2 compliance before their next funding round"

The niche test: Your positioning is sharp enough when you can name 50-100 companies that perfectly fit your ICP criteria.

Objection handling: "Won't this reduce our TAM?" Yes, theoretically. But it will drastically increase your capture rate. It's better to own 80% of a €50M niche than 0.01% of a €5B generic market.

Step 5: Choose Your Market Context

Market context principle: The category you choose frames the buyer's expectation of price, delivery model, and value.

Category comparison:

Category Label Buyer Expectation Pricing Model Sales Cycle
"Consultancy" Hourly rates, time-based engagement €150-300/hour 3-6 months
"Platform" Subscription, self-service + support €500-5,000/month 1-3 months
"Growth Partner" Outcome-based, revenue share % of pipeline generated 1-2 months

Strategic decision: Choose the category where you can win; not the one you wish you competed in.

Example: If you're positioned as a "Consultancy" but you've built a platform, you're leaving 10x pricing on the table. If you're positioned as a "Platform" but you deliver high-touch services, buyers will expect self-service pricing.

The Result: Radical Clarity (Before vs. After)

When you apply this system, the shift is immediate. Sales cycles shorten because you skip the 20-minute explanation. Prospects "get it" instantly.

Element 📉 Fuzzy Positioning (Before) 📈 Radical Clarity (After)
Positioning Statement "We are a Digital Transformation Consultancy." "We modernize legacy banking infrastructure for Fintechs."
Service Focus "We offer AI, Cloud, Apps, and Strategy." "We build the engineering platforms that scale your app."
Sales Pitch Time 20 minutes explaining company history. 2 minutes diagnosing the prospect's pain.
Buyer Reaction "Sounds expensive/vague. Let me think about it." "That's exactly my problem. How do we start?"
Competition Everyone (Price War). None (Category of One).

The Valuation Impact: Positioning as a Financial Asset

Valuation principle: Investors and acquirers pay premiums for Predictable Pipeline Systems — not businesses dependent on founder presence or external agencies.

The Acquirer's Three Questions

When evaluating a B2B company for acquisition, buyers ask:

Question Fuzzy Positioning Scenario Sharp Positioning Scenario Valuation Impact
1. How do you generate revenue? "We work with various industries and adapt our services to each client's needs." (Risk: Unclear/unrepeatable model) "We serve CTOs at Series A-C Fintechs preparing for SOC 2 compliance. 80% of our deals follow this pattern." (Asset: Clear, repeatable sales motion) -20% to -30% vs. +15% to +25% multiple
2. Can this scale without the founder? "Our CEO needs to be in most sales calls to explain our approach." (Risk: Founder-dependent business) "We have documented positioning in our Sales Playbook. New reps close deals within their second month." (Asset: Systematized sales process) Significant discount or deal killer vs. Premium valuation
3. How defensible is your market position? "We compete with general IT services firms on price and relationships." (Risk: Commodity business with no moat) "We're the only vendor with German healthcare compliance certification for this use case." (Asset: Defendable niche with barriers to entry) Lower multiple vs. Premium multiple

Real-World Valuation Example

Company A (Fuzzy):

  • Revenue: €5M
  • Positioning: "Digital Transformation Consultancy"
  • Multiple: 2.5x revenue = €12.5M valuation

Company B (Sharp):

  • Revenue: €5M
  • Positioning: "Compliance automation for Fintech scale-ups"
  • Multiple: 4.0x revenue = €20M valuation

Difference: €7.5M in enterprise value, purely from positioning clarity.

Why Investors Pay Premiums for Sharp Positioning

1. Predictable CAC: Clear positioning means consistent cost-per-acquisition across channels
2. Higher Win Rates: Focused messaging converts at 3-5x higher rates than generic pitches
3. Pricing Power: Niche positioning allows value-based pricing vs. hourly rate commoditization
4. Lower Churn: When you serve a specific ICP, product-market fit is stronger
5. Scalable Sales: New reps can execute documented positioning without founder involvement

Investment thesis translation: Sharp positioning = lower risk + higher growth potential = premium valuation.

Stop Confusing Your Customers

If you look at your website today and see "Solutions," "Transformation," or "Empowerment" without a concrete "Who" and "What," you have a positioning problem.

You don't need to rewrite the copy. You need to fix the strategy.

Call to Action for a 30 min Clarity Audit Call. Enablement OS provides marketing teams with the structure, processes, and skills to achieve predictable pipeline growth in up to 90 days through clear positioning, messaging, and processes.

FAQs

How do I know if my positioning is "fuzzy"?

The Sales Call Test: If your sales team spends the first 15 minutes explaining what you do and who you are, your positioning is failing.

Other diagnostic signals:

  • You attract a wide variety of bad-fit leads from unrelated industries
  • Deals frequently end in "No Decision" rather than win/loss
  • Your Sales Reps create their own pitch decks instead of using marketing materials
  • When asked "What do you do?" your team gives inconsistent answers
  • Your average sales cycle exceeds 6 months for mid-market deals
  • Prospects ask "How are you different from [generic competitor]?"

Quantitative threshold: If fewer than 70% of your inbound leads match your Ideal Customer Profile, your positioning is too broad.

Is positioning just a marketing slogan?

No. Positioning is business strategy.

Positioning (Strategy) defines:

  • Who you serve (ICP)
  • What problem you solve (Value Proposition)
  • What category you compete in (Market Context)
  • How you're differentiated (Unique Capabilities)

Messaging (Marketing) defines:

  • The words you use on your website
  • Your ad copy and sales deck language
  • Email campaigns and social postsLanding page headlines

The hierarchy: Strategy → Positioning → Messaging → Tactics

Example: Nike's positioning is "Athletic performance for everyone." "Just Do It" is messaging that expresses that positioning. Marketing executes positioning; Strategy defines it.

We offer many services. Can we really position as one thing?

Yes, and you must. While you can sell multiple services, you must position the company around a singular value proposition or a "Gateway Product." This strategy focuses on solving ONE high-value problem exceptionally well to win the initial deal, and then cross-selling additional services afterward. The rule is simple: If you try to position everything, you sell nothing.

How long does it take to fix positioning?

The typical timeline is 30 days for strategic clarity and 60–90 days for full implementation.

  • Phase 1 (Days 1-30): Strategy Development (Interviews, ICP definition, Positioning framework workshop).
  • Phase 2 (Days 31-60): Messaging Implementation (Website updates, Sales deck revisions, Team training).
  • Phase 3 (Days 61-90): Market Testing & Iteration (Campaign validation, Win/loss analysis, Messaging refinement).
Will narrowing our positioning reduce our total addressable market (TAM)?

Short answer: It will reduce your theoretical TAM but drastically increase your actual market capture.

  • Example Math: Owning 80% of a €50M niche with a 25% close rate generates €10M in captured revenue, which is significantly more than capturing 0.01% of a €5B broad market with a 5% close rate (€2.5M).
  • Why it works: Focus leads to higher win rates, premium pricing, better referrals, and lower Customer Acquisition Costs (CAC). You can always expand later using the "Bowling Pin Strategy."
What if we've already invested heavily in our current brand identity?

Positioning isn't about throwing away your brand; it's about clarifying what you stand for. Most elements, like your logo, brand colors, and company name, typically stay the same. The change is in the strategic language (tagline, homepage messaging, value proposition) to ensure your existing brand awareness becomes more valuable when people finally understand what you actually do.

How do we align our entire team on the new positioning?

This requires a systematic, documented approach (like the Enablement OPS program):

  • Stakeholder Interviews to surface disagreements.
  • A Data-Driven Workshop to collaboratively agree on the ICP and Value Proposition.
  • Documentation in a Positioning Playbook.
  • Team Training & Rollout to ensure Sales and Marketing are executing the same, consistent messaging. The key is making the positioning a system that the entire team can execute, not knowledge held by one person.
Can positioning change as our company evolves?
  • Yes, but it should be strategic evolution, not random drift. You should evolve positioning when you've dominated your initial niche (The Bowling Pin Strategy), your product capabilities fundamentally change, or market conditions shift. Random changes confuse the market; deliberate evolution builds authority.
  • What's the difference between positioning and messaging?
  • Positioning is the Strategy (Who, What problem, What category). It is foundational, long-lived (2-3 years), and owned by the CEO/Leadership team.
  • Messaging is the Execution (The words, the ad copy, the headlines). It is tactical, refreshed often, and owned by the Marketing team.
  • How do I convince my leadership team that positioning is worth the investment?
  • Frame it as a financial investment based on three points:
    • Show the "No Decision" Cost: Calculate the € millions lost annually due to the 40–60% of deals that end in confusion (high ROI on fixing this).
    • Present the "Rogue Sales Deck" Evidence: Show leadership the inconsistent, off-brand pitches their sales team is forced to invent.
    • Frame it as Valuation Protection: Emphasize that acquirers pay premiums for businesses with clear, defensible, and repeatable sales systems, which is what sharp positioning provides. The cost of inaction (the "Confusion Tax") exceeds the cost of fixing it.
  • Share this post
    Mario Schäfter Gründer und Geschäftsführer von Nima Labs.
    Mario Schafer
    Founder, Nima Labs