The more I think about the book “Crossing the Chasm” by Geoffrey Moore, the more I think it is an accurate and fundamental book to any software developer. It makes so much sense and I think surmises the position of my own company nicely. I’m not saying he brings anything new to the table but it was certainly the first time I had been introduced to the software product life cycle curve and how to traverse it to the point of reaching the majority groups of users – mostly where the real money is.
To summarise the product life cycle curve it is the introduction, growth, maturity and decline of a product in a market. It actually makes a good comparison between it and world views. If you lined everyone up in the world, you would find that most people had a moderate political view and then at either end of the line the views would become more extreme. To draw this as a graph it would be a bell curve, bulging in the middle with moderate world views.
The same can be said about people’s adoption of new technology: you have some people loving to use a new product immediately and have the newest stuff (innovators); others may see its potential and so wish to gain competitive advantage quickly by using it (early adopters); but most people want to wait until it is fully complete, glitch free, robust product (early majority); or that it’s too hard to ignore because everyone else is using it (late majority). It’s easy to see this with popular products now such as Twitter. There were millions of people using Twitter – using it to form communities, share resources, self promoting- before it really became huge – and then its potential for communicating with existing and potential customers, creating a human side to a brand, following their favourite celebs. Now even my mum is on it- to follow anything at all she wants, as everyone is on it (@Jonnybritton BTW 🙂 ).
When a software product is being developed, it is usually far from the finished article until it had been thoroughly tested against the vast majority of use cases. It is almost impossible to market, sell and gain feedback about the product to everyone at once. Therefore a particular market must be targeted initially. This market place will have common features, be well connected with each other and ideally have a product they currently use that can be displaced by your superior product- you use the existing product in the market to position yourself against eg, brand x is like brand y but I’d better because x,y,z. It saves having to educate the market. Anyhow, by selling into this market place a product can be refined and made more complete before moving onto new markets.
So, within the initial market place chosen to launch a tech (is it only tech following this model?) product into you have to consider this graph of people. First of all the innovators and early adopters need to be reached out to, with messages that speak particularly to them. These users become your best friends and help you hone the product into a more complete thing to use by the masses.
There is a big difference between your early sets of users and your majority groups. It is the skill of a team to enhance the product, change the marketing messages, price points etc to attract in these different types of customer.
I think this tells the story of our product nicely. When we launched people were just buying it because it was new and cool. When we asked what they liked about it that’s what they said: it’s cool. Not that useful to us but nice to know (and also made an inelastic price which was nice). Our next set of customers would buy in bulk at big discount on behalf of institutions, seeing the early phase of the product and wanting to come on our journey as we improved it but having got in early with a good price. Then we started to reach more discerning audiences and they were not buying so much, they wanted more from it. This has been a very hard stage of our business- selling to a “standard customer” and enhancing our product so its more like they want. It seems we are in the “Chasm” talked about in the book- the gap between different types of customer. However, it does give us great hope that we will soon be reaching large audiences and with a better product.
I actually think that it is this part of a software development process that the government should help out more. In order to reach our larger market places, and build the teams we need to get there, we are almost expected to go for VC funding or get into huge amounts of debt. Crowdfunding is a more recent option. But more support could be offered. Understanding of the Product Life Cycle graph and the types of customers you will meet along the way could significantly help umbrella organisations to support entrepreneurs move faster or fail less. Teams are needed and well skilled or trained purple to help software companies properly add to the economy without just getting lucky.
The Crossing the Chasm book does an amazing job of guiding you through how to market and sell along the full product life cycle curve. I believe it is a must read for start up companies.