What Is the Difference Between Potential and Existing Customers? Revealing Pro Tips for Your Approach

Differences Between Latent Customers and Active Customers

The Essence of Latent Customers

A "latent customer" refers to an individual or organization with the potential for purchase that has not yet clearly identified their own needs or challenges, or is at a stage where their awareness of a product or service is limited.

Latent customers include those who are "not yet aware of their needs or challenges" and those who "recognize their needs or challenges but have not yet connected them to a specific product or service." They represent a segment with a high probability of being guided toward future purchasing opportunities.

Characteristics of Active Customers

On the other hand, an "active customer" refers to an individual or organization that has already recognized their own needs or challenges and is interested in a specific product or service.

They are aware of the existence of the product or service and may have an intention to purchase. They are at a stage closer to purchase than latent customers.

Benefits of Approaching Potential Customers

Diversity

Potential customers tend to be more numerous than existing customers. Even when you have maximized your approach to existing customers, developing potential customers can increase new purchasing opportunities.

Less Competition

Since existing customers are already aware of products or services that can solve their needs and challenges, competition with other companies can be intense. In contrast, because potential customers do not yet have clearly defined needs, there are more opportunities to engage with them before competitors do.

Building Long-Term Trust

Contacting potential customers at an early stage holds the potential for building long-term relationships. Through long-term engagement, trust in your products, services, company, and brand tends to increase.

Process for Approaching Potential Customers

The approach to potential customers is carried out according to the following steps.

Step 1: Defining the Potential Customer Profile
Specifically define "what kind of individuals or organizations are considered potential customers."

Step 2: Engaging Potential Customers
Based on the profile established in Step 1, we will execute actions to engage potential customers and convert them into active prospects.

The details of each step are explained below.

Step 1: Defining the Potential Customer Profile

First, it is necessary to specifically define "what individuals or organizations are considered potential customers." If this profile is inaccurate, you may risk allocating resources to individuals or organizations with a low probability of purchase, so caution is required.

Market Research and Customer Analysis

To define potential customers, the following methods are utilized.

• Market Research

We investigate overall market trends, competitors, and the challenges faced by market users. Methods such as interviews, surveys, and the use of market research firms are considered.

• Analysis of Existing Customers

We analyze the challenges, needs, and purchasing processes of our existing and active customers. This makes it easier to understand the profile of potential customers.

• Competitor Customer Analysis

Analyze the customer base of competitors offering similar products or services. This allows you to gain insights into your own potential customers.

Creating Buyer Personas

Based on the research and analysis results above, specifically define your potential customer profiles. A buyer persona represents a profile of a typical individual or organization likely to be interested in your products or services. For B2B companies, create buyer personas for both the "Company" and the "Key Contact."

For company buyer personas, specifically define attributes such as company size, industry, and business challenges. Conversely, for key contact buyer personas, define details such as job title, decision-making authority, professional challenges, and preferred information sources.

It is essential to create buyer personas based on data. Building profiles on objective information rather than assumptions is the key to success.

Step 2: Engaging Potential Customers

Approach potential customers based on the established buyer personas. Examples are provided below.

Content Marketing

Content marketing, which attracts the interest of potential customers by providing useful information, is an effective method for lead generation. By offering valuable content tailored to your buyer personas, you can attract and engage potential customers.

However, in content marketing, it is important to focus on challenges and needs while refraining from direct sales. Although it may take time, this approach helps build long-term relationships of trust.

Web Advertising

Deploy web advertisements targeted at your defined buyer personas. Rather than aiming for direct sales, it is effective to use advertisements that stimulate interest in challenges and needs, thereby driving traffic to your website.

Select advertising formats such as display ads, banner ads, and video ads, which allow you to effectively approach prospects even when their needs are still vague. Conversely, for prospects with clearly defined challenges, listing ads and retargeting ads are more suitable.

Social Media

By leveraging social media to provide valuable content to your buyer personas, you can strengthen your approach to potential customers. Social media is also a platform that facilitates the building of continuous relationships with potential customers.

Additionally, by utilizing social media advertising, which allows for precise targeting, you can attract potential customers from a broader range.

Seminars, Exhibitions, and Events

By participating in or hosting seminars, exhibitions, and events tailored to the interests and concerns of your buyer personas, you can gain opportunities to make direct contact with potential customers.

Unlike online approaches, it is easier to collect customer information such as company names and contact details, enabling more appropriate communication.

Key Points for Approaching Potential Customers

Clarifying Needs and Challenges

When defining buyer personas, it is essential to specifically clarify the needs and challenges of potential customers. By concretizing and presenting 'business challenges' for companies and 'operational pain points' for individual stakeholders, you can provide a catalyst for potential customers to take interest.

If they are 'unaware of their needs or challenges,' you can attract interest by articulating these hidden issues and prompting realization. On the other hand, if they 'have needs or challenges but do not see the relevance to your product or service,' you can stimulate interest and bring them into consideration by providing solutions that bridge their challenges with your offerings.

Leveraging ABM Tools

For B2B companies, we recommend considering the use of ABM (Account-Based Marketing) tools.

ABM tools collect and analyze customer data to select target companies. Because they can be integrated with MA tools, SFA, and CRM systems that link with existing customer data, they are useful for accurately defining potential customers.

They also support lead scoring for potential customers, enabling you to implement approaches tailored to their level of interest.

Potential customers are a valuable segment that can be elevated to active customers through the right approach.

The key is to define them clearly based on data, provide useful content that solves challenges for your personas, and build relationships over time.

Let us work on converting potential customers into active customers by leveraging tools such as ABM.