Framework
Signal Credibility Scorecard
TL;DR
A 10-point scoring system to assess whether a proposed quality signal will be believed by target customers before investing significant resources.
A 10-point scoring system to assess whether a proposed quality signal will be believed by target customers before investing significant resources.
When to Use Signal Credibility Scorecard
Use before launching major signaling investments, when evaluating marketing or brand initiatives, or when proposed signals score low and need redesign.
How to Apply
1
Score Verifiability (0-2 points)
Can customers independently verify the claim?
Questions to Ask
- 2 points: Publicly observable (open-source code, third-party certifications, demo videos)
- 1 point: Observable with effort (trial, case studies)
- 0 points: Black box claims ('enterprise-grade,' 'AI-powered,' 'best-in-class')
2
Score Costliness (0-2 points)
Does it require genuine resource sacrifice?
Questions to Ask
- 2 points: Major sacrifice (15%+ of revenue or significant opportunity cost)
- 1 point: Moderate sacrifice (5-15% of resources)
- 0 points: Cheap to produce (<5% of resources)
3
Score Consistency (0-2 points)
Does it align with your other signals?
Questions to Ask
- 2 points: All signals align (premium pricing + premium support + premium design)
- 1 point: Mostly aligned with some gaps
- 0 points: Contradictory signals ('luxury' with bargain pricing)
4
Score Time-Boundedness (0-2 points)
How long would it take a competitor to replicate?
Questions to Ask
- 2 points: Would take 2+ years to replicate
- 1 point: 6-24 months to replicate
- 0 points: Copyable in <6 months
5
Score Mechanism-Appropriateness (0-2 points)
Does it match what customers actually select for?
Questions to Ask
- 2 points: Directly addresses customer selection criteria
- 1 point: Somewhat relevant
- 0 points: Mismatched (Vertu's sapphire screens when customers selected on software)
6
Interpret Total Score
Sum points and determine action.
Outputs
- 8-10 points: Highly Credible Signal - Invest Heavily
- 5-7 points: Moderate Credibility - Test and Iterate
- 0-4 points: Weak Signal - Reconsider or Redesign