How to market in the AI-age: modern applications of Crossing the Chasm
Who is this article for?
What I’ll be sharing today is a marketing framework I've developed in part by my own first hand experience taking to market 7 vc-backed startups during my career. This article zeroes in on the pioneers of discontinuous technology—those leading the charge with innovations that demand market upheaval and significant shifts in user behavior. Where continuous technology brings enhancements to the table, discontinuous tech ushers in a new era, challenging the status quo.
As a tech founder at the forefront of this revolutionary wave, this article is your roadmap. Herein lies the wisdom to propel your disruptive innovation across the chasm, securing its place in the mainstream. "Crossing the Chasm" by Geoffrey Moore is more than literature—it's the battle-tested strategy that resonates with disruptors like me, and now, you.
The core of this book is centered around the “tech adoption lifecycle” and its 5 market segments. They can be broken down into:
Innovators
Early Adopters
Early Majority
Late Majority
Laggards.
Each of these segments responds to different stimuli and requires a unique approach in terms of language, evidence, and marketing channels.
Innovators: The Trailblazers of Tech
Innovators are your beachhead. They're intrigued by the “newness” of your product. To attract these enthusiasts, employ a language that resonates with their technical expertise. Use terms like "cutting-edge," "next-gen," and "revolutionary."
Your evidence arsenal for Innovators should include:
Technical Specifications to satisfy their curiosity about the nuts and bolts of your product.
Schematics that give them a peek under the hood.
A clear and exciting Product Roadmap that showcases the future trajectory of the product.
Beta Versions or Prototypes to whet their appetite for experimentation.
Technical Whitepapers that dive deep into your technology’s features and capabilities.
Communicate with them through technical conferences, whitepapers, specialized forums, and direct email campaigns that emphasize product novelty and breakthrough features.
Early Adopters:
The Visionaries Seeking a Leap Forward
Next, you reach the Early Adopters. These are the visionaries, ready to champion a product if they see its transformative potential. Here, the communication style must be inspirational and visionary. Phrases like "game-changer" and "transform your business" will strike a chord with them.
To win over Early Adopters, you need to provide:
A compelling Vision Statement that outlines the potential impact of your tech.
Pilot Programs that prove the technology can perform in real-world scenarios.
Use Case Scenarios that bring potential applications to life.
Testimonials from credible sources that add weight to your claims.
Strategic Benefits that underscore how the technology offers a competitive edge.
Market to them through thought leadership articles, keynote speeches at industry events, and targeted social media campaigns that paint a picture of the future enabled by your technology.
Early Majority:
The Pragmatists Looking for Reliability
The Early Majority are the pragmatists. They won’t jump in until they see practical benefits and peer validation. Their language is one of trust and reliability. Words like "proven" and "trusted" will resonate with them.
The evidence needed for pragmatists includes:
Case Studies that demonstrate the success of your technology in environments similar to theirs.
References and endorsements from trusted peers in the industry.
Live Demonstrations where they can see the product in action.
Detailed Training and Support Information to ease concerns about the adoption process.
Third-party Reviews to give an objective view of your product's market fit.
Reach them through webinars, industry publications, trade shows, and professional networks, focusing on how your technology provides a complete, stable, and reliable solution.
Late Majority:
The Conservatives Who Value Conformity
Conservatives in the Late Majority are risk-averse and will wait until a technology is proven and widely accepted. Communicate with them in a reassuring tone using straightforward language. Focus on value, convenience, and reliability.
They require evidence such as:
Mass Market Endorsements showing widespread adoption.
Reliability and Uptime Stats that illustrate a track record of dependability.
Clear Value Propositions on cost savings and efficiency gains.
User Guides that promise an easy transition.
Community Support which indicates a solid user base for peer assistance.
Utilize traditional advertising, public endorsements, and community outreach programs to communicate that your product is a safe and valuable investment.
Laggards
The Traditionalists Who Resist Change
Finally, there are the Laggards, the most resistant to change. Your messaging to them should revolve around inevitability and simplicity, using terms like "standard" and "essential."
To nudge Laggards, offer:
Mandatory Requirements that showcase the need for transition.
Legacy Compatibility information to alleviate fears of change.
Long-term Support Guarantees to ensure ongoing assistance.
Regulatory or Compliance Information if applicable to your product.
Traditional and mandated communication channels work best, with a focus on the risks of not adopting and the benefits of finally making the switch.
Crafting Your Market Strategy
When crafting your marketing strategy based on the insights from "Crossing the Chasm," it's crucial to follow a structured approach. This can be distilled into nine critical components, as drawn from the essence of the book:
Target the Point of Attack: Identify a specific niche market that can act as a point of entry. This group should have a compelling reason to buy and be accessible to your sales channel.
Assemble an Invasion Force: Concentrate your resources on the chosen niche to ensure a dominant share of that market segment. Build a solution for this niche that addresses their specific problem.
Define the Battle: Create a value proposition that succinctly explains how your product solves a significant problem in a way that is clearly superior to the competition.
Launch the Battle: Implement a whole product concept that ensures the product has all the features and support necessary to address the target market’s needs fully.
Press the Attack: Once you achieve a dominant position in the niche market, leverage this base to expand to adjacent market segments.
Make the Connection: In this high-tech marketing model, align your distribution channels with the target customers’ buying processes to maximize efficiency and impact.
Build the Distribution: Establish and enhance distribution channels to scale up as the market grows. Your channels should deliver and support the whole product as defined by the customers.
Drive to a Conclusion: As you expand, keep focusing on the competition and how to position against them. Drive towards the mainstream market with consistent messaging and branding.
Consolidate Gains: As you move through each phase, make sure to consolidate your gains before moving on to the next. Ensure customer satisfaction and establish your product as the category leader.
Example Marketing Strategy for a Common AI Product: Chatbot Solutions
Let’s apply the 9 points framework to craft a marketing strategy for a common AI product, such as an AI-powered chatbot for customer service.
Target the Point of Attack: Start by focusing on small to medium-sized e-commerce businesses that suffer from high customer service loads and have an interest in automating responses to improve efficiency.
Assemble an Invasion Force: Develop a chatbot that is easy to integrate with popular e-commerce platforms and offers customizable features specific to the e-commerce industry.
Define the Battle: Position the chatbot as not just a tool for reducing workload, but as a way to enhance the customer shopping experience, thus driving sales and customer loyalty.
Launch the Battle: Offer a full solution that includes the chatbot, integration services, and a dashboard for analytics and customization, addressing all the needs of an e-commerce customer service team.
Press the Attack: Once the product is successfully adopted by several e-commerce businesses, use case studies to target adjacent markets such as SaaS providers who also benefit from automated customer service.
Make the Connection: Partner with e-commerce platform providers to offer the chatbot as an add-on service, making it easy for businesses to adopt it as part of their existing setup.
Build the Distribution: Expand distribution by working with digital marketing agencies that specialize in e-commerce to offer the chatbot as part of their service package.
Drive to a Conclusion: Differentiate from competitors by focusing on the chatbot’s advanced AI capabilities, ease of integration, and superior user experience. Aim to be the preferred chatbot solution for e-commerce platforms.
Consolidate Gains: Regularly update the chatbot with new features based on customer feedback, ensuring ongoing customer satisfaction and setting the stage for becoming the industry-standard solution.
By applying these nine strategic points to your marketing strategy, you can systematically address each phase of the technology adoption lifecycle and increase your chances of successfully "crossing the chasm."
