Why do some innovative products and services succeed while others fail?
The answer may lie in how they navigate the chasm, an idea talked about in Crossing the Chasm by Geoffrey Moore, first published in 1991 but still relevant today.
The basic roadmap for bringing a new product or service to market follows a lifecycle.
First, innovators get excited about a new opportunity and create the first version of the product.
Then visionaries, the people who see how this could be different, useful, life changing – they get involved and the innovator starts to make early sales.
This is good because it validates the product and shows there is a market for it – however small.
The product develops, gets better, gets case studies and a small customer base happy to recommend it to others. At this point, the early majority start to get interested.
The product continues to be used and developed. With a strong base of customers, the rest of the market sees this as a strong option or alternative to existing solutions.
Sales take off and the company enters a period of hyper-growth.
Now the product is considered safe, reliable and the first choice. It’s now a mass market product.
Finally, the people who have been holding off, the sceptics and laggards turn up and start to use the product.
Where companies fail is in making the move from selling to visionaries to selling to the early majority.
This is the chasm, a point where the company is running out of visionaries to approach – the people with the early interest but the early majority are not ready to commit because the product is still relatively new, immature and not widely used.
Existing providers, threatened by the new product, can use fear, uncertainty and doubt (FUD) to protect their own businesses.
The chasm is the most challenging period for a new product or service.
There are no easy answers to get across it.
The point, however, is that ignoring the chasm will most likely lead to failure.
A winning strategy will think about ways to bridge the chasm – and go from a product that visionaries will use because they can see the benefits to ones that the early majority will use because you have removed the risks.
This shift in thinking – moving from selling the benefits to removing the risks is likely to be the deciding factor in getting from one side of the chasm to the other and entering the next stage of growth.
In summary, sucess or failure for companies and products is often a result of how well they cross the chasm.