What Is the Difference Between Potential and Existing Customers? Revealing Proactive Approach Tips

Differences Between Latent and Active Customers

The Essence of Latent Customers

A "latent customer" refers to an individual or organization with purchasing potential 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 products or services and may have an intention to purchase. It can be said that they are at a stage closer to purchasing than potential customers.

Benefits of Approaching Potential Customers

Diversity

Potential customers tend to be more numerous than existing customers. Even when approaches to existing customers have been maximized, developing potential customers can increase new purchasing possibilities.

Less Competition

Since existing customers are already aware of products or services that can solve their needs or issues, competition with rivals can be intense. In contrast, because potential customers do not yet have clearly defined needs, 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, and the company or brand tends to increase.

Process for Approaching Potential Customers

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

Step 1: Define Potential Customer Profiles
Specifically define "what type of individuals or organizations are considered potential customers."

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

The details of each step are explained below.

Step 1: Define Potential Customer Profiles

First, it is necessary to specifically define "what type of individuals or organizations are considered potential customers." If this profile is inaccurate, you may inadvertently allocate 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

Research overall market trends, competitors, and the challenges faced by market users. Consider methods such as interviews, surveys, and the use of market research firms.

• Analysis of Existing Customers

Analyze the challenges, needs, and purchasing processes of your existing and prospective customers. This facilitates a clearer understanding of your ideal customer profile.

• Competitor Customer Analysis

Analyze the customer base of competitors offering similar products or services. This provides valuable insights into your own potential customers.

Creating Buyer Personas

Based on the research and analysis results above, define your potential customer profile in detail. A buyer persona represents the profile of a typical individual or organization likely to be interested in your products or services. For B2B companies, it is essential to create buyer personas for both the 'Company' and the 'Key Decision Maker'.

For the company buyer persona, specify details such as company size, industry, and business challenges. For the individual buyer persona, define attributes such as job title, decision-making authority, operational challenges, and preferred information sources.

It is critical 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 potential customers by providing valuable content, is an effective method for lead generation. By delivering content tailored to your buyer personas, you can successfully attract and engage potential customers.

However, it is important to focus on challenges and needs in content marketing rather than direct sales. While it may take time, this approach helps build long-term relationships based on trust.

Web Advertising

Deploy web advertising 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 can effectively reach prospects even when their needs are not yet clearly defined. Conversely, for prospects with clearly defined challenges, search engine marketing (SEM) and retargeting ads are more suitable.

Social Media

You can strengthen your approach to potential customers by leveraging social media to provide valuable content tailored to your buyer personas. Social media is also a platform that facilitates the building of ongoing 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 aligned with the interests and concerns of your buyer personas, you can gain opportunities to engage directly 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 setting 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 interest by verbalizing hidden needs and challenges to prompt awareness. On the other hand, if they "have needs or challenges but the relevance to your product or service is unclear," you can stimulate interest and make them a target for consideration by providing solutions that link their challenges to your product or service.

Utilizing ABM Tools

For B2B companies, we recommend considering 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 the scoring of potential customers, enabling you to implement approaches based on 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 clearly define your target based on data, provide valuable content that solves challenges for your personas, and build relationships over time.

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