Selling Improved Versions of Existing Tools? not that Easy!
A more effective strategy is often to pursue entirely new approaches.
Customer Question:
Do you think it's a waste of time to build an alternative to a large SaaS product? There are so many potential differences that could make it stand out. Why not build a better product? A cheaper one? A simpler version? Or one with fewer or more features?
Answer:
You're overlooking the friction involved in switching from one solution to another. To be successful, an alternative must be significantly better than the existing option—improvements must be substantial, not incremental. This is because users face both real and perceived costs when changing tools.
A more effective strategy is often to pursue entirely new approaches—either by targeting underserved niches or by addressing areas where conditions are shifting rapidly, and your solution can offer at least a 10x improvement in convenience or value.