Red and Yellow Strategy
Know Your Non-Customers
How do you choose your non-customers properly?
If you’d like to expand your business, you need new clients.
However, not all potential customers are the same.
There are five types of non-customers:
1. Totally Unaware Non-Customers
2. Unconvinced Non-Customers
3. Brand Unaware Non-Customers
4. Habitual Non-Customers
5. Anti-Customers
These non-customers are different in terms of ease of working with them.
Five types of non-customers
Totally Unaware Non-Customers are the ones who don’t even know that a product or a product category you offer exists. For instance, in my case, they are business owners and CEOs who need a new strategy, but they either don’t realize it at all or don’t know they may get professional help with it.
Another example is a car-sharing service in the city where I live. It exists and works, but only a few of my friends are aware that they can use it.
Unconvinced Non-Сustomers know the product or the category exists but doubt using it. For instance, business owners are aware that consulting firms exist but may doubt that they can help them with their strategy.
Some people who live in my city have heard about the car-sharing service but are afraid of using it or don’t see much benefit in it.
Brand Unaware Non-Customers realize they need a strategy and are willing to ask for professional help but don’t know that my company exists. They turn to someone else for strategy consulting.
Habitual Non-Customers use a solution they have used for years. They are loyal to the solution provider and don’t want to experiment or try something new. For example, I have been buying phones of the same brand since 2011 and don’t plan to even try other platforms or brands.
Anti-Customers know that your product exists, and some have already tried it. But for some reason, they believe they will never buy it. Owners of expensive cars will never buy a cheap one. There is a supermarket chain in my town whose shopping experience was so unpleasant that I will never go there again.
Whom should you choose?
It is obvious that it is hard to persuade Anti-Customers or Habitual Non-Customers to try your product.
Enlightening Totally Unaware Non-Customers and convincing them to spend money on your product will take a lot of time and effort.
Unconvinced Customers and Brand Unaware Customers look like low-hanging fruit. However, sometimes low-hanging fruit can’t bring you significant profits.
Whichever segment of non-customers you choose as your target, I recommend doing the following:
1. Create several ‘customer personas’ of your typical today’s customers.
A customer persona (also known as a buyer persona) is a semi-fictional archetype that represents the key traits of a large segment of your audience.
You can do it using the tools we’ve already discussed here.
2. Conduct initial customer research and divide all non-customers into the five groups mentioned above.
3. Choose one or two groups that you think will be easier and more effective to work with.
4. Create several ‘non-customer personas,’ semi-fictional people who represent the key traits of your core non-customers.
5. Choose the ones who have the most in common with your customer personas.
Non-customers who have more in common with your current customers are potentially the easiest targets. Start your strategic development with them, and only then move on to more challenging cases.
Conclusion
Every business earns money by satisfying the needs of six stakeholder groups: customers, employees, business partners, shareholders, regulators, and society.
It does so by managing and balancing Value Waves — business processes that create value for these key stakeholders.
You can read more about it here or in the book.
· If you are considering a new strategy, you need new clients.
· If you need new clients, you can find them among non-clients.
· If you want to attract non-clients, you need to know the characteristics of each group.
· Among all non-clients, it will be easiest for you to start working with those whose needs are similar to the needs of your current clients. The value you offer is likely to suit them as well.
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