Crossing the Chasm- A Profound Change

When it is observed that the high-tech products don’t follow a similar pattern of adoption and struggle to get mainstream acceptance. This product also failed even after they are received well in the market at the start. The concept of chasm came in identification. This concept of crossing the chasm was first used in marketing strategy in 1988. Later it was better explained in the book- Crossing the Chasm by Geoffrey Moore. In this article, we will see in detail the concept of crossing the chasm mainly explained in the book. The concept mainly includes seven parts as explained below;

Technology Adoption Life Cycle

The technology adoption lifecycle involves five different segments for customer behavior which are as;

Innovators- These are engaged in technology and buy a product as a form of exploration and adventure

Early adopters- They are visionaries. They have charisma and strategic opportunities to make difference in a project and also have a considerable budget.

Early market pragmatist- The ones who buy only after a technology is well established

Late majority- Conservatives who are not open to a new concept

Laggards- The ones who generally avoid high-tech marketplaces

Two Cracks and Chasm

One of the well-known concepts of crossing the chasm is two cracks and a chasm. The first crack occurs between the innovators and early adopters which means if innovators are not able to show how innovative their technology is they will lose the early adopters. Whereas, the second crack occurs between the early majority that is technically competent and the late majority. The cracks appear minute in front of the chasm as chasm occurs between early adopters and the early majority. A different approach should be used in this stage as it undermines companies' success.

Choosing Market Segment to Target

Any business knows the success of any startup depends on the right segment of the market they target. Generally, organizations make this decision based on the available data but in startups, such a large amount of data is not available. In such cases, it is wise to follow the chasm suggestion of targeting customer image and not go with targeting the market segment.

This targeting customer image can be done by creating multiple target customer scenarios with a minimum of ten with a use case and customer profile that represent characteristic market behavior. This scenario must be created in a template answering some questions and further rating that scenario and deleting the low-rated one whereas, a high-rated scenario must be discussed and a decision should be made based on it. The market segment must be big enough to meet minimum revenue targets and small enough to win half the orders.

Crafting Product

organizations must fully understand the entire product and organize the marketplace for that product. A single product cannot bring value at all even though they succeed in the early market, to do so support of a range of products and services is required.

By aiming to create a minimum whole product that helps in targeting segment buying requirements. A tactical alliance to co-develop the market will help in maximizing the chances of achieving the whole product. The aim of going with whole product development is as pragmatists always prefer to buy the whole product.

Define Market

The value domain affects the market strategy from the early stage. The main value domain varies from the market segment company is targeting, for a visionary key domain is a product, a conservative key domain is a company and likewise for pragmatist key value domain is the market. To win this early market, realistic and logical must win over unconvinced technology enthusiasts and convert them into product credibility. The mainstream market is built by convincing pragmatists with market leadership advantages. Overall crossing the chasm is also the transition from marketing to supporting visionaries who care about the product and market. Crossing the chasm asks to concentrate on the market-centric values and also supplement the product-centric values instead of going with product-centric attributes.

Art of Positioning

Positioning a process of communication that consists of four components as below

·       Claim- Defining position based on value proposition and target segment.

·       Evidence- Market share is compelling evidence for realist, in its absence audience look for many partners, quality, and commitment to the product.

·       Communication- Identify and address the right audience and deliver the right message.

·       Feedback and Adjustment- Accept competitors poking in the initial efforts you put in.

Securing Distribution

The objective that comes before revenue, profit, press, and even customer satisfaction is about securing a distribution channel in a mainstream market that will make the practical customer comfortable. When choosing a distribution channel early pricing majority models must be considered among which three are important.

·       Customer Oriented

·       Vendor Oriented

·       Distribution Oriented

In crossing the chasm Geoffrey Moore states that “customers will be satisfied when they will feel secure with the channel.” This book shows us how the difference in the insight of mainstream market development makes a change for the start-ups. 

We, at Advance Agility, are the new-age Agile Coaching, Consulting and IT services company. We enable end-to-end Digital Transformation. Agile execution is integral to our being. We are doing SAFe implementation with small, medium and large organization across the globe. Our vision is to be the leading Agile execution player globally. To keep adding value at every process stage. We are on a mission to empower our clients, move from concept to cash in the shortest sustainable lead time by adopting human centric approach to business agility. Embracing the change is in our DNA. Things that keep us apart are Quicker and Seamless execution with End-to-end gamut of services. Our Global presence and Stellar Track Record give us an edge over our competitor.

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