Part Two: The Diffusion of Innovation Model

How Digital Changed Product Life Cycles

The Diffusion of Innovation Model was created by Everett Rogers in1962. It explains how products gain momentum, which then spreads through different groups. !

INNOVATORS EARLY ADOPTERS EARLY MAJORITY LATE MAJORITY LAGGARDS

Visionaries Pragmatists Conservatives SkepticsPioneers

INNOVATORS EARLY ADOPTERS EARLY MAJORITY LATE MAJORITY LAGGARDS

Visionaries Pragmatists Conservatives SkepticsPioneers

“I want the newest thing.”

EARLY MAJORITY LATE MAJORITY LAGGARDS

Pragmatists Conservatives Skeptics

“I see the possibilities. I’m getting ahead of this.”

EARLY ADOPTERS

Visionaries

INNOVATORS

Pioneers

EARLY MAJORITY LATE MAJORITY LAGGARDS

Pragmatists Conservatives Skeptics

“I’m going to research and calibrate my decision with my peers.”

EARLY ADOPTERS

Visionaries

INNOVATORS

Pioneers

EARLY MAJORITY LATE MAJORITY LAGGARDS

Pragmatists Conservatives Skeptics

“I’m going to put this off as long as possible.”

EARLY ADOPTERS

Visionaries

INNOVATORS

Pioneers

EARLY MAJORITY LATE MAJORITY LAGGARDS

Pragmatists Conservatives Skeptics

“I hate this idea.”

EARLY ADOPTERS

Visionaries

INNOVATORS

Pioneers

EARLY MAJORITY LATE MAJORITY LAGGARDSEARLY ADOPTERSINNOVATORS

KODAKAPPLE WATCH FACEBOOKGOPROUBER

Name other brands that are Innovators? Early Adopters, Early Majority, Late Majority, Laggards?

EARLY MAJORITY LATE MAJORITY LAGGARDSEARLY ADOPTERSINNOVATORS

MASS TRANSIT RECYCLING

Name ideas that are Innovators? Early Adopters, Early Majority, Late Majority, Laggards?

ZOMBIESFLEX CARS

MARIJUANAMOBILE PAYMENT BIG DATA

But no one mentioned “The Chasm.” The first group are self-starters. They want in early, but the Early Majority is where the market is made. Between the two is The Chasm.

INNOVATORS EARLY ADOPTERS EARLY MAJORITY LATE MAJORITY LAGGARDS

Visionaries Pragmatists Conservatives SkepticsPioneers

THE CHASM

Geoffrey Moore wrote the book Crossing the Chasm in 1991, detailing how it’s done.

Offer a solution to an intractable problem. As a few pins start falling, it builds momentum or pin action. The pin analogy becomes a tornado, then a revolution, moving in well-defined stages:

1.) everyone appears to be doing it 2.) it’s a stampede 3.) no one wants to be left behind

Remember, the Early Majority researches and aligns themselves with their peers.

The Early Majority are pragmatists. They do not like change. Most do not move unless they are in pain. However, pragmatists are willing to consider disruptive approaches.

The iPod was for the Visionaries. But iTunes was for the Early Majority. The iPhone was for the Visionaries. But the App Store was for the Early Majority.

EARLY MAJORITY LATE MAJORITY LAGGARDSEARLY ADOPTERSINNOVATORS

The Diffusion of Innovation model is over 50 years old. Digital distribution has created scenarios in which brands never face The Chasm.

EARLY MAJORITY LATE MAJORITY LAGGARDSEARLY ADOPTERSINNOVATORS

How do you market an Early Adopter brand when the go-to-market strategy is to be bought out by a Late Majority/Early Majority company trying to reinvigorate growth?

EARLY MAJORITY LATE MAJORITY LAGGARDSEARLY ADOPTERSINNOVATORS

Anyone remember the dot-com bubble? If your plan is to get bought by Microsoft, you’ll never have to face The Chasm because Microsoft carries you across it.

Remember when Facebook bought Instagram?

EARLY MAJORITY LATE MAJORITY LAGGARDSEARLY ADOPTERSINNOVATORS

How do you market an Innovator brand that disrupts (reinvents) the business models for the entire category like news or the sharing economy.

EARLY MAJORITY LATE MAJORITY LAGGARDSEARLY ADOPTERSINNOVATORS

Uber and Lyft are currently locked in this same struggle. But if you are Uber or Lyft you will never face the Chasm because you’ve redefine the category on your terms.

After redefining the category, you are immediately tasked with grabbing as much market share as fast as possible and then defend it like an Early Majority brand.

EARLY MAJORITY LATE MAJORITY LAGGARDSEARLY ADOPTERSINNOVATORS

And what about freemium models, where brands give away most of the product for free and offer premium features for those who pay?

Think Pandora and now Microsoft Office.

EARLY MAJORITY LATE MAJORITY LAGGARDSEARLY ADOPTERSINNOVATORS

By appealing to a majority in every segment, adoption is so high that the brand is profitable on 5% of paid users. Again, where’s the Chasm?

Models from 100, 50 and even 25 years ago are good starting points, but they need to be updated to address digital disruption.

What this means to you.  

@JohnstonMike4MikeJohnston

COMING SOON

How Digital Marketing Changed Advertising StrategiesPart Three: Traditional Campaigns