Does the performance of your product or service excel competition on at least one parameter? Clearly communicate on which parameters you are leading the pack.

When and how to apply performance:

Performance-based business models encourage organizations to reconsider their conventional methods for providing products and services to customers. One way to comprehend performance-based business models is through the lens of product-service systems.

Product service systems (PSS) describe a marketable set of products and services that fulfill a user’s needs. There are 3 distinct categories for PSS:

1. Product Oriented PSS Business Models: consists of a customer purchasing a product from a provider that also comes with additional services that add value to the product. The models are often related to maintenance and monitoring of products through services. (Ex. a health care equipment supplier might offer an additional service in which it agrees to retrieve equipment after use for recycling or disposal)

2. Use Oriented PSS Business Models: consists of a customer purchasing the use of a product with ownership remaining with the provider. These models are often related to sharing, renting, and leasing of products. (Ex. Car Sharing Services)

3. Results Oriented PSS Business Models: consists of a customer purchasing a result or competency rather than a specific product or service with ownership of any asset required remaining with the provider. These models are related to selling a result or a capability. (Ex. Rolls Royce’s Total Care Package)

Well-known companies that use this pattern are Hilti and Coursera.