Podcast Summary: The Marketing Millennials – Episode 320 Creating a Market Category with Carrie Hansen, CMO at Robin

Introduction to Category Creation

In Episode 320 of The Marketing Millennials, host Daniel Murray delves into the strategic process of category creation—a marketing approach that goes beyond competing in existing markets to defining new ones. Joining him is Carrie Hansen, Chief Marketing Officer at Robin, a company revolutionizing flexible work environments. Robin's innovative approach has allowed it to carve out its own category by transforming office spaces into valuable destinations, making commutes worthwhile.

Why Create a New Category Instead of Competing in an Existing One?

Carrie Hansen begins by addressing the fundamental question: Why create a new market category instead of battling in an established one?

“There are two really good reasons to push for creating a category, and they have two very different strategies behind them.” [01:55]

Hansen explains that in the B2B SaaS landscape, new innovators often face giants. By redefining the competitive landscape, companies can question the status quo and position themselves uniquely. She cites HubSpot's successful creation of the "Inbound Marketing" category as an example, although HubSpot remained within the realms of email marketing and CRM.

For enterprise-focused companies like SailPoint, creating a new category also involves gaining recognition from industry analysts such as Gartner’s Magic Quadrant or Forrester’s Wave. This acknowledgment is crucial for large corporations that rely on these reports for procurement decisions, ultimately enabling higher contract values.

Signs to Consider Category Creation

Carrie elaborates on indicators that signal a company should consider creating a new category:

“If you're competing against those big companies, if you hear yourself say, you know, we approach this a different way or there's a different way to solve the same problem, that's probably when you really need to create a new category.” [04:16]

Key signs include:

1. Consistent Losses to Major Competitors: Hearing terms like "the 500-pound gorilla" indicates the dominance of an established player.
2. Unique Problem-Solving Approaches: Repeatedly approaching problems differently suggests a potential for category definition.
3. Early Conversations with Prospects: Being able to frame solutions differently from the outset can establish a new narrative early.

Steps to Start Category Creation Internally

Carrie outlines the three foundational steps for initiating category creation within a company:

1. Assess the Need: Determine whether the goal is to own competitive discussions or to gain analyst recognition.
2. Define the Problem and Solution: Clearly understand and articulate the problem your product solves differently without mentioning the product itself.
3. Develop a Category Definition: Agree internally on what the new category entails and how your product fits within it.

“Understanding what is it that you're trying to solve what's the problem, what is the market, what was the old way of doing it and what's this new way.” [05:34]

This approach ensures that the category is defined by its unique value proposition rather than the product features alone.

Marketing a New Category and Balancing Company Marketing

Creating a new category requires a dual-focused marketing strategy: promoting both the category and the company. Carrie explains the importance of positioning the company as the thought leader in the new category while also marketing its own strengths.

“Your thought leadership efforts are really about showing like you're the visionary of the market. This is why you need something new.” [08:02]

Balancing these aspects involves thought leadership that emphasizes visionary insights without overtly pushing the product until later stages. Maintaining the category focus ensures that the narrative remains about the broader market transformation rather than just the company's offerings.

Thought Leadership in Category Creation

Carrie underscores the role of thought leadership as a tactical tool in category creation:

“Thought leadership, if you look at it from a tactical PR perspective, top of the funnel perspective, it would be maybe putting out a byline to say, here's where I think the market's going.” [09:59]

Tactical approaches include:

• Publishing By-Lines and Industry Reports: Sharing insights and research to establish authority.
• Webinars and Panels: Hosting discussions that highlight the new category and its significance.
• Customer Collaborations: Showcasing how early adopters are benefiting from the new category.

This strategy not only promotes the category but also positions the company as the innovator driving the change.

Creating and Refining Positioning Statements

A critical aspect of category creation is developing a clear and concise positioning statement that contrasts the new category with the old way of doing things. Carrie provides practical advice on crafting this statement:

“You can start sort of instead of saying you have this deficit, you can actually say ... we're focusing on what really is your pain point and we're solving it this way.” [16:27]

Effective positioning involves:

• Listening to Customer Feedback: Understanding why deals are won or lost to identify gaps in the current market.
• Framing the New Approach: Clearly articulating how the new category addresses existing problems differently and more effectively.
• Admitting and Reframing Weaknesses: Transparently addressing areas where the new approach differs from the old, turning potential weaknesses into strengths.

Engaging with Industry Analysts

For enterprise-level category creation, engaging with third-party analysts is essential. Carrie emphasizes the importance of:

“Talking to the analysts on a regular basis, not just briefing them about your product, but sort of explaining to them, this is why we think that there's this new category creation.” [17:18]

Key steps include:

• Building Relationships: Regular interactions with analysts to discuss the new category.
• Providing Proof Points: Sharing customer success stories and market research to validate the new category.
• Staying Consistent: Maintaining a long-term commitment as analyst recognition often takes years.

Maintaining Category Momentum

Once a new category is established, sustaining momentum is crucial to maintain leadership:

“You always have to be innovating. ... You have to keep telling that story, going back to the CTO, always talking five years down the road.” [30:40]

Strategies include:

• Continuous Innovation: Regularly updating the product to stay ahead within the category.
• Ongoing Storytelling: Consistently communicating the evolving nature of the category and the company’s role in it.
• Engaging New Entrants Positively: Embracing new competitors as validation that the category is growing, and collaborating to further establish it.

Adapting to Market Changes: Robin’s Case

Carrie shares how Robin has adapted its category focus in response to the shifting landscape of remote and hybrid work:

“Robin is a workplace operations platform... As we get farther into the place where everybody is back in some form or fashion, ... really embracing that culture.” [28:16]

Key takeaways include:

• Sticking to Core Values: Despite market changes, maintaining the fundamental goal of fostering connections and collaboration.
• Flexible Storytelling: Adapting narratives to reflect current workplace trends while emphasizing enduring principles.
• Predictive Marketing: Anticipating future changes and preparing solutions in advance to stay relevant.

Rapid Fire Insights

Towards the end of the episode, Carrie participates in a rapid-fire segment, highlighting key insights:

1. One Word Describing Category Creation: Unique
2. Most Underrated Tool for Shaping Marketing Narrative: Blogs
3. Thought Leader or Book That Shaped Thinking on Category Creation: Peggy Noonan’s political speechwriting, specifically "Gorbachev, tear down that wall."
4. Biggest Misconception About Category Creation: That it can be achieved in just a few months.
5. Hardest Part of Getting a Category to Stick: Staying focused internally.
6. One Thing Wish to Know Before Starting Category Journey: Understanding competitors’ strategies.
7. Marketing Hill to Die On: Every marketer should understand how a business works and possess strong writing skills.

Final Thoughts

Carrie Hansen concludes by emphasizing the importance of personalized storytelling and maintaining authenticity in thought leadership, especially in an era where trust in institutions is waning.

“People trust people. They always have.” [24:38]

She advocates for company leaders, particularly founders or C-suite executives, to take the forefront in narrating the new category, thereby fostering genuine connections and trust with the audience.

Conclusion

Episode 320 of The Marketing Millennials offers a comprehensive exploration of category creation, providing actionable insights from Carrie Hansen of Robin. From identifying the need for a new category to sustaining momentum through continuous innovation and authentic thought leadership, this episode serves as a valuable guide for marketers aiming to redefine their competitive landscape and lead their markets into new territories.

For more insights and detailed strategies, tune into the full episode on Apple Podcasts, Spotify, YouTube, or your preferred podcast platform.