I’ve been wondering a lot lately about the Technology Adoption Lifecycle and Geoffry Moore’s classic Crossing the Chasm. I believe that we are seeing the Chasm obliterated by technology and cultural changes. I see three inter-related trends that are driving this collapse, none of these in and of themselves will surprise any readers, but I think when taken together, there is a compelling argument that the Chasm is collapsing, and smart marketers can speed time to adoption by understanding this dynamic. These trends are 1) The consumerization of technology and its impact on the speed of diffusion 2) the commoditization of the creation and distribution of content and 3) the lower barriers and risks of technology solution adoption.
Before I continue, I do want to note that Crossing the Chasm might be the most dog-eared book in my fairly extensive marketing library. It is a CLASSIC, and has guided much of my thought and practice of marketing over the last 2 decades. It still has tremendous value and incredible teaching and learning in it. The concepts of bowling pins, whole product and positioning are beyond their worth in gold. End of story.
But, I think we need to take a hard look at the chasm today. On page xi of his revised edition of 1999, Moore states: “The Chasm Model itself represents a pattern in market development that is based on the tendency of pragmatic people to adopt new technology when they see other people like them doing the same. This causes them to band together as a group, and the groups initial reaction, like teenagers at a junior high dance, is to hesitate and watch.” Let’s take a little time and dissect this statement.
1) “the tendency of pragmatic people to adopt new technology when they see other people like them doing the same” – Since the Chasm was “discovered” by Moore, technology has infiltrated our lives, as Marc Andreessen says, “software is eating the world.” Early adopters now surround everyone, kids and consumers often lead the way. In addition, the technology continues to get hidden behind better and better and easier and easier user experience. Today’s professionals are more comfortable with and better and faster adopters of technology. From the secretary, to the CEO, from the line worker to the general manager, adoption patterns have compressed and changed. CIOs and Business Managers who wait for “the mainstream” to adopt a solution will quickly find themselves in the late majority, falling behind competitors.
2) “… This causes them to band together as a group” – Which group? How many affiliations do you have on Linkedin? How many communities do you belong to? What technology did the PTA just adopt that has you thinking, boy, why aren’t we doing that? It used to be information was held by vendors. Customers and buyers depended on information brokers, such as Gartner, IDC and others to get aggregated views of this information. Now they can go to Quora, or LinkedIn, or just plain Google. Vendors now invest FORTUNES in content creation and distribution, because they must inform buyers now, or lose to competitors who do. The group of peers has expanded dramatically and the information available to these groups has become free, available and subject to peer review. One of the main reasons the group effect put brakes on mainstream adoption was the difficulty of obtaining and evaluating vendor claims. We’ve entered the era of transparency and visibility, where the early adopters can more effectively share and make their informed views and experiences real to the mainstream.
3) “…and the groups initial reaction, like teenagers at a junior high dance, is to hesitate and watch” The new reaction is to try at small scale, fail and scale successes. The speed and cost dynamics of the cloud have fundamentally changed the economics of trial and the risk of failure. The risk and fear of failure is now lower than the odds of success and upside.
I still believe in vertical marketing, I still believe in delivering whole products, I still believe in the power of positioning, but I believe the Chasm is closing and will continue to do so. I hope this posts is controversial, and creates a discussion, I expect it will do so! What do you think???
When I talk about Viewpoint, the first question I usually get is, “well, who does this well?”
The godfather of Viewpoint in the new era of cloud computing is clearly Salesforce.com. As I have written here, SalesForce.com’s “The End of Software” created a unique and compelling Viewpoint that aligned with the aspiration and frustrations of their target customers who needed faster and easier visibility into sales pipeline and performance. As they and the market have matured, they have adeptly shifted to “The Social Enterprise”, seeking to capitalize on the technology, environmental and business shift to social computing. So far, this seems to be a big win again for Benioff and team as even conservative Gartner Group now calls this category “Social CRM” .
But everyone calls out Salesforce, so I wanted to find a few maybe lesser know examples of companies who are staking out a Viewpoint which gets them attention, leads and business. Here’s a few:
Zuora – The Subscription Economy – By building the business around the Subscription Economy, Zuora has created a fertile ground for discussing their billing solutions in a context that matters. Rather than simply an accounting solution for selling term licenses, Zuora has effectively planted a flag of leadership. They’ve even committed a whole website to the discussion of this Viewpoint.
FireEye – Sometimes a Viewpoint is as simple as saying “the world around you has dramatically changed, have you responded?”. This is exactly what FireEye has done with their Next Generation Threat positioning. By elegantly articulating what their clients already knew, that the bad guys were changing faster than their current defenses, FireEye positioned themselve as the expert to define and deliver what a next generation threat protection solution.
VirginAmerica – Flying should be painful, crowded, stressful and miserable. Right? Wrong says VirginAmerica. Experience the difference. A great example of a Viewpoint which takes conventional wisdom and throws it out the window. Backed by delivery of the promise of a new and differentiated service. Cool! Let’s book today!
By creating a unique Viewpoint, we create the space or the context to deliver our unique value, creating impact, the first stage of accelerating to Velocity Marketing. What’s you Viewpoint? (check out this blog for a starting framework… or join me for my Velocity Breakthrough Marketing Workshop in Boston on October 25th…)
Sometimes the things we forget are as important as those we remember. Well, here’s 3 things I think we would all do to forget in our B2B go to market strategies…
1) Demo only when qualified – NO – Buyers come in MANY shapes and sizes, with MANY email addresses, and in MANY states of readiness. In all cases, they have come to expect to be able to see the service or product experience. Since so many sales cycles are now ‘hidden’, if you don’t “show me the money” early, you could lose and not even know it…
2) Enterprise sales are top down, always – NO. Just ask Yammer, Atlassian or even Salesforce.com and others. Many enterprise sales cycles are now driven bottoms up by the line manager who has the problem to solve. Now enterpise sales has ALWAYS been a combination of top down and bottom up selling, but today, the scales are tipping to the bottom up. Velocity now requires trial, demo and value delivery EARLY and OFTEN.
3)Qualified leads matter most – NO, marketing must now deliver qualified buyers to sales. Sales then must slam the door shut. Marketing used to be the warm up act, and sales the concert giver. Now it looks more like Marketing plays the first 2 acts and sales ends the show. With hidden sales cycles and self directed buyers, marketing must not just find qualified leads, they must find the active buyers.
Each of these things to forget have broad and significant sales and marketing implications, on tactics, measurement, roles and org structutres…more of that to come in another blog…
(This post was originally written as a contribute piece for Nimsoft’s Modern IT Blog, but I thought it would fit well here too – Enjoy)
Much has been written here, and in many blogs, about Cloud Adoption. However, most of this has focused on the tangible and critical pieces like technical architecture and operational considerations. This can’t be minimized in the least. However, in my work with both vendors and end customers, I’ve identified what is another critical success factor across all organizations, and that is adopting a Cloud Mindset. And while mindset may seem “softer” than the other issues, if we don’t shift our mindset, we will continue to cling to ideas and assumptions that served us well in the past, but can get in the way of our future success.
The OPF™ Mindset Framework:
I’ve developed a model to both understand and manage mindset transitions. In the OPF framework, Mindset is composed of 3 components; orientation, perspective, and focus. Each of these has a very specific definition:
1. Orientation – My relationship and adjustment to the environment that I am in
2. Perspective – My way of regarding/judging and interpreting facts
3. Focus – Where I choose to concentrate my attention
In order to change, to bridge from one mindset to the next, it is often helpful to explicitly define, discuss and agree on an organization Mindset.
Let’s now apply this framework to the three transitions in question, ISV to SaaS, Service Provider to Cloud Service Provider, and Enterprise IT To a Cloud First Organization.
The SaaS Mindset
As I blogged earlier, ISV and new SaaS providers need to change their Mindset:
Orientation: from Product to Service
Perspective: from Spikey to Continuous
Focus: from Transaction to Relationship
Without these changes, the incentive to drive the organizational requirements for success and the framework to make strategic choices will be flawed. I’ve seen many cases where ISVs have not succeeded with the transition to SaaS, not because of technical barriers, but because they failed to change mindset and therefore made poor organizational, resource and strategic choices.
The Cloud Service Provider Mindset
Service Providers, of course are in the business of selling services, not products, so they have a different challenge in transitioning. They must become more agile, like the technology they support. They must accept that they win not only by expanding their service catalog, but by making it more “open” to other cloud providers, and adding value in layers above their traditional service catalogs. Applying the OPF framework to this transition, we can summarize this transition like this:
Orientation: from closed and control to open value add
Perspective: from customer value from me to customer value through ecosystem leverage
Focus: from Service expansion to Service agility
The more a service provider opens up and expands its catalog, business practices and value add to the Cloud ecosystem, the more opportunity opens and barriers to winning the Cloud melt away.
The Enterprise IT To a Cloud First Organization Mindset
Traditionally, IT has been the provider of services to the Enterprise. And while this is the role that they will continue to play, it is being transformed daily. First of all, with layers from IaaS to PaaS to SaaS being provided to IT, they must understand that they are no longer a buyer of services, but have in many cases become the consumer of these services. They must consume, add value and broker these services to their internal and external customers across web, mobile and other channels. They must move beyond exploring the cloud and drive to strategies that exploit it. In short, they are the beneficiaries of the work being done by ISVs and Cloud providers, but only if they learn to consume, exploit and effectively broker new and innovative services. In short, their mindset must shift like this:
Orientation: from buyer to consumer
Perspective: from exploration to exploitation
Focus: Service delivery to service brokering
As we see, Cloud Adoption changes the role and mindset across the IT service delivery value chain. Has you organization changed or is it clinging to an old mindset? By explicitly thinking, discussing and agreeing on an organization’s mindset, it’s Orientation, Perspective and Focus, you can change the speed and effectiveness of your cloud adoption and success. Happy Bridging…
Jim Barksdale is a pretty quotable guy, work for him for a few years like I did at Netscape and you leave with a small library of “Barksdalisms” that just stick with you. One of Jim’s sayings was, “It ain’t dogfood unless the dog comes off the porch to eat it…”.
While Jim was making the point that you can love your product, but if the customers doesn’t buy it it aint worth much, I never think Jim was intending to be taken literally. German pet food manufacturer GranataPet did. Watch this video of a mobile enabled dog food dispensing billboard.
Kinda gets you hungry doesn’t it? OK, maybe not, but it will sure make your dog happy.
Ever feel like escaping the doldrums of your computer, sitting down by a mountain lake and skipping stones? Sounds like fun. That’s exactly the experience that the SkipTown promo for Sun Valley created by San Francisco design firm 11 did. And while Skippy has since retired, check out the video of the world’s first (and maybe only?) web controlled stone skipping robot from Sun Valley Idaho.
When I hear software, SaaS and other B2B companies hide their product or services experience behind a myriad of rationalizations and excuses I want to fire up these two videos. If Sun Valley and Granata can do it, so can you!
KJR client WhiteHat Security recently launched it’s new RiskCheck program. WhiteHat probably knows more about Website risk and attacks than anyone in the world. But how do you give prospects a taste of that experience. The RiskCheck, just launched last week is their answer. Just complete this short web survey and receive a customized report comparing you to your industry and companies of your size. A small but highly valuable experience of the value that WhiteHat can deliver.
Experience and engagement create velocity. So whether you are selling dog food, mountain vacations or website security, there’s a way to accelerate your pipeline today.
Now excuse me while I take Fido for a walk, skip some stones and futureproof my website.
Talking about his new book, “That Used to Be Us,” at a recent speech at the Stanford Graduate School of Business, best selling author Thomas Friedman said, “Average is over. Everyone must define and develop their extra, that unique value add that justifies, in this world of rising curves why they should be hired or promoted.” Friedman goes on to make a case that to win in the global market, American education must nurture students to become more creative and unique.
Friedman goes on to discuss the emergence of the “hyper-connected world” one where you cannot only outsource labor, but you can outsource “genius”. This is clearly one of the driving forces that create the glut of solution providers in every imaginable niche in the market today. While Friedman deals with macro nation level competitiveness issues, every day, the battle against average determines the micro level winners and losers in competitive markets. The companies that win, rise above the mean because they don’t stop at average, they consistently go outside the mean in at several if not all of these key areas –
1)Frame the problem in the customer’s view
2)Drive experience
3)Execute with focus, data and speed
4)Maximize Customer satisfaction
5)Iterate rapidly and successfully
Let’s take a quick look at why being above average matters, and how to achieve it.
1)Frame the Problem – With the dramatic overload and availability of content, Breakthrough is critical. Winners do an above average job of setting the CONTEXT for the market conversation, or framing the problem. One way to win, is to create a compelling Viewpoint as I discuss here. Average companies look to ride trends, above average ones create them.
2)Drive experience – Buyers are now driven by experience over evaluation. Average companies have product or brand managers building screen capture or other quick hit videos. Above average companies find ways to create highly engaging, real or near real product or service experiences. Experienceis the new selling reality, you better be great at this or you will never build a high velocity sales execution engine…
3)Execute with focus, data and speed – Driving pipeline today, is all about execution and learning. We’ve entered the era of A/B testing and we aren’t leaving. Average companies understand basic data and use it to adjust execution, while above average companies drive operations and optimization from realtime data and analytics , using new and innovative tools and techniques like Totango’s Customer Engagement Management solution.
4)Maximize Customer Satisfaction – We’ve left the world of purchase and support a long time ago, but many organizations have not adjusted their approaches and organizations. Average companies measure customer satisfaction with survey and support metrics. Above average companies have fundamentally changed their mindset and restructured their whole organization around the customer lifecycle, surrounding the customer and maximizing customer lifetime value.
5)Iterate rapidly and successfully – Average companies run on release cycles measure in quarter or longer. Above average companies release features and cycle in weeks, days or even hours. In the world of realtime data (see 3), the new rule is iterate or lose.
Are you still average, if so, you need to invest or lose to the start up in Bangalore, Budapest, Sao Paolo or next door. Friedman is right not just about people when he calls out to find that extra, but this is true of companies too. What’s your strategy to be above average?
Andrew Chen’s recent blog post entitled – Growth Hacker is the New VP of Marketing certainly got my attention and was one of the most intriguing post I’ve read in months. Andrew essentially writes an obituary for Marketers, saying they are going the way of the dinosaur to be replaced by a new and more evolved species he calls the Growth Hacker. Do I agree, NO! But that doesn’t mean that this isn’t a very important post that bears attention and response.
I recently spent an hour with my daughter’s 4th grade class teaching them – “What is Marketing” for a business simulation unit they are doing. In it I told them that “Marketing is fun, because you get to be part artist, part scientist and part poet.” Andrew argues that I was wrong on 2.5 of these, and that Marketing is now fun because you get to be part Coder and part Data Scientist. Andrew says,
“The fastest way to spread your product is by distributing it on a platform using APIs, not MBAs. Business development is now API-centric, not people-centric. Whereas PR and press used to be the drivers of customer acquisition, instead it’s now a lagging indicator that your Facebook integration is working. The role of the VP of Marketing, long thought to be a non-technical role, is rapidly fading and in its place, a new breed of marketer/coder hybrids have emerged”
Do I agree, yes and no. Marketing, especially direct marketing, has always been part science, and business development has always been about partnering and distribution. So in that sense Andrew is both right and wrong. There has definitely been a continued rise of analytics in marketing starting with Direct Marketing, moving to SEO/SEM, and continuing with the emerging fields of social analytics, A/B testing and other new techniques. In fact, to many CEOs marketing is no longer a “black art” , but is now a “black science.”
The major problem I have with Andrew’s post is toward the end. After walking through an integration between AirBnB and Craigslist, Andrew states rather pejoratively,
“No traditional marketer would have figured this out
Let’s be honest, a traditional marketer would not even be close to imagining the integration above – there’s too many technical details needed for it to happen. As a result, it could only have come out of the mind of an engineer tasked with the problem of acquiring more users from Craigslist. “
Not only is this totally unsubstantiated, it’s insulting. Plenty of marketers, like myself, are pretty damn technical, they have to be. Do they code, maybe not, but can they spec and understand an integration like this, HELL YES. Secondly, who tasked the hypothetical engineer with doing this in the first place? So while this post is definitely interesting, at the end of the day I think it is wrong.
As I’ve argued extensively, in today’s overloaded information market, getting attention is still about context and communications. The argument that coders and data scientists will be the only flavors of marketers in the future is just a leap beyond logic and reality. Marketing, taken in its broader sense, is the understanding of markets, buyers, communication and value exchange. It doesn’t require a coder to do this, it requires a business person, albeit, a pretty technically savvy one in many organizations. In addition, it may be the romantic in me, but I think the artists and poets will continue to play an important but changing role in marketing success. If you want one compelling argument for this, I’d point you right to the Apple Product Design team. So, as much as some would like to pronounce the VP of Marketing as dead or dying, as Mark Twain famously said, “The reports of my death have been greatly exaggerated”.
When I used to go to London often and ride the Underground, the constant refrain seen was “Mind The Gap”. Mind the Gap or you could suffer some unmentionable and clearly gruesome fate. As Online software service providers of all flavors try to create high velocity sales and marketing businesses, they would do well to mind these 3 gaps:
1) The “It’s Not Your Time” gap
2) The “It’s Not My Job” gap
3) The “Window Shopping” gap
Let’s take a quick look at each of these gaps and see how we can minimize the risk of a potential customer “falling through the cracks”, which while not bloody and gruesome, is costly and mostly avoidable.
1) It’s Not Your Time – Sorry Ms. Vendor, you got me here and I was pretty interested, but you’ve failed in the 3 minutes I have to deliver relevant value once I arrived. I’m not ready for the trial, because you’re not showing me any compelling reason to listen.
2) It’s Not My Job – Oh shoot, I went to try your product but I realized I need the X (CTO, Network Admin, HR Manager, Salesforce.com implementer, …) to configure, load or integrate something to try it. Can’t I get see something now, maybe later…
3) I’m Just Window Shopping – Today’s world is full of triers, but where are the buyers? If you can’t tell them apart, it won’t be the prospect falling through the cracks, but it will be your valuable sales and marketing resources…
Bridging the Gaps
How then can we bridge this gaps with our Go To Market approach?
Here’s a few ideas…
1) Create the context – We compete not just with 4 or 5 other solutions that are close to ours, but hundreds or thousands of things on the buyers mind and agenda. Engage visitors with a unique and compelling viewpoint, and then keep them around by relating your value to their world. Zuora’s “Subscription Economy” is a compelling and relevant viewpoint, check it out as a great example. Now it’s YOUR TIME!
2) Reduce Experience Friction – Make sure it is EASY for buyers to experience the value you deliver. If an integration step is needed, make sure there is a way to simulate or demonstrate the result without the full commitment. GoodData does this by providing a myriad of example implementations of salesforce.com dashboards, so if a potential buyer doesn’t want to or can’t do the integration right then, they can still experience the value. Remember what your key buyers job and skills are and deliver experience to them NOW!
3) Find the Buyers – In try and buy and freemium models, it is absolutely possible to monitor and understand buying behavior vs. window shopping. Don’t depend on inefficient sales methods to find the most likely buyers, watch and understand what their actions are, they speak louder than words. Tools like Totango offer powerful and easy platforms that let you do this. Let the Buyers find You!
So if your velocity isn’t where it needs to be, take a quick look at these 3 Gaps found in many go to market plans. Mind the Gap, Find the Gap, and Fix the Gap to drive high velocity!!!
Value Propositions and elevator pitches live in the rarefied air of marketing speak. They are almost seen as mystical accomplishments reachable by only the anointed among us. “But what’s the elevator pitch” we hear time and time again….Give me the 30 second attention grabber, etc, etc.
While I agree that Value matters, and actually matters a lot, I think as sales and marketing professionals, we’ve worshiped at this alter for so long, we’ve lost sight of the end goal. We’ve become Value snobs. Here’s are my top 5 reason’s why we overvalue Value:
1) We are Product Narcissists…Who doesn’t love their baby. Even when we clearly articulate customer benefit, we RARELY ask whether the benefit is truly valuable. We are often NOT in synch with out customers priorities, fears and aspirations. This might be the #1 thing that drives great sales people to say “The marketing guys are out of touch”.
2) Content is a Commodity… What we write, our competitors can copy and paste with amazing speed, especially if it is good content. There are really only 2 benefits to products anyways, cost savings and revenue increase, and there are only so many ways to say these things. Good content is not cheap or easy… for the first guy, but is for the second! When we focus on the words that describe our Value, we lose to the second guy every time.
3) If Content is Dead, Context is the new King … Value without context is like a tree falling in the forest with no one around to hear it. We spend so much time on Value we forget about Viewpoint. True impact happens when we paint our value in the Context of a Viewpoint that is aligned with our customers. We get out of our product narcissism (see point 1), and set the terrain to communicate in a meaningful way.
4) It all goes back to IBM…Need Feature Advantage Reaction, Wilson Sales Strategy, Powerselling… Most of what we do has its roots in a world of 1970-1990. A world of technocrats who lived in glass houses could be sold to like that. But today’s buyer is self directed and really SMART, and has access to more information than ever. Buyers have shifted from evaluation to experience as the way they form opinions and make decisions. Many of us have not kept up…
5) Hard to experience = hard to use. High velocity sales requires high velocity value delivery. Set the context and then “show me the money”. If it’s so darn hard to DEMONSTRATE your value, then your product or service must be damn hard to buy, deploy and get value out of. The days of DESCRIBING value are over. Better to show me 60% of the value in a compelling experience, than describe it 100% in a long piece of text or video.
The real power of influence in sales and marketing has shifted from Content to Context, from Value to Viewpoint and from Evaluation to Experience. Don’t lose sight of Value, but let’s put it in its more appropriate role in our sales and marketing mix….
Today’s buyer is information overloaded, bandwidth constrained and fiercely independent. A recent survey by the Corporate Executive Board reported that 57% of the new B2B sales cycle is DONE before the buyer’s first formal contact to the selected vendor. Understanding that simple fact requires a radical rethink of go to market strategies and tactics across sales and marketing. I call this new approach, “Velocity Marketing”. Those who adopt Velocity Marketing approaches can see dramatic increases in Marketing ROI and significant compression of sales pipelines. This drops real dollars into the bottom line.
Figure 1, The Three Stages of Velocity Marketing Achievement
There are 3 stages to moving to Velocity Marketing, depicted in Figure 1. In my experience, 90% of organizations are mucked and mired in the Status Quo stage, slugging out a content marketing battle based on features and benefits. This is shown in Figure 2. Viewpoint is diverged from the customer, Value is the usual and Velocity is low.
Figure 2: Stagnant, Content and Benefit Centric Marketing
In order to get to the next level of Impact, we must get our Viewpoint and Value aligned with our buyer’s view of the world. We must create a Viewpoint that converges on the biggest business changes impacting our customer and the most disruptive response that our solution delivers in response to those changes. (Read more about Viewpoint here) Once we do that, we can then go on to articulating unique Value that is differentiated, meaningful and aligned with our Viewpoint. This state of Viewpoint and Value alignment get us to the Impact stage, driving significant effectiveness and efficiency in our in market communications, creating ROI and reducing sales cycles. (Read about Value and tilting the playing field with Viewpoint here) This is seen graphically in Figure 3.
Figure 3: Converged Viewpoint and Unique Value Creates Impact, The First Step to Breakthrough
However, if we can then drive to higher levels of Engagement and Experience as discussed here, we can move our marketing execution from low to high Velocity, we create Breakthrough as shown in Figure 4. (Read more about Engagement, Experience and Velocity here.) Breakthrough Marketing can be seen when we have high levels of unique and compelling value communicated in high velocity, engaging and experiential ways.
Figure 4: Increasing Velocity with Engagement and Experience Creates Breakthrough
Where are you on the Velocity Marketing Evolution?
