Helping a Client Find Profitable Opportunities in the Builder Segments

Determining which markets to prioritize sales resources and which builders to target.

Helping a Client Find Profitable Opportunities in the Builder Segments

We are often asked if we can help clients uncover the next big thing. And, the answer is almost always "of course". However, we reframe the question back to them as "how do you know you aren't currently missing out on existing opportunities?" That approach has been extremely successful for our clients.  

Opportunity Sizing and Targeting

A recent example of this approach had us work with a building products manufacturer who wanted to better understand where they were missing out on sales in new construction.

Our analytics work provided insights into profiles of the types of builders the client should target.  Not only did we profile the builders they needed to target, we the sized the opportunities in terms of units and revenues by geogrpahies. Our work informed the client where they were over-performing and under-performing with segments of builders. Frp, there, we demonstrated how much market share they could profitably gain.

The objective of this project was to provide recommendations and concrete directions on where the client should allocate its resources to effectively gain market share and grow profitability.

Step 1: Profile the builders the client is most successful with currently.

This was accomplished by analyzing builder customers on several factors including, but not limited to,

+ Number homes built

+ Type of builder (production, custom)

+ Size of homes built

+ Price points

+ Home segment (starter, step-up, luxury, ultra-luxury)

Step 2: Layer the client's best-customer profile onto the population of builders.

Using those profiles from step one, we layered the criteria across all the builders in the U.S. for the past 2 to 3 years.

Result from this step was a customer matrix that highlighted which builders should be targeted based on how similar they were to the client's best customers.

Step 3: Size sales opportunities for builder customer acquisition based on targeted profiles.

Sizes from the profiling of all builders provided:

+ Number of builders fitting client's targeted profiles

+ Number of homes these targets build

+ Sizes of homes they build

+ Price points of their homes

+ Home segments mix they build

+ Characteristics of homes they build, e.g., bedrooms, baths.


Step 4:  Size the opportunities in units incremental revenues.

Used client's metrics relating to best customers' types of products used, quantity installed in new homes by rooms and square footage, and average product prices.