SaaS marketing is, like all marketing, about understanding your customers. You might consider changing careers if you don’t get to know your audience as well as you do yourself. This is how important it is.

Sometimes, however, even if you know your audience well, it can be difficult to get out of your way. Even the most successful businesses have experienced it. Even though your product development, marketing, and launch may all be in order, everything can go wrong.

You might only be getting a few sales so you feel demotivated. Are you selling a great product? Are you able to do better?

What’s the answer? Perhaps you don’t know how to understand your product adoption curve. This article will help you understand the meaning of this term. Even if that term doesn’t ring a bell for you, it is worth reading this article. SaaS marketing can be transformed by understanding the product adoption curve and using it in practice.

You will be able to plan more effectively and know exactly what to do at each step of the process. You’ll have a better understanding of your audience and your product lifecycle will run much more smoothly.

An Overview of the Product Adoption Curve

The product adoption curve, a standard model, reflects who and when your products are purchased.

It is the overall view of product adoption. It examines the product’s lifecycle and what happens at various points.

This curve, as I said, shows you who bought your products and when. (You can also get insight into the reasons.)

There are five stages in most product adoption models. Each stage is a different period, but the overall process is what matters most.

Let’s now break it down stage by stage.

Stage 1. Innovators

Your innovators are the first to invest in your product.

This is a special group. SaaS is a very popular option for people who purchase early. They want to stay on top of the latest SaaS technology.

This group can be very diverse in terms of customer types. Perhaps someone needs your product specifically.

The most important thing about this group is the size. It might seem small to you. This is normal.

You might not get many sales right away after your launch. You will typically receive around 2.5% of your total sales through innovators.

This is not always true.

If your marketing was successful and reached a large audience, you might be able to attract more innovators.

You might also have a lower proportion of innovators if your niche is relatively new.

Use the 2.5% benchmark as a guideline, but keep in mind that it does not apply to everyone.

Stage 2. Early Adopters

You’ll begin to see an increase in sales and a steady conversion rate.

Likely, early adopters are now here.

Early adopters, like innovators, tend to be ahead of everyone else and willing to try the waters.

While early adopters and innovators are very similar, there are important differences.

This could mean that early adopters waited patiently to purchase your product.

While innovators can rush to try out new products, early adopters tend to be more cautious. They want to test something new but also want to see if there are any reviews.

It could also be that they have just discovered your product.

Your adoption rate should increase to around 13.5%.

Stage 3. Early Majority

This is when your product gains momentum.

You have a lot of early adopters and innovators. This is when a larger group usually comes in and makes you more money. This is about 34%.

People in the early majority are pragmatic. They will only purchase something once it has been road-tested (at minimum) and proven its worth.

This is where your product reaches its peak. Perhaps your product has gained more attention through marketing and word of mouth.

Stage 4. Late Majority

Your product is at stage 4. It has been around for some time and is in widespread use.

Some people are still skeptical about your product. They will buy your product once they have put all their doubts to rest. These people are often the late majority or laggards.

You’ll reach a point in your early or late major phase where you have your peak. This is when you will get more sales and your product is at its highest.

It is interesting to note that the adoption rates of the early and late majorities, which average around 34%, are almost equal.

Stage 5. Laggards

These are people who purchase your product even after the hype has subsided. Sometimes, people who are not up to date with the product’s release purchase it years later.

Laggards could be extreme skeptics or people who only hear about your product after it has been launched. These people won’t purchase your product until later in its lifecycle, regardless of the reason.

Surprisingly this group is quite large. Laggards will account for 16% of product adoption.

It is important to understand that laggards are more likely to adopt than early adopters.

Weird, right?

We will explore the reasons for this and other ways to increase product adoption.

These are the three strategies that you can use.

1. As your product ages, change your marketing

Certain demographics may purchase your product at each stage of product adoption.

Innovators are more likely than others to purchase on impulse. Buyers in the latter group will conduct extensive research before making a purchase.

Each group has its traits.

As your product ages, it will become more popular. You might start with a product that no one knows, but you end up with a product everyone has heard of.

These facts are a reminder to consider changing your marketing messages for your product as it ages.

The iPhone is a classic example.

The second-generation iPhone’s commercial showcased many of its new features, including music, email, and Internet browsing.

This appealed to a younger audience that was more tech-savvy.

Three years after the launch of the iPhone 1, in 2007, a commercial featuring two grandparents celebrating the graduation of their granddaughter was released.

Apple wanted to prove that smartphones can be used by grandparents, even though they may not have been able to understand them back in 2010. This is important as older consumers tend to be late adopters.

Apple’s strategy was simple: Showcase all the bells & whistles first, then expand the audience to include other types of customers.

The same applies to marketing at every stage of product adoption.

Your marketing should be clear about the benefits and value of your product, especially when innovators and early adopters are coming in.

You can also use customer reviews and testimonials later on, maybe in the late majority stage. This can address the skeptical nature that many later adopters have.

Consider the common questions each group may have.

Innovations will be asking themselves what makes your product unique, while early adopters want to hear what others think about it and why they find it useful.

This can transform your marketing. You can combat objections and questions by sending a personalized message at each step of the process.

2. Learn How To Overcome the Chasm

There is a point in most product adoption curves that can determine the success or failure of the product.

This is called the chasm. It is the transition between the early adopter and early majority stages.

This is one of the most difficult aspects of product acceptance, but it’s also one of the most important.

A bestseller book is available on the subject: Crossing the Chasm.

It is difficult to cross the chasm for several reasons.

This is because your customers will have higher expectations as your product grows and ages.

Particularly, potential customers will seek out more compelling reasons to purchase your product.

These demands must be met throughout the product’s lifetime. This is especially true if you are trying to get past the chasm.

Impulse buyers are the ones who buy products on impulse. This is what you need to convince the early majority of people to buy your product.

Your branding is more important than your product. have value, not just features.

Another reason is the possibility of having to pivot.

To put it another way, you might need to find a different angle to help your campaign cross the chasm.

You may hesitate to fully commit to your product’s idea early on. While early adopters may be fine with this, the majority of early adopters want consistency.

You might need to pivot if you are in the chasm now. Or even improve your product.

3. Do not forget the Laggards

After your product reaches its peak and is enjoying the success waves, you can’t stop.

Remember that laggards are the second most popular group in adoption, with 16%.

Many people will buy your product long after the hype has died down. You can’t ignore or alienate them.

Laggards often have skeptics. Your marketing should be laser-focused at the end of your product’s lifecycle on how to overcome objections.

You’re marketing to people who are resistant to change and may not want to be customers.

Your brand will need to provide them with compelling reasons to invest. This will be made easier by positive reviews, testimonials, and press mentions.

The role of time is also important. Consider the iPhone as an example. While older people are more likely to be seen with iPhones than ever, it has been over a decade since its initial release.

This could be a sign that some companies are satisfied with the software they have now, in terms of SaaS. For them to make a change, it might take some time and exposure to you.

You should also be prepared for the falling sales that will undoubtedly occur at the end of the product’s lifecycle.

Although this is an inevitable part of life, you need to be prepared for it.

Conclusion

The product adoption curve is one of those concepts that can be difficult to grasp but extremely rewarding once you master it.

This requires you to pay attention to your customers and to listen to them. This is not something for the faint of hearts. It’s not easy to create a great product and launch it successfully.

You can’t fail if you want to make an impact. Understanding your customers’ adoption patterns can change the way you view product life cycles.

It’s possible to plan for each stage and be more prepared to respond to unexpected changes. Understanding the product adoption curve, as I said at the beginning of the article, is about understanding your customers and how to cater to them.

It is important to reach out to your customers at all stages of the product development process.

It can make the difference between a good product and a great product.