Switching to a More Profitable Strategy
1. The Deadlock
The deadlock in which the charter market finds itself season after season, is seemingly hard to break. However, as hinted in the introduction, it is possible. So why do charter companies then stick to this never ending war of attrition?
Objectively, it doesn’t really make very much sense to use a strategy which is proven to be detrimental for the long-term company branding. Branding in general takes up a lot of resources and is hard to build, so why do companies continue the downward spiral? The straight-forward answer is that the thin profit margins are discouraging companies to invest into bringing new value to their clients.
A diversification of company strategy might prove to be highly beneficial to innovators and early adopters of the market.
2. Breaking the Deadlock
Ultimately, it should not be a hard choice to make on how to structure a profitable company strategy. A good way to break the deadlock comes down to balancing between staying price competitive and the more crucial point - bringing added value to the charter clients through a series of small investments.
Given the current market circumstances, it might be easier than you think, as bringing added value reduces client’s price sensitivity. Just think about Apple!
3. Education as Customer Experience
It is no secret that customer expectations are continuously growing and the lack of new added value doesn’t facilitate any rise in customer loyalty or engagement. Education in the charter market is scarce apart from sailing schools focusing on skipper education.
Having that in mind, it is quite easy to understand that education can bring new value to the charter customer. Education can also be subsequently used to empower charter company employees with knowledge and resources they could use and reuse.
Using an online learning platform is the easiest way to achieve this goal and it can facilitate new leads. Furthermore, a use of potential gamified content in which you can reward your “super-users” and high value clients, keep them motivated and engaged, will elevate your retention rates.
In general, online education of both clients and employees can serve multiple purposes:
4. Implementing Changes
To sum it up, it is possible to generate differentiation from competitors using modern technology and bringing added value to your clients and employees. Leveraging education as a tool to add value while reaping the benefits of being an innovator or an early adopter will get you to break the deadlock.
To learn more about education in the charter market and implementing modern technology to supplement your current business strategy - read more about it HERE.
