Unlocking New Market Opportunities through Non-Customer Analysis in Blue Ocean Strategy

Blue Ocean Strategy is a business methodology that emphasises the creation of new market spaces rather than competing in existing ones. One key aspect of this strategy is the analysis of non-customers – individuals or groups who are not currently using a company’s products or services. By focusing on non-customers, companies can identify new opportunities for growth and differentiation.

Non-customer analysis involves understanding why potential customers are not using a company’s products or services. This could be due to a variety of reasons, including price, lack of features, poor customer service, or simply not knowing about the product. By addressing these issues, companies can create new demand and expand their market share.

One example of non-customer analysis in action is Cirque du Soleil. Rather than competing with traditional circuses for existing customers, Cirque du Soleil focused on non-customers – individuals who were not interested in traditional circus performances. By creating a unique and innovative show that combined elements of theatre, dance, and acrobatics, Cirque du Soleil created a new market space that attracted a whole new audience.

Non-customer analysis can also help companies identify untapped markets. For example, in the early 2000s, Samsung identified that many non-customers in emerging markets could not afford high-end smartphones. In response, Samsung created a low-cost smartphone that was tailored to the needs of these non-customers. This strategy helped Samsung capture a significant share of the emerging market and establish itself as a major player in the smartphone industry.

Overall, non-customer analysis is a powerful tool for businesses looking to create uncontested market spaces. By understanding the needs and preferences of non-customers, companies can develop innovative products and services that meet unfulfilled demand. This can lead to increased market share, profitability, and sustained competitive advantage.

What exactly is Non-Customer analysis

Non-customer analysis is a strategic approach used by businesses to identify and understand individuals or groups who are not currently using their products or services. It involves researching and analysing the behaviours, needs, preferences, and motivations of non-customers to identify opportunities for growth and differentiation.

The goal of non-customer analysis is to identify why potential customers are not using a company’s products or services. This could be due to a variety of reasons, such as the product or service being too expensive, lacking features or quality, poor customer service, or simply not knowing about the product. By addressing these issues, companies can create new demand and expand their market share.

Non-customer analysis is a key component of the Blue Ocean Strategy, which encourages businesses to create new market spaces rather than competing in existing ones. By focusing on non-customers, companies can discover new opportunities for growth and differentiation and create uncontested market spaces.

To conduct non-customer analysis, businesses can use a range of techniques, including surveys, focus groups, customer feedback, market research, and social media monitoring. By understanding the motivations and needs of non-customers, businesses can develop new products and services that are tailored to their unique requirements, which can help to attract new customers and increase market share.

How do I identify non customers

To identify non-customers, you need to analyse your target market and look for individuals or groups who are not currently using your products or services. Here are some ways to identify non-customers:

1. Conduct market research: Use market research to identify individuals or groups who are not currently using your products or services. This can involve conducting surveys, focus groups, or customer feedback sessions to understand why they are not using your products or services.
2. Analyse industry data: Look at industry data to identify gaps in the market and potential areas of growth. This can involve analysing trends, market share, and customer demographics to identify opportunities for growth.
3. Monitor social media: Monitor social media channels to identify individuals or groups who are discussing your products or services but are not currently using them. This can help you understand why they are not using your products or services and identify potential opportunities for growth.
4. Use customer segmentation: Use customer segmentation to identify individuals or groups who are not currently using your products or services. This involves grouping customers based on their characteristics, behaviours, or preferences to identify patterns and opportunities for growth.
5. Conduct competitor analysis: Conduct competitor analysis to identify individuals or groups who are using your competitor’s products or services but not yours. This can help you understand why they are not using your products or services and identify potential opportunities for growth.

By identifying non-customers, you can develop strategies to address their needs and preferences and create new opportunities for growth and differentiation.

Examples of Non-Customers

Non-customers are individuals or groups who are not currently using a company’s products or services. Here are some examples of non-customers:

1. Occasional users: These are individuals who use a company’s products or services infrequently or irregularly. They may not be regular customers because they do not have a consistent need for the products or services, or they may not be aware of all the features or benefits.
2. Competitor users: These are individuals who are currently using a competitor’s products or services but not using the company’s products or services. They may have a preference for the competitor’s brand, or they may not be aware of the company’s products or services.
3. Price-sensitive customers: These are individuals who do not currently use a company’s products or services because they are too expensive. They may be interested in the products or services but are not willing to pay the premium price.
4. Non-users: These are individuals who are not currently using a company’s products or services, and they have no intention of using them in the future. They may have a negative perception of the company or the products or services, or they may not have a need for them.
5. New customers: These are individuals who are not currently using a company’s products or services but may have a need for them in the future. They may be unaware of the company or the products or services, or they may be waiting for the right time to make a purchase.

By identifying non-customers and understanding their needs and preferences, companies can create strategies to target these groups and turn them into loyal customers.

Pros and cons of Non-Customer analysis

Non-customer analysis is a strategic approach that businesses can use to identify new market opportunities and create uncontested market spaces. Here are some pros and cons of non-customer analysis:

Pros

1. Identify new market opportunities: Non-customer analysis can help businesses identify new market opportunities by understanding the needs and preferences of non-customers. This can lead to the development of new products or services that meet unfulfilled demand and increase market share.
2. Create uncontested market spaces: By focusing on non-customers, businesses can create uncontested market spaces and differentiate themselves from competitors. This can help them establish a unique selling proposition and achieve sustained competitive advantage.
3. Improve customer satisfaction: Non-customer analysis can help businesses improve customer satisfaction by identifying and addressing issues that prevent potential customers from using their products or services. This can lead to increased loyalty and retention of existing customers.
4. Increase profitability: By creating new market opportunities and expanding market share, businesses can increase their profitability and achieve long-term growth.

Cons

1. Resource-intensive: Non-customer analysis can be resource-intensive, requiring significant time and investment to conduct research and analysis. Small businesses or startups with limited resources may find it challenging to invest in non-customer analysis.
2. Limited scope: Non-customer analysis may have a limited scope if it is not conducted comprehensively. Businesses may miss out on valuable insights if they only focus on a narrow group of non-customers.
3. Uncertain outcomes: Non-customer analysis may not always result in successful outcomes. Even with thorough research and analysis, businesses may fail to develop new products or services that meet the needs of non-customers.
4. Increased competition: Non-customer analysis may also increase competition, as businesses may develop similar products or services in response to unfulfilled demand. This can lead to a crowded market space and reduced profitability.