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Learn MoreThe Technology Adoption Lifecycle (TALC) illustrates the order in which a new product is accepted by the public. It can indicate not only the nature of the adopters’ financial savvy, but also the influence they have with their peers. As a financial advisor, your placement in the sequence can indicate a lot about the aspects of your business you value most, as well as the level of service you provide.
Innovators
Innovators, or technology enthusiasts, represent just 2.5% of all adopters. They actively seek new products and strive to outdo their peers by being first to discover the next big product.
They are thought leaders in the industry. Their keen understanding of technology helps them accurately evaluate the triumphs and shortcomings of the latest products to the market. Because innovators vocalize their opinions, they tend to be highly esteemed by their peers.
These “techies” often have a higher level of risk tolerance than the average adopter, for they are young and financially confident.
Early Adopters
Early Adopters account for 13.5% of the market, following the lead of the vocal, first-wave adopters.
No matter the opinions of the previous group, Early Adopters are inclined to follow their own intuition when making decisions and tend to be independent. Rather than to seek praise and recognition, they embrace technology to enhance their services and gain a competitive edge.
Early Adopters enjoy a position of outstanding leadership among their peers and pursue an ambitious return on investments.
Early Majority
After overcoming their initial reluctance, the Early Majority, or Pragmatists, accounting for roughly one third of all adopters, accept new innovation. When making decisions Pragmatists tend to follow the herd and make safe, practical, reliable purchases.
The Early Majority generally don’t seek to revolutionize their practice, preferring to make incremental improvements. Members of the largest adoption group, Pragmatists rarely enjoy opinion leadership among their peers.
Late Majority
The Late Majority, typified by their skepticism and frugality, represent another third of the market. The Late Majority await market stabilization until a product declines in price, as they tend to lack clarity of purpose and financial confidence.
Rather than actively seeking technology solutions, this conservative segment fears being left behind by their peers and competitors. They tend to adopt an innovation only after their current tools have become inconvenient and obsolete.
Since they lag behind the majority in adopting innovation, their opinions do not often count for much.
Laggards
Content with the status quo, Laggards seek no-risk solutions to business challenges. Generally introverted and somewhat provincial, they disregard opinions and advice from earlier adopters. Skeptical and overly cautious, they have little or no influence with their peers.
In the end, in spite of its general acceptance by other adopters, Laggards may never adopt new innovation.
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Successful financial advisors are constantly on the hunt for the next innovation, not only to improve how they work, but also—and ultimately—to enhance their clients’ overall experience.
Where do you fall in the Technology Adoption Lifecycle?
