A lesson in Product Adoption

Every business wants to obtain market value by motivating customers to purchase their products or services. Companies need product adoption to gain success. Typically, adoption focuses on customers. When considering the various customer segments who must buy into the brand, influencing becomes more challenging. Suppose a business was to assess every single service and product used by its customers-identifying the demographics, interests, usage, and needs. That business would discover many reasons for adoption that would vary by customer segment — knowing individuals are not collectively singular in thought, need, and ability. Marketing with specific individuals in mind can pose challenges to businesses, but engagement can help with product adoption.

The case for adoption

Adoption and engagement are often confused, as noted in a Linkedin article. Take the $43 billion gaming industry, for example. This industry relies on adoption and engagement to generate awareness and motivate customers to purchase new products. Engagement occurs when end-users test out new game demos, share news about game updates on social networks, and attend conferences. Engagement activities do not necessarily generate revenue for a company. However, engagement helps companies sell their brand image, products, and services to existing and new customers. Adoption happens when end-users buy into the most critical investments for the brand — the actual product or service. Engaging with the demo version can motivate customers to purchase the new game once released. Adoption brings value to the business.

The challenge with adoption is that a single product or service may have different customer segments to target. The more a product can connect with each group, the better its success in the market.

Reasons why your customers are not adopting

The Diffusion of Innovation (DOI) theory, developed by E.M. Rogers in 1962, identifies when people are willing to adopt a new product or service. Factors such as need, ease of use, personal feelings, social communities, or even a brand’s social standing can influence and motivate purchasing behaviors. According to the DOI theory, there are five different adopters: innovators, early adopters, early majority, late majority, and laggard.

Early adopters or Innovators are individuals ready to try out new products without any evidence of the value. They willingly purchase a product or service from a brand either because they are familiar with the products, want to feel exclusive among peers, or see value in adopting early. Innovators and early adopters are risk-takers that lead other adopters to invest in brands. Influencers are the most commonly known innovators and early adopters.

Businesses must have a sound strategy for the other adopters (early majority, late majority, and laggard). Early adopters and innovators are the least skeptical, laggards are the complete opposite, and the early and late majorities are somewhere in the middle. Engagement plays a significant for customers who are early and late majorities. Businesses must have a strategy for engaging these people because most customers fall into these two categories. Many people need evidence of value and benefit for a product or service before making a purchase.

Here are other factors that a customer may consider before they are willing to adopt:

Relative advantage: Let me upgrade you

Is this an upgraded product that is better than my current version? Will this provide a better service than what I am used to receiving? If we look at the gaming industry, we can see how relative advantage needs help companies to achieve product adoption. The Playstation 5 (PS5) is in high demand right now and is a more enhanced system than the PlayStation 4 Pro, released November 10, 2016. The PS5 provides upgrades, such as faster loading and memory, improving the gaming experience. Customers are aware of its value and want to upgrade their systems now, leading to restock issues for the manufacturer.

Compatibility: Stay in sync

Will this work on what I already have at home? Will this watch connect to my phone? Capability is convenient to all customers, and it has become an expectation, especially if products or services involve technology. Bluetooth technology, for example, is compatible with cars, home devices, and, most commonly, headphones. Some gamers use headphones for multi-player games and must talk and hear other players to be successful during gameplay. Headphone manufacturers create headphones compatible with gaming systems and PCs, with specifications that appeal to gamers’ needs and motivate their purchasing power.

Complexity: Easy to please

What must I do to use this product successfully? What must I do to obtain this service, and is it worth it? Out-of-the-box setups can complicate initial usage for customers, but providing instructions and tips can help adopters. The gaming community and influencers can help with engagement to achieve product adoption goals — activities such as demos can ease complexity concerns for customers.

Trialability: Take a test drive

Can I test or try this product or service out before I commit to paying the total price? How can I know if this is right for me? Demos give gamers a chance to test out games before making a purchase. This factor can help customers assess the product or service’s relative advantage, compatibility, and complexity. Engagement does not always lead to product adoption with every customer. However, engagement can help with promotion and marketing through word-of-mouth.

Observability: My favs love it

Have I seen my favorite influencer test this out yet? None of my friends are using this product. Social media influencers keep a pulse on the market and can shift perspectives in social communities with ease. Many businesses understand the benefits of influencer marketing. Peer review and feedback are now trusted more than traditional marketing tactics. Many people do not confidently purchase products without reading reviews or listening to feedback from friends.

Product adoption and engagement reminders

Here are a few product adoption and engagement to consider in your marketing and business meetings:

1. Engagement and adoption strategies can help businesses stay proactive — plan for content creation, event planning, marketing, and influencer marketing. Engagement strategies with clear goals, measurable objectives, and sound marketing tactics will help businesses entice customers to use their products and services. Proper planning is a vital first step.
2. Understand how and why people use your products and services. Do you know why innovators and early adopters are less skeptical about your brand and products? Figure it out and use that information to sell the value to early and late majority groups. Customers expect businesses to know their interests and needs and deliver products and services that meet their expectations. T
3. Know the engagement activities that will lead to adoption. Customers are more connected now with many ways to engage with a single brand. They can watch product reviews on an influencer’s YouTube channel. Instagram Live gives followers a chance to watch influencers do real-time demos and answer questions about a product immediately. Engagement can also take place at social events like gaming conventions, popup shops, or festivals. Intentional interactions are critical.

Engagement and product adoption have many layers. Successful companies that crack the code can look forward to long-standing customers who stay loyal to the brand and its products and services. Thinking about product adoption without engagement and vice versa will not deliver results for businesses. Marketing and technology require careful consideration of both engagement and product adoption goals to achieve success.