Kundenbeispiel
New Data-Driven Channel Strategy Fuels a Manufacturer’s Immediate Profitability and Growth Potential
The company’s data-driven approach increased sales opportunities and improved its bottom line.
BuildingProductsCo committed to increase EBITDA by over $100 million through volume growth and margin improvement, with more than 30% captured in year one
BuildingProductsCo committed to increase EBITDA by over $100 million through volume growth and margin improvement, with more than 30% captured in year one
Die ganze Geschichte
A building products manufacturer was uncertain about the approach to meet its ambitious growth targets because it lacked a clear understanding of its channel growth potential and profitability. Its goal—to increase EBITDA by 40% within three years—seemed reasonable, but to get there the company needed a better understanding of what drove its profitability, plus a market-by-market analysis of where to grow.
We teamed with BuildingProductsCo* to develop a new channel strategy, focusing on both volume growth and margin improvement. We also codesigned and implemented foundational tools and internal capabilities to ensure the company’s growth was sustainable after the engagement ended.
We began with a detailed analysis of the company’s channel strategy, prioritizing the channels with the best growth potential in terms of profitability, market opportunity, and the ability to win against national and local competitors. We supported this effort with two of our most sophisticated tools for opportunity analysis, ProfitCubeSM and MoneyMapSM. The essential data they delivered helped the company understand profitability and white-space opportunity by channel and set appropriate volume and EBITDA targets for each.
Cutting-edge analytics and data visualization provide clarity
ProfitCube offered a detailed view of profitability by customer, SKU, and manufacturing location. Its powerful analytics built at the transaction level, combined with clear visualization capabilities, revealed both quick wins and longer-term initiatives to further drive profitability. The deep and specific data generated by ProfitCube flowed to a newly created “win room,” where the sales team used it to target customers in priority channels and adjust prices on negative-margin products to create near-term value. Profit insights also informed which channels were most attractive for BuildingProductsCo to continue to grow. Teams across the organization were trained to use the tool so that BuildingProductsCo could extend its new channel and growth strategies.
In parallel, our MoneyMap tool’s detailed customer- and prospect-level spend and opportunity analysis enabled the company to visualize current share of wallet and assess upside potential by channel and geography. As part of the MoneyMap deployment, BuildingProductsCo implemented a new set of dashboards to identify growth opportunities for current and prospective customers. Combined with the company’s existing sales coverage, this made it easy to see where the company was over- or underinvested based on account-level growth opportunities.
Quick wins and continuous improvement
Our approach helped BuildingProductsCo quickly realize significant benefits. Through this work, the leadership team had a clear plan supporting their commitment to grow EBITDA by more than $100 million over five years. By the end of year one, the company had banked 30% of this commitment. Its revamped channel strategy now enables it to focus resources on accounts with high-growth potential. The training we provided to the company’s internal teams, combined with the continued use of our unique analytical solutions, leaves them well positioned to maintain their upward trajectory, using analytics to identify the most promising growth opportunities and deploy their sales resources accordingly.
MoneyMapSM and ProfitCubeSM are service marks of Bain & Company, Inc.
* We take our clients' confidentiality seriously. While we've changed their names, the results are real.