Unmet CustomerNeeds in Housing2021Study Reveals Unsatisfied Needs in the Housing Industry

PRESENTED IN PARTNERSHIP

AGENDA

➢ Review objectives and process

➢ Examine detailed findings

➢ Evaluate recommendations /

opportunities

➢ Q&A

PROJECT OBJECTIVE

Complete a deep dive into unmet customer needs to identify data driven, actionable innovation opportunities for the Alliance community.

DEFINITION OF INNOVATION

5

“The process of devising solutions that address unmet customer needs.”

In Practice:Starting with idea generation or R&D based on poorly-defined or undefined customer needs results in risky, expensive, time-consuming innovation.

“People don’t want a quarter inch drill; they want a quarter inch hole.”

—Theodore Levitt

THE JOBS-TO-BE-DONE INNOVATION PERSPECTIVE

ENGINEEROVATION™: ENGINEERING PROCESS + JOBS-TO-BE-DONE INNOVATION THEORY

Starting with properly defined, job-focused, data-driven customer needs research guides ideation to “the likely few” winning ideas, reducing risk, cost and time to market.

MARKET = JOB PERFORMER + THEIR JOB-TO-BE-DONE

Defining a market as a job performer with a functional job-to-be-done provides a new avenue for market analysis.

Housing Occupants Provide housing for their family

8

+

JOBS-BASED RESEARCH REVEALS UNMET NEEDS

…how important is it to you that you are able to...

…how satisfied are you with your ability to...

Not at all important

Somewhat important Important Very

importantExtremely important

Not at all satisfied

Somewhat satisfied Satisfied Very

satisfiedExtremely satisfied

Keep occupants clean

Prevent theft of possessions

When living in a residence...

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Statistically valid quantitative research reveals and quantifies unmet needs.

IMP/SAT Scores = % (Very + Extremely)

OPP Score = IMP + MAX((IMP - SAT),0)

EX: OPP = 0.81 + (0.81 - 0.45) = 1.17

SampleProfile

Photo: Alpen High Performance Products

SAMPLE PROFILE Owners and renters of single family (SF) and multi family (MF) units in the United States. N = 1,287.

42.8% 57.2%

DetailedFindings

Photo: Alpen High Performance Products

THE OPPORTUNITY MAP Statistical analysis quantifies under- and over-served customer needs, revealing innovation opportunities.

ACQUISITION OCCUPANTS POSSESSIONS ACTIVITIES USE OF SPACE SURROUNDINGS FINANCES

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TOP UNDERSERVED JOBSThese jobs are very important to customers, but not well satisfied. These are your innovation opportunity areas.

Job OPPSleep 1.25Recuperate/relax 1.13Prevent theft of possessions 1.13Prevent intruders from entering the residence 1.12Store and organize possessions 1.09Prevent damage to possessions 1.09Keep interior living space clean 1.06Protect occupants from the exterior environment, e.g., heat, cold, noise, pollutants, allergens, moisture, pests, etc. 1.04

Prepare meals 1.03Minimize housing-related expenses 1.03

*OPP = Opportunity Score

Opportunities & Recommendations

Photo: Alpen High Performance Products

STORING & ORGANIZING POSSESSIONSPotential Innovation Areas

PRODUCT DESIGN

NEIGHBORHOOD DESIGN

BUILDING DESIGN

DATA & TECH

SERVICES

PREVENT INTRUDERS FROM ENTERING THE RESIDENCEPotential Innovation Areas

PRODUCT DESIGN

NEIGHBORHOOD DESIGN

BUILDING DESIGN

DATA & TECH

SERVICES

STAY TUNED FOR THE FULL REPORT

➢ Actionable insights by state/region

➢ Which demographic groups struggle more or less to do

certain jobs

➢ Which housing characteristics make certain jobs more or

less difficult to accomplish

➢ The step-by-step process to apply these insights to

supercharge your innovation efforts

December 2020

Q&A

Sources:The Innovator’s SolutionJobs-To-Be-Done: Theory to PracticeJobs to Be Done: A Roadmap for Customer-Centered Innovation

Appendix

Photo: Alpen High Performance Products

SAMPLE PROFILE Owners and renters of single family (SF) and multi family (MF) units in the United States. N = 1,287.

SAMPLE PROFILE Owners and renters of single family (SF) and multi family (MF) units in the United States. N = 1,287.

America

n Ind

ian / A

laska

n Nati

veAsia

n

Black /

African

America

n

Hispan

ic / L

atino

Native

Haw

ai / P

acific

Islan

der

None o

f the a

bove

/ Pref

er no

t to sa

y

White

OPPORTUNITY LANDSCAPE

Satisfaction

Impo

rtanc

e

OVERSERVED JOBSThese jobs are not very important to customers and/or are already well satisfied.

Job OPP*Generate income, e.g., through sub-lease, rental, etc. 0.22Connect with neighbors 0.25Provide temporary residence for visitors 0.26Establish commitment to the community 0.26Access equity financing for purchases, i.e., through a home equity loan 0.27

Communicate with non-occupants 0.28Provide help/service to others 0.40Meditate/pray/worship 0.42Entertain visitors 0.43Conduct work/business 0.47

*OPP = Opportunity Score

TABLE STAKES JOBSThese jobs are extremely important to customers and very well satisfied. Any new innovations must preserve satisfaction in these jobs.

Job OPP*Prevent physical harm to occupants 1.07Access clean water 1.15

*OPP = Opportunity Score

POTENTIAL INNOVATION AREASFOR UNDERSERVED JOBS

Job Potential Innovation Areas

Prevent intruders from entering the residence

Security products/systems; security programs; building & neighborhood design

Store and organize possessions Building/space design; product design

Prevent theft of possessions Building/space design; security product design; neighborhood planning & design

Prevent damage to possessions Building/space design

Recuperate/relax Product design; building design

Sleep Product design; building design

Solution providers: BPMs, builders, developers, architects