New Product Development


Lack of growth

A down turn in product sales can occur for numerous reasons. But if you are comfortable that outside forces like a bad economy, poor sales effort or new competition, then you may need to reevaluate your products.

Lower revenues from top accounts

Core accounts can comprise four fifths of your revenue (that's the old 80/20 rule). But, if those core accounts keep contributing less and less to your revenue stream, you may want to reevaluate your products.

New competitors emerging

Everyone has competitors but when new ones seem to spring up from nowhere, it means they see a need in the market that your company may not be filling. PROFIT INSIGHT can evaluate your current offering and help you create new ones.

Increase pricing pressures

As products mature, increased pricing pressures can greatly reduce margins. Even more, as new products become common products, it becomes difficult to differentiate yourself from your competitors. New product development may help.

High sales force turn over

It is difficult to find good sales people. But, when you think your sales force is rock solid and suddenly your top producers start to leave, they may feel you don't have the products they can sell.

Reduced product change requests

Customer complaints are never wanted by any business. But, at least when customers complain, they are using a product and want to make it better. When your complaint hotline or suggestion box starts to wane, you may need some new products in your portfolio.

Reduced customer interaction

The most important asset in any company in the relationship they have with their customers. When request for more information, customer service support and even complaints begin to subside, your product selection may be to blame.

Competitors are exiting the market

Reduced competition can be a good thing for any business. But when competitors begin to exit a market for no obvious reasons, they may see better opportunities in other markets with new products.


The PROFIT INSIGHT® product diagnostic and rationalization programs are assessments of the varying product structures and the key elements and parameters on which they are built. It offers insight into the health of a portfolio, while identifying risks to navigate and opportunities to capture. This structural review of the product set validates the overall structure and practices, and identifies opportunities to maintain and enhance profit contribution. Additionally, it identifies product gaps and opportunities to explore.


Eight Steps in New Product Development

The new product development process is lengthy and involves a number of departments and key personnel.  That process can be summarized in eight steps:

Live Tabs


Customized Strategies

PROFIT INSIGHT® customized strategies:

  • Improve deposit margin
  • Improve non interest income
  • Reduce product related expenses
  • Simplify and standardize offerings
  • Validate integrity (and appeal) of current offerings
  • Identify new opportunities in the market


Businesses are continually adapting products and services to respond to competitive threats or capture new opportunities. During these modifications, many products are “lost” or forgotten, though they continue to exist through periods of varying change – economic, legislative, competitive, etc. In addition to the ongoing confusion and cost to serve, certain attributes may undermine the overall performance of the portfolio. Left unchecked, it is likely that performance is not optimal. Additionally, banks may not be fully aware of new market opportunities, or how to meld their current product set into a new assortment that more fully meets the needs of clients and shareholders.