We all want our new products, services, ideas, etc., to achieve fast adoption and growth. We want to avoid seeing them languishing in the marketplace. The diffusion of innovations is the field developed to understand these processes.
Everett M. Rogers first published his book Diffusion of Innovations in 1962. It is in its fifth edition and Rogers’ findings and insights are still studied widely today. You can find diffusion videos, articles, and books online in many places. Below we provide a general overview of the key characteristics of fast versus slow diffusion and some other details about diffusion theory. As with the simple rules in our book, our aim is to give you insight into how you can apply diffusion ideas to improve your own organization.
Characteristics Affecting Diffusion Speed
Although many variables have been studied over the years, five highly applicable ones are 1) complexity, 2) compatibility, 3) relative advantage, 4) visibility, and 5) ease of trial.
Complexity. The more complex a product or idea is, the longer it takes for people to understand it and how it might benefit them. Thus, when designing something new, it is best to make it as understandable as possible. If it has to be complex then it is important to provide support for potential customers to understand how it works and how they can use it. Thus, clear instructions, training, advice, and other such support can help speed the process.
Compatibility. It is important to truly understand the market the new product or service is designed for. Organizations that practice the marketing concept will be more adept at studying their customers and potential customers to enable better design that will help those customers by fitting into their current routines as seamlessly as possible.
Relative advantage. Again, practicing the marketing concept leads to developing services and products that are designed to have a competitive advantage over whatever solutions are currently being used. The better that advantage, and the more clearly it is seen, the faster the adoption will proceed.
Visibility. If potential users can see others benefitting from the new product or idea then they will adopt it more quickly. If the new item is not something that can be seen by others, try to make demonstrations and samples available. These can help speed up diffusion for less visible products.
Trial. As with samples for visibility, if someone can try a new thing without a full commitment they will be able to experience the benefits and faster diffusion can be achieved. Can your new service or product be offered on a trial basis? Can it be offered as a rental? Is a smaller version or portion possible? From new snack foods to new software applications, making a smaller or short term version available can result in faster adoption.
Adopter Types
The study of diffusion includes research on how different people approach the adoption of something new. The five adopter types are innovators, early adopters, early majority, late majority, and laggards. It is important to understand these types to benefit the most from applying diffusion theory to your own operations. Remember, these types are to be distinguished from non-adopters, that is potential adopters who never actually do so.
The two types that adopt new things more quickly are similar in that they usually have more education than the later types, more income and, because of those two factors, a higher risk tolerance. It can be beneficial to identify current and potential customers in these categories because they can help pave the way for adoption by the next two types, early and late majority, because the latter types represent a larger market potential in many cases. Consider providing innovators with early versions of the product or service for feedback. Identifying such customers can be done by studying user groups and other influential groups and interacting with them to learn more about how to improve.
The early and late majority is sometimes discussed in terms of the “mass market” because together they often form about two thirds of adopters. As you might guess from the previous paragraph, there is more risk averseness among those in the late majority. Eventual adopters, but perhaps months or years later depending on the product category, are the laggards. They of course are the most risk averse, but studying them can also be beneficial, as you might learn why they waited to adopt and apply this knowledge to future new product or service efforts.
This overview provides the very basic elements of diffusion of innovations. Being aware of the concept can help you prepare as you design new services and other new things. Your efforts to “design in” elements that speed diffusion and “design out” (or compensate for) elements that slow diffusion could help make successful future innovations for your organization more likely.