Non-customer analytics
How can non-customer analytics support strategic choice or positioning?
Contents
Non-customer analytics is about understanding what people who are currently not your customers think about your product, services or brand.
Non-customer analytics studies people and organisations that do not currently buy the offer or participate in the category. It seeks to understand barriers, alternatives and unmet needs without assuming that every non-customer should or can ethically become a customer.
When to use it
Use it when a market is stagnant, declining or narrowly contested, or when customer-only research keeps reproducing the same opportunities.
The Blue Ocean framework distinguishes three tiers: soon-to-be non-customers near the edge of the market, people who consciously refuse the category, and distant groups who have never considered it.
Questions include:
- Why do people not buy from us or the category?
- Which features, costs, risks or access barriers deter them?
- Where is there responsible, economically viable unmet demand?
Origins
W. Chan Kim and Renée Mauborgne developed the three-tiers-of-noncustomers framework within Blue Ocean Strategy. It complements traditional customer research by looking beyond finer segmentation of current demand. The strategic aim is to find common barriers or desired benefits that can unlock new demand, rather than win another small share of an existing “red ocean.”
What it is
Conventional analysis often searches for more people resembling current customers. Non-customer analysis deliberately widens the frame. It asks what job people solve instead, why they refuse the category, and which assumptions make the industry look narrower than it is.
Kim and Mauborgne identify six constraining habits:
- defining the industry like competitors and competing to be best within it;
- accepting conventional strategic groups;
- focusing on the same buyer group;
- defining product and service scope similarly;
- accepting the industry’s functional or emotional orientation;
- focusing on the same time horizon and current threats.
Why it matters
Non-customers can expose barriers that customer satisfaction research cannot: affordability, accessibility, distrust, missing capability, ethical objection or a substitute that performs the job better.
Removing a barrier can create value and lower cost, but “blue ocean” does not mean competition, regulation or harm disappear. Validate willingness, unit economics, operational capacity and stakeholder effects.
How to use it
Define the current market and the three tiers. Use transaction data to identify lapsed or declining engagement, but do not infer reasons from absence alone.
Recruit participants lawfully through panels, intercepts, community partners and transparent outreach. Use Quantitative Surveys, Qualitative Surveys, Focus Groups and Interviews. Do not scrape or target individuals from personal social posts merely because a purchase is visible. Obtain consent and protect privacy.
Ask about the underlying job, current alternative, reasons for refusal, switching conditions and non-negotiable concerns. Compare commonalities across tiers rather than designing for every individual request. Prototype the smallest credible change and test actual behaviour.
Practical example
Cirque du Soleil is frequently used as a Blue Ocean illustration. Traditional circuses competed through scale, star acts, animals and price. Cirque combined acrobatics, theatre, themes and production values while removing animal acts and reducing dependence on celebrity performers. This reached adults who might not attend a conventional circus.
The example shows category recombination, not a formula. Animal welfare, worker safety, accessibility, pricing and production economics still require independent evaluation.
Top practical tip
Ask what non-customers do instead and why. The strongest opportunity often comes from removing a common barrier, not adding another feature for existing buyers.
Top pitfall
Do not recruit current customers and call the result non-customer insight. Also avoid treating refusal as ignorance; it may be rational, ethical or structural.
Further reading
For the strategic framework:
- Kim, W.C. and Mauborgne, R. (2015) Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, Boston, MA: Harvard Business Review Press
- http://matthopkins.com/business/the-non-customer/