Geoffrey Moore, in 1991, authored what most technology companies and experts view as the “Bible” for the high-tech industry, entitled “Crossing the Chasm”.  In many ways, the early 90’s, like today’s technology marketplace, is represented by a majority of pragmatic if not skeptical buyers. 

The “chasm theory” states that a given “market” for a technology company and its associated products is made up of 4 key factors:

1. A set of actual or potential customers
2. for a given set of products or services
3. who have a common set of needs or wants, and
4. who reference each other when making a buying decision.

The final point may in fact be the least intuitive, but Moore says “the notion that part of what defines a high-tech market is the tendency of its members to reference each other when making buying decisions - - is absolutely key to successful high tech marketing”.

Many high tech business plans are based on a traditional Technology Adoption Lifecycle, a smooth bell curve of high tech customers, progressing from Innovators, Early Adopters, Early Majority, Late Majority, and finally Laggards.  In turn this model, becomes the foundation for a high-tech marketing model which says the way to develop a market is to work the curve from left to right; Progressively winning each group of users, using each “captured group” as a reference for the next.

However, as the theory states, there are actually cracks in the curve, between each phase of the cycle, representing a disassociation with any 2 groups; “the difficulty any group will have in accepting a new product if it is presented in the same way that it was to the group to its immediate left.”  The largest crack, so large that it can be considered a chasm,  is between the Early Adopters and the Early Majority.  Many high tech ventures fail trying to make it across this chasm.

So the question is “how does the Chasm Theory affect The Lighthouse Sales Group’s approach”?

As stated in the Lighthouse Sales Group Founding Principle, our objective is to provide unique Sales and Marketing skills to not only drive initial sales success, but also long term company viability. 

It is our experience that too often emerging technology companies see these 2 objectives as being the same and clearly history has proven they are not.  In fact, our analysis shows that approximately 90% of all failed technology companies (sold for less than initial investment or simply ceased operations) had at least 8 customers.  Many failed technology companies had 15+ customers.

The “Chasm Theory”, and history, shows that the difference between companies that have had initial sales success within the “Innovator” and “Early Adopter” segments, and those that cross the chasm into the “Early Majority” segment, is the ability to prove quantifiable, compelling business value.  At The Lighthouse Sales Group, our Holistic Sales Approach and Value Sales Methodology provide this critical linkage.