Product management: simplifying a complicated process.

• Author: Campbell, Kathleen
• Position: STRENGTHENING YOUR CORE

PRODUCT MANAGEMENT SERVES AN INTERDISCIPLINARY ROLE, bridging gaps within the bank between business-oriented teams (sales and marketing) and engineering-oriented teams (IT and operations) to deliver products and services that are profitable, competitive and meet the demands of the market.

The definition itself screams complicated."

* Multiple departments involved--none of which report to you and all with competing priorities.

* Copious amounts of data collection and analysis--some of which may not be easily available--product profitability, customer usage details, competition, market composition, advertising effectiveness and delivery channel usage.

* Effective project management and communication skills required.

It's complex, but absolutely necessary because things change. What may have been market appropriate, competitive and profitable when it launched years ago, may not be so today. Changes in customer needs and behaviors, economic stability, regulatory pressures, technological advancements, and your bank's strategic direction and financial goals all necessitate a regular review of key products. Be proactive and use a structured process.

Enlist the help of experts

Here's how to be pro-active:

* Organize a product committee--A group of individuals representing various areas of the bank who meet regularly to assist marketing with all aspects of product management and development. Involve these subject matter experts from the beginning so that their ideas help drive decisions and so their staff is aware of their role in both the research process and product change implementation.

* Identify product managers--Earmark those who work with key products and can help with data gathering and analysis.

Know your competition. They may have ideas you haven't thought of yet. Greater resources allow larger banks to be at the forefront of product innovation.

Track and monitor the trends involving key products. Completed monthly and reviewed quarterly, this process allows you to identify fluctuations in product usage and/or profitably so you can dig deeper to understand the causes.

How to dig deeper

Understanding why product sales and profit are what they are begins with exploring key questions:

1. What do users look like? Segment households by account profit and then analyze factors such as demographics, location, other products in the household and their balances, etc.

   * What do profitable accounts have in common?

   * What do unprofitable...