Each week brings a new batch of surveys and reports that predict an explosion of shopping on the Web. But where will these new shoppers come from and why aren’t they buying online already?
[May 2, 2002]
If you look carefully at the selection of books in the Sell It! bookstore, you will note a rather unusual inclusion, Geoff Moore’s “Crossing the Chasm”, which was written at the start of the decade, before most of us had even heard of the Internet. Moore’s work is the definitive high technology marketing book. It focuses on the marketing challenges associated with moving high technology products across the chasm that lies between the early adopters (“The Visionaries”) and the early majority (“The Pragmatists”).
Moore’s chasm theory describes the life cycle of a high-tech product, a cycle that determines the product’s success. First come the Innovators. They are always at the forefront of every new trend and are the first to buy a new technical product. Then come the Visionaries who understand the vision behind the innovation and jump in after seeing how the Innovators have fared. The Pragmatists make up the next group of customers. They however, wait until the product is accepted as mainstream before buying. Moore refers to the time lag between the Visionaries completing their purchases and the Pragmatists starting to buy as the chasm. This chasm represents a time of low revenues for organizations that can prove to be fatal.
“Very good Paul,” I hear you say. “But what has this to do with Web commerce?”
I believe that we are now rapidly approaching the chasm for Web commerce. And if we can not figure out how to cross it then Web based commerce will turn out to be just a fad, as the naysayers are already claiming. Let me explain further.
Initial purchases on the Web were made by the Innovators quite simply because it was new and cool. Current purchasers on line are mainly Visionaries who are buying because they believe e-commerce is the way of the future. Now we need to “cross the chasm” and convince the Pragmatists to start buying on the Web.
So what is causing the Web commerce chasm? There are many theories being floated as to what is holding back a Web commerce explosion. Most of these are having some delaying effect, but are not root causes. Here’s what I think aren’t root causes:
- It’s not lack of bandwidth – there is more than enough bandwidth available on even a modest modem link to provide a good shopping experience.
- It’s not security fears – US credit card users are limited to responsibility for the first $50 of losses only and most major providers have waived this for Internet purchases.
- It’s not lack of access – IDC project that 23% of American households will be on line by the end of this year.
I believe that what makes up the Web commerce chasm is much simpler than this. In order for the Pragmatists to start buying on the Web they need to be convinced that the process is easier than buying in a bricks-and-mortar store. They need to be convinced that shopping online will save them time and money whilst still providing the personalized service and interaction they receive through traditional shopping.
So take a good look at your Web store or, even better, have someone else look at it. Is it easier to shop on your site than to pay a visit to the local mall? Is the shopping experience in your virtual store as good as in a bricks-and-mortar store? If not, you need to re-look at your store design and the shopping experience you provide.
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