Ultimate Product Service Management Guide

Managing complex products can be challenging. They require detailed planning, team coordination and comprehensive support systems to be successful.

Product service management oversees this process, ensuring your offerings are practical, usable and customer-focused.

In this article, you’ll learn what product service management is and how it can improve business outcomes. You’ll also learn five best practices to optimize service management and boost customer satisfaction.

What is product service management?

Product service management is the process of overseeing and optimizing a product and its associated services from development to market deployment.

Some products, like software-as-a-service (SaaS) apps, are more than standalone items. They’re complex mixtures of products and services that need tight coordination to ensure they meet customer needs and deliver a cohesive user experience.

Product service management orchestrates these components, ensuring they work together seamlessly. It supports the creation, improvement and maintenance of a company’s products and services throughout their lifecycle.

The goal is to unify product, marketing, service delivery and customer service teams to provide integrated solutions. This oversight goes beyond product functionality, focusing on the product’s broader support systems and customer experience.

What does a product service manager do?

A product service manager (PSM) bridges the product, the company and the consumer. Responsibilities include:

• Product planning and development

• Performance evaluation and profitability analysis

• Feedback management

• Competitor and market analysis

• Product lifecycle management

• Supply chain and distribution analysis

Let’s examine a PSM’s role in each phase of product management, from development to discontinuation.

Product development

In the product development phase, the product service manager creates the product roadmap.

They conduct market research, surveys and customer interviews to gather insights about customers’ needs. They also analyze the competition to find new market opportunities.

During this process, the PSM works closely with design, marketing and product teams to ensure that the product aligns with the overall strategy and market requirements. They monitor industry trends and shifts in customer behavior to adjust the strategy proactively.

Product launch

During product launch, the PSM ensures that the marketing team applies research insights to marketing campaigns. They work with sales, marketing and customer support to create consistent messaging and prepare everyone to support the product.

In this stage, the PSM may also act as a brand manager, ensuring all customer touchpoints, from advertisements to product packaging, reflect the brand’s value proposition.

Product management

During the product management phase, a PSM works to reduce customer churn, improve product functionality and build on opportunities.

Once the product is on the market, the PSM manages iterations that adapt to changes and meet customer expectations. They use customer reviews, analytics and direct feedback to identify areas for improvement and prioritize changes.

Based on the feedback, the PSM collaborates with development teams to make changes like bug fixes, feature enhancements or product redesigns.

They’ll continuously evaluate market conditions and competitor behavior to adapt and keep the product strategy competitive.

Product discontinuation

The decision to discontinue a product begins with a thorough analysis of sales trends, market saturation and profitability. If the product service manager finds a product is no longer viable, they may end production.

The PSM then communicates this decision to discontinue to customers, helping them understand the reasons why and alternatives going forward.

They’ll also manage the transition for customers and internal teams. For example, they might oversee user migration to a new product or provide them with customer support during the phase-out process.

Product service management vs. product management

Product service management and product management often overlap, but each role has a distinct focus.

Product managers are primarily concerned with the “what” of the product, like its features and market fit.

Product service managers concentrate on the “how”, such as making sure the product is usable and satisfying.

Here’s a closer look at how they differ:

Both roles often require close collaboration to achieve success. For example, here’s what a typical product launch might look like:

• Product development. Product service managers work with product managers to define features, design and technology requirements. They engage engineers to ensure the product meets user needs.

• Service integration. Product service managers plan and implement service components to enhance the customer experience. They set up customer support systems, create user guides and arrange installation services.

• Launch coordination. Together, product managers and service managers prepare for launch. Product managers are in charge of marketing strategies, while product service managers ensure customer service teams are ready to assist users upon release.

• Post-launch monitoring. Product managers monitor sales and customer feedback to find areas for improvement in the following product iteration. Product service managers focus on service performance, ensuring the product experience meets expectations.

5 benefits of product service management

Effective product and service management significantly impacts a company’s success. Here are five of the major benefits:

1. Enhanced customer satisfaction. Product service managers tailor products to better meet customer expectations. They create a smoother user experience, leading to happier and more loyal customers.

2. Increased competitive advantage. Product service management helps create products that stand out with new features or superior service. It makes your company more agile, enabling it to adapt quickly to economic trends and customer preferences.

3. Improved operational efficiency. A PSM bridges the distance between development, marketing and support teams, streamlining processes and reducing miscommunication. Market insights and feedback help prioritize initiatives that deliver more value.

4. Increased revenue. Effective product service management improves market fit, aligning products with customer needs and driving higher sales. It also opens doors to cross-selling and upselling, boosting overall revenue.

5. Stronger brand reputation. Product service managers create consistent brand messaging that builds trust. Satisfied customers are more likely to recommend your brand, enhancing its reputation through word-of-mouth.

5 product service management best practices

Here are five best practices for product service managers:

1. Generate a deep customer understanding

Understanding your customer base helps align product features with customer needs, preferences and pain points.

To generate customer insights:

• Conduct surveys and interviews. Regularly gather feedback to understand customer preferences and challenges. Use structured surveys and open-ended interview questions to understand their expectations and determine how your product can meet their needs.

• Analyze customer data. Take the time to understand customer reviews, sales figures and usage data to uncover trends. Try to identify successful features and areas that need improvement.

• Create customer personas. Develop comprehensive customer profiles that represent your primary customer segments. Use demographics, behaviors and motivations to guide product design and marketing strategies toward your target audiences.

How Pipedrive can help

Using Pipedrive’s CRM, you can monitor and log customer interactions in real time, creating a complete view of each customer journey. Use this data to tailor your communications and product offerings to customer segments.

2. Develop cross-functional teams

Building cross-functional teams aligns product development, customer support, marketing and sales. Tight collaboration between these teams allows for the delivery of well-rounded solutions.

To develop cross-functional teams:

• Enable open communication. Hold regular discussions among team members from different departments. Use open dialogue to build mutual understanding about your offerings and ensure everyone is on the same page about the product vision.

• Leverage diverse expertise. Use each team member’s unique skills, from designers to engineers and marketers, to address complex challenges and generate creative solutions.

• Adopt Agile practices. Agile methodologies enable flexibility and quick product iterations. It helps teams respond rapidly to changes and continuously improve the product based on feedback from all teams.

How Pipedrive can help

Use Pipedrive’s project management and collaboration tools to streamline communication between departments. Track team tasks, set shared goals and update project progress to keep everyone in sync.

3. Conduct competitive and market analysis

Thorough market and competitive analysis helps you identify opportunities for differentiation and stay ahead of industry trends. It keeps your product relevant and ensures it stands out.

To conduct an effective analysis, benchmark your company against its competitors. Review your competitors’ product features, pricing and customer feedback. Understand what others offer to identify your strengths, weaknesses and areas for innovation.

Likewise, monitor the industry. Stay informed on market trends, technological advancements and changes in consumer behavior.

Use this information to anticipate shifts in the market and proactively adapt your product strategies.

How Pipedrive can help

Use Pipedrive’s analytics features to track competitor activities and monitor market trends in one platform. Segment competitor data and market insights to tailor your product strategies, ensuring your team is always one step ahead in the market landscape.

4. Manage products using data-driven decisions

Basing your decisions on factual insights rather than gut feelings leads to more effective outcomes. It aligns development and product marketing with real user needs and market conditions.

To facilitate data-driven decision-making:

• Use analytics tools. Leverage tools to track metrics like user engagement, sales performance and customer behavior. Use this data to identify trends and inform strategic decisions.

• Define key performance indicators (KPIs). Establish clear KPIs to measure success for different aspects of your product. Regularly monitor these indicators and highlight areas where you need to make strategic adjustments.

• Integrate qualitative insights. Combine your quantitative data with qualitative feedback from customer interactions and surveys. Using both data sources enriches your understanding and gives you a broader view of the customer experience.

How Pipedrive can help

Pipedrive provides robust insights and reporting features to monitor performance metrics and customer data. Use these insights to align your product with market demands and customer expectations.

5. Plan product discontinuation effectively

A well-executed product discontinuation handles the phase-out strategically, maintaining customer trust and minimizing disruption.

Preparing users for the change requires clear communication and effective planning.

There are four steps to an effective product discontinuation:

1. Monitor product performance. Regularly assess KPIs like sales trends, market demand and profitability. If you identify a product that’s no longer profitable and can’t find a way to turn it around, it’s time to discontinue it.

2. Communicate transparently. Inform customers and stakeholders of the discontinuation well in advance. Explain the reasoning and provide a timeline to prepare users for the change.

3. Provide transition support. Help customers transition to other products or services. Provide personalized recommendations, incentives and product guides to ease the shift.

4. Gather feedback post-discontinuation. After the phase-out, collect feedback to understand how your customers feel. Monitor engagement to make strategic decisions about future product strategies.

How Pipedrive can help

Use Pipedrive to manage customer communications and track interactions during the discontinuation process. Monitor feedback to support a smooth transition for your customers.

Final thoughts

Effective product management for services is a powerful way to stand out in competitive markets. It helps you lay the groundwork for successful products that meet needs, driving customer satisfaction and revenue.

Leverage Pipedrive’s powerful tools to track performance, manage customer relationships and optimize your overall business strategy. Start a free trial today to see how Pipedrive can support your product management journey.