{"id":51123,"date":"2021-10-17T14:51:00","date_gmt":"2021-10-17T18:51:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=51123"},"modified":"2021-10-28T16:18:55","modified_gmt":"2021-10-28T20:18:55","slug":"crossing-the-chasm-book","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/crossing-the-chasm-book\/","title":{"rendered":"Crossing the Chasm: Book Overview (Geoffrey Moore)"},"content":{"rendered":"\n<p>What is Geoffrey Moore&#8217;s book <em>Crossing the Chasm<\/em> about? How does remaining in the chasm between the early market and the mainstream market sabotage your business?<\/p>\n\n\n\n<p>In his book <em>Crossing the Chasm<\/em>, marketing consultant Geoffrey Moore explains why most high-tech products stagnate and die out, never reaching the stage of mass adoption. His explanation is grounded in the \u201cTechnology Adoption Life Cycle\u201d (TALC), which predicts how innovations are adopted by different segments of society as a technology matures.<\/p>\n\n\n\n<p>Below is a brief overview of <em>Crossing the Chasm<\/em> by Geoffrey Moore.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Technology Adoption Life Cycle<\/strong><\/h2>\n\n\n\n<p>Periodically, a new high-tech innovation will transform the way we live or do business and propel its inventors to wealth and fame. In his book <em>Crossing the Chasm<\/em>, Moore argues that there\u2019s a little-recognized gap or \u201cchasm\u201d in this model between the early market and the mainstream market\u2014and failure to cross this gap accounts for the failure of many high-tech products.<\/p>\n\n\n\n<p>To understand Moore\u2019s strategy, you need to understand the chasm between the early and mainstream markets, and to understand the chasm, you need to understand the <a href=\"https:\/\/www.shortform.com\/blog\/technology-adoption-life-cycle-chasm\/\">Technology Adoption Life Cycle<\/a> (TALC), also referred to as the \u201cdiffusion of innovations.\u201d<\/p>\n\n\n\n<p>As Moore explains, the TALC predicts that as a technology matures, the number of potential new buyers first increases (as the technology starts to catch on) and then decreases (as you run out of potential customers who haven\u2019t already bought it), following the profile of a <a href=\"https:\/\/www.shortform.com\/blog\/the-bell-curve\/\">bell curve<\/a>. The area under the curve represents the total number of customers for the new technology. This area is divided into five categories of prospective customers, as shown in the figure below.&nbsp;<\/p>\n\n\n\n<p>(Shortform note: This concept was originated by George Beal and Joe Bohlen of Iowa State College, who, in 1956, published <a href=\"https:\/\/ageconsearch.umn.edu\/record\/17351\/files\/ar560111.pdf\">studies on when farmers adopted new agricultural technologies<\/a> (such as fertilizer and hybrid seed corn). Six years later, a communications professor at Ohio State University named Everett Rogers expanded upon Beal and Bohlen\u2019s research in a book titled <a href=\"https:\/\/www.simonandschuster.com\/books\/Diffusion-of-Innovations-5th-Edition\/Everett-M-Rogers\/9780743222099\"><em>Diffusion of Innovations<\/em><\/a>, which popularized the concept outside of the farming community and made it relevant to other industries.)<\/p>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" width=\"624\" height=\"275\" src=\"https:\/\/lh5.googleusercontent.com\/uC3TgiKpBUqvTPpcXID4UhrsDhv7uCIk24N0QqoVLDQM_TTzlFw82stYZ7hiIzcXnyDhcsjkdoIpNhUNs6QVkccM-uqz6oAZHzfIFzC2mQd6puYU13vyAnzFr1hCHayOYfxk7l2i=s0\"><\/p>\n\n\n\n<p>(Shortform note: Moore states that the boundaries between these five categories lie approximately at the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Standard_deviation\">standard-deviation<\/a> intervals on the<a href=\"https:\/\/en.wikipedia.org\/wiki\/Normal_distribution\"> bell curve<\/a>. However, the graph that he presents in his book <em>Crossing the Chasm<\/em> depicts the boundaries further from the center than the standard deviation intervals would be. Moore provides no explanation for this, so presumably his graphic simply wasn\u2019t drawn to scale. However, in our figure above, the boundaries are marked at the standard-deviation intervals.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Psychographic Categories of Customers<\/strong><\/h3>\n\n\n\n<p>The TALC model divides customers into five categories based on their \u201cpsychographics,\u201d the combination of psychology and demographics that dictates their purchasing behavior. These categories are:<\/p>\n\n\n\n<ul class=\"wp-block-list\" id=\"block-20450541-bddf-40ba-8677-d600047b8104\"><li><strong>Innovators<\/strong> are the first to buy new technology. According to Moore, they love new technology just because it\u2019s new technology, but they\u2019re often on a limited budget because they usually work highly technical jobs, rather than positions in upper management.<\/li><li><strong>Early Adopters<\/strong> are the second group to buy new technology. According to Moore, early adopters are usually visionary business managers: They don\u2019t value new technology for its own sake, but they have enough technical insight to identify the strategic advantages that new technology can provide.<\/li><li>The <strong>Early Majority<\/strong> are the third group to adopt new technology. According to Moore, they are pragmatic people, who are interested in leveraging new technology to improve their business, but also averse to the risks of unproven technologies. They are less technically inclined than innovators or early adopters, and tend to measure a high-tech product more by industry standards and the product\u2019s reputation than by direct assessment of the underlying technology.<\/li><li>The <strong>Late Majority<\/strong> are the fourth group to adopt new technology. According to Moore, they are more conservative and less technically competent than the early majority: They\u2019re not interested in getting ahead with technology, but they don\u2019t want to fall behind.<\/li><li><strong>Laggards<\/strong> do not adopt new technology willingly. If they adopt it at all, it will be old technology by the time they do.&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Gaps in the Technology Adoption Life Cycle<\/strong><\/h3>\n\n\n\n<p>Now that we\u2019ve discussed the TALC, we can discuss the weakness of the model that gives rise to Moore\u2019s \u201cchasm\u201d.&nbsp;<\/p>\n\n\n\n<p>Moore explains that the traditional TALC assumes sales to the five categories of customers transition seamlessly from one to the other as the technology matures. However, according to Moore, this assumption is wrong. He argues that the psychographic differences between the people in each stage of adoption create gaps between each category. Thus, Moore proposes a \u201cRevised TALC,\u201d which recognizes those gaps, as shown below. <\/p>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" width=\"624\" height=\"251\" src=\"https:\/\/lh6.googleusercontent.com\/voUAsFnv2v6pFYhqk29I8pmhoLcFnZaYVrYS1LSMJvoXJKUCfZ6GecdcCYVRpJ0ocLasGzVV53GpLgyNBfo1yI1N_XhLfIjZTdIRy17WNOoaJp9wuhQV56g1CaZrxvne2SDHIeeC=s0\"><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Distinct Gaps Versus Overlapping Populations<\/strong><br><br>In Moore\u2019s revised TALC, the categories are shown as separate blocks of a segmented bell curve. However, given that Moore acknowledges you may sometimes be <a href=\"https:\/\/www.shortform.com\/blog\/how-to-make-a-sale-2\/\">making sales<\/a> to more than one category at once, a more accurate graphical representation of Moore\u2019s model might represent the categories as individual, overlapping bell curves, as shown below.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/OWiNGTCQAW3bLm65QmGHgUOlCOw3u0WG3j_WV6v6R-lfbpJ_qGm-8eon5hRzGaMB68BWlWgYzTJZEaGQXehnxBizuJ7ZYYNpI2gD30ShhOyIW9Y21ave4sWdPDChwBeTyiIs7AAT=s0\" alt=\"\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Chasm<\/strong><\/h3>\n\n\n\n<p>By far the largest gap in Moore\u2019s revised TALC is between the early adopters and the early majority. He refers to this gap as the \u201cchasm.\u201d<\/p>\n\n\n\n<p>Moore explains that early adopters assess new technology at a technical level, to determine if it can give them a strategic advantage, whereas the early majority assess it based on its reputation and standardization. Because they value different things, the early majority won\u2019t look to the opinions of early adopters when deciding whether to buy your product.&nbsp;<\/p>\n\n\n\n<p>This creates a catch-22, because the early majority won\u2019t buy your product until it has built up a good reputation in their industry, but your product can\u2019t build up a good reputation until they start buying it and using it.<\/p>\n\n\n\n<p>(Shortform note: <a href=\"https:\/\/ageconsearch.umn.edu\/record\/17351\/files\/ar560111.pdf\">Beal and Bohlen didn\u2019t identify the chasm or discuss this catch-22 of innovation diffusion, but you can see the basis for it in their original paper<\/a>: The early majority can\u2019t afford to take risks on unproven technologies, but a new technology can\u2019t be widely proven until they adopt it.)<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">The Early Market and the Mainstream Market<\/h4>\n\n\n\n<p>Moore defines the \u201cearly market\u201d as the portion of the market made up of <a href=\"https:\/\/www.shortform.com\/blog\/keep-innovating\/\">innovators and early adopters<\/a>, and the \u201cmainstream market\u201d as the remaining portion of the market on the other side of the chasm.<\/p>\n\n\n\n<p>(Shortform note: In business, the term \u201cearly market\u201d is used mostly in this sense, and most <a href=\"http:\/\/www.invstor.com\/information\/go-big-dictionary\/early-market-definition\">business dictionaries cite Moore\u2019s book as the source of the term<\/a>. The term \u201cmainstream market,\u201d however, is also used by others to refer to any large or broadly distributed market, in contrast to a \u201cniche market,\u201d which is smaller and more tightly connected.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How to Cross the Chasm<\/strong><\/h3>\n\n\n\n<p>Moore warns that you might reach the chasm quickly in your roll-out\u2014just three to five significant sales contracts with early adopters may be enough to saturate the early market. After that, you have to enter the mainstream market. Otherwise, your sales will stagnate, and your product will die in the chasm.&nbsp;<\/p>\n\n\n\n<p>(Shortform note: Moore\u2019s estimate might be a slight exaggeration, given relative category sizes. Moore asserts that innovators make up about 2% of the market and early adopters make up about 16.7% of it. Thus, if there\u2019s only about five significant customers in the early market, who represent about 18.7% of the total, then there\u2019s only about 27 significant customers in the total market. For most products, the market probably consists of more than 27 potential significant customers, in which case there might be more than five large contracts in the <a href=\"https:\/\/www.shortform.com\/blog\/early-adopters-model\/\">early adopter<\/a> category.)<\/p>\n\n\n\n<p>How do you cross the chasm? At a high level, Moore\u2019s strategy for crossing the chasm consists of focusing your efforts on becoming the <a href=\"https:\/\/www.shortform.com\/blog\/market-leader-company\/\">market leader<\/a> in a very specific niche market, then expanding into other niches until you dominate the market.<\/p>\n\n\n\n<p>According to Moore, the reason this works is that <strong>it has an amplifying effect on marketing.<\/strong> He asserts that all marketing is ultimately dependent on word-of-mouth. <a href=\"https:\/\/www.shortform.com\/blog\/word-of-mouth-marketing-strategy\/\">Word of mouth<\/a> spreads quickly through a small niche market: If just a few customers are impressed with your product, everyone will hear about it (whereas in a large market, their voices would be lost in the crowd). This is what makes it possible to build a reputation for your product and attract early-majority customers.<\/p>\n\n\n\n<p>(Shortform note: Regis McKenna, a pioneering marketer who made his name publicizing tech companies and their products (including Apple, America Online, and Compaq), echoes Moore\u2019s assertion that <a href=\"https:\/\/archive.org\/details\/registouchnewmar00mcke\/page\/56\/mode\/2up?view=theater\">word-of-mouth is the most effective method of marketing<\/a>. His premise is that word-of-mouth is an experience that turns raw information into effective communication. When a message is delivered from one person directly to another, it\u2019s inherently tailored to the individual, increasing its impact and reducing misunderstandings. He goes on to cite the \u201c90-10 rule,\u201d namely that 90% of the population\u2019s decisions are determined mostly by the influence of the other 10%.)<\/p>\n\n\n\n<p>Moore then breaks down his strategy into four steps:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>1. Choose Your Niche&nbsp;<\/strong><\/h4>\n\n\n\n<p>Moore notes that when you first cross the chasm, you don\u2019t have enough existing market data to choose your niche based on rational analysis, so you have to choose it based on intuition. He further observes that it\u2019s easier to intuitively predict the behavior of a <em>person<\/em> than an <em>abstract entity<\/em> like \u201cthe market for electric cars.\u201d Thus, he recommends creating hypothetical customer profiles and purchasing scenarios that show how each hypothetical customer would benefit from your product. Then you can select your niche by choosing the most promising of these archetypal customers.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>2. Assemble Your Whole Product<\/strong><\/h4>\n\n\n\n<p>Moore observes that to build a good reputation for your product, you need to make sure your customer can readily use it within a complete, working solution. Thus, you need to identify every component of the <a href=\"https:\/\/www.shortform.com\/blog\/whole-product\/\">whole product<\/a> and make sure your customer can easily access it. There are three possibilities for any given component:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>You can design your product to use elements that are already readily available, like 120 V AC electricity.<\/li><li>If a component is difficult to find or install, you can bundle it with your product, like a phone that comes with the operating system already installed.&nbsp;<\/li><li>If it\u2019s not something readily available but also not something you want to provide yourself, you can partner with another company to deliver that part of the whole solution. For example, maybe you want to deploy a hydrogen-powered car, and you coordinate with another company that can supply hydrogen fuel and set up fueling stations for your customers.<\/li><\/ol>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>3. Position Your Product as the Market Leader in Your Niche<\/strong><\/h4>\n\n\n\n<p>Moore uses the word \u201cpositioning\u201d to describe how potential customers view a product or company and where they place it on the market landscape in relation to competing products or companies. Clearly <a href=\"https:\/\/www.shortform.com\/blog\/why-is-it-important-to-know-your-competitors\/\">identifying your competitors<\/a> and defining your positioning claim helps to focus your marketing efforts so that customers are more likely to position your product where you want them to.<\/p>\n\n\n\n<p>Moore says that, to early-majority customers, the most convincing evidence of market leadership is market share. However, since you don\u2019t have the largest market share yet, the evidence that you soon will is your commitment to delivering the whole product through alliances with other companies.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>4. Setup Distribution<\/strong><\/h4>\n\n\n\n<p>The final step in Moore\u2019s strategy is to set up distribution so that your target customer can actually buy your product. For the purpose of distribution, he categorizes target customers according to their <a href=\"https:\/\/www.shortform.com\/blog\/job-titles\/\">job titles<\/a>, and advises that these different customers are more easily reached by different sales channels:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>According to Moore, <strong>Engineers<\/strong> are best reached by a two-phase approach: First you publish your product specifications online. Then you send sales personnel to meet with them and conduct demonstrations or facilitate testing once they express interest. This works because engineers don\u2019t respond well to promotional marketing and typically don\u2019t have corporate purchasing authority, but can put you in touch with their purchasing department when you demonstrate your product.<\/li><li>Moore recommends reaching out to <strong>Enterprise Executives<\/strong> by sending your senior staff to leadership conferences where they can connect with them and develop a consultant-like relationship. He calls this \u201crelationship marketing.\u201d<\/li><li>Moore advises cultivating relationships with <strong>Department Managers<\/strong> through an online system that provides basic information about your product, and then connects them with a human sales representative who is also online. Managing customer relationships digitally is more efficient, which is important because department managers typically place smaller orders than enterprise executives.<\/li><li>If your target customer is a <strong>Small-Business Owner-Operator<\/strong>, Moore recommends distributing your product through a value-added reseller (VAR). VAR\u2019s can provide local service and support, as well as helping the customer set up the product, and educating them on how to use it, all of which small business owners tend to find particularly helpful.<\/li><li>For selling to <strong>End Users<\/strong>, Moore recommends fully-automated online self-service, with FAQ and community help forums to streamline support. This is necessary because end users typically make relatively small purchases, and so you can\u2019t afford to spend time dealing personally with each customer.<\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"<p>What is Geoffrey Moore&#8217;s book Crossing the Chasm about? How does remaining in the chasm between the early market and the mainstream market sabotage your business? In his book Crossing the Chasm, marketing consultant Geoffrey Moore explains why most high-tech products stagnate and die out, never reaching the stage of mass adoption. His explanation is grounded in the \u201cTechnology Adoption Life Cycle\u201d (TALC), which predicts how innovations are adopted by different segments of society as a technology matures. Below is a brief overview of Crossing the Chasm by Geoffrey Moore.<\/p>\n","protected":false},"author":7,"featured_media":40007,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[40,45,103],"tags":[512],"class_list":["post-51123","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-books","category-business","category-sales","tag-crossing-the-chasm","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Crossing the Chasm: Book Overview (Geoffrey Moore) - Shortform Books<\/title>\n<meta name=\"description\" content=\"In his book Crossing the Chasm, Moore explains why most tech products never reach the stage of mass adoption. 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Here is a brief overview.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/crossing-the-chasm-book\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-17T18:51:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-10-28T20:18:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2021\/06\/skimming-a-book.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"978\" \/>\n\t<meta property=\"og:image:height\" content=\"616\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Darya Sinusoid\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Darya Sinusoid\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"11 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/crossing-the-chasm-book\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/crossing-the-chasm-book\/\"},\"author\":{\"name\":\"Darya Sinusoid\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/0421cce75bc249b11e2517b3a91f9c46\"},\"headline\":\"Crossing the Chasm: Book Overview (Geoffrey Moore)\",\"datePublished\":\"2021-10-17T18:51:00+00:00\",\"dateModified\":\"2021-10-28T20:18:55+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/crossing-the-chasm-book\/\"},\"wordCount\":2206,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/crossing-the-chasm-book\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/06\/skimming-a-book.jpg\",\"keywords\":[\"Crossing the Chasm\"],\"articleSection\":[\"Books\",\"Business\",\"Sales\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/crossing-the-chasm-book\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/crossing-the-chasm-book\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/crossing-the-chasm-book\/\",\"name\":\"Crossing the Chasm: Book Overview (Geoffrey Moore) - Shortform Books\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/crossing-the-chasm-book\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/crossing-the-chasm-book\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/06\/skimming-a-book.jpg\",\"datePublished\":\"2021-10-17T18:51:00+00:00\",\"dateModified\":\"2021-10-28T20:18:55+00:00\",\"description\":\"In his book Crossing the Chasm, Moore explains why most tech products never reach the stage of mass adoption. 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