Dear SaaStr: Competition is Really Heating Up in Our Market. What Should We Do?
When competition heats up, the first thing to remember is that most SaaS markets aren’t natural monopolies—they’re oligopolies. That means you’re not going to kill your competitors, and they’re not going to kill you, unless you let them. But product-market fit isn’t static.
First, measure it. Win rates (and loss rates) may be the simplest way. Be honest about if you are getting more competitive … or less:
Next, Roll Out a Real Action Plan:
1. Double Down on Your Customers. Make Them Happier.
Your existing customers are your best defense and offense. If they’re happy, they won’t churn, even if your competitors have a better product. Get on a plane, visit your top customers, and show them love. Host customer dinners, conferences, or anything that builds loyalty and community. Happy customers will not only stick around but also advocate for you, which is invaluable when the market gets crowded.
2. Close Feature Gaps Faster. Maybe Much Faster.
If you’re losing deals because of specific feature gaps, don’t panic. Be analytical. Build what you need to close those gaps step-by-step. Communicate clearly with prospects about what’s coming and when. Some will wait for you, and others will believe in your roadmap. This won’t double your growth overnight, but it will improve your win rates over time.
3. Find Your Next 10x Feature
What’s the one thing you can do that’s 10x better than your competitors? At EchoSign, we won deals early on because we were the only cross-platform e-signature solution, and later because of our ease of use and localization. These features gave us a competitive edge for years while others played catch-up. What’s your equivalent? If you don’t have one, build it.
4. Outwork Them. Work Harder. Smarter AND Harder.
You might not want to hear this, but it’s often is the end the only real answer. If your competitors are pushing hard, you need to push harder. That might mean squeezing out an extra 10-20% growth by remixing your team, optimizing processes, or just plain hustling. And moving on from execs and team members that don’t want to. It’s painful, but it can make a huge difference in the long run. Over five years, growing at 100% YoY instead of 85% can mean doubling your business.
5. Stay Calm and Execute
Don’t let the competition distract you. Focus on your strengths, your customers, and your roadmap. Most companies lose because they panic, not because they’re out-competed. Stay focused, stay calm, and execute relentlessly.
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