Bible for Business Seminar#11 Customers & Blue Ocean Strategy

For the Customer Perspective in the Strategy Driven Map Balanced Scorecard, we must know the following:

1. The Offering is a multi-dimensional vector of factors like price, features, service, branding and so forth. The vector of the offering is known as a Strategy Curve in the Blue Ocean Strategy (BOS) methodology.
2. Customer buying decision is both rational and emotional. The encounter brings an experience. Frequent pleasant experience causes Engagement and brings Loyalty, Customer Profitability and Lifetime value.
3. We must segment our market so that we can address the customers needs better. Segment tends to be done through demographics like sex, age, incomes, etc. A more precision and effective approach is by the 'task' or 'job' performed. e.g. washing machine for the housewives, Visical for the business manager or accountants etc.
4. The values that Customers desire have moved from Rational, Emotional into Human Values and Significance. Customers may pay more for a product that is 'sustainable' - ie. protect the environment in its manufacturing and use.
   

We discussed Blue Ocean Strategy in details and with examples like Cirque du Soleil, Southwest Airline, MacDonalds etc. The methodology includes the Strategy Canvas, The 6 pathways to identify factors, and then applying ERRC (Eliminate, Reduce, Raise, Create) to come out with your unique Strategy Curve, looking at 3 tiers of non-customers, BOI Index (Buyer Utility, Price, Cost, Adoption), The Matrix of Buyer Utility Map, Profit Model and Pricing Innovation.

We also discussed the need for Re-positioning, using Blockbuster (VRC Rental), Netflix ( Internet DVD Rental) , and Video-on-Demand and Apple iPod as an example of how the market shifted with technology changes.

Finally, we discussed Customer Relationship, see point 2 above.

About 10 people came together for the Seminar. The overall rating was 90% with Length of talk scoring 100%, followed by Subject area coverage, Tech Level, Speaker Knowledge at 94%, and lowest Time of Talk at 80%. The feedbacks were:

Like Best

• Application and example
• About the chart comparison of various circus
• Blue Ocean Strategy & Application in real life example eg Google
• Red Ocean and Blue Ocean Strategy

Others

• should use some pictures or logos to capture our vision while showing so we can enjoy the session more
• Is it possible to take this seminar as a case study - how to market to more people - through email to other churches, advertisement …