“I am skeptical. I doubt every single word you tell me about your product and business. I feel jaded. Everyday, marketers are screaming their messages at me ... trying to attract me to buy their product. When you tell me how fantastic your product is, I think “prove it”, or I will ignore you. If you are making unsubstantiated statements in order to get my money – forget it, I’ve heard that before.”
This message is being delivered by the consumers of the world. As marketers, we must listen.
The answer is not to move focus from advertising to public relations, or public relations to direct marketing, or direct marketing to online. The answer is...
...performance predictors. Walk the talk.
Thursday, January 31, 2008
Wednesday, January 30, 2008
The ‘customer side’ of ingredient branding is a performance predictor
Ingredient branding is a technique used by wholesale suppliers of 'inputs', which are added to create the final product for the end-user. For example, Intel microprocessors successfully used the ‘Intel Inside’ ingredient branding campaign to gain the number one spot in their market. Intel created a new demand for computers that have the Intel ingredient added.
As these ‘ingredients’ become better known and their positive reputation grows, there is another side to this story. The ingredients become performance predictors, from the consumer’s perspective.
A multi-award winning builder from my home town, Toowoomba in Queensland, established a premium status by highlighting the ingredients in their homes. Austral bricks, BHP Colourbond rooves, Rheem hotwater systems, Doof tapes, GJ James glass, SMEG appliances … and the list continued to outline each and every supplier of all the ingredients of their homes.
Prospects were given an important insight into the likely quality of the end-product by the builder highlighting the quality ingredients used in construction. Ingredient branding may be a performance predictors of relevance to your business. Or more importantly, of relevance to your customers!
As these ‘ingredients’ become better known and their positive reputation grows, there is another side to this story. The ingredients become performance predictors, from the consumer’s perspective.
A multi-award winning builder from my home town, Toowoomba in Queensland, established a premium status by highlighting the ingredients in their homes. Austral bricks, BHP Colourbond rooves, Rheem hotwater systems, Doof tapes, GJ James glass, SMEG appliances … and the list continued to outline each and every supplier of all the ingredients of their homes.
Prospects were given an important insight into the likely quality of the end-product by the builder highlighting the quality ingredients used in construction. Ingredient branding may be a performance predictors of relevance to your business. Or more importantly, of relevance to your customers!
Tuesday, January 29, 2008
Negative performance predictors detract
During the conceptualisation phase of Performance Predictors, I had discussed the concept at length with my wife Michelle. After a few months of me boring her with the concept, she suddenly questioned, “What is the opposite of a Performance Predictor?” as we drove by a high school in Perth where our soon-to-arrive Brazilian exchange would be attending.
I asked, "Why?"
Michelle simply pointed to the barbwire around the top of the 10 foot high fence that surrounded the perimeter of the school grounds and said, “I’d never send our children to a school that has barbwire around it; because it is there to either keep uncontrollable children in, or problem residents out.”
Performance predictors which would typically be viewed as detracting from the 'potential performance' of an organisation, school, person, community, etc. should be eliminated. These negative performance predictors detract from the reputation building process which positive performance predictors create.
I asked, "Why?"
Michelle simply pointed to the barbwire around the top of the 10 foot high fence that surrounded the perimeter of the school grounds and said, “I’d never send our children to a school that has barbwire around it; because it is there to either keep uncontrollable children in, or problem residents out.”
Performance predictors which would typically be viewed as detracting from the 'potential performance' of an organisation, school, person, community, etc. should be eliminated. These negative performance predictors detract from the reputation building process which positive performance predictors create.
Monday, January 28, 2008
Packaging as performance predictors
Imagine yourself in your local deli. You really feel like some chips, and so head for the displays, where there are two brands (this is a very small shop). The first one has a big display, shiny bright packets and a selection of flavours. The second also has a big display, but it’s sitting at a strange angle, and one of the corners is dented. Their packets seem faded, with barely legible barcodes and brand names, and you have to rummage to see how many flavours are there. They both sell for the same price, so which do you choose?
Or, for a slightly more up-market scenario, you’re at the airport, about to board a plane. Whether or not you get airsick, how far would your heart sink and stomach rise if you saw your plane, the hunk of metal that was all that stood between you and a radical makeover as a pancake, was a grime covered specimen with peeling paint and what looked suspiciously like a giant rubber band beneath the hood?
These may be extreme examples, but every day we ignore our parents and go around judging books by their covers. Those chips mentioned above may be delicious, lovingly hand made morsels of cholesterol enhancing snacky-goodness, and your airline may have no money left over for paint jobs and windscreen wipers because they’ve funneled all their resources into the latest and greatest safety precautions, but that doesn’t change your original impression – and when your customers are considering business with you, these impressions have to count.
Packaging, whist an obvious type of performance predictor, is often given limited attention as we marketers move quickly to the more important stuff. However unfortunately for us marketers, without performance predicting packaging, consumers never move past a 'passing glance'.
Or, for a slightly more up-market scenario, you’re at the airport, about to board a plane. Whether or not you get airsick, how far would your heart sink and stomach rise if you saw your plane, the hunk of metal that was all that stood between you and a radical makeover as a pancake, was a grime covered specimen with peeling paint and what looked suspiciously like a giant rubber band beneath the hood?
These may be extreme examples, but every day we ignore our parents and go around judging books by their covers. Those chips mentioned above may be delicious, lovingly hand made morsels of cholesterol enhancing snacky-goodness, and your airline may have no money left over for paint jobs and windscreen wipers because they’ve funneled all their resources into the latest and greatest safety precautions, but that doesn’t change your original impression – and when your customers are considering business with you, these impressions have to count.
Packaging, whist an obvious type of performance predictor, is often given limited attention as we marketers move quickly to the more important stuff. However unfortunately for us marketers, without performance predicting packaging, consumers never move past a 'passing glance'.
Thursday, January 24, 2008
Lost customers can be saved
A negative performance predictor does not always result in a lost customer. However, there is a disclaimer: you need to have other more powerful positive performance predictors to counteract the negative.
How many times have you as a consumer thought, "everything else feels right so I'll overlook this one negative aspect. After all, there is no such thing as perfection"?
I remember a few years ago, my wife and I engaged the services of a conveyancer who had a vast amount of experience, testimonials from satisfied clients and masters level qualification, but when you went into his office he had client files piled around his desk. When we were making the decison on whether to proceed, we discussed these aspects and decided to move forward with him as the positives far outweighed the negatives.
Obviously, over time, and with an effective client feedback system operating, you should remove all negative performance predictors as you become aware of them.
How many times have you as a consumer thought, "everything else feels right so I'll overlook this one negative aspect. After all, there is no such thing as perfection"?
I remember a few years ago, my wife and I engaged the services of a conveyancer who had a vast amount of experience, testimonials from satisfied clients and masters level qualification, but when you went into his office he had client files piled around his desk. When we were making the decison on whether to proceed, we discussed these aspects and decided to move forward with him as the positives far outweighed the negatives.
Obviously, over time, and with an effective client feedback system operating, you should remove all negative performance predictors as you become aware of them.
Wednesday, January 23, 2008
Performance Predictors as a Barrier to Entry
An organisation with very prominent and relevant performance predictors will act as a barrier to entry for other would-be industry entrants. The organisation will in affect 'scare-off' prospective competitors.
In this regard, performance predictors are a risk reduction strategy for the organisation implementing them. That is, the performance predictors reduce the risk of excessive competition within the industry.
In this regard, performance predictors are a risk reduction strategy for the organisation implementing them. That is, the performance predictors reduce the risk of excessive competition within the industry.
Tuesday, January 22, 2008
Hidden performance predictors
Many organisations have the content or ingredients for at least one performance predictor, but have failed to recognise its potential for marketing. For example, many pure product providers have products to offer that actually work. However, few use 'berfore and ask demonstrations' to prove the point. Or for another example, consider testimonials per se. All successful organisations have satisfied customers, but how many actually ask them for a testimonial?
As Stephen M.R. Covey says in his book The Speed of Trust, "In creating credibility with others, it's not just the results that count; it's people's awareness of the results. Thus, it's important to be able to appropriately communicate results to others." Performance predictors which are promoted assist in building trust. And trust is important, very important.
How many performance predictors are laying dormant in your organisation which you could promote?
As Stephen M.R. Covey says in his book The Speed of Trust, "In creating credibility with others, it's not just the results that count; it's people's awareness of the results. Thus, it's important to be able to appropriately communicate results to others." Performance predictors which are promoted assist in building trust. And trust is important, very important.
How many performance predictors are laying dormant in your organisation which you could promote?
Monday, January 21, 2008
Performance Predictors: Brand Marketing or Direct Response?
Brand marketing is concerned with developing and promoting brands in the market. The objective is to engage and resonate with consumers, and over time, impact on their purchase decision making. In contrast, direct response marketing is designed to solicit a direct response from consumers that is measurable.
What are performance predictors - brand marketing or direct response marketing?
The answer is both.
Some performance predictors will serve mainly to reinforce brand attributes and assist in creating engagement. For example, the professional offices of an accounting firm. Others will generate a direct response from consumers, because they are compelled to act now. For example, a before and after demonstration of acne cream.
You may even consider 'planting' a direct response orientated performance predictor into a brand marketing campaign to ensure it delivers a return on investment.
What are performance predictors - brand marketing or direct response marketing?
The answer is both.
Some performance predictors will serve mainly to reinforce brand attributes and assist in creating engagement. For example, the professional offices of an accounting firm. Others will generate a direct response from consumers, because they are compelled to act now. For example, a before and after demonstration of acne cream.
You may even consider 'planting' a direct response orientated performance predictor into a brand marketing campaign to ensure it delivers a return on investment.
Sunday, January 20, 2008
'Producing' performance predictors
If you are lucky, you might work in, or own, a company that already has performance predictors ready to be promoted. However, if you work in an average business (that is, the vast majority), you might have some internal improvement to make before promoting a performance predictor.
As a rule of thumb, service providers should focus on service delivery excellence (including experience management, service feedback, capability improvement, customer satisfaction and customer results), whereas product providers should focus on product development excellence (including quality assurance, innovation and continuous improvement).
By focusing a company's limited resources in the above areas, there is a greater chance of creating a performance predictor of merit. For example, a law firm that promotes, "We win 97.8% of our clients' cases" has focused on excellence in service delivery to create this performance predictor. Similarly, a paint manufacturer that promotes, "Dripless paint [and proves it with a product demonstration]" has focused on innovation.
There are some performance predictors which can be used as 'Catalytic Mechanisms' (see Good to Great by Jim Collins for an indepth explanation of this concept). Catalytic Mechanisms force behaviours to change in alignment to the mechanism itself. Guarantees are a good example. If an advertising agency guranteed to always deliver client projects on-time or the project is free of charge there is a very good chance that all projects will completed on-time once the guaranteed is promoted (even if this wasn't the case in the past). There is an invisible discipline at work.
It may take your organisation some time to produce a powerful performance predictor, but the effort will be worth.
As a rule of thumb, service providers should focus on service delivery excellence (including experience management, service feedback, capability improvement, customer satisfaction and customer results), whereas product providers should focus on product development excellence (including quality assurance, innovation and continuous improvement).
By focusing a company's limited resources in the above areas, there is a greater chance of creating a performance predictor of merit. For example, a law firm that promotes, "We win 97.8% of our clients' cases" has focused on excellence in service delivery to create this performance predictor. Similarly, a paint manufacturer that promotes, "Dripless paint [and proves it with a product demonstration]" has focused on innovation.
There are some performance predictors which can be used as 'Catalytic Mechanisms' (see Good to Great by Jim Collins for an indepth explanation of this concept). Catalytic Mechanisms force behaviours to change in alignment to the mechanism itself. Guarantees are a good example. If an advertising agency guranteed to always deliver client projects on-time or the project is free of charge there is a very good chance that all projects will completed on-time once the guaranteed is promoted (even if this wasn't the case in the past). There is an invisible discipline at work.
It may take your organisation some time to produce a powerful performance predictor, but the effort will be worth.
Thursday, January 17, 2008
'Matching' is the new 'Selling'
When an organisation embraces the concept of, and effectively implements performance predictors, selling becomes irrelevant.
Selling is associated with the concepts of convincing, influencing, asserting and persuading (sceptics may also add manipulating and deceiving to this list).
With performance predictors shining bright, the people within the organisation become experts, solution-providers, value-creators and trusted advisers (regardless of their position). The performance predictors are continuously 'selling in advance' for the organisation.
No longer will the organisation be pushing products onto prospective customers with a passing interest. Instead, prospective customers will be trying to gain approval to be served by the organisation.
Selling is associated with the concepts of convincing, influencing, asserting and persuading (sceptics may also add manipulating and deceiving to this list).
With performance predictors shining bright, the people within the organisation become experts, solution-providers, value-creators and trusted advisers (regardless of their position). The performance predictors are continuously 'selling in advance' for the organisation.
This 2.38 minute video makes the point perfectly: http://www.youtube.com/watch?v=EZS9ECoDnWg.
What was once selling, may be replaced with matching, only in the instance where the prospective customer isn't sure if they 'fit' the organisation. Additionally, where the prospective customer knows they fit, no matching will be required.No longer will the organisation be pushing products onto prospective customers with a passing interest. Instead, prospective customers will be trying to gain approval to be served by the organisation.
Wednesday, January 16, 2008
"That's too risky!"
All consumers (aka human beings) are risk adverse, albeit to varying degrees. Less risk is better.
Lovelock, Patterson and Walker in their excellent textbook, Services Marketing, propose six main types of risk consumers experience when making a buying decision.
1) Functional risk is concerned with performance outcomes. For example: How can I be sure this accountant will gain the maximum tax return for me?
2) Financial risk is concerned with monetary loss and unexpected costs. For example: Will this electrician add extra costs to my final bill that were not quoted or mentioned to me?
3) Temporal risk is concerned with wasting time and consequences of delays. For example: Will the cafe have my lunch order ready on time, so I am not late back to work?
4) Psychological risk is concerned with personal fears and emotions. For example: Will I feel stupid if I don't understand the diagnosis given by the doctor?
5) Social risk is concerned with how others think and react. For example: Will my colleagues dislike my new tie and make wrong assumptions about me as a result?
6) Sensory risk is concerned with unwanted impacts on any of the five senses. For example: Will the restaurant still spell strongly of new paint like last time?
Knowing what are the main risks typically experienced by your customers is step number one. Next, you need to develop performance predictors to eliminate (or at least reduce) each of these risks. In the first example above (How can I be sure this accountant will gain the maximum tax return for me?), you could promote a client success statistic stating that '94% of clients are "pleasantly surprised" with the tax return received from XYZ Accountants (source: 2007 client survey, audited by PWC)'.
When you have completed the process of eliminating risks with performance predictors, you need to select your flagship performance predictor from the list.
Lovelock, Patterson and Walker in their excellent textbook, Services Marketing, propose six main types of risk consumers experience when making a buying decision.
1) Functional risk is concerned with performance outcomes. For example: How can I be sure this accountant will gain the maximum tax return for me?
2) Financial risk is concerned with monetary loss and unexpected costs. For example: Will this electrician add extra costs to my final bill that were not quoted or mentioned to me?
3) Temporal risk is concerned with wasting time and consequences of delays. For example: Will the cafe have my lunch order ready on time, so I am not late back to work?
4) Psychological risk is concerned with personal fears and emotions. For example: Will I feel stupid if I don't understand the diagnosis given by the doctor?
5) Social risk is concerned with how others think and react. For example: Will my colleagues dislike my new tie and make wrong assumptions about me as a result?
6) Sensory risk is concerned with unwanted impacts on any of the five senses. For example: Will the restaurant still spell strongly of new paint like last time?
Knowing what are the main risks typically experienced by your customers is step number one. Next, you need to develop performance predictors to eliminate (or at least reduce) each of these risks. In the first example above (How can I be sure this accountant will gain the maximum tax return for me?), you could promote a client success statistic stating that '94% of clients are "pleasantly surprised" with the tax return received from XYZ Accountants (source: 2007 client survey, audited by PWC)'.
When you have completed the process of eliminating risks with performance predictors, you need to select your flagship performance predictor from the list.
Tuesday, January 15, 2008
What will your 'Flagship Performance Predictor' be?
A golden rule of marketing communications is send only one message in your communications. Less is more when it comes to marketing content. Why?
The ultimate answer lies in the way the human brain processes information. Our brains prefer (and are most effective) when dealing with one concept at a time. Consider the example of catching tennis balls.
If I were to throw you one tennis ball, the chances of you catching it are high. However, if I were to throw you 3 tennis balls, the chances of you catching all 3 balls would be slim. In fact, in an attempt to catch all 3 balls, it is highly likely that you will catch none. The brain prefers to focus on one thing at a time.
Applying this theory to performance predictors leads us to the conclusion that you must develop and promote one flagship performance predictor. Remember, less is more.
In selecting your flagship performance predictor, I would suggest you choose the one with the greatest "wow factor" or potential impact on prospective clients. If you're not sure which one this would be, you should conduct some market research to confirm.
Selecting a flagship performance predictor doesn't in any way suggest you should only have one performance predictor, however promoting only one will maximise the effectiveness of your marketing communications.
Your other performance predictors should act to reinforce your value, position and brand promise. Often your customers will be exposed to your other performance predictors as they progress along, or engage in, your client experience.
The ultimate answer lies in the way the human brain processes information. Our brains prefer (and are most effective) when dealing with one concept at a time. Consider the example of catching tennis balls.
If I were to throw you one tennis ball, the chances of you catching it are high. However, if I were to throw you 3 tennis balls, the chances of you catching all 3 balls would be slim. In fact, in an attempt to catch all 3 balls, it is highly likely that you will catch none. The brain prefers to focus on one thing at a time.
Applying this theory to performance predictors leads us to the conclusion that you must develop and promote one flagship performance predictor. Remember, less is more.
In selecting your flagship performance predictor, I would suggest you choose the one with the greatest "wow factor" or potential impact on prospective clients. If you're not sure which one this would be, you should conduct some market research to confirm.
Selecting a flagship performance predictor doesn't in any way suggest you should only have one performance predictor, however promoting only one will maximise the effectiveness of your marketing communications.
Your other performance predictors should act to reinforce your value, position and brand promise. Often your customers will be exposed to your other performance predictors as they progress along, or engage in, your client experience.
Monday, January 14, 2008
Performance Predictors and Marketing Communications
Marketing communications are messages used to communicate with a market (Source: Wikipedia). The typical channels of marketing communications include advertising, public relations, direct marketing, personal selling, sales promotion and online marketing.
Using the above definition, it is obvious that performance predictors are a form of marketing communications. That is, they are a form of message used to communicate with a market.
Performance predictors can be used as content for marketing communications. For example, product demonstrations (one type of performance predictor) is common in infommercials.
I say can be used as content for marketing communications, because they can also be integrated into the service delivery process or product itself. For example, FedEx answering incoming calls after only 1 ring.
Using the above definition, it is obvious that performance predictors are a form of marketing communications. That is, they are a form of message used to communicate with a market.
Performance predictors can be used as content for marketing communications. For example, product demonstrations (one type of performance predictor) is common in infommercials.
I say can be used as content for marketing communications, because they can also be integrated into the service delivery process or product itself. For example, FedEx answering incoming calls after only 1 ring.
Sunday, January 13, 2008
Seeing is believing
You may of heard that...
People believe approximately 10% of what they hear, 20% of what they read and 70% of what they see.
The fundamental human behaviour which this statement reflects underpins the effectiveness of performance predictors. Human beings are typically skeptical and inquisitive by nature, which results in consumers wanting facts, data, examples and trials to substantiate any marketing claims made by organisations before committing. Fair enough.
Take the following for example...
If I told you that there was a guy who could significantly alter your thinking in a matter of minutes, you would probably be skeptical. Instead of not believing this claim, please visit You Tube and look at this video: http://www.youtube.com/watch?v=befugtgikMg.
Now, you may still be skeptical after watching the video, however you would be a real cynic not to be open to more explanation about the process used in this video.
When selecting or developing performance predictors always keep this fundamental human behaviour in mind - we believe when we see (more than when we are told or read something). In fact, the best performance predictors combine seeing, hearing and reading the 'evidence' simultaneously.
People believe approximately 10% of what they hear, 20% of what they read and 70% of what they see.
The fundamental human behaviour which this statement reflects underpins the effectiveness of performance predictors. Human beings are typically skeptical and inquisitive by nature, which results in consumers wanting facts, data, examples and trials to substantiate any marketing claims made by organisations before committing. Fair enough.
Take the following for example...
If I told you that there was a guy who could significantly alter your thinking in a matter of minutes, you would probably be skeptical. Instead of not believing this claim, please visit You Tube and look at this video: http://www.youtube.com/watch?v=befugtgikMg.
Now, you may still be skeptical after watching the video, however you would be a real cynic not to be open to more explanation about the process used in this video.
When selecting or developing performance predictors always keep this fundamental human behaviour in mind - we believe when we see (more than when we are told or read something). In fact, the best performance predictors combine seeing, hearing and reading the 'evidence' simultaneously.
Thursday, January 10, 2008
Employee Probation
You might be thinking, 'What has employee probation got to do with performance predictors?" The answer lies in the definition of probation.
Dictionary.com defines probation as the testing or trial of a person's conduct, character, qualifications, or the like. Probation is a performance predictor which employers use to ensure the claims and promises made by candidates in job interviews can be substantiated.
Reference checks are another example of performance predictors used by job candidates. Imagine the impact created by a candidate who listed 15 referees, instead of the standard 3, and offered to extend the 'standard' probationary period by 6 months!
Dictionary.com defines probation as the testing or trial of a person's conduct, character, qualifications, or the like. Probation is a performance predictor which employers use to ensure the claims and promises made by candidates in job interviews can be substantiated.
Reference checks are another example of performance predictors used by job candidates. Imagine the impact created by a candidate who listed 15 referees, instead of the standard 3, and offered to extend the 'standard' probationary period by 6 months!
Wednesday, January 9, 2008
FedEx has positioned performance predictors
FedEx are masters of positioning. They chose speed as their market position, and this position permeates throughout the operations of the company.
An excellent example of aligning market position and a performance predictor is found at FedEx. When you phone FedEx they answer all inbound calls after only 1 ring, when 'business norm' is 3 rings.
Saying your fast is one thing, but proving it (in a small way using this performance predictor) is another. This 1 ring philosophy provides prospective customers with a 'window into the future' of how FedEx will performance.
Consider these other performance predictors which reinforce their market position:
An excellent example of aligning market position and a performance predictor is found at FedEx. When you phone FedEx they answer all inbound calls after only 1 ring, when 'business norm' is 3 rings.
Saying your fast is one thing, but proving it (in a small way using this performance predictor) is another. This 1 ring philosophy provides prospective customers with a 'window into the future' of how FedEx will performance.
Consider these other performance predictors which reinforce their market position:
- immaculate presentation of their delivery vehicles (unlike the scratched and dented vehicles used by their competitors)
- quality staff uniforms and presentable delivery drivers
- quality packaging (that makes the object look like it will get there faster)
Tuesday, January 8, 2008
"SHOW ME THE MONEY!"
We all remember these famous words that Cuba Golding Jnr's character, a struggling NFL gridiron player, ordered down the phone to Tom Cruise's character, a sports agent.
The words he used were, "Show me the money!" But the message being sent was, "I want proof, validation and evidence of all the hollow promises you have just preached. You tell me you are good, but I want evidence. And the evidence I seek is a playing contract".
The more salespeople, like Tom Cruise's character, "sell-speak" the more evidence we want, because we don't trust people that talk hollow promises and send message with hype as the central theme.
This is my message to salespeople: talk less, prove more (using performance predictors). If you don't, only those with the personality of Cuba Golding Jnr's character will ask you for the proof ... the others (that is, the majority) simply won't buy.
The words he used were, "Show me the money!" But the message being sent was, "I want proof, validation and evidence of all the hollow promises you have just preached. You tell me you are good, but I want evidence. And the evidence I seek is a playing contract".
The more salespeople, like Tom Cruise's character, "sell-speak" the more evidence we want, because we don't trust people that talk hollow promises and send message with hype as the central theme.
This is my message to salespeople: talk less, prove more (using performance predictors). If you don't, only those with the personality of Cuba Golding Jnr's character will ask you for the proof ... the others (that is, the majority) simply won't buy.
Monday, January 7, 2008
Are Performance Predictors Relevant in All Industries?
When I was originally exploring the concept of performance predictors, I prematurely concluded that performance predictors were only relevant to pure service businesses, such as engineers, accountants and advertising agencies. However, I was wrong.
Let's investigate five broad categories of business types, and consider relevant performance predictors for each in turn.
1. Pure products: are defined as tangible objects with no intangible service component. Examples include salt and razors.
Relevant performance predictors may include:
Relevant performance predictors may include:
Relevant performance predictors may include:
Relevant performance predictors may include:
Let's investigate five broad categories of business types, and consider relevant performance predictors for each in turn.
1. Pure products: are defined as tangible objects with no intangible service component. Examples include salt and razors.
Relevant performance predictors may include:
- 'Before and after' demonstrations
- Prices
- Celebrity endorsements
- Consumer confidence programs (for example, the Heart Foundation Tick of Approval)
- Product trials
- Packaging
- Size of R&D budget
- Testimonials
- Guarantees
Relevant performance predictors may include:
- Market position rankings
- Prices
- Product trials
- Marketing collateral
- Industry awards
- Testimonials
- Guarantees
- Critics reviews
- Photographs
Relevant performance predictors may include:
- Prices
- Location & fit-out
- Visual branding
- Marketing collateral
- Industry awards
- Testimonials
- Professional memberships
- Critics reviews
- Signage
Relevant performance predictors may include:
- Prices
- Celebrity endorsements
- Visual branding
- Marketing collateral
- Website quality
- Industry awards
- Testimonials
- Years in operation
- Signage
- Photographs
5. Pure services: are defined as intangible experiences with no tangible product component. Examples include engineering and teaching.
Relevant performance predictors may include:- Market position rankings
- Prices
- Celebrity endorsements
- Location
- Qualifications of personnel
- Marketing collateral
- Website quality
- Industry awards
- Testimonials
- Professional memberships
- Years in operation
- Guarantees
- Client success statistics
I have only applied common performance predictors to the above categories. There is scope to be more creative and tailor performance predictors to a specific business based on what is known about its clients.
Sunday, January 6, 2008
Performance Predictors in Action
Over the festive season, I witnessed many reminders of the versatility of performance predictors.
Banana Boat - the company that produces sunscreens - were running TV advertisments for their new Powder-Dri sunscreen which dries into powder, so sand doesn't stick to your skin. Instead of simply making the claim, the advertisement showed a demonstration to prove it. A very appropriate performance predictor for this product indeed.
Additionally, Weight Watchers were running TV advertisements at the start of the New Year (very smart timing), stating that "people lose 3 times more weight with Weight Watchers than going it alone". So, those people who set a New Year's resolution to lose weight, would be seriously considering attending Weight Watchers after having been exposed to this advertisement.
Finally, I was reminded of my first exposure to the power of performance predictors. Many years (about 10 in fact) I remember vividly a close friend who was travelling overseas before starting university saying he was going to Flight Centre to book all his travel arrangements. When I asked why, his answer was, "Why wouldn't I? They guarantee the lowest airfares!"
Performance Predictors are all around us. Perhaps you could put one (or more) into action.
Banana Boat - the company that produces sunscreens - were running TV advertisments for their new Powder-Dri sunscreen which dries into powder, so sand doesn't stick to your skin. Instead of simply making the claim, the advertisement showed a demonstration to prove it. A very appropriate performance predictor for this product indeed.
Additionally, Weight Watchers were running TV advertisements at the start of the New Year (very smart timing), stating that "people lose 3 times more weight with Weight Watchers than going it alone". So, those people who set a New Year's resolution to lose weight, would be seriously considering attending Weight Watchers after having been exposed to this advertisement.
Finally, I was reminded of my first exposure to the power of performance predictors. Many years (about 10 in fact) I remember vividly a close friend who was travelling overseas before starting university saying he was going to Flight Centre to book all his travel arrangements. When I asked why, his answer was, "Why wouldn't I? They guarantee the lowest airfares!"
Performance Predictors are all around us. Perhaps you could put one (or more) into action.
Tuesday, January 1, 2008
Product Features vs. Performance Predictors
Product features may be mistakenly considered performance predictors, however product features alone do not allow consumers to predict the future performance of the product.
For example, the new car industry is in continual product innovation mode. All the car manufacturers advertisements list a range of new product features, but rarely do they back-up these features with performance predictors. Remember, today's sophisticated and sceptical consumers are listening, watching and reading claims made by organisations and asking, "Why should I believe it? Prove it to me!"
Following is copy extracted from a car manufacturer's advertisement in a magazine [with comments added]:
The new Audi Q7. The first performance 7-seat SUV.
Get carried away by the new Audi Q7. Tuned to respond to the driver's needs, the high-torque 3.0 TDI quattro, 3.6 FSI and high performance 4.2 FSI V8 [notice the features listed do not answer the question: why should I believe it?] are all built to deliver refined power and explosive acceleration [the copy now makes the link between features and benefits, but still does nothing to prove the claims]. This, together with our famous quattro permanent all-wheel drive and servotronic speed sensitive power steering makes for superb handing and an exhilarating ride [more benefits, but again no performance predictors to substantiate the claims]. The spirit of 'Vorsprung' lives in the new Audi Q7.
For more information or to book a test drive [finally, a performance predictor. A test drive allows the consumer to prove the claims made by the manufacturer for themselves], call 1800 50 AUDI or visit your nearest Audi dealer.
Scanning through some other magazines revealed a couple of car manufacturers using creative performance predictors to reduce pre-purchase risk and reinforce their marketing claims:
The new GS450h ingeniously combines a 3.5 litre Direct and Port Injection V6 engine and 147kW electronic motor; so you can finally enjoy V8 performance (254kW) with four-cylinder efficiency (7.9 litres per 100km*) [notice the performance predictor in the last bracket substantiates the claim of 'four-cylinder efficiency'?]
Another example:
"How can we coax BMW performance out of a technology historically know only for economy?" Our answer was to win the Nurburgring 24-Hour Race [this directly answers the question: why should I believe you?] with a diesel 3 Series using innovative Common Rail injection technologies.
Product features are not performance predictors, however performance predictors should always be used to support product feature claims wherever possible.
For example, the new car industry is in continual product innovation mode. All the car manufacturers advertisements list a range of new product features, but rarely do they back-up these features with performance predictors. Remember, today's sophisticated and sceptical consumers are listening, watching and reading claims made by organisations and asking, "Why should I believe it? Prove it to me!"
Following is copy extracted from a car manufacturer's advertisement in a magazine [with comments added]:
The new Audi Q7. The first performance 7-seat SUV.
Get carried away by the new Audi Q7. Tuned to respond to the driver's needs, the high-torque 3.0 TDI quattro, 3.6 FSI and high performance 4.2 FSI V8 [notice the features listed do not answer the question: why should I believe it?] are all built to deliver refined power and explosive acceleration [the copy now makes the link between features and benefits, but still does nothing to prove the claims]. This, together with our famous quattro permanent all-wheel drive and servotronic speed sensitive power steering makes for superb handing and an exhilarating ride [more benefits, but again no performance predictors to substantiate the claims]. The spirit of 'Vorsprung' lives in the new Audi Q7.
For more information or to book a test drive [finally, a performance predictor. A test drive allows the consumer to prove the claims made by the manufacturer for themselves], call 1800 50 AUDI or visit your nearest Audi dealer.
Scanning through some other magazines revealed a couple of car manufacturers using creative performance predictors to reduce pre-purchase risk and reinforce their marketing claims:
The new GS450h ingeniously combines a 3.5 litre Direct and Port Injection V6 engine and 147kW electronic motor; so you can finally enjoy V8 performance (254kW) with four-cylinder efficiency (7.9 litres per 100km*) [notice the performance predictor in the last bracket substantiates the claim of 'four-cylinder efficiency'?]
Another example:
"How can we coax BMW performance out of a technology historically know only for economy?" Our answer was to win the Nurburgring 24-Hour Race [this directly answers the question: why should I believe you?] with a diesel 3 Series using innovative Common Rail injection technologies.
Product features are not performance predictors, however performance predictors should always be used to support product feature claims wherever possible.
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