The Hidden Treasure of Noncustomers: Revolutionising Your Market Strategy with the three tiers of non-customers

If Drucker invented the idea of non-customer s, Chan Kim and Renée Mauborgne from Blue Ocean Strategy fame, created the three tiers of non-customers analytic framework.

In today's article, we're diving into an exciting concept that could revolutionise your business strategy: The Three Tiers of Non-customers. This powerful framework offers a fresh perspective on market expansion that goes beyond the traditional focus on existing customers.

So, what's the big deal about non-customers? Well, imagine tapping into a vast ocean of untapped potential that's been right under your nose all along. That's precisely what this framework helps you do!

Let's break it down:

• Tier 1: The "Soon-to-be" Noncustomers - These folks are teetering on the edge of your market, using your products or services out of necessity rather than desire. They're just waiting for a better alternative to jump ship.
• Tier 2: The "Refusing" Noncustomers - These are the people who've seen what you offer but have consciously chosen to look elsewhere. They're aware of your industry but aren't convinced it's for them.
• Tier 3: The "Unexplored" Noncustomers - This group is the farthest from your current market. They've never even considered your industry's offerings as an option. Talk about untapped potential!

Now, here's where it gets really interesting. By identifying the commonalities between these non-customer tiers and your existing customers, you can uncover golden opportunities to expand your market in ways you never thought possible.

It's like finding the key to a treasure chest you didn't even know existed!

So, next time you're brainstorming ways to grow your business, don't just think about how to keep your current customers happy. Take a moment to consider the vast sea of non-customers out there, waiting to be discovered.

To see the unexpected, Drucker suggests asking ourselves:

Who is the non-customer, the man who does not buy our products even though he is (or might be) in the market? And can we find out why he is a non-customer?

In fact, this approach could be your ticket to creating a "blue ocean" — a market space where competition is irrelevant because you're offering something truly unique and valuable. By understanding and addressing the needs of these noncustomer tiers, you might just find yourself pioneering an entirely new market category.

Example: Three Tiers of Noncustomers in the Electric Vehicle (EV) Industry

Let's apply the three tiers of noncustomers approach to the electric vehicle (EV) industry:

Tier 1: "Soon-to-be" Noncustomers

These are people who minimally use EVs or are on the verge of abandoning them:

• Current EV owners who are frustrated with limited charging infrastructure
• People who lease EVs but are considering going back to gas vehicles due to range anxiety
• Individuals who bought an EV as a second car but rarely use it

Tier 2: "Refusing" Noncustomers

These are people who consciously choose not to use EVs:

• Car enthusiasts who prefer the sound and feel of traditional engines
• Long-distance commuters who believe EVs can't meet their range requirements
• People who think EVs are too expensive compared to gas vehicles

Tier 3: "Unexplored" Noncustomers

These are people in markets distant from the EV industry:

• Rural residents who have never considered EVs due to perceived lack of practicality
• Motorcycle riders who haven't thought about electric alternatives
• Fleet managers of small businesses who haven't explored EVs for their operations

By understanding these noncustomer tiers, EV manufacturers can innovate to address specific concerns and potentially expand their market. For example:

• For Tier 1: Improve charging infrastructure and battery technology
• For Tier 2: Develop more affordable models and educate about long-term cost benefits
• For Tier 3: Create EV models tailored for rural use or electric motorcycles

This approach allows EV companies to look beyond their current customer base and tap into a vast pool of potential customers, driving innovation and market growth.

So, are you ready to dive into the blue ocean of opportunity? The three tiers of noncustomers are waiting to be explored. Who knows what incredible innovations and growth might result from this journey?

To implement the three tiers of noncustomers concept, here are some key pointers for readers:

• Identify and analyze the three tiers of noncustomers for your industry or business:
• Focus on understanding why noncustomers are not buying from you or your industry
• Use this understanding to drive innovation and identify new market opportunities
• Conduct market analysis by asking key questions about customers and noncustomers, such as:
• Consider using methods like questionnaires, focus groups, or conjoint analysis to gather information about noncustomers
• Be cautious about relying solely on customer feedback, as it may not always provide the most reliable insights for attracting noncustomers
• Look beyond your current customer base to find new growth opportunities

By focusing on these aspects, you can work towards converting noncustomers into customers and potentially create new markets for your business.