It takes guts to be an innovator. You’re disrupting an industry. And if you’re on the cutting-edge of technology in industries such as telecoms, fintech or insurance, you have a ring side seat to how the world is changing. But as exciting as change is, it’s vital to completely understand how the rest of the world is going to perceive your innovation. As the Harvard Business Review found, ‘to achieve any success when launching a disruption in the market, entrepreneurs need to put as much energy and investment into marketing new offerings as they do in generating them’.
By Shannon Mackey, Regional Director & Marketing Manager
Research has proven that the uptake of any innovation is always slower than entrepreneurs expect
You may have an understanding of thetheory of marketing gleaned from reading books by Steve Jobs or following the actions of Mark Zuckerberg and Elon Musk but achieving success in real-life is never simple. Much research has proven that the uptake of any innovation is always slower than entrepreneurs expect. Virtual reality is a case in point. It’s a technology that has been slow to take off. A big reason for this is the design of the headsets. They are big and clunky which has affected the mainstream adoption, with consumers responding negatively to wearing them. A strategic marketing plan that understands how resistant consumers are to change, can speed up the process.
Often consumers don’t know they need a ‘new-to-the-world’ innovation.
Marketing has traditionally been seen as ‘brand building’ but ensuring good results requires a strategic interrogation of peoples’ fundamental needs and drivers, customer identification and a development of a go-to-market and usage ecosystem that will ensure any innovation or market disruption has an excellent chance of succeeding. This interrogation should begin by asking this question, “Why are we offering this disruption?”. Any marketing strategy needs to begin with a clear understanding of what your differentiator is and how it is offering improved value to potential customers. This will identify unmet or even unknown customer needs. Often consumers don’t know they need a ‘new-to-the-world’ innovation. Before the smartphone, people were satisfied using their computers to access the internet and use email. It took the adoption of the smartphone by early adopters for this technology to slowly become a mainstream product. Research by the innovative research firm, LAB42 showed that 21% of their consumers are willing to buy new products as soon as they are launched, while 63% prefer to buy them once they have been out for a while.
Many tech innovations are marketed using the functions and features of the product instead of the reasons to use it.
This market reality that only 21% of consumers will engage with your innovation at launch will affect your company’s financial projections. Knowing this will inform your marketing plans. How will your marketing campaigns change from appealing to early adopters and then progressing to the mainstream market? Many tech innovations are marketed using the functions and features of the product instead of the reasons to use it. Mainstream consumers are interested more in what the product helps them do and less in what the product does. Often tech innovators are so wrapped up in the technological breakthrough, they forget that their ultimate customers are not that interested in the advancements as much as they are in ensuring the product will meet their needs. Focus needs to be given to unpacking how much of the technology consumers will actually use. When buying a smartphone, the majority of your customers will primarily use it to make calls, send and receive texts and view emails. The phone is able to offer a hundred other functions but the take up of these innovations is often small. A robust marketing strategy will uncover how much of the technology on offer is likely to be used and therefore valued by consumers. Knowing this will ensure brand communications can focus on the right levers for success.
These levers include selecting the language that will make the new tech understandable to consumers not familiar with ‘tech speak’. Packaging your offering in a way that is easily understandable so that the value and benefits are instantly obvious is crucial to getting the adoption you need to create the momentum required to meet your financial targets.
Have you thought about unbundling your technology? Can you sell it as individual packages, or does it have to be bought in its entirety? New markets can be explored if your tech can be sold as individual offerings, widening your market, especially at launch.
The first e-reader launched by Sony didn’t succeed because Sony had omitted to include the book publishing industry as a partner.
Your marketing strategy should also encompass the development of the entire customer experience ecosystem. This may seem obvious but often this part of the marketing plan isn’t always given the focus it needs. The first e-reader launched by Sony didn’t succeed because Sony had omitted to include the book publishing industry as a partner, rendering the hardware useless as there were not enough books in PDF format that could be loaded onto the device. Later when Amazon launched the Kindle, it offered a seamless integration, between the hardware and publishers, making it easy for customers to buy and use it, ensuring a successful launch.
The bigger the innovation, the bigger the chance of failure.
Marketing, done properly can reduce the risks of a failed launch. But the advertising campaign is the final step in what should be a deep dive into the adoption and consumer experience life cycle. Great tech innovations like Bitcoin, 3D printing and virtual reality have found some traction, but they still don’t have mass appeal. History points to case studies like the introduction of sliced bread that took 40 years to become a mass market product. Can your company wait this long to gain mass market traction and if not are you confident that your marketing plans will beat this innovation adoption curve? Choosing a marketing expert, with the experience and knowledge to give your innovation the best shot at success needs to be one of the first things you do after creating your market disruptor. Failing to do this could mean the difference between being Kindle and Sony.
