Adoption Lifecycle

Adoption Lifecycle

Adoption Lifecycle Jonathan Poland

The adoption lifecycle refers to the process by which customers adopt and become familiar with a new product or technology. It outlines the stages that an individual or organization goes through as they become aware of, evaluate, and ultimately decide to use a new product or technology. The adoption lifecycle helps companies understand how to best market and sell their products to potential customers, and it can also help customers understand their own decision-making process when considering the adoption of a new product or technology.

1. Loyal Customers & Innovators

The initial phase of adoption is often characterized by a company’s most loyal customers and fans of their products. In the technology sector, these early adopters are often referred to as “innovators.” However, it could be argued that purchasing a new technology does not necessarily constitute innovation, and the term “enthusiasts” may be more accurate. During this phase, companies with a strong market position often employ a pricing strategy called price skimming, which involves charging high prices to quickly recover investments in research and development.

2. Early Adopters

Early adopters are customers who may be influenced by the first customers to adopt a new product. If a product is truly innovative and represents a significant advancement, it may attract early adopters through word of mouth. On the other hand, a product that is not particularly innovative may still achieve early adoption through targeted marketing efforts.

3. Early Majority & Late Majority

The majority of customers tend to adopt a new product or technology once it becomes widely recognized and understood. At this point, the product or technology may experience a significant increase in sales. By this stage, economies of scale and competition have often resulted in a lower price, which further drives sales momentum.

4. Laggards

Laggards are customers who are the last to adopt a new product or technology. There can be various reasons for this. Some customers may not be interested in innovation and prefer to stick with what they are familiar with. Others may not have a pressing need for a particular product or technology, such as a customer who does not watch television often not having a need for the latest model.

Learn More
Value Creation Jonathan Poland

Value Creation

Value creation refers to the process of creating outputs that have a higher value than the inputs used to produce…

Consumer Goods Jonathan Poland

Consumer Goods

Consumer goods are goods that are produced and purchased for personal or household use. These goods are typically consumed or…

Complexity Cost Jonathan Poland

Complexity Cost

Complexity cost is the cost associated with making something more complex. Complexity can have a range of costs, including increased…

Organizational Structure Jonathan Poland

Organizational Structure

Organizational structure refers to the formal systems that define how an organization is governed, directed, operated, and controlled. It is…

Value Proposition Jonathan Poland

Value Proposition

A value proposition is a statement that explains the unique value that a company offers to its customers. It is…

Unknown Risk Jonathan Poland

Unknown Risk

An unknown risk is a potential loss that is not recognized or identified. In the context of risk management, unknown…

Sticky Information Jonathan Poland

Sticky Information

Sticky information is information that is difficult to transfer. This is an analogy that information that knowledge “sticks” to people,…

Innovation Principles Jonathan Poland

Innovation Principles

Innovation principles are guidelines that an organization adopts as a basis for innovation activities. They are typically considered foundational policy…

Economic Advantage Jonathan Poland

Economic Advantage

A competitive advantage is a feature or characteristic that allows a company to perform better than its competitors in a…

Search →
content database

Search my thinking on business, finance,
and the capital markets or start below

Change Strategy Jonathan Poland

Change Strategy

Change strategy is the process of planning and implementing change within an organization in a systematic and effective manner. It…

Employee Goals Jonathan Poland

Employee Goals

Employee goals are specific targets or objectives that are set for an individual employee in order to align their work…

Procurement Jonathan Poland

Procurement

Procurement is the process of acquiring goods or services from external vendors or suppliers. It is an essential part of…

Internal Branding Jonathan Poland

Internal Branding

Internal branding involves creating a strong brand identity within the company itself, rather than just focusing on marketing to customers.…

Post Sales Jonathan Poland

Post Sales

After a sale is made, post-sales processes kick in to fulfill the customer’s expectations and strengthen the relationship. This can…

Origin of Money Jonathan Poland

Origin of Money

Money is a type of asset or object that is widely accepted as a medium of exchange for goods, services,…

Service Level Objective Jonathan Poland

Service Level Objective

An service level objective (SLO) is a standard used to measure the performance of a business or technology service. These…

Employee Costs Jonathan Poland

Employee Costs

Employee costs refer to all of the expenses that are incurred when hiring and employing an individual. These costs go…

Go-To-Market Strategy Jonathan Poland

Go-To-Market Strategy

A go-to-market strategy is a plan that outlines how a business will introduce its products or services to the market…