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Blue Ocean Strategy on Customer Experience

The Impact of Blue Ocean Strategy on Customer Experience

Dhivakar Aridoss

Dhivakar Aridoss

Marketing Head

The Blue Ocean Strategy, introduced by W. Chan Kim and Renée Mauborgne, suggests that rather than competing head-on within existing market boundaries (the “red ocean” where competition is fierce and market space is crowded), companies should seek out untapped market spaces or create new ones altogether (the “blue ocean”).

In the realm of customer experience, this strategy involves identifying and implementing innovative ways to deliver value to customer that set the company apart from competitors.

How Does the Blue Ocean Strategy Apply to Customer Experience?

Let us break down the blue ocean strategy to understand it better.

Value Innovation

Picture this – you’re craving a burger, but you’re tired of the same old options. Then you stumble upon a burger joint that not only offers mouthwatering patties but also lets you customize your toppings in a fun, interactive way.

That’s value innovation right there!

It’s all about giving customers something they didn’t even know they wanted, like unique burger toppings, while still keeping costs reasonable. So, this burger joint attracts a whole new crowd while keeping its prices competitive.

Focus on Non-Customers

Think about a trendy coffee shop in a bustling city. Sure, they’ve got loyal customers, but what about those who never step inside because they prefer tea or maybe they find the environment too intimidating?

By reaching out to these non-coffee drinkers or those who prefer a quieter vibe, the coffee shop could introduce a selection of specialty teas and create a cozy corner for relaxation. Suddenly, they’re appealing to a whole new group of people who felt left out before.

Strategic Sequencing

Let’s say you’re a small software company looking to expand.

Instead of diving headfirst into every possible market, you start by focusing on one niche where your product can make the most impact. Once you’ve established a strong presence there, you gradually branch out into related markets, building on your success step by step.

It’s like laying down one brick at a time to build a solid foundation for growth.

Reconstructing Market Boundaries

Imagine you’re in the taxi industry, facing tough competition from ride-sharing apps.

Instead of just accepting defeat, what if you redefine what it means to get from point A to point B?

That’s what some companies did with luxury car rentals.

They didn’t just provide transportation; they offered an experience, giving customers the chance to drive dream cars they might never afford to own. They tapped into a whole new market by blurring the lines between traditional taxi services and luxury experiences.

Let us take the healthcare vertical as an example.

In the healthcare space, applying the blue ocean strategy in customer experience involves reimagining how healthcare services are delivered, accessed, and experienced by patients.

This could include:

Redesigning Care Delivery

Imagine you wake up with a pounding headache and a busy day ahead. Instead of dragging yourself to the doctor’s office, you grab your phone and schedule a virtual consultation right from your bed.

That’s the beauty of redesigning care delivery – it’s all about making healthcare more accessible and convenient.

Whether it’s through virtual visits, mobile apps that let you track your health, or even having a nurse come to your home when you’re not feeling well, the goal is to give you more control over how and where you receive care.

Emphasizing Prevention and Wellness

Picture this – you’re at your regular check-up, and instead of just focusing on treating any existing health issues, your doctor spends time talking to you about staying healthy in the long run.

They might recommend lifestyle changes, screenings for early detection of diseases, or even community programs to help you stay active and eat well.

It’s all about shifting the focus from just fixing problems to preventing them from happening in the first place so you can live your best, healthiest life.

Personalizing Patient Experiences

Think about the last time you went to the doctor. Did you feel like just another number on a chart, or did you feel truly heard and understood?

Personalizing patient experiences is all about making sure you feel seen as an individual, not just a diagnosis.

Imagine your doctor using genetic testing to tailor a treatment plan specifically for you or a wearable device that monitors your health in real time and alerts your care team if something’s off.

It’s like having a healthcare experience that’s as unique as you are.

How Do You Leverage Technology to Implement Blue Ocean Principles in the Customer Experience Space?

Here’s how you can leverage technology:

Omnichannel Communication

Implement an omnichannel contact center platform that integrates various communication channels such as voice, email, chat, social media, and messaging apps into a seamless customer experience.

This allows customers to reach out through their preferred channels and ensures consistent service across all touchpoints.

AI-Powered Chatbots

Integrate AI-powered chatbots into your contact center platform to provide instant support and assistance to customers.

Chatbots can handle routine inquiries, provide information, and even complete simple transactions, freeing human agents to focus on more complex issues and delivering faster response times.

Predictive Analytics for Personalization

Use predictive analytics to analyze customer data and anticipate their needs and preferences.

By understanding customer behavior patterns, contact center agents can personalize interactions, recommend relevant products or services, and provide proactive support, enhancing the overall customer experience.

Voice Recognition and Natural Language Processing

Implement voice recognition and natural language processing technologies to improve the accuracy and efficiency of voice interactions.

This allows contact center systems to understand and respond to customer queries more effectively, reducing call handling times and enhancing customer satisfaction.

Real-Time Monitoring and Analytics

Utilize real-time monitoring and analytics tools to track key performance metrics and customer feedback in real time.

Contact center supervisors can use this data to identify trends, make data-driven decisions, and continuously optimize the customer experience based on customer feedback and preferences.

Cloud-Based Solutions for Scalability and Flexibility

Adopt cloud-based contact center solutions that offer scalability and flexibility to meet changing customer demands and business needs.

Cloud-based platforms enable rapid deployment, easy integration with existing systems, and on-demand scalability, allowing contact centers to adapt quickly to market changes and scale operations as needed.

By embracing the principles of the blue ocean strategy and leveraging technology in innovative ways, organizations can chart new territories and differentiate themselves in crowded markets.

From personalized solutions to immersive virtual experiences and omni-channel communication platforms, technology offers limitless possibilities for creating new market spaces and redefining customer experiences.

By focusing on value innovation, understanding the needs of non-customers, and challenging industry norms, companies can carve out unique positions in the market and attract new customers while retaining existing ones.

Ultimately, by combining the transformative power of technology with the strategic insights of the blue ocean strategy, organizations can unlock new growth opportunities, foster customer loyalty, and drive sustainable competitive advantage in today’s dynamic business environment.

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