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Hello my friend,

These days Im helping a Series A dev tool startup in growth and I thought now is a good time to talk about the debate between attributes and user personas. Traditional marketing strategies have long emphasized the importance of user personas—detailed profiles that represent a segment of your customer base.

However, as we delve deeper into the complexities of modern business, particularly in the SaaS industry, the limitations of user personas become more apparent. Instead, focusing on customer attributes, which are specific behaviors, needs, and preferences, offers a more dynamic and effective approach.

Here is why I think attributes are better than just user personas.

The Limitations of User Personas

User personas have been a staple in marketing and product development for years. They are fictional characters created based on demographics, job roles, and assumed needs. The idea is that by tailoring your marketing and product development efforts to these personas, you can better meet the needs of your target audience.

However, there are several limitations to this approach:

1. Overgeneralization: User personas often lead to broad generalizations. For example, a persona might represent “John, a 35-year-old marketing manager.” While this might give a starting point, it doesn’t account for the unique behaviors, preferences, and pain points that individual customers may have.
2. Static Representation: Personas are often static and fail to evolve with the customer base. As markets change and new data becomes available, personas may become outdated, leading to irrelevant marketing strategies and product features.
3. Assumed Needs: Personas are built on assumptions about what a certain segment might need. This can lead to a mismatch between the product or service and the actual needs of the customers.
4. Lack of Context: Personas focus heavily on who the customer is, often neglecting the context in which they use the product. Understanding the situational factors that influence a customer’s decision-making process is crucial, but personas typically overlook this.

The Power of Attributes

Attributes, on the other hand, are data-driven insights into customer behavior, preferences, and needs. They focus on what customers do, how they interact with your product, and what specific problems they are trying to solve. Attributes are dynamic, adaptable, and context-aware, making them a more powerful tool for driving growth.

Here’s why attributes should take center stage:

1. Behavior-Driven Insights: Attributes provide a clear picture of how customers interact with your product. Instead of guessing based on a persona, you can see real data—how often they log in, which features they use most, and what triggers a purchase decision. This level of insight allows for more precise targeting and personalization.
2. Adaptability: Unlike personas, attributes can evolve in real-time. As customer behavior changes, so do the attributes associated with them. This adaptability ensures that your marketing and product strategies remain relevant and effective.
3. Contextual Understanding: Attributes allow you to understand the context in which a customer is using your product. For example, if a customer frequently accesses your SaaS platform from a mobile device, it might indicate a need for a more robust mobile experience. This contextual awareness enables you to meet customers where they are.
4. Personalization at Scale: With attributes, you can create highly personalized experiences for your customers. By understanding specific behaviors and preferences, you can tailor your marketing messages, product features, and support services to meet individual needs.

Vertical SaaS: A Case for Attributes

Vertical SaaS (Software as a Service) solutions are tailored to specific industries. Examples include software for healthcare, real estate, or retail. In vertical SaaS, the importance of attributes becomes particularly evident.

Understanding Industry-Specific Needs

Vertical SaaS solutions cater to the unique needs of a specific industry. For example, a SaaS platform for healthcare might need to prioritize data security and compliance with regulations like HIPAA. In this context, attributes related to security concerns, data management practices, and compliance needs are far more important than a general persona like “Sarah, a healthcare administrator.”

Real-Time Adaptation

Industries evolve, and so do their needs. A healthcare SaaS platform must adapt to changes in regulations, technology advancements, and shifts in patient care practices. By focusing on attributes such as “frequency of software updates” or “compliance adaptation speed,” the SaaS provider can stay ahead of the curve and ensure they are always meeting the most current needs of their customers.

Precision Targeting

In vertical SaaS, precision is key. Understanding the specific attributes of your customers allows you to target your product development and marketing efforts more effectively. For instance, if data shows that a significant portion of your healthcare customers are small clinics with limited IT resources, you might prioritize ease of use and customer support as key attributes.

Horizontal SaaS: Attributes in a Broader Market

Horizontal SaaS solutions, on the other hand, cater to a broad range of industries. Examples include tools like Slack, Salesforce, or Zoom. While the customer base is more diverse, the focus on attributes remains crucial.

Cross-Industry Insights

In horizontal SaaS, customers come from various industries, each with its own set of needs and challenges. By focusing on attributes, you can identify commonalities across these industries. For example, attributes like “team collaboration needs” or “integration with existing tools” are relevant across sectors, enabling you to build features that have broad appeal.

Adapting to Diverse Use Cases

Horizontal SaaS platforms must cater to a wide range of use cases. By tracking attributes related to how customers use the product, you can identify emerging trends and areas for improvement. For instance, if data shows that a growing number of customers are using your software for remote work, you might prioritize features that enhance virtual collaboration.

Scaling Personalization

Even in a broad market, personalization is key to customer satisfaction. By focusing on attributes, you can deliver personalized experiences at scale. For example, if a significant portion of your user base frequently utilizes a particular feature, you can create targeted tutorials, in-app messages, or support resources to enhance their experience.

Attributes and the Future of SaaS

As the SaaS industry continues to grow and evolve, the importance of attributes will only increase. Here’s why:

1. Data-Driven Decision Making: The future of SaaS lies in data. Attributes allow for data-driven decision-making, enabling companies to make informed choices about product development, marketing strategies, and customer support.
2. Customer-Centric Innovation: Attributes provide a direct line to customer needs and preferences, allowing for more customer-centric innovation. Instead of building features based on assumptions, companies can develop solutions that directly address the needs identified through customer attributes.
3. Competitive Advantage: In an increasingly crowded market, understanding customer attributes can give you a competitive edge. By offering a more personalized and relevant experience, you can differentiate your product and build stronger customer loyalty.
4. Scalability: Attributes allow for scalability. As your customer base grows, so does the data on their behavior and preferences. This data can be used to continually refine and improve your product, ensuring it meets the needs of a growing and diverse audience.

Conclusion: Shifting the Focus

While user personas have their place in the marketing and product development toolbox, their limitations are becoming more apparent in the modern SaaS landscape. Attributes, with their focus on real-time behavior, adaptability, and contextual understanding, offer a more effective approach.

In both vertical and horizontal SaaS, the ability to understand and act on customer attributes can be the difference between success and failure. By shifting your focus from static personas to dynamic attributes, you can build more relevant, personalized, and successful products.

As the SaaS industry continues to evolve, those who prioritize attributes over personas will be better positioned to meet the changing needs of their customers and stay ahead of the competition. Whether you’re building a niche vertical solution or a broad horizontal platform, the key to long-term success lies in understanding the specific attributes that drive customer behavior and using that knowledge to inform every aspect of your business.

So, as you move forward, remember: it’s not about who your customers are—it’s about what they do, what they need, and how you can best serve them.

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Oh btw, I might get a chance to meet Steve Wozniak and his team for Privateer Space documentary. Fingers crossed but its looking very good. Feel free to subscribe here if you want to watch my documentar on Space junk and Privateer. ​

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Until next time,

M.​

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