Crossing the Chasm vs. Spinning Up the Web
Berkeley >Play October 29, 2011
Venture Agenda: High-Tech Market Development Models B-2-B Markets – Crossing the Chasm
B-2-C Markets – Spinning up the Web
Comparing Critical Success Factors – Chasm vs. Web
Crossing the Chasm B-2-B High-Tech Market Development
Technology Adoption Life Cycle Pragmatists: Use it when it’s ready!
Conservatives: Make sure it’s ready!
Visionaries: Be the first mover!
Skeptics: Never happen!
Techies: Try it!
Early Early Majority Adopters
Pragmatists’ view of whole product maturity drives the adoption of new technology.
The Whole Product
Application Engineering Installation and support
Complementary Products Peripherals
M inimum set of products and services to fulfill target customer's reason to buy.
Market Development Model Offers Evolve with Whole Product Maturity Standard products for pragmatists with budgets
Proven systems for cost-conscious conservatives
Early Market Chasm Custom projects for Visionaries
Segment-specific solutions for pragmatists in pain
Crossing the Chasm Framework A Playbook for B-2-B Market Development Pragmatist in Pain
1. Target Customer 2. Compelling Reason to Buy
3. Whole Product 4. Partners and Allies
Can manage complexity
Rewards for all parties
7. Competition 8. Positioning
Next growth segment
Ready to fill in the gaps
5. Sales Channel 6. Pricing
Broken m/c process
9. Next Target
And thatâ€™s how you grow a B-2-B market! 7
Spinning up the Web B-2-C Digital Market Development
Identity Modification Life Cycle Engagers: Check it out!
Evangelists: Believe in it!
Enthusiasts: Be 1st to try it!
Early Early Majority Adopters
Engagers create the dynamics of digital market development
Brand/Identity Interactions* Levels of Engagement & Commitment Level of Engagement
Level of Commitment I will camp out all night to be first in line when you open. I will go the extra mile to play a part in your world. I not only purchase your offers but display them proudly. I select your offers over others whenever they are available.
I never imagined this was possible. You are reshaping my identity.
You express my dreams, and I want to do more to help your cause.
You are part of what I am. By choosing you, I express myself.
I respect what you do, and believe what you say.
* Model developed in collaboration with Schireson Associates
Spinning Up Volume Operations on the Web Running Experiments in Tandem
Spinning Up the Web Metrics that Will Drive Your Programs Grow Acquisition – Rate of gaining new users (velocity & acceleration)
Grow Engagement – Average length, depth, and frequency of user engagement
Grow Virality – # of new customers coming from existing customers over time
Grow Monetization – Percentage & amount of participation, plus rate of change
Increase Promotional Productivity – Yield relative to acquisition, engagement, virality, monetization
Reduce Churn – Rate of losing existing users (velocity & acceleration)
Increase Lifetime Customer Value – DCF value to date, plus rate of change
And that’s how you grow a B-2-C market! 12
Critical Success Factors Crossing the Chasm vs. Spinning up the Web
Critical Success Factors What Venture Investors Look For Crossing the Chasm
Spinning Up the Web
Distinctive cool factor
Compelling reason to buy
Leveraged access to market
Customer domain expertise
Whole product focus
User experience focus
Agile services-led offer development
Agile data-driven product development
Different horses, different riders—same trail! 14
Thank You email@example.com #crossingthechasm