Building a Bridge Over a Chasm

 

 

Geoffrey Moore was ahead of his time when he wrote Crossing the Chasm.

After reading his analysis on bridging “the Chasm” between early adopters and the mainstream market, I realized that this was an essential idea that’s been overlooked by many young startups. Some companies don’t know where to begin with their marketing efforts, and slowly dissipate into the black hole of Silicon Valley. Others find themselves on the right track, but hit a bottleneck when they arrive at the chasm, unsure of their next step. With new seeds of innovations constantly sprouting throughout the world, Moore’s approach on crossing the chasm is very relevant today.

At its core, the book analyzes how to approach the various psychographic (personality) profiles from the Technology Adoption Cycle, primarily the minority of hardcore, geeky enthusiasts versus the mainstream majority. Moore states that very few companies distinguish the visionary early adopters from the pragmatic second wave of users who follow.  This leads startups to fall straight into the chasm rather than crossing it safely. Unlike visionaries, who see potential in a startup’s prospects and want to see it grow, pragmatists want to see how the company will bring personal value to them.

What Moore suggests is to take more surgical approach to each market segment. Rather than placing all the eggs in to one basket, Moore describes entering the mainstream market like the D-Day invasion. If a startup is able to methodically capture the audience from one small part of the overall market, its success can then travel vertically to other segments. From one niche market to another, it’s an opportunity that can allow a company to dominate the mainstream (with a little patience and a lot of luck).

Apple is a great example of crossing the chasm successfully. After launching the iPod, the company constantly reengineered its product to meet the needs of each market segment, making each version better, simpler, and more powerful.  Warby Parker, a startup once focused on providing the best online shopping experience for eyewear, now has physical showrooms across the U.S. that cater to a different market of traditional shoppers.

But where does PR come into all of this? As an agency, we define and reinforce key messages about a startup’s product or service, with slightly different messages to suit each segment of the press. As a startup comes to the edge of the chasm, proper PR can build a compelling message to target niche markets, helping usher the startup towards the mainstream as smoothly as possible.  Word of mouth remains one of the most powerful tools in commerce; approaching the right people with the right message is the backbone of the best PR agencies.

And yet… I can’t help but notice another issue that today’s startups face. Another chasm is growing between innovators and early adopters, one step “earlier” in the lifecycle. With so many buzzed-about startups entering the market on a monthly, rather than annual basis, it’s become more difficult to garner the attention of visionaries and VCs. After all, a startup can’t concern itself with mainstream success if it can’t win over the early adopter first. Perhaps, in the future, Moore will address this issue in a new book, and share his advice for this new obstacle.  In the mean time, I highly recommend Crossing the Chasm as a foundation for any young tech company’s marketing strategy.

Image Credit to IllustrationSource and WikiMedia 

 

Marketing High-Tech Products to Mainstream Consumers

How does a new high-tech product become popular and translate from a fad into a lasting trend? It is challenging for high-tech products to achieve widespread success among mainstream consumers. People are notoriously resistant to change and it takes time and a lot of coaxing to covert a new high-tech product used by gadget-obsessed geeks into a product that the masses are comfortable with. Geoffrey Moore, author of BusinessWeek bestseller, Crossing the Chasm, explains that in order for a cutting-edge product to become more than just a passing fad, it must cross the gap, or “chasm” between an early market and mainstream market. If done successfully, a high-tech product can make this transition to achieve great success and explosive sales. If the product fails to reach mainstream success, however, it may fade into obscurity.

Moore argues that a high-tech product shouldn’t be marketed the same way to tech enthusiasts and early adopters as it should be to the mainstream consumer. The early market for a high-tech product consists of people who love to be the first on their block to have a new gadget and who appreciate the benefits of new technology. Think of that friend, neighbor or family member who loves to show off new gadgets that nobody has heard of yet. They don’t mind dealing with a few bugs or inconveniences if they see a chance to get ahead of the competition with a new high-tech product and, often times, they are willing to pay a hefty price tag. Marketing messages that focus on the product and that pinpoint a technological advantage resonate with this early audience. However, the mainstream market needs a bit more convincing. These consumers are more practical and are hesitant to empty their wallets. For the mainstream market, company credibility is important and word-of-mouth recommendations are powerful.

One product that everyone is watching closely and which is emerging into the mainstream market is the Kindle. Up until now, electronic books have failed to “cross the chasm” to become a must-have item for mainstream consumers. Two weeks ago on the TriplePoint blog, Julia Roether explored the rise in Kindle 2’s popularity and noted that while it may seem like an “overnight sensation,” the Kindle has been around for over two years. Furthermore, Brad Stone, who covers consumer technology at the New York Times, pointed out that electronic book devices have been around for a decade but none have really taken off among consumers.

The Kindle seems to be breaking through as an electronic book that is reaching mainstream market success. The Kindle 2 came out with several improvements to the product but mainstream consumers are often less swayed by the promise of new product features. Specifically, consumers in the mainstream market, according to Moore, tend to value market leadership and wait for a high-tech product to prove they are better than the competition before buying. Unlike early market consumers who want to be the first on the block to have a new product, mainstream consumers wait for references from people they trust. The Kindle received recognition from Oprah, one of the most widely respected and trusted references around, which no doubt helped convince hesitant book-lovers to get on board. Furthermore, with sales skyrocketing this holiday season, the Kindle seems to be crossing the chasm.

However, time will tell how the Kindle evolves and if electronic books will become a must-have gadget. It seems that there are still adjustments to be made and more convincing of consumers before the product really takes hold. Moore reminds us that 1/3 of consumers are classified as “conservatives” who are the most resistant to change and who wait for the product to become a standard before adopting new technology. These people are the last to buy new technology, after tech enthusiasts, early adopters and the early majority of mainstream consumers. While the Kindle is becoming more popular, it still must establish credibility among users before capturing this piece of the market.