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.

1. The Secret to Accelerating
Diffusion of Innovation
By Chris Maloney

2. To Do List
I. Review diffusion of innovation theory
II. Learn the 16% rule
III. Apply the 16% rule to marketing strategy
IV. Break the 16% rule

8. To Do List
I. Review diffusion of innovation theory
II. Learn the 16% rule
III. Apply the 16% rule to marketing strategy
IV. Break the 16% rule

9. Two best sellers talk about the same
point from different perspectives

11. Consumer psychology can help us “cross
the chasm” to “the tipping point”

14. At 16% switch your marketing strategy
from generating scarcity to social proof

15. To Do List
I. Review diffusion of innovation theory
II. Learn the 16% rule
III. Apply the 16% rule to marketing strategy
IV. Break the 16% rule

17. Apple uses scarcity of distribution and
information. Ever notice how they don’t
advertise first generation products?
Source: news.com.au

18. Facebook created scarcity through
Harvard. Google+ used invitation only.
Source: geekword.net

20. What bar, bottle shop or vending machine
wouldn’t stock Japan’s #1 beer?

21. In competitive categories, sometimes
being No.2 is all the social proof you need

22. Build social proof into your products.
Simple white headphones provided
observability for a new innovation.

23. To Do List
I. Review diffusion of innovation theory
II. Learn the 16% rule
III. Apply the 16% rule to marketing strategy
IV. Break the 16% rule

24. Group buying sites build scarcity and
social proof at the same time.
Social
Proof
Social
Proof
Scarcity

25. Send out advance copies to drive scarcity
then ask for reviews to drive social proof.
Social
Proof

26. 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

27. innovateordie.com.au