Balancing Promises and Price: Effective Performance Measurement for Products and Services

Performance measurement plays a crucial role in ensuring that products and services meet customer expectations. It involves assessing how well a product or service delivers on its promises, whether overt or implied, and determining if it aligns with the price point. In this context, key factors such as warranty, advertising, and product type influence how performance is evaluated.

A fundamental aspect of performance measurement is the warranty and promises made by a company. Offering warranties and assurances builds consumer trust but must be carefully aligned with the product's nature and price. For instance, a high-end electronic gadget might come with a five-year warranty, signaling durability and reliability. However, a low-cost product, like a Re. 1 Boomer Chewing Gum, cannot promise extended warranties. The key is choosing the right language to communicate the product's quality and expectations, without overpromising.

Advertisements also play a significant role in setting consumer expectations. Companies often make overt promises through advertisements, but they must be cautious about implied promises. If an advertisement suggests that a product will last a lifetime but it’s priced cheaply, customers may feel misled. The advertisement must match the reality of the product’s capabilities, considering both its price point and the expected performance.

The price of a product or service directly influences the performance parameters on which it’s judged. Products at lower price points are typically judged on fewer aspects. Consumers may not expect premium features from a low-cost item, and thus performance measurement is often simplified. As the price increases, so do the number of performance criteria, as consumers expect more for their investment.

Kanalytics helps businesses optimize performance measurement by providing data analytics software and media intelligence platform. It tracks customer feedback, evaluates product performance, and ensures advertisements align with product quality and price. Kanalytics’ insights enable brands to measure promises accurately, monitor market reactions, and adjust offerings in real-time to maintain customer satisfaction.