Business Adopter Chasm

The 5 Categories of Adopters

According to professor Everett Rodgers in his book Diffusion of Innovation, there are five categories of adopters:

1. Innovators (Technology Enthusiasts) – These individuals represent about 2.5% of users and are willing to take risks on a new offering. Generally, they have a high social status and are often considered mavens. They have a high degree of financial liquidity to absorb failures and a high risk tolerance that allows them to adopt new technologies that may ultimately fail. They are connected socially to engineers and technology and they often interact with other innovators.

2. Early Adopters (Visionaries) – These individuals represent about 13.5% of users and are opinion leadership. Early adopters have a high degree of social status that allows them to influence others. They are more likely to spread the word than innovators with their followers. They are a bit more discerning in their adoption choices than innovators as a way to help them maintain the central communication position they enjoy.


Innovators and early adopters are primarily focused on technology and performance. A sort of chasm exists between innovators/early adopters and other adopters since the focus of other adopters is on solutions and convenience rather than technology and performance


3. Early Majority – These individuals represent about 34% of users and adopt an innovation long after innovators and early adopters since their focus is about solutions and convenience instead of technology and performance. A major pivot is necessary to refocus the marketing message to cross from early adopters to the early majority. While the early majority has above average social status and contact with early adopters, they seldom are opinion leaders.

4. Late Majority – These individuals represent about 34% of users and adopt an innovation much later in its maturity cycle. Late majority individuals approach an innovation with a high degree of skepticism and adopt the innovation only after the majority of society has already accepted it. The late majority often has little financial liquidity and are not in a position to influence others.

5. Laggards – These individuals represent the final 16% of users, and they are dead last to adopt an innovation. Laggards typically have an aversion to change, tend to focus on “traditions,” and generally are only persuaded to adopt a technology by close friends and family.

To achieve success, a business must first run tests with innovators and early adopters to refine the product offering. Then they need to run additional tests with the early majority to find how best to enter the mainstream. Each of the five categories of users requires a different marketing approach to win them over.

Do you consider the unique attributes of the five categories of adopters as you market and grow your business?

Note: this post first appeared at http://www.stevebizblog.com.

Sales and Marketing Fix

12 Quick Sales and Marketing Fixes

I write a lot about curing the chronic conditions of sales and marketing, but today will address the acute condition — when you need leads and revenue quickly. Here are 12 tactics to get you started:

  1. Stop doing what doesn’t work. Forgive me if this sounds blindingly obvious, but the fact is, inertia is a powerful force. We sometimes get caught up in our routines – even when they don’t produce such great results.
  2. Rebrand or reposition. I am not talking about a total rebrand or reposition here (which addresses the chronic condition), but rather modifying the messaging to match the needs of a particular target segment.
  3. Remarket to past prospects. There may be gold in your opt-in contact list, but you need to get out your shovel and mine that gold.
  4. Borrow an idea from your competitor(s). You may have competitors with large budgets and lots of marketing people whose entire goal in life is to take business away from you. Why not pay them back by borrowing one or more of their best tactics and modifying to your unique needs?
  5. Make a new offer. If your old standard offers are not working, try something entirely different. Do a drawing. Conduct a survey. Buy prospects pizza if they attend your lunch event or a coffee gift card if they talk to you in the morning. Test new offers until you find one or more that work.
  6. Send out a press release (or two). Although they are more of an awareness tool than a lead gen tool, press releases are a fast and inexpensive way to get the word out. And no, “My product is the greatest thing since sliced bread,” is not a proper subject for your release.
  7. Do 20% more. There are two major ways to improve marketing and sales productivity – do what you do better or do more of it. Sometimes the quickest fix is to focus on quantity.
  8. Measure and refine. If you aren’t measuring actual vs. anticipated results, you are likely not going to get better performance. I will be covering this topic in my upcoming webinar, How to Eliminate the “Promise vs. Reality Gap” of Marketing Automation.
  9. Incentivize your sales force. Smart sales managers know about the power of selective incentives to drive short-term gains in revenue. As one of my favorite CSOs often reminds me, sales reps are coin-operated — they go where the money is!
  10. Get rejected. Sales is both a quality and quantity game. If you are not being rejected often enough, you are probably not talking to enough potential prospects. When your revenue numbers are anemic, make sure your reps increase their activity at every stage of the sales cycle (e.g. do 20% more as mentioned above).
  11. Ask your prospects questions and then act on what they tell you. Here are four of the best questions:
    • What are you doing that is working?
    • What are you doing that isn’t working?
    • What is the one improvement that would add most to your success?
    • What does your ideal situation look like?
  12. Hire professionals. This may be a bit self-serving since my company does outsourced B2B marketing, but the fact is, those of us who have practiced these tactics hundreds, even thousands, of times usually have a good track record when it comes to getting results.
Clone Business

Are You a Clone Business?

Every day, entrepreneurs invest huge amounts of time and money to build what they think is a better mousetrap. However, all too often entrepreneurs struggle to articulate how their value proposition is fundamentally different. While many businesses make minor tweaks, they are fundamentally what I call clone businesses.

While there is room in the market for these businesses, clone businesses are just another participant in a red ocean where margins are frequently squeezed to the breaking point for all but the best managed businesses. Clone businesses with little differentiation from their competitors (such as janitorial companies, drywall contractors, etc.) essentially hang their success on the belief that other business owners are incompetent. They are banking on everyone around them being “worse than them” rather than being “better” in some new way. When you are a clone business, you are a commodity, and when you are a commodity, the only real point of differentiation is your price. Price is a poor value proposition as there is always someone out there willing to undercut your price and drive themselves out of business faster than you.

Even a business that entirely transforms an industry and is truly disruptive often is not radically different. For instance, look at the business and economic model of a mini mill that uses recycled steel vs. iron ore. Another example is a cell phone company that uses wireless transmission vs. a landline phone company. In both of these examples, there is only a few degrees of difference from their mainstream competitors.

Other examples include Uber and Airbnb. Uber built a disruptive taxi business with the simple idea that the driver didn’t have to be a taxi driver. Airbnb built a powerful accommodation business on the premise that the room you stayed in didn’t have to be a hotel room. They took what had gone unquestioned and questioned it.

Sakichi ToyodaToyota Motor Corporation’s Sakichi Toyoda developed a technique he called “The 5 Why’s” during the evolution of the automakers manufacturing methodologies. Successful entrepreneurs dare to apply the 5 Why’s to various aspects of their business model to uncover the substantive few degrees of difference that will take them from the red ocean to their blue ocean.

Daniel Burris, the author of “Techno Trends,” says, “The future is already invented.” What he meant by this statement is that most successful businesses simply take a practice from one industry and apply it to their own.

A good example of this principle is Airbnb. Airbnb took the existing hotel and B&B reservation system and applied it to the private home rental market. Most of the core business is the same but just has a slight tweak.

What questions can you ask that will convert your clone business to the next Uber?