Proprietary terms are unique words that a SaaS company creates and owns. They usually illustrate an idea that is original to the company.

These terms may refer to:

• Features: ’Artifacts’ by Anthropic, Claude AI, a standalone piece of content users can view, edit, and reference outside the AI chat conversation.
• Workflows: ’Zap’ by Zapier, an automated workflow that connects two or more apps.
• Sub-products: ’Coda Brain’ by Coda, an AI tool that integrates with the users’ tools to provide real-time, contextual answers.
• Pricing variables: See my article on ‘flexpoints,’ a proprietary pricing variable by Funnel.
• Concepts: ’Community-led flywheel’ by Commsor, a growth model that leverages active community engagement throughout all touchpoints.
• Methodologies: ’Customer data infrastructure’ by Segment, a framework for organizing and managing customer data across different platforms for unified insights.
• Movements: ’The great ignore’ by Operator AI, a call for shifting away from high-volume, automated outreach tactics and focusing on genuine connections with buyers.

A proprietary term aims to differentiate a SaaS company from its competitors. It can do so by highlighting the company’s unique approach to its industry or product.

Companies may build their entire brand identity on a proprietary term. Think about ‘inbound marketing’ by HubSpot.

A proprietary term can become a strong anchor in people’s brain.

Here’s why:

• Unique terms are easier to remember than generic ones. When a unique term is repeatedly associated with a company, it becomes a distinct identifier of the SaaS brand.
• Proprietary terms provide a clear and concise way to communicate complex ideas. They simplify understanding by encapsulating a company’s unique approach or value.
• The idea behind a proprietary term may carry emotional and aspirational meaning that resonates with leads or users. This makes a SaaS brand relatable and memorable.

To consider:

• Companies must know how to explain their proprietary term as well as the meaning it conveys. Otherwise, they risk confusing target audiences. As a result they may fail to connect with leads and users.
• Remember that the proprietary term isn’t the real differentiator. What makes it different is the idea this term stands for. However, the proprietary term acts as an identifier for the idea behind it.
• It would be a mistake to create arbitrary proprietary terms. They must be relevant, introducing a new idea or way of doing things based on which the SaaS brand builds its identity.
• Companies shouldn’t create multiple proprietary terms. This will increase complexity and people may have a hard time keeping up. Plus, it may weaken a company’s ability to communicate its unique approach.