John Dobak, M.D., is the CEO of DermTech.
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Disruptive innovations change the status quo and fundamentally alter the way businesses, consumers and industries operate. In general, these innovations simplify complex processes, leveraging technology to provide access to information, goods and services previously unavailable to the world at large.
For instance, consider the way Uber developed technology that allowed anyone with a car to get into the taxi business. Developing disruptive innovation is challenging and requires access to capital, solving complex technical and design challenges, and motivating teams to tackle big problems. However, introducing disruptive innovation to the market can be even more challenging because it often involves overcoming the status quo bias.
Many decisions people make are almost reflexive in nature and require little complex thought. Patterns and experiences we have developed, and possibly even inherited, allow us to react quickly to the world around us. While this allows us to work efficiently in a world that requires countless decisions to be made daily, it can also lead to cognitive biases that may make us blind to new opportunities that could improve or simplify life. Researchers William Samuelson and Richard Zeckhauser first described the status quo bias: a cognitive bias that leads to people continuing to do the same thing even though there are better alternatives. Overcoming this bias can be critical for those introducing disruptive and innovative solutions.
The challenge of overcoming status quo bias is even more exaggerated when introducing disruptive innovation in health care and medicine — something I've seen firsthand as the CEO of a precision dermatology company. Physicians and medical professionals can train for more than a decade in an apprenticeship model where practices and procedures are passed down from one professional to the other. "See one, do one, teach one" is the traditional training adage nearly all medical professionals recite. This model reinforces decision-making around pattern recognition, as it allows medical professionals to efficiently deliver high-quality care without having to constantly engage in complex decision-making. But in my experience, when new technologies come along that deliver superior outcomes but disrupt the typical care pattern, they are often overlooked and slowly adopted simply because the status quo bias is so difficult to overcome.
So, how can companies with disruptive innovations help potential clients break the habit of defaulting to the status quo? Here are a few ideas.
Remain persistent. It matters.
It is important to note that when customers default to the status quo, they often are not deciding for or against new technology. In fact, I've found it could be because they haven’t made any decision and have probably not engaged in a more complex decision-making process. It is, therefore, imperative that sales representatives continue to make sales calls, particularly with simple messages that appeal to loss aversion, without losing enthusiasm and recognizing it is not about them or the product. In my experience, it can take four to six touchpoints to break the cycle of defaulting to the status quo.
Understand loss aversion.
"Loss aversion" refers to the idea that, generally, people have a stronger emotional response to potential loss than they do to potential gain. With a new disruptive product, the temptation is to go out and sell the features and benefits of the technology. But customers maintaining the status quo are likely not as responsive to the gains a new technology might provide. I've found that framing the message around what a customer might lose or miss by sticking with the status quo can tap into loss aversion and is likely to get their attention better. At the very least, it might make someone more open to considering the new technology.
Potential losses could include customers, new revenue streams or even credibility by doing things the same old way. In some cases, there might be preconceived ideas about loss associated with switching away from the status quo, so it is important to address these misconceptions head-on. In my company's case, for example, there was a preconceived idea that our technology would cannibalize a common medical procedure, when, in reality, we were expanding the number of potential procedures. Hence, it was important for us to address this concern about loss upfront.
Remember that exposure is paramount.
Customers are immersed in the status quo; it is part of their daily lives. Exposure to new technology is intermittent and might only occur when a sales rep makes a call. Out of sight (and out of mind) makes it easier to default back to the status quo. This is why I believe it's critical to find ways to increase exposure to new technology beyond just the sales call.
In healthcare, for instance, it’s common to have a presence at major healthcare conferences. But it can be important to look beyond major annual society meetings, which are also intermittent, and to consider investing in smaller regional conferences or even local society meetings. Another way to increase exposure is to enlist the help of past clients and customers. Digital consumer advertising can be very cost-effective, and in health care, I've seen this approach can drive patients to consult with their health care practitioner about new technologies, thereby increasing exposure.
While it can be difficult to calculate a return on investment for these efforts in terms of product sales, it can be invaluable when confronting the status quo bias.
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