Why Syncari Pivoted From Creating a New Market Category

In this episode of SaaS Founder Stories, David Brennan, CEO of Arkeo AI, sits down with Scott Edmonds, CRO and founding member of Syncari, to explore a pivotal challenge many SaaS startups face: whether to create a new market category or align with an existing one. For Syncari, the decision to pivot from category creation to embracing the established “Master Data Management” (MDM) category was a turning point that clarified their value to potential clients and streamlined their go-to-market strategy.

Below, we’ll dive into why Syncari originally aimed to define its own category and the challenges they encountered. If your SaaS company is contemplating whether to create a market segment or attach to an existing one, this episode offers invaluable insights on making the best choice for growth.

The Challenge: To Create or Not to Create a Market Category

For SaaS companies, market positioning is one of the most critical and challenging steps on the road to success. Scott Edmonds, CRO of Syncari, shared that their initial strategy involved positioning Syncari as a unique solution under a self-defined category—an autonomous data management platform. While this approach highlighted Syncari's differentiators, it left many potential clients unsure of how to classify the product, who should own it within their organization, or where it fit within their budget.

In his conversation with David Brennan, Scott explained, “We went out to market with a, ‘Hey, good news! There’s a new category, and we’re the only vendor in it!’ While that approach created interest, we quickly realized that people didn’t know where to place us in their budget or understand who should be responsible for Syncari.” This challenge is one that countless SaaS startups face, especially those offering complex, cross-functional solutions.

Why Category Creation Can Be So Difficult

Category creation in the SaaS industry isn’t impossible—companies like Marketo and HubSpot have proven it can be done. But timing and market readiness are crucial factors.

Scott shared that his team’s experience at Marketo, where they defined the marketing automation category, influenced their original strategy for Syncari. But they soon found that creating a new category for Syncari wasn’t as straightforward as it had been with Marketo. In 2008, Marketo’s offering fulfilled a clear need for marketers who were ready for more targeted, automated campaigns but were limited by the technology available at the time. Syncari’s product, however, addresses a more complex problem: fragmented data across multiple departments and systems within larger enterprises.

According to Scott, “In data management, there’s so much cross-functional overlap—finance, marketing, IT, sales, support—so the owner of the problem isn’t always clear. Data has also become much messier over the past decade, with companies running dozens of applications and dealing with legacy operational debt.” Unlike marketing automation, where departments and budgets are more defined, data management required more clarification.

The Pivot: Embracing an Established Market Category

After analyzing their market positioning and listening to feedback, Syncari recognized that aligning with an established market category could simplify their go-to-market efforts. Instead of focusing on building a standalone category, they repositioned Syncari within the “Master Data Management” (MDM) space, a well-recognized segment with clear buyer personas and budget allocations.

MDM solutions have been around for a long time, and while the technology has evolved, the category is well-known to companies looking for ways to unify and cleanse their data. Syncari’s innovative approach in this space—a modern, autonomous platform that syncs data across departments—gave them a unique angle within MDM without requiring clients to rethink their budgets or reporting structures.

Since the pivot, Syncari has found that “there’s a bonafide buying committee for people who buy MDMs,” as Scott put it. By aligning with MDM, Syncari could now access these buying committees directly, making their sales process much more straightforward. Syncari’s shift is a powerful example of how aligning with an existing market category can save startups time, resources, and confusion—especially when the category already has buy-in and awareness.

Insights for Founders: How to Decide Between Category Creation and Alignment

If your startup is at the crossroads of creating a new market category versus attaching to an existing one, here are some key takeaways from Scott’s experience:

1. Evaluate Market Readiness: Before pursuing a new category, ask if the market is truly ready for it. Syncari initially wanted to define their own category but found that the MDM space was primed for innovation and ready to accept a new approach.

2. Define Your Buyer: Identify if there’s an established buying committee for your solution, as this will make your sales efforts far more efficient. Syncari realized that positioning within MDM allowed them to connect directly with decision-makers and avoid the confusion of educating buyers on a new category.

3. Assess the Complexity of Your Solution: If your product addresses cross-functional or complex challenges, creating a new category might complicate your message. Syncari’s initial challenge was that potential buyers didn’t know who should own their product. By aligning with MDM, Syncari clarified its value to various stakeholders.

4. Leverage Category Recognition: Established categories have built-in credibility and budget allocations, which can make sales processes faster and smoother. Syncari found that aligning with MDM not only clarified their message but also validated their solution in the eyes of potential clients.

Syncari’s Lesson for SaaS Startups: Keep It Clear and Simple

Syncari’s journey highlights a crucial lesson for startups: When it comes to market positioning, simpler is often better. By attaching to an existing category, Syncari was able to make its product’s value and ownership more clear, unlocking easier conversations with buyers and accelerating growth.

Listen to the Full Episode to Hear More of Scott’s Journey:
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For SaaS founders facing similar market positioning challenges, this episode of SaaS Founder Stories is filled with actionable insights that can help you determine the best path for your startup’s growth.