What is the first step in addressing an unprofitably performing product?

Identifying the source of the issue is the essential first step in addressing an unprofitably performing product. This process involves thoroughly examining various factors that could be contributing to the lack of profitability, such as operational inefficiencies, pricing issues, market demand, competitive landscape, or customer needs. By pinpointing the root cause of the problem, insurers can take informed and strategic actions to resolve these issues rather than implementing changes based on assumptions or incomplete information.

When the source of the issue is well understood, it allows for a targeted approach in subsequent steps, whether that involves adjusting product features, revising marketing strategies, analyzing customer feedback, or making decisions regarding pricing. This foundational analysis is crucial because it ensures that any corrective measures taken are relevant and effective, addressing the actual problem rather than symptoms. Without this critical step, efforts may lead to ineffective solutions or wasted resources in trying to fix the wrong issues.