Product elimination: A financial services model

This paper examines product elimination in the UK's financial services industry. The literature review establishes that physical goods elimination theory has only limited application to the financial services sector. A three‐stage methodology is employed to find out how products are eliminated in retail banks, building societies and insurance organisations. A model is formulated that provides an overview of the different stages involved in eliminating a product and how each stage is brought together within a process. It is identified that each stage of elimination is influenced by the extent to which full elimination (terminating production and support liability) can be achieved. This is dependent upon the existence of external barriers – legislative controls, contractual obligations, and internal constraints created by the organisation's desire to maintain customer relationships post‐elimination. By outlining the elimination process and key influences the ability to plan product termination to achieve wider objectives, such as customer retention, should become easier.