Position like a Challenger: How ecobee Achieved 15x Sales

Today, we’re diving into the art of bold brand positioning. Getting this right is crucial for any Challenger Brand looking to stand out and win. When you nail your strategy and execution, the market will take notice.

I’ve seen this firsthand from my time at ecobee. When I joined as CMO, the company was still in its early days—stuck in single-digit millions in sales, and focused on B2B. But we had a vision to change that. In this edition, I’ll break down how we used strategic positioning to challenge the status quo and what you can learn from ecobee’s success.

Cutting Through the Noise

When I came on board, ecobee wanted to be the go-to smart thermostat for contractors, but we faced a trifecta of hurdles: a market shift to DIY for consumers, a complex product, and a design that didn’t quite shine. On top of that, we were up against industry heavyweights like Honeywell, a legacy brand dominating the B2B space, and Google Nest known for its top-notch design creds and consumer allure. The odds were tough, and the competition was fierce.

We needed more than just a good product to cut through the noise—we needed to stand out. We started by designing a product that could compete with Nest, but the real breakthrough was addressing a simple problem no one else was solving: uneven temperatures in homes. We positioned ecobee as the smart thermostat for “Homes with More Than One Room,” delivering comfort exactly where people needed it. We introduced room sensors that could measure the temperature in the room you were in, not just where your thermostat was located. By launching these sensors nearly a decade ago, we didn’t just compete; we raised the bar by merging sleek design with real-world functionality.

Fast forward to today, and ecobee’s focus on multi-room comfort has paid off big time. ecobee achieved +15x growth in sales, captured +30% market share, and surpassed Honeywell as the #2 smart thermostat brand in North America.

Introducing the ecobee3. The smarter thermostat for homes with more than one room.

Challenger takeaway: ecobee’s success wasn’t just luck—it stemmed from a strategic approach that put it ahead of the curve. Challenger Brands, take note: identify gaps and seize opportunities others overlook. Don’t just join the conversation; drive it.

Set the Pace

Nest recently made ripples (not waves) with their new temperature sensors aimed at fixing uneven home temperatures. Sounds familiar, right?

Years before, ecobee tackled this issue head-on with its room sensors, setting a new benchmark for smart thermostats. While Nest’s latest move shows they’re catching up, ecobee’s early and effective solution is a prime example of how powerful forward thinking can be. By solving tomorrow’s problems today, we established ecobee as a leader.

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    Challenger takeaway: Understand the pain points of your audience (particularly ones they accept as a necessary compromise) and deliver solutions that stand out. It’s not about being the flashiest or the most high-tech; it’s about being the most relevant. What key pain points can you solve before anyone else even notices?

    Ecobee thermostat on wall

    Keep Pushing Boundaries

    For Challenger Brands, the ecobee playbook is clear: get ahead by being proactive, not reactive. Being a Challenger Brand isn’t just about standing out; it’s about being more in tune with what people truly need. Dive deep into your market, spot those gaps, and position your brand as the go-to solution. Set the standard, and others will follow— by then, you’ll be onto your next innovation.

    We’re glad you’re here. If you’ve got any thoughts on brand positioning or want to talk strategy, I’d love to hear from you!

    Set the standard, and others will follow - by then, you'll be onto your next innovation.

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    Ready to challenge the
    status quo and win?

    👋 I'm Rahul, Founder and CMO at 5&Vine. Reach out to schedule an intro call about your marketing challenges and let's assess how 5&Vine can help your brand win.

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