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An early adopter or lighthouse customer is an early customer of a given company, product, or technology. The term originates from Everett M. Rogers' Diffusion of Innovations (1962). [1]
Typically, early adopters are customers who, in addition to using the vendor's product or technology, also provide considerable and candid feedback to help the vendor refine its future product releases, as well as the associated means of distribution, service, and support.[ according to whom? ] Early adoption could also be referred to as a form of testing in the early stages of a project.
The relationship is synergistic. The customer receives early (and sometimes unique, or at least uniquely early) access to an advantageous new product or technology. In return, the customer may also serve as a kind of guinea pig.[ citation needed ]
In exchange for being an early adopter, and thus being exposed to the problems, risks, and annoyances common to early-stage product testing and deployment, the "lighthouse customer" is sometimes given especially attentive vendor assistance and support, even to the point of having personnel at the customer's work site to assist with implementation. The customer is sometimes given preferential pricing, terms, and conditions, although new technology is often very expensive, so the early adopter still often pays quite a lot.[ citation needed ]
The vendor, on the other hand, benefits from receiving early revenues, and also from a lighthouse customer's endorsement and assistance in further developing the product and its go-to-market mechanisms. Acquiring lighthouse customers is a common step in new product development and implementation. The real-world focus that this type of relationship can bring to a vendor can be extremely valuable.[ citation needed ]
Early adoption does come with pitfalls: early versions of products may be buggy and/or prone to malfunction. Furthermore, more efficient, and sometimes less expensive, versions of the product usually appear a few months after the initial release (Apple iPhone). [2] [3] The trend of new technology costing more at release is often referred to as the "early adopter tax". [4]
Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a new or changed entity, realizing or redistributing value". Others have different definitions; a common element in the definitions is a focus on newness, improvement, and spread of ideas or technologies.
In business and engineering, product development or new product development covers the complete process of bringing a new product to market, renewing an existing product and introducing a product in a new market. A central aspect of NPD is product design, along with various business considerations. New product development is described broadly as the transformation of a market opportunity into a product available for sale. The products developed by an organisation provide the means for it to generate income. For many technology-intensive firms their approach is based on exploiting technological innovation in a rapidly changing market.
In business, diffusion is the process by which a new idea or new product is accepted by the market. The rate of diffusion is the speed with which the new idea spreads from one consumer to the next. Adoption is the reciprocal process as viewed from a consumer perspective rather than distributor; it is similar to diffusion except that it deals with the psychological processes an individual goes through, rather than an aggregate market process.
Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers or simply Crossing the Chasm, is a marketing book by Geoffrey A. Moore that examines the market dynamics faced by innovative new products, with a particular focus on the "chasm" or adoption gap that lies between early and mainstream markets.
Commercialization or commercialisation is the process of introducing a new product or production method into commerce—making it available on the market. The term often connotes especially entry into the mass market, but it also includes a move from the laboratory into commerce. Many technologies begin in a research and development laboratory or in an inventor's workshop and may not be practical for commercial use in their infancy. The "development" segment of the "research and development" spectrum requires time and money as systems are engineered with a view to making the product or method a paying commercial proposition.
Consumer behaviour is the study of individuals, groups, or organisations and all the activities associated with the purchase, use and disposal of goods and services. Consumer behaviour consists of how the consumer's emotions, attitudes, and preferences affect buying behaviour. Consumer behaviour emerged in the 1940–1950s as a distinct sub-discipline of marketing, but has become an interdisciplinary social science that blends elements from psychology, sociology, social anthropology, anthropology, ethnography, ethnology, marketing, and economics.
Everett M. "Ev" Rogers was an American communication theorist and sociologist, who originated the diffusion of innovations theory and introduced the term early adopter. He was distinguished professor emeritus in the department of communication and journalism at the University of New Mexico.
Diffusion of innovations is a theory that seeks to explain how, why, and at what rate new ideas and technology spread. The theory was popularized by Everett Rogers in his book Diffusion of Innovations, first published in 1962. Rogers argues that diffusion is the process by which an innovation is communicated through certain channels over time among the participants in a social system. The origins of the diffusion of innovations theory are varied and span multiple disciplines.
Technological change (TC) or technological development is the overall process of invention, innovation and diffusion of technology or processes. In essence, technological change covers the invention of technologies and their commercialization or release as open source via research and development, the continual improvement of technologies, and the diffusion of technologies throughout industry or society. In short, technological change is based on both better and more technology.
Phased adoption or phased implementation is a strategy of implementing an innovation in an organization in a phased way, so that different parts of the organization are implemented in different subsequent time slots. Phased implementation is a method of System Changeover from an existing system to a new one that takes place in stages. Other concepts that are used are: phased conversion, phased approach, phased strategy, phased introduction and staged conversion. Other methods of system changeover include direct changeover and parallel running.
In computing, adoption means the transfer (conversion) between an old system and a target system in an organization.
The technology adoption lifecycle is a sociological model that describes the adoption or acceptance of a new product or innovation, according to the demographic and psychological characteristics of defined adopter groups. The process of adoption over time is typically illustrated as a classical normal distribution or "bell curve". The model indicates that the first group of people to use a new product is called "innovators", followed by "early adopters". Next come the early majority and late majority, and the last group to eventually adopt a product are called "Laggards" or "phobics." For example, a phobic may only use a cloud service when it is the only remaining method of performing a required task, but the phobic may not have an in-depth technical knowledge of how to use the service.
In social dynamics, critical mass is a sufficient number of adopters of a new idea, technology or innovation in a social system so that the rate of adoption becomes self-sustaining and creates further growth. The point at which critical mass is achieved is sometimes referred to as a threshold within the threshold model of statistical modeling.
Eco-innovation is the development of products and processes that contribute to sustainable development, applying the commercial application of knowledge to elicit direct or indirect ecological improvements. This includes a range of related ideas, from environmentally friendly technological advances to socially acceptable innovative paths towards sustainability. The field of research that seeks to explain how, why, and at what rate new "ecological" ideas and technology spread is called eco-innovation diffusion.
The technology life cycle (TLC) describes the commercial gain of a product through the expense of research and development phase, and the financial return during its "vital life". Some technologies, such as steel, paper or cement manufacturing, have a long lifespan while in other cases, such as electronic or pharmaceutical products, the lifespan may be quite short.
A skunkworks project is a project developed by a relatively small and loosely structured group of people who research and develop a project, often with a very large degree of autonomy, primarily for the sake of radical innovation. The term originated with Lockheed's World War II Skunk Works project.
A push-button telephone is a telephone that has buttons or keys for dialing a telephone number, in contrast to a rotary dial used in earlier telephones.
CIPURSE is an open security standard for transit fare collection systems. It makes use of smart card technologies and additional security measures.
The sociological theory of diffusion is the study of the diffusion of innovations throughout social groups and organizations. The topic has seen rapid growth since the 1990s, reflecting curiosity about the process of social change and "fueled by interest in institutional arguments and in network and dynamic analysis." The theory uses a case study of the growth of business computing to explain different mechanisms of diffusion.
Customer success, customer success management, or client advocacy is a business strategy aimed at ensuring that customers achieve their desired outcomes while using a product or service. It involves proactive engagement, personalized support, and ongoing assistance to help customers derive maximum value from their investments. refers to the process of enhancing customers' satisfaction while using a product or service. As a specialized form of customer relationship management, customer success management focuses on implementing strategies that result in reduced customer churn and increased up-sell opportunities. The primary objective of customer success is to ensure customers achieve their desired outcomes with the product or service, consequently leading to improved customer lifetime value (CLTV) for the company.
