Four Questions to Assess the Potential Impact of a Performance Predictor

When considering the viability of a particular performance predictor, the following questions will assist:

(1) How immutable will the performance predictor be?

Does the performance predictor provide prospective customers with clarity of truth? The performance predictor should answer questions in the prospective customer's mind, not spur an avolanche of doubts. You want prospective customers to believe your claims without a shadow of a doubt.

(2) Is the performance predictor aligned to your market position?

Ensure your performance predictor reinforces and contributes to your chosen market position. Don't 'launch' a performance predictor which may create confusion in prospective customers as to your market position. If you occupy a 'budget' market position, then only select performance predictors which will reinforce a budget image.

(3) Will the performance predictor reduce the prospective customer's pre-purchase risk?

Resist the temptation to introduce performance predictors for the sake of the exercise. All performance predictors must be relevant to prospective customers in as much as they reduce pre-purchase risk and ensure the decision is made with certainty.

(4) Is the performance predictor sustainable?

When asssessing your performance predictor, ensure it is sustainable within the context of your business model. There is no point in launching a performance predictor only to find out it is costing a small fortune and returning very little. All performance predictors should contribute to driving profit, either directly or indirectly. If it doesn't pass this acid test, drop it.