Convincing Consumers to Adopt Innovations

Convincing consumers to adopt innovations is getting harder all the time. In today’s highly networked world, interdependent players won’t switch to new products unless they believe most other players will. A bank, for instance, won’t adopt a faster transaction-processing system unless other banks with whom it communicates also do.

How to Convince Everyone in Your Network

• Reason Back from a Target Endgame. Envisage the outcome you desire—anticipating other players’ initial responses and counter-responses, then develop strategies supporting that future outcome. Intel predicted that creating a strong brand for its semiconductor chips would prevent commoditization of its products—then solidified its market position with the Intel Inside campaign.
• Complement Power Players. Position your innovation as complementary to influential players’ offerings. Palm positioned its Palm Pilot as a complement to, not substitute for, computers.
• Coordinate Switching Incentives. Align incentives to distributors, would-be adopters, and other key players that motivate them to embrace your offering. Palm licensed its operating software to people who would create more applications, priced the software low, and sold out to a company that could improve its distribution.
• Preserve Flexibility. Design easily adaptable product and marketing plans. Microsoft follows other players’ innovations; for example, its Windows operating system capitalized on the success of Apple’s Macintosh interface.

The outcome? You’ll overcome resistance to your new offerings and reap innovation’s rewards: increased profits, growth, and shareholder value.

The Idea in Practice

Software-developer Adobe successfully orchestrated widespread adoption of its Acrobat Portable Document Format (PDF) software with these moves:

Reason Back from a Target Endgame

Adobe cofounder John Warnock envisioned a future scenario that would guarantee Acrobat’s adoption. Universities and government agencies would use Acrobat because it enabled them to preserve documents in their original form. Corporations and ad agencies would save money and increase flexibility because Acrobat was compatible with their existing office software. Consumers would easily access information using the Adobe document reader. Software developers would create new tools and capabilities cementing Adobe’s acceptance as the industry standard.

Reasoning back from this endgame, Adobe knew it had to ensure that Acrobat documents could not be altered, and that readers had free and easy access to Acrobat software.

Complement Power Players

Adobe forged a deal with Microsoft, whereby Microsoft bundled Acrobat with its PC operating system. Because Acrobat can’t create or modify content, it didn’t compete with Microsoft’s Word and Internet Explorer. Adobe also persuaded AOL to distribute its reader to millions of subscribers, which let AOL offer enhanced service. And Google agreed to “crawl” PDFs during Internet searches, securing its reputation for conducting comprehensive searches.

Coordinate Switching Incentives

Adobe created mutually reinforcing incentives for network players to accept Acrobat. For example, by making Acrobat’s code available to software developers, Adobe encouraged them to design valuable features—which made Acrobat more attractive to content creators and readers. Increasing use by end users encouraged further product enhancements and motivated distributors to sell Acrobat or make it available through Web sites. All players benefited from one another’s adoption of Acrobat.

Preserve Flexibility

Adobe originally bundled its Acrobat content-creation and reader functions together. When the product didn’t sell, Adobe separated the two functions, offering the Acrobat reader for free—which motivated readers and content creators to use Acrobat. As more content became available in Acrobat format, more readers were motivated to download the program. Adobe’s flexibility in changing its product and pricing structure drove the software’s widespread adoption.

Adobe’s methodical approach paid big dividends: By 2002, Adobe had sold 5 million Acrobat content-creation programs, and users had downloaded 300 million reader programs—making Acrobat one of the world’s most widely used software applications.

Conclusion

By employing these strategies, you can effectively convince consumers to adopt your innovation and reap the rewards of successful innovation.

FAQs

Q: What is the key to convincing consumers to adopt innovations?
A: The key is to reason back from a target endgame, complement power players, coordinate switching incentives, and preserve flexibility.

Q: How can I ensure that my innovation is adopted by a wider audience?
A: By creating mutually reinforcing incentives for network players and adapting your product and marketing plans to changing circumstances.

Q: What is an example of a successful innovation that was widely adopted?
A: Adobe’s Acrobat Portable Document Format (PDF) software is an example of a successful innovation that was widely adopted by following the strategies outlined in this article.