Improved your Value Proposition with the technology adoption curve.
The cohort analysis showed us that our new customers act and buy different compared to the elder cohorts. See previous post
The technology adoption curve helped us to understand that we attract wine customers with different needs.
This bell-shaped curve states that technology is adopted in different phases. ‘Chasms’ between different groups are caused by different needs and buying habits. The main challenges for startups is to go from Enthusiasts and Visionaries to the Mainstream Market.
Technology Enthusiasts and Wine fans
The Technology Enthusiasts are the type that likes be ahead of the market. They are the experts or visionaries. They have an urgent problem to solve and are okay to make use of an unfinished products.
The Wine Fans like to explore and experiment. They would drive an extra mile for a special bottle. You would find them visiting wineries and following a wine courses. He builds a wine collection that needs aging and enjoys to share great bottles with likeminded friends.
Mainstream technology market
The mainstream market is the bulk of the customers (68%). They are pragmatics and conservatives. They look for finished products and read referrals before buying. They want in value for money and prefer as little change as possible.
For wine, we see the Fun and Family type. The Fun drinker is interested in the wine and wants to learn more. He likes to come across as knowledgeable but has little time to read or research. He will be helped with a special bottle with a compelling story, delivered on his doorstep.
The Family type is the no-nonsense wine drinker. He is overwhelmed by the wine choice at the supermarket. He is less influenced by what experts say. Value for money is important and he stocks wine for efficiency. He prefers to be safe by buying the wine he knows for years.
Wine types mapped on the adaptation curve
Mapping the wine types on the adaptation curve give an interesting insight:
The reversed adoption curve
For a product introduction, the curve is followed in time from left to right. The early adaptors are the Enthusiasts and Visionaries. Later Pragmatists and Conservatives follow as soon as the product is finished and the value is proven.
Strangely enough we are moving in the opposite direction. In the curve we go from right to left.
As reason, we see that shift in demographics and social trends.
Our older customers are the mainstream family-drinkers. We see that newer customers are more Fun drinkers and Wine Fans.
The reason for this shift is the increased importance of health and quality of life. The tendency is to do more in less time. For us this results in reduced consumption, attention for quality and increased focus on small scale wineries.
The life cycle adoption curve is useful for any business. It helps to understand your customer-base better.
New business create better sales strategies using this understanding. Knowing the difference in motivation and behavior of your early adopters and mainstream users helps you tailor your value proposition and message to the market.
More established business benefit as well. In a changing market, mainstream customers can churn fast. A close contact with your visionaries helps to adopt the service for all your customer-types.
Business insight – 3x Value Propositions for wine consumers
According to Moore the success of the early adopters (Evangelists) does not assure success for mainstream buyers. Different sales strategies are needed to support different needs.
In our case, we need to rethink the Value Proposition and determine how the Fan and Fun drinker can be served better.
For the wine fan an emphasis for learning new wines is important. Bringing knowledge and creating a community of wine-fans and specialists is a solution we will look into.
The Fun drinkers will be helped with easy selection and efficient access to good wine. The wine should be accompanied with a compelling background story.
Family drinkers are served best with a stable wine selection. It should be tested/tasted for quality, the price should low. Referrals from peers is important for this group.
It is up to us to test and translate these insights to a new strategy and business model.
We need to create customer persona’s of the newly found customer types. A customer-type description will of his demographics, behavior patterns, motivations, and goals will create focus, guide product development, and gives allow for alignment across your organization.
How might one customer group benefit from the two? How might we use this insight to grow? How might we test changes Value Propositions?
Read more in the business model 2.0 an upcoming post.
This post is part an experiment to change a business model in wine. We apply lean Startup tools and blog about the progress and the lessons learned. Read more about the steps taken: Lean startup journey in wine
More on the wine business case of The Wine club