Two types of performance predictors

Performance predictors can be categorised into tangible and intangible.

Tangible Predictors

Tangible predictors have a significant impact on the perceptions drawn by consumers. For example, Storm Financial has created a perception of quality partly based on their office fit-out. The importance of tangible predictors, such as those listed below, should not be underestimated as consumers subconsciously filter these elements to assist in predicting future performance.

Some examples of tangible predictors include:

- Office or store fit-out
- Location
- Product demonstrations
- Visual branding
- Stationary
- Marketing collateral
- Product packaging
- Staff uniforms
- Tools of trade
- Signage
- Photographs

In the case of a courier delivery company, consumers make the logical progression from dented and scratched vehicle equals dented and scratched parcel. This consumer thought pattern happens instantaneously at the subconscious level. For courier companies, tangible predictors are critical to success.

Intangible Predictors

Not all performance predictors are physical objects. In fact, many of the powerful predictors are actually intangible. The intangible predictors are typically absorbed by the conscious, or rational, part of the brain.

Intangible predictors include:

- Independent research findings
- Before and after demonstrations
- Market position rankings
- Prices
- Celebrity endorsements
- Consumer confidence programs
- Qualifications and standards for the conduct of personnel
- Size of R&D budget
- Industry awards
- Prominent client list
- Testimonials
- Professional memberships
- Years in operation
- Guarantees and warranties
- Critics reviews
- Client result statistics

Intangible predictors can be represented with tangible objects. For example, winning a business award would be considered an intangible predictor; however this ‘win’ can be represented with a trophy or certificate.

It is a combination of tangible and intangible performance predictors working in synergy, rather than any one in isolation that produces sustainable results.