SaaS startups aiming to win customers from market leaders focus on matching their competitors’ presence and easing customer transitions, according to saastr.com. They emphasize being visible where the leading brands are active, such as tradeshows, podcasts, and newsletters, while also offering hands-on support like contract buyouts, data migration, and team onboarding to attract customers during renewal cycles.
The approach involves not avoiding spaces dominated by larger competitors but actively engaging in the same channels to remain top of mind. SaaS companies often lose deals initially but can capitalize on renewal periods when customers experience dissatisfaction. By positioning themselves as a clear second choice and providing practical assistance, startups create opportunities to convert customers who might otherwise stay with the incumbent.
This strategy matters because over 80% of customers tend to buy from the top brand, but not all. The remaining customers seek innovation or solutions to unresolved problems and look for alternatives in familiar venues. Being present alongside market leaders allows challengers to capture attention and build trust, increasing their chances of winning business during competitor renewal failures or service issues.
Jason Lemkin, founder of SaaStr, highlighted that startups should both stake out their own marketing whitespace and maintain visibility where competitors operate. This dual approach helps startups remain relevant and ready to engage customers when renewal opportunities arise, a tactic that can influence customer decisions in a competitive SaaS market.