Background and challenge
A leading provider of property management software needed a detailed market study to support a potential sales process. The client offers software solutions to companies managing residential, vacation and commercial properties, and features products in numerous categories including accounting, marketing and leasing, screening, operations and analytics, payments, insurance, and legal and compliance.
The company enlisted L.E.K. Consulting to better understand its addressable market size and growth (including available whitespace opportunity), customer preferences, and decision criteria; its competitive landscape and associated positioning; and growth opportunities across the myriad of property and product segments in which it operates.
Approach and recommendations
We first created a detailed market-size assessment, combining research on underlying property and vacation booking data to provide a granular understanding of the addressable market and underlying trends affecting the industry. We then conducted an extensive primary research campaign to explore the customer purchasing and decision-making process. We also performed detailed analyses to better understand the competitive landscape across property and product subsegments. To understand how our client was positioned against different types of competitors, we dove deep into nuances across different markets.
After conducting a detailed review of the market, we assessed potential U.S. and international growth opportunities for the client. Our analyses provided a detailed quantification of the cross- and up-selling opportunities within the client’s current customer base. We then assessed the client’s ability to grow its customer base by selling to new adopters of property management software as well as to those switching third-party, specialist solutions. Finally, we summarized inorganic opportunities for expansion in the U.S. and select international markets (including the U.K., Europe, Canada and Australia), focusing on acquisitions that could expand current offerings, address the complexities of certain markets and help the client enter entirely new markets.
With our help, the client was able to qualitatively and quantitatively showcase its positioning in the market as well as demonstrate its potential to pursue growth opportunities of significant value. The company now has the ability to bring a positive and comprehensive market assessment, along with supporting growth opportunities, to potential buyers in support of its potential sale.