The difference between niche and cage in B2B SaaS positioning

published on 05 February 2026
Niche vs cage in B2B SaaS positioning
Niche vs cage in B2B SaaS positioning

Haven’t you heard?

  • "Go narrower!!"
  • "Don’t serve everybody."
  • "Don’t speak to all personas." 

Someone recently shared...

Industry veterans are advising B2B SaaS founders to slice the market ultra thin.

Like CRM for devops...

What’s next?

CRM for people with six anklets on their left foot???

That’s what I call a positioning cage.

And it’s built by people who are either amateur or insecure...

Amateur because...they simply don’t know how to craft a story that cuts across.....verticals, use cases, company sizes, and buyer personas.

Insecure because...they have a zero-sum view of the world. And they feel new tools cannot make space in an already crowded market...

Don’t believe them blindly! Don’t lock yourself into a cage (thinking it is a niche). Don’t start believing you are a kitten when you might actually be a cub

There is a difference...between a niche and a cage!

Let me explain with two examples...

(Real client cases, but anonymized.)

Example 1: Conversational messaging SaaS

Sells to and retains customers in multiple verticals:

  • ✅ Healthcare
  • ✅ Finance
  • ✅ Real estate
  • ✅ Education

But their positioning was turning more of a cage.

"Conversational messaging for HEALTHCARE"

(Positioning cage 🚫)

So we connected the dots of pain:

  • Healthcare: Patient-doctor relationship
  • Finance: Relationship managers
  • Real estate: Broker-buyer relationship
  • Education: Teacher-student relationship

And connected the pain to USP:

  • PAIN = Trying to build and nurture lifelong relationship in a digital world
  • USP = Messaging solution that never forgets the context from first touch to lifelong.

And arrived at their niche:

"Messaging for RELATIONSHIP-DRIVEN SERVICES"

(Positioning niche ✅)
Example 1: Positioning cage versus niche
Example 1: Positioning cage versus niche

Example 2: D2C logistics solution

Sells to and retains customers in many sizes & verticals.

Sizes:

  • ✅ Start-ups
  • ✅ Mid-sized
  • ✅ Enterprises

Verticals:

  • ✅ Electronics
  • ✅ Fashion
  • ✅ Beauty
  • ✅ Etc...

But their positioning was restrictive.

"D2C logistics for ENTERPRISE"

(Positioning cage 🚫)

So we connected the dots of pain:

  • Electronics: Utility + preference
  • Fashion: Comfort + style
  • Beauty: Skin compatibility + choice

And connected the pain to USP:

  • PAIN = Customer loyalty amidst competition
  • USP = Controlling the fulfilment experience on the road, not just on the screen

And arrived at their niche:

"D2C logistics platform for LIFESTYLE BRANDS"

(Positioning niche ✅)
Example 2: Positioning cage versus niche
Example 2: Positioning cage versus niche

This is not rocket-science.

It’s positioning by insights instead of “best practices”.

Takeaway

B2B SaaS positioning becomes a cage when it is based on formulas instead of insights.

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