The 16% Rule: The Secret to Accelerating Diffusion of Innovation

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The 16% Rule is a Diffusion of Innovation theory that uses consumer psychology principles to make the lead from early adopters to the mass market.

These slides were presented at the 2011 ADMA Forum and The Customer Show, and explain how the 16% Rule works including examples of how it has manifested itself in the marketing strategies of innovative brands around the world.

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The 16% Rule: The Secret to Accelerating Diffusion of Innovation

  1. 1. The Secret to Accelerating Diffusion of Innovation By Chris Maloney
  2. 2. To Do ListI. Review diffusion of innovation theoryII. Learn the 16% ruleIII. Apply the 16% rule to marketing strategyIV. Break the 16% rule
  3. 3. To Do ListI. Review diffusion of innovation theoryII. Learn the 16% ruleIII. Apply the 16% rule to marketing strategyIV. Break the 16% rule
  4. 4. Two best sellers talk about the same point from different perspectives
  5. 5. Consumer psychology can help us “cross the chasm” to “the tipping point”
  6. 6. At 16% switch your marketing strategyfrom generating scarcity to social proof
  7. 7. To Do ListI. Review diffusion of innovation theoryII. Learn the 16% ruleIII. Apply the 16% rule to marketing strategyIV. Break the 16% rule
  8. 8. Apple uses scarcity of distribution and information. Ever notice how they don’t advertise first generation products?Source: news.com.au
  9. 9. Facebook created scarcity through Harvard. Google+ used invitation only.Source: geekword.net
  10. 10. What bar, bottle shop or vending machine wouldn’t stock Japan’s #1 beer?
  11. 11. In competitive categories, sometimesbeing No.2 is all the social proof you need
  12. 12. Build social proof into your products. Simple white headphones provided observability for a new innovation.
  13. 13. To Do ListI. Review diffusion of innovation theoryII. Learn the 16% ruleIII. Apply the 16% rule to marketing strategyIV. Break the 16% rule
  14. 14. Group buying sites build scarcity and social proof at the same time.SocialProof Social Proof Scarcity
  15. 15. Send out advance copies to drive scarcitythen ask for reviews to drive social proof. Social Proof
  16. 16. To Done List Reviewed diffusion of innovation theory Learnt the 16% rule Applied the 16% rule to marketing strategy Learnt how to break the 16% rule
  17. 17. innovateordie.com.au

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