Crossing the Chasm: A Startup's Guide to Winning the Mass Market - Part 1
As new ideas come to life, it’s important to remember that our customers adopt technologies differently. Some quickly try new things, while others watch first-time users and gauge their experience before jumping in. This pattern helps us see how people may react to or adopt our products.
Everett Rogers was the first to dive deep into this idea in 1962. In his book “Diffusion of Innovations,” he outlined how different groups of people adopt new technologies. Geoffrey Moore expanded on this work thirty years later, providing more insights into the adoption groups for technology companies. Together, their ideas paint a complete picture of the technology adoption journey.
The main hurdle in the journey from being a new entrant to mass market adoption is the “chasm.” This gap exists between the first users eager to try something new and the larger but more cautious buying group.
So, why is this gap there, and what does it mean for startups? To understand that, we must look closer at these different groups and their unique behaviors.
Five Customer Groups in Innovation Adoption
Every product that enters the market encounters diverse customers. Geoffrey Moore’s innovation adoption model presents these in five clear groups. Let’s delve in.
1. Innovators: Pioneers of the New
Innovators represent just 2.5% of our audience, but they embrace the uncharted. They are passionate about the inherent potential of technology, so they often act as trailblazers. They are eager to experiment, which means that they are the ones who give startups their initial product feedback, as they can adapt swiftly to the inevitable initial glitches.
Though innovators are first in line to test new technology, products, and solutions, they are not the biggest spenders. They’re drawn to the journey of exploration much more than a long-term commitment, which presents opportunities and challenges.
2. Early Adopters: Visionaries with a Plan
Early adopters, comprising 13.5% of users, blend foresight with pragmatism. They are discerning and early scouts of technology that can give them an edge in their business. Their interest isn’t superficial. They often become influencers and champion their newest finds to peers both inside the company and outside (the industry).
While early adopters welcome innovation, they are selective. Their desire isn’t just to use but to optimize and seek personalized solutions. Since their endorsements echo loudly, they can be invaluable allies for startups to get traction, especially when, in the early days, credibility is so crucial to establish.
3. Early Majority: The Balanced Evaluators
The early majority are meticulous and disciplined, accounting for 34% of the market. They keep a close watch on disruptive innovation companies and assess their viability by gauging the experiences of early adopters. These individuals seek tangible benefits, wanting more than just novelty – they desire enhancements that genuinely enrich their lives.
For them, testimonials speak volumes. Trust is earned through proven results. When onboard, they signal a product’s move from a fleeting trend to a mainstay. This can offer startups an excellent foundation in the market.
4. Late Majority: Steadfast and Cautious
Matching the early majority, this 34% represents the epitome of caution. Their decisions are well-considered, often coming after careful observation of earlier adopters. They need undeniable proof of an innovation’s merit, resilience, and enduring value.
To woo them, products must showcase sustained efficiency and broad-based appeal. The endorsement of the late majority confirms an innovation’s maturity, cementing its place in the broader market.
5. Laggards: Guardians of Tradition
Holding 16% of the audience, laggards favor the tried and true. Their caution stems from a deep-rooted preference for tradition. While they might seem resistant, their eventual endorsement is a feather in the cap for any company.
Securing their trust means a product has resonated universally and endured rigorous tests of reliability and value. Their stringent standards, when met, reflect a product’s comprehensive success.
The Chasm: Where Many Innovations Meet Their End
For every breakthrough product redefining a market, countless innovations never surpass their initial traction. These products, often groundbreaking in their design and vision, falter not necessarily because of intrinsic flaws but because of a pronounced obstacle in the tech adoption lifecycle: the chasm.
What Exactly Is the Chasm?
The chasm is a metaphorical divide, a pivotal stage in a product’s growth trajectory where it risks either stalling or plunging into oblivion. Initially, pioneering users, termed ‘Early Adopters,’ flock to an innovation drawn by its novelty and the potential it heralds. These users are more forgiving of imperfections and keen on exploring uncharted territories.
However, as the product aspires to expand its user base, it encounters the ‘Early Majority,’ a more conservative group in its adoption behavior. This cohort, much larger than early adopters, looks for proven utility, robustness, and, most critically, the endorsement of peers and known influencers. They’re not easily swayed by mere novelty; they demand reliability.
Why So Many Innovations (Startups) Fall into the Chasm
The presence of the chasm is a testament to the differences in expectations and behaviors across consumer groups. While initial enthusiasm from a niche group can offer a product a promising start, transitioning to a broader audience requires a shift in strategy, understanding, and execution. Due to a lack of awareness, stiff competition, or failure to iterate based on feedback, many disruptive innovations cannot bridge this gap.
Understanding the Chasm: The Story of CineCloud
Let’s take an illustrative example to clarify this concept. Imagine a company called “CineCloud.” At the outset, this budding platform tailored its services to indie filmmakers and creative enthusiasts with features tailored to content producers, content owners, and their audiences. As a result, it gained rapid admiration within these niche circles, becoming their go-to for unique content solutions.
However, things began to change when “CineCloud” aimed to expand its horizon and attract a wider audience. The broader public, accustomed to using big names like Netflix or Hulu, had a set list of expectations. They wanted a rich content library, a user interface that felt like second nature, and reviews or recommendations from people they knew.
In this scenario, “CineCloud” stands at the edge of the chasm, a rift between their early successes and the challenge of pleasing the mainstream audience. This hypothetical journey exemplifies the intricacies of moving from a specialized offering to a product embraced by the masses. It reminds us that a great idea or service needs more than innovation to captivate a more significant, diverse audience.