What Is the Difference Between Latent and Active Prospects? Revealing Pro Tips for Effective Engagement

Differences Between Potential and Existing Customers

The Essence of Potential Customers

A "Potential Customer" refers to an individual or organization with latent purchasing potential who has not yet clearly identified their needs or challenges, or who is at a stage where their awareness of a product or service is limited.

Potential customers include those who are "unaware of their needs or challenges" and those who "recognize their needs or challenges but do not associate them with 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 potential customers.

Benefits of Approaching Potential Customers

Diversity

Potential customers tend to be more numerous than active customers. Even when approaches to active customers have been maximized, cultivating potential customers can increase new purchasing opportunities.

Less Competition

Because active customers are already aware of products or services that can solve their needs or challenges, competition with other companies can be intense. In contrast, since the needs of potential customers are not yet clearly defined, there are more opportunities to engage with them ahead of competitors.

Building Long-Term Trust

Contacting potential customers at an early stage holds the potential to build long-term relationships. Through long-term engagement, trust in products, services, companies, and brands tends to increase.

The Process of 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 individuals or organizations are considered potential customers."

Step 2: Contacting Potential Customers
Based on the profile set in Step 1, contact potential customers and execute actions to convert them into active customers.

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 not accurate, caution is required as resources may be allocated to individuals or organizations with a low probability of purchase.

Market Research and Customer Analysis

To define potential customers, we utilize the following methods.

• Market Research

We investigate overall market trends, competitors, and the challenges faced by market users. This may involve conducting interviews, surveys, or utilizing market research firms.

• Analysis of Existing Customers

We analyze the challenges, needs, and purchasing processes of our existing and active customers. This facilitates a better understanding of our potential customer profile.

• Analysis of Competitor Customers

We analyze the customer base of competitors offering similar products or services. This provides valuable insights into our own potential customers.

Creating Buyer Personas

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

For the company buyer persona, we specifically define factors such as company size, industry, and business challenges. Conversely, for the key contact buyer persona, we precisely define attributes such as job title, decision-making authority, operational 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 buyer personas you have defined. Below is an example.

Content Marketing

Content marketing, which attracts 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, ads that stimulate awareness of challenges and needs and drive traffic to your website are effective.

Select advertising formats such as display ads, banner ads, and video ads, which can effectively reach users even when their needs are still vague. Conversely, for latent customers with clearly defined challenges, search engine marketing (listing ads) and retargeting ads are more suitable.

Social Media

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

Furthermore, by utilizing highly targeted social media advertising, you can attract potential customers from a broader reach.

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 important to specifically clarify the needs and challenges of potential customers. By concretizing and presenting 'business challenges' for companies and 'operational pain points' for individuals, you can provide a catalyst for potential customers to take interest.

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

Utilizing ABM Tools

For B2B companies, we recommend considering an ABM (Account-Based Marketing) tool.

ABM tools collect and analyze customer data to identify 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 vital segment that can be converted into 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.

By leveraging tools such as ABM, you can work on converting potential customers into active customers.