Non-Customers Research Notes
In my exploration of the concept of “non-customer,” I discovered that the term was first introduced by Peter F. Drucker in his seminal work Managing for Results (1964).
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February 27, 2017
In my exploration of the concept of “non-customer,” I discovered that the term was first introduced by Peter F. Drucker in his seminal work Managing for Results (1964). Swaim (2011) attributes the term to Drucker, defining “non-customers” as individuals who do not purchase from a business.
For instance, if a business owner claims a 20% market share, 80% of the potential market comprises non-customers (Swaim, 2011). This raises a pivotal question posed by Drucker: “When was the last time you spoke to your non-customers to understand why they are not buying from you? What insights did you gain?”
Reflecting on my 25 years of experience working with small businesses, I must acknowledge a common trend: many business owners neglect to engage with non-customers, often unsure what questions to ask. This oversight primarily focuses on maintaining a loyal customer base, leading to a missed opportunity for valuable insights.
One major dilemma during my research was identifying the reasons for non-customers’ existence. According to Ferrell and Hartline (2013), several questions can help illustrate potential reasons:
Typically, small and medium-sized enterprises (SMEs) prioritize their loyal customer base and often attempt to expand it through finer segmentation. However, this approach has its pitfalls.
Recognizing and understanding non-customers is essential for uncovering latent demand. By employing the question framework proposed by Ferrell and Hartline, businesses can unlock new insights and strategies to engage this overlooked market segment.
Finer segmentation focuses on differentiating customers rather than identifying shared values. As competition increases, this can lead to product or service customization that carries inherent market risks. The Blue Ocean Strategy, articulated by Kim and Mauborgne (2015), highlights that such a narrow focus can confine companies to minuscule markets that may not yield sufficient profit and potentially increase the number of non-customers.
To effectively address latent demand, businesses must pivot their strategies. Rather than dedicating all resources to studying existing customers, attention must shift towards understanding non-customers (Kim & Mauborgne, 2015). Companies should concentrate on commonalities among potential customers and the values they prioritize to create buyer personas rather than merely segmenting based on differences.
In my exploration of the concept of “non-customer,” I discovered that the term was first introduced by Peter F. Drucker in his seminal work Managing for Results (1964).
The techniques employed to enhance search engine rankings vary significantly in the ever-evolving digital marketing landscape. Among these, black-hat SEO practices.
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