{"id":51133,"date":"2021-10-22T10:51:00","date_gmt":"2021-10-22T14:51:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=51133"},"modified":"2021-10-29T12:20:44","modified_gmt":"2021-10-29T16:20:44","slug":"how-to-cross-the-chasm","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/how-to-cross-the-chasm\/","title":{"rendered":"How to Cross the Chasm: Moore&#8217;s 4-Step Guide"},"content":{"rendered":"\n<p>What does Moore mean by &#8220;crossing the chasm&#8221;? How does remaining in the chasm between the early market and the mainstream market sabotage your business?<\/p>\n\n\n\n<p>According to Moore, in order to succeed in the early market, the company must &#8220;cross the chasm.&#8221; At a high level, crossing the chasm means becoming the <a href=\"https:\/\/www.shortform.com\/blog\/market-leader-company\/\">market leader<\/a> in a very specific niche market, and then expanding into other niches until you dominate the whole market.<\/p>\n\n\n\n<p>In this article, we\u2019ll present an overview of Moore\u2019s advice on how to cross the chasm.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><em>Crossing the Chasm<\/em>: <strong>High-Level Strategy<\/strong><\/h2>\n\n\n\n<p>At a high level, Moore\u2019s strategy for crossing the chasm consists of focusing your efforts on becoming the market leader 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> The members of the early majority communicate closely within their own industry, but not outside of it. Moore also 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.<\/p>\n\n\n\n<p>(Shortform note: <a href=\"https:\/\/archive.org\/details\/registouchnewmar00mcke\/page\/56\/mode\/2up?view=theater\">Regis McKenna<\/a>, a pioneering marketer who made his name publicizing tech companies and their products (including Apple, America Online, and Compaq), <a href=\"https:\/\/archive.org\/details\/registouchnewmar00mcke\/page\/56\/mode\/2up?view=theater\">echoes Moore\u2019s assertion that 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. The <a href=\"https:\/\/www.shortform.com\/blog\/marketing-message\/\">marketing message<\/a> is inherently tailored to the individual, and feedback is instant, 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 breaks down his strategy on how to cross the chasm into four steps: <\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>choose your niche<\/li><li>assemble your <a href=\"https:\/\/www.shortform.com\/blog\/whole-product\/\">whole product<\/a><\/li><li>position your product as the market leader in your niche<\/li><li>setup distribution<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"block-daca41b1-8fcf-4d49-8d5e-b947f1072146\">Step <strong>1. Choose Your Niche&nbsp;<\/strong><\/h3>\n\n\n\n<p id=\"block-cc66a971-d7fd-4457-9dc3-a0407a0b9ed2\">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<p id=\"block-b5c249f8-ea8a-408e-bd93-62d1ce5bc98a\">(Shortform note: Moore is not the only one to advocate <a href=\"https:\/\/www.shortform.com\/blog\/intuitive-decision-making-adaptive-unconscious\/\">intuitive decision making<\/a> in situations like this. <a href=\"https:\/\/www.shortform.com\/app\/book\/blink\">Malcolm Gladwell encourages you to harness the power of \u201cunconscious thinking,\u201d <\/a>which is his term for the mental processes that make up intuition. He contrasts \u201cunconscious thinking\u201d with \u201cconscious thinking,\u201d or analytical <a href=\"https:\/\/www.shortform.com\/blog\/integrative-decision-making\/\">decision making<\/a>. By comparison, <a href=\"https:\/\/www.shortform.com\/blog\/intuitive-thinking-2\/\">unconscious thinking<\/a> is faster, less susceptible to stress, and less sensitive to the amount of available data.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"block-2944b2aa-e65c-4bc7-9599-4c48e39ebb84\">Step <strong>2. Assemble Your Whole Product<\/strong><\/h3>\n\n\n\n<p id=\"block-8b975199-01c0-400e-a5b8-aee4993218bd\">Moore refers to the complete solution that your customer wants as the \u201cwhole product,\u201d in contrast to your core product, which only provides a central piece of the solution. For example, if you had invented the smartphone, the phone itself would be your core product, while the phone\u2019s operating system, a data service plan, and electricity to charge the phone are all components of the \u201cwhole product.\u201d<\/p>\n\n\n\n<p id=\"block-9f643a65-0593-4c99-ba59-c4d7d2a9a1dd\">(Shortform note: The \u201cwhole product\u201d concept is also called the \u201ctotal product.\u201d Most sources credit Theodore Levitt for <a href=\"https:\/\/www.simonandschuster.com\/books\/Marketing-Imagination\/I-M-Levitt\/9780029190906\">developing the concept in his book <em>The Marketing Imagination<\/em><\/a>. However, in that book, Levitt himself attributes the concept to Harvard Business School professor Raymond Corey.)<\/p>\n\n\n\n<p id=\"block-4e24bebf-2b55-4d9a-91e5-b68aaebfbcdd\">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 whole product 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\" id=\"block-7ba8d095-a875-4d81-a428-6a7547e5ce76\"><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<p id=\"block-414765a2-b1e0-4e97-bce3-b95332458c5a\">(Shortform note: After briefly mentioning all three of these options, Moore devotes significant space to discussing corporate alliances. From this we infer that he considers partnerships a particularly important method supplying the whole product. Meanwhile, McKenna stresses <a href=\"https:\/\/archive.org\/details\/registouchnewmar00mcke\/page\/68\/mode\/2up\">the importance of relationships with other companies<\/a> not only for supplying the whole product, but also for establishing your company\u2019s reputation by association.)&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"block-d70cefef-55c3-4975-9ece-cc2ad72cc843\">Step <strong>3. Position Your Product as the Market Leader in Your Niche<\/strong><\/h3>\n\n\n\n<p id=\"block-4df81d85-a652-4eee-9f29-f55fea92c2fa\">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 id=\"block-990de041-7897-4990-a82d-1ef1f6751889\">(Shortform note: In <a href=\"https:\/\/www.shortform.com\/app\/book\/pitch-anything\/1-page-summary\"><em>Pitch Anything<\/em><\/a>, Oren Klaff recommends<a href=\"https:\/\/www.shortform.com\/app\/book\/pitch-anything\/chapter-4\"> introducing your product with a standardized statement <\/a>to the effect of \u201cFor [you target customers] who are unsatisfied with [competitor], [your product name] provides [the customer\u2019s compelling reason to buy]. Unlike [competitor], [your product name] provides [these key features].\u201d Moore\u2019s theory tracks closely to this template, providing a straightforward and clear way to communicate the most important aspects of your product.)<\/p>\n\n\n\n<p id=\"block-5f175b7b-9cfa-4fac-87a8-b1ae8c75eda3\">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<p id=\"block-8c10881b-3f25-49fe-9950-c2d2fbc71e3a\">(Shortform note: Regis McKenna asserts that you can enhance your company\u2019s reputation by associating with other companies with strong reputations. He argues that <a href=\"https:\/\/archive.org\/details\/registouchnewmar00mcke\/page\/56\/mode\/2up\">the strongest evidence for a positioning claim of market leadership is financial success<\/a> (corroborating Moore\u2019s assertion about market share), but that when you don\u2019t yet have a proven track record of <a href=\"https:\/\/www.shortform.com\/blog\/achieving-financial-success\/\">financial success<\/a>, the reputation of your financial backers can be an important source of credibility.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"block-eb12ea54-a25a-45c3-8b85-66e094a170c5\">Step <strong>4. Setup Distribution<\/strong><\/h3>\n\n\n\n<p id=\"block-b94c404f-caad-45ff-931b-4844e729009e\">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\" id=\"block-49e79828-9db6-4bbb-88fe-5fb7ff3118cf\"><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 does Moore mean by &#8220;crossing the chasm&#8221;? How does remaining in the chasm between the early market and the mainstream market sabotage your business? According to Moore, in order to succeed in the early market, the company must &#8220;cross the chasm.&#8221; At a high level, crossing the chasm means becoming the market leader in a very specific niche market, and then expanding into other niches until you dominate the whole market. In this article, we\u2019ll present an overview of Moore\u2019s advice on how to cross the chasm.<\/p>\n","protected":false},"author":7,"featured_media":37282,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,104,103],"tags":[512],"class_list":["post-51133","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-marketing","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>How to Cross the Chasm: Moore&#039;s 4-Step Guide - Shortform Books<\/title>\n<meta name=\"description\" content=\"Moore advises crossing the chasm as soon as you reach it. 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In this article, we\u2019ll discuss his general strategy on how to cross the chasm.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/how-to-cross-the-chasm\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-22T14:51:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-10-29T16:20:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2021\/06\/jumping-cliff.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1115\" \/>\n\t<meta property=\"og:image:height\" content=\"678\" \/>\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=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/how-to-cross-the-chasm\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/how-to-cross-the-chasm\/\"},\"author\":{\"name\":\"Darya Sinusoid\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/0421cce75bc249b11e2517b3a91f9c46\"},\"headline\":\"How to Cross the Chasm: Moore&#8217;s 4-Step Guide\",\"datePublished\":\"2021-10-22T14:51:00+00:00\",\"dateModified\":\"2021-10-29T16:20:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/how-to-cross-the-chasm\/\"},\"wordCount\":1424,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/how-to-cross-the-chasm\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/06\/jumping-cliff.jpg\",\"keywords\":[\"Crossing the Chasm\"],\"articleSection\":[\"Business\",\"Marketing\",\"Sales\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/how-to-cross-the-chasm\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/how-to-cross-the-chasm\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/how-to-cross-the-chasm\/\",\"name\":\"How to Cross the Chasm: Moore's 4-Step Guide - Shortform Books\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/how-to-cross-the-chasm\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/how-to-cross-the-chasm\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/06\/jumping-cliff.jpg\",\"datePublished\":\"2021-10-22T14:51:00+00:00\",\"dateModified\":\"2021-10-29T16:20:44+00:00\",\"description\":\"Moore advises crossing the chasm as soon as you reach it. 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