How does AI Impact Your Category Strategy?

There is a natural, hard-coded rhythm to how humans process information. We start broad, look for patterns, then get narrow when more detail is required for clarity and differentiation. Kahneman refers to this as System 1 and System 2 thinking in his book Thinking Fast and Slow.

System 1 is fast, automatic, intuitive, and emotional thinking. It operates subconsciously, relying on patterns, and allowing us to make quick judgments and decisions without much conscious effort. System 2 is slow, deliberate, analytical, and logical thinking. It requires mental work. We tend to avoid it when possible.

System 2 thinking is engaged when faced with complex problems, novel situations, or tasks that demand deeper analysis and critical thinking. It helps us reason, plan, evaluate evidence, and make well-thought-out decisions.

Most B2B SaaS product marketing leapfrogs System 1 and gets right into System 2; product, feature, benefit. This scratches the System 2 itch, but, as noted above, that’s not how cognitive processing works. First, you have to interrupt the patterns driving System 1 processing before you engage deeper System 2 systems.

System 1 activations impact B2B decisions through differentiated first impressions based on the prospect's cognitive biases, using more emotive hooks through visuals and copy.

Here's a recent example from Vibe.co's LinkedIn campaign. The visual hijacks the expected and creates a pause in pattern seeking. Light copy with clear CTA and differentiated value prop, with incentive.

The tenets of Category Strategy push us to lead with the big change in the world, the problem you solve related to that, and the human problem behind the business problem. This is a System 1 on-ramp to communication, as it establishes context rooted in the prospect’s experience and cognitive bias.

So, now that everyone is adding an AI element to their product solutions, the question naturally arises: “How does this impact my category strategy?” The answer is that AI scratches the System 2 itch, and is not a System 1 tip of the spear, meaning...you don't lead with it.

The entire DRMG crew discusses how, where, when, and why to include AI in your strategy, positioning, and marketing through the lens of the Databricks' acquisition of MosaicML, in Episode 42 of...The SaaS Brand Strategy Show.