The law of diffusion of innovation

The Law of Diffusion of Innovation helps companies understand the impact of their innovation strategy by categorizing people into five groups based on their mindset towards trying new innovations or products. These five groups are: Innovators, Early Adopters, Early Majority, Late Majority, and Laggards. The first two groups make up 16% of the market and are more open to new innovations, while the latter three are more resistant. The biggest challenge for companies is transitioning from having enough Early Adopters to getting some Early Majority, which is known as the "Chasm." To scale their innovations, companies need to focus their marketing efforts on the Innovators and Early Adopters instead of wasting time and money on the Mass Market.