What are Points of Parity?

Points of Parity (PoP) are the baseline features a product needs to be taken seriously in its market. These aren’t the things that make a product unique – they’re the must-haves that customers expect. 

For example, if a company is building Customer Success software, features like customer health scoring, onboarding tracking and integration with CRM tools aren’t optional – they’re expected.

If a product doesn’t meet these expectations, it risks being dismissed before a potential customer even considers its unique strengths. While differentiation is important, hitting the industry standard first is what makes that differentiation matter.

In this blog, we’ll break down the different types of PoPs, how they compare to Points of Difference and real-world examples of how SaaS companies use them to stay competitive.

Types of Points of Parity

Not all Points of Parity serve the same purpose. Some are basic expectations across an industry, while others help brands stay competitive. Here are the two main types:

Category points of parity

These are the fundamental features every product in a category must have to be considered a legitimate option. Without them, a product won’t even be in the conversation.

• Example: A Customer Success software needs customer health scores, playbooks and CRM integrations to meet industry expectations.
• Example: CRM tools must include contact and lead management to be useful for sales teams.

Competitive points of parity

These features help neutralize a competitor’s advantage by ensuring a brand isn’t at a disadvantage. These features don’t differentiate a product but remove reasons not to choose it.

• Example: Microsoft Teams added real-time messaging to match Slack’s core functionality.
• Example: Zoom matched Webex’s security and encryption features to compete in enterprise markets.

Next, we’ll look at how PoPs compare to Points of Difference and why both matter.

Points of Parity vs. Points of Difference

Meeting baseline expectations is important, but it’s not enough to truly stand out. This is where Points of Difference (PoD) come in. While Points of Parity (PoP) make sure your product is even considered, PoDs give buyers a reason to actually choose it.

Think of PoPs as the “must-haves” – the standard features customers expect. Without them, your product might not even make it onto a buyer’s shortlist. 

For example, a Customer Success platform needs essentials like health scoring, customer segmentation and basic automation. These features don’t make the platform unique, but without them, it won’t be seen as a serious option.

Points of Difference, on the other hand, are the features or services that tip the scales in your favor. They answer the question, “Why this product over the others?” In the same Customer Success platform, a predictive AI for churn prevention or exclusive integrations with niche tools could be the deciding factors.

However, it’s all about balance. Covering the basics with PoPs gets you in the game, but strong PoDs are what help you win it. Next, let’s look at real SaaS examples where this balance plays out.

Examples of points of parity in SaaS

Understanding Points of Parity (PoP) and Points of Difference (PoD) is easier when you see them in action. Many SaaS companies have successfully entered competitive markets by first matching the essential features customers expect and then introducing their unique strengths. 

Let’s look at how some big names have balanced PoPs and PoDs to secure their place in the market.

Zoom vs. Webex

When Zoom launched, it wasn’t the first video conferencing tool – Webex had already cemented its place in the market. To compete, Zoom matched key PoPs like HD video and audio, screen sharing, meeting recordings and strong security encryption. 

But what really set Zoom apart was its PoD: a simpler user experience, fewer connectivity issues and an intuitive interface that made hosting and joining meetings effortless. This focus on usability helped Zoom quickly outpace older, more complex platforms.

Velaris vs. Gainsight

In the Customer Success space, Gainsight set the standard with features like customer health scoring, playbooks, account tracking and reporting – the typical PoPs expected from any Customer Success platform. 

Velaris entered the market by covering these same essentials but leaned into its PoD: a data-driven, unified view of the customer journey that allows Customer Success Managers (CSMs) to make smarter, proactive decisions. 

With deeper analytics and customizable dashboards, Velaris appeals to data-focused CS teams looking for actionable insights beyond surface-level health scores.

Notion vs. Confluence

Confluence dominated the space for knowledge management and team documentation, offering templates, permissions and structured page hierarchies. 

Notion, entering the same space, ensured it covered these PoPs but expanded its functionality. Its PoD?

 An all-in-one workspace that combined documentation with databases, kanban boards and task management – giving users more flexibility in how they worked.

Next, let’s break down why getting the balance between PoPs and PoDs right can make or break a product’s success.

Why points of parity matter in Customer Success

In the world of Customer Success, having standout features is great – but if your product doesn’t meet basic expectations, customers may never give it a chance. 

Points of Parity (PoP) play a key role in helping potential customers see your product as a viable option. Here’s why they’re essential:

Builds trust

Customers need to feel confident that a product can meet their needs before they commit. If essential features are missing, it raises red flags. 

In a Customer Success software, this means having basics like health scoring, customer segmentation and workflow automation. These features show that your product understands the standard challenges Customer Success Managers face.

Reduces barriers to adoption

Switching tools is a big decision, especially for CS teams managing complex customer relationships. If a product lacks key features, it adds friction to the decision-making process. 

PoPs help reduce that friction by ensuring that the core functionality teams expect is already in place.

Supports competitive positioning

Once you meet standard expectations, your unique features – or Points of Difference (PoD) – become more impactful. Customers can see that not only does your product cover the basics, but it also brings something new to the table.

Key takeaways

• Points of Parity (PoP) are the essential features or attributes a product must have to be considered a viable competitor in its market.
• Meeting PoPs reduces barriers to adoption by minimizing the perceived risk of switching to a new product.
• PoPs create a foundation that allows Points of Difference (PoD) to stand out and drive competitive advantage.
• Ignoring PoPs can prevent a product from being considered, no matter how strong its unique features are.
• Successful SaaS companies balance PoPs and PoDs to ensure they both meet customer expectations and offer meaningful differentiation.
• Analyzing competitors and understanding customer needs are key steps in identifying and implementing the right PoPs.
• Continuously updating PoPs to align with evolving industry standards keeps a product competitive over time.

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