This slide set is from a speech Geoffrey Moore gave at the Berkeley Digital Media Conference on October 29, 2011. This is a link to the actual speech: http://www.youtube.com/watch?v=7RIHoUtyJQc To find out more about Geoffrey Moore please visit: More information about Geoffrey Moore: http://www.geoffreyamoore.com More information about the Escape Velocity Book: http://www.escapevelocitybymoore.com Geoffrey Moore on Twitter: http://www.twitter.com/geoffreyamoore Geoffrey Moore on Google Plus: http://gplus.to/geoffreyamoore

1. Crossing the Chasm
vs.
Spinning Up the Web
Berkeley >Play
October 29, 2011

2. Venture Agenda:
High-Tech Market Development Models
 B-2-B Markets
– Crossing the Chasm
 B-2-C Markets
– Spinning up the Web
 Comparing Critical Success Factors
– Chasm vs. Web
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3. Crossing the Chasm
B-2-B High-Tech Market Development
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4. Technology Adoption Life Cycle
Pragmatists: Conservatives:
Use it when it’s ready! Make sure it’s ready!
Visionaries:
Be the first mover! Skeptics:
Never happen!
Techies:
Try it!
Innovators Early Early Majority Late Majority Laggards
Adopters
Pragmatists’ view of whole product maturity
drives the adoption of new technology.

5. The Whole Product
Outsourcing Hardware
Application
Software
Engineering
Complementary Core Complementary
Services Offering Products
Installation
Peripherals
and support
Design Databases
Minimum set of products and services
to fulfill target customer's reason to buy.

6. Market Development Model
Offers Evolve with Whole Product Maturity
Proven systems for cost-
Standard products for conscious conservatives
pragmatists with budgets Main Street
Tornado
Early
Market
Chasm
Bowling Segment-specific
Custom projects for Alley solutions for
Visionaries
pragmatists in pain

7. Crossing the Chasm Framework
A Playbook for B-2-B Market Development
Pragmatist in Pain 1. Target Customer
2. Compelling Reason to Buy Broken m/c process
Complete solution 3. Whole Product
4. Partners and Allies Ready to fill in the gaps
Can manage complexity 5. Sales Channel
6. Pricing Rewards for all parties
Current alternatives 7. Competition
8. Positioning Differentiating focus
Next growth segment 9. Next Target
And that’s how you grow a B-2-B market!
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8. Spinning up the Web
B-2-C Digital Market Development
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9. Identity Modification Life Cycle
Engagers: Reluctants:
Check it out! Wait!
Evangelists:
Believe in it! Rejecters:
Beware!
Enthusiasts:
Be 1st to try it!
Innovators Early Early Majority Late Majority Laggards
Adopters
Engagers create the dynamics of digital market development

10. Brand/Identity Interactions*
Levels of Engagement & Commitment
Level of Commitment Level of Engagement
I will camp out all night I never imagined this was possible.
to be first in line when you open. D You are reshaping my identity.
I will go the extra mile You express my dreams, and I want
to play a part in your world. C to do more to help your cause.
I not only purchase your offers You are part of what I am.
but display them proudly. B By choosing you, I express myself.
I select your offers over others I respect what you do, and
whenever they are available. A believe what you say.
* Model developed in collaboration with Schireson Associates
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11. Spinning Up Volume Operations on the Web
Running Experiments in Tandem
VIRALITY ACQUISITION
Starter
Motor
MONETIZATION ENGAGEMENT
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12. Spinning Up the Web
Metrics that Will Drive Your Programs
 Grow Acquisition
– Rate of gaining new users (velocity & acceleration)
 Grow Engagement
– Average length, depth, and frequency of user engagement
 Grow Virality
– # of new customers coming from existing customers over time
 Grow Monetization
– Percentage & amount of participation, plus rate of change
 Increase Promotional Productivity
– Yield relative to acquisition, engagement, virality, monetization
 Reduce Churn
– Rate of losing existing users (velocity & acceleration)
 Increase Lifetime Customer Value
– DCF value to date, plus rate of change
And that’s how you grow a B-2-C market!
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13. Critical Success Factors
Crossing the Chasm vs. Spinning up the Web
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14. Critical Success Factors
What Venture Investors Look For
Crossing the Chasm Spinning Up the Web
 Disruptive technology  Distinctive cool factor
 Compelling reason to buy  Leveraged access to market
 Customer domain expertise  Web-tech expertise
 Whole product focus  User experience focus
 Agile services-led offer  Agile data-driven product
development development
Different horses, different riders—same trail!
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15. Thank You
gmoore@mdv.com
#crossingthechasm
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