What are the three tiers of non-customers as described in the Blue Ocean Shift?

The three tiers of non-customers as described in the Blue Ocean Shift are:

1. First Tier: These are the customers who patronize the industry because they have to, not because they want to. If they find a better alternative, they will quickly move to it.

2. Second Tier: These are the refusing non-customers, people who have consciously rejected the industry offering perhaps in favor of an alternative or because it is too expensive.

3. Third Tier: These are all those who could benefit from your offering, but have never considered themselves as potential customers.

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There are three tiers of non-customers. In the First Tier are those who patronize the industry because they have to, not because they want to; if they find a better alternative they will quickly move to it. The Second Tier are the refusing non-customers, people who have consciously rejected the industry offering perhaps in favor of an alternative or because it is too expensive. The Third Tier are all those who could benefit from your offering, but have never considered themselves as potential customers. For example, in 2009 Square Inc. realized that there was an ocean of non-customers of the credit and debit card industry, small businesses like food trucks and farmers' market vendors, and people who could not use a credit card to pay the plumber or the ice cream vendor at the beach. By shrinking the credit card reader and using a smart phone's compute power and networking capabilities, Square created a blue ocean of point of sale devices.

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Blue Ocean Shift

Released in early-October 2017 — Blue Ocean Shift — is the continuation of the award-winning Blue Ocean Strategy, a bestselling strategy book based on...

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