All of us have been witnessing several start-ups like Flipkart, Uber, and Xiaomi becoming successful today. However, at times we forget to notice there were thousand more equally promising start-ups that never saw any success.
All these start-ups have leveraged internet to build their business idea.
So, what separates the one that are successful and the others that are not?
What a start-up must do to succeed
Yes, online innovations are increasingly becoming bigger & better and loved by today’s young consumer.
At times several such innovations take indefinite amount of time to catch consumer fancy as some of these innovations are ahead of their time.
However, what a start-up or marketer do to achieve traction of an online business idea?
The answer to this question is in decades old tried and tested practice called “Diffusion of Innovation”.
Steve Jobs said “To turn really interesting ideas and fledgling technologies into a company that can continue to innovate for years, it requires a lot of disciplines.”
Diffusion of Innovation is that scientific process that helps you hustle your business ideas to success. If you deploy this you can certainly achieve the fancy of your prospective consumers.
Why Innovation is critical for the world
However, before I share more info, please understand that your business idea is much bigger than your desire to on your own.
- Introduction of new products and services is vital to the consumer, marketer and the world economy.
- For the consumer, new products and services represent increased opportunities to satisfy personal, social and environmental needs.
- For a marketer, it provides and important mechanism to keep the firm competitive and profitable.
- For the world, it represents potential improvement in the quality of life for people.
Therefore, your business idea has to have a purpose, purpose to make the world a better place.
What is Diffusion of Innovation?
Over decades marketers have trusted a framework to accelerate the consumer acceptance of innovative products and services. This framework is called DIFFUSION OF INNOVATION.
This framework enables you take advantage of five product / service characteristics that seems to influence consumer acceptance of innovative products/services.
- Relative Advantage: The degree to which potential customer perceive a new product as superior to existing product.
- Compatibility: The degree to which potential consumers feel a new product is consistent with their needs, values and practices.
- Complexity: The degree to which an innovative product is difficult to understand or use,
- Trialability: The degree to which a new product is capable of being tried on a limited basis.
- Observability: Is the ease with an innovative product benefits or attributes can be absorbed, imagined or described to potential consumers.
For ages marketers have been using this framework to promote innovative products and services. However, with the evolution of internet this framework has evolved a lot.
Diffusion of Online Innovation
The five product characteristics that seem to influence consumer acceptance of an innovation online have evolved to:
- Visibility (evolved from Relative advantage): Visibility is critical as we build our online marketing plans. We can offer the best products and services, but if nobody knows about the product and why it is better, what’s the point? Visibility comes from a number of marketing channels, including advertising, organic search, social media marketing, online PR, or e-mail. These visibility options may require space on your Web pages, may be integrated into design, require additional budgeting, or take some technological setup.
- Credibility (evolved form of compatibility): Credibility is exuded in websites, blogs, images, videos, PR, social media, or reviews. You never have a second chance to make a great first impression. Building credibility & trust is an online marketing must and first practice.
- Usability (evolved form of Complexity): Usability comes from appropriate and professional design, site architecture, clear navigation, call to actions, e-mails, content, and even social media.
- Sell-ability (evolved from Trialability): Sell-ability is a critical online marketing planning piece, as this is how well you show, and tell, and sell the value of your organization, products, and services. People need to understand why you or your organization is worth working with. This can come through videos, testimonials, press releases, taglines, and images.
- Scalability (evolved from Observability): When we employ credibility, usability, visibility, and sell-ability, we reap the benefits of scalability. Online marketing efforts lasts a lifetime on the Web, building and compounding overtime. Scalable ideas are like ELSS (equity linked saving schemes). Small investments made consistently over time can grow to support your organization’s overall Web presence and marketing.
Avinash Chandra hopes the framework will help you to identify the way to hustle your innovative business idea to success.
About the Author
Avinash Chandra is the Founder and CEO of BrandLoom Consulting. He helps companies to generate more revenue through digital marketing. He has successfully led Business and Marketing operations of several Large & Small; American, European, Chinese & Indian Brands and Startups. In totality he has worked with over 100 Brands during his 17 years of professional career with a proven track record of Building Sustainable & Profitable Businesses.
