Overview
Buxton solutions use terminology related to geographic analysis, customer and patient analytics, site selection, market optimization, and healthcare data. Use this article as a reference for commonly used terms and their meanings within Buxton solutions.
Geographic and Market Terminology
BUDS (Buxton Urban Density Score):
A measure of population density used to describe differences between highly rural and highly urban areas. BUDS results are calculated at the block group level.
DMA (Designated Market Area):
A defined geographic region used to represent television and radio markets. The United States is divided into 210 DMAs.
Donut Count:
A method of measuring a specific data element within a drive time or other geography while excluding a smaller geography contained within it, similar to the hole in a donut. Donut counts can account for situations where the proximity of a competitor has different effects depending on its distance from a location. For example, a nearby competitor may have a positive or neutral effect, while a competitor located farther away may have a negative effect.
ZCTA (ZIP Code Tabulation Area):
A geographic area created by the U.S. Census Bureau using whole census blocks to approximate ZIP Code areas.
ZCTAs differ from U.S. Postal Service (USPS) ZIP Codes, which are based on mail delivery routes and can change as delivery routes are updated.
Site Selection and Modeling Terminology
Area Draw:
Accounts for businesses, institutions, healthcare facilities, and other destinations within an area that generate traffic and visibility. Area Draw represents the positive effect these nearby destinations may have on a potential location.
Decay:
Represents the decrease in influence or value as distance from a potential site increases. For customers or patients, households closer to a site generally have a higher value than households located farther away. For competitors, locations closer to a potential site generally have a greater impact than competitors farther away.
Optimizer:
A Buxton solution built on the foundation of a site score model. Optimizer helps assess the potential of a geographic area and identify an ideal arrangement of trade areas. Optimizer can be used to test scenarios based on factors such as:
Minimum site score values
Household overlap
Cannibalization
Seed Point:
An existing retail or healthcare location included within a geography for a Whitespace or Optimizer analysis.
Seed points are evaluated using a site score model to help identify opportunities for growth. The analysis considers factors such as customer or patient value, Area Draw, competition, and trade area overlap or cannibalization.
Whitespace Analysis or Due Diligence Solution:
An analysis commonly used for private equity buy-side or sell-side use cases. It provides insight into the potential size of a company at maturity based on factors such as:
Markets
Location counts
Network-wide sales, when applicable
Customer and Patient Analytics Terminology
Penetration:
The count or percentage of actual customer or patient households compared with the number of customer or patient core households, based on the applicable client profile.
Value:
A measure of customer or patient opportunity based on factors such as the density and presence of core customer or patient households, demand, and key demographic characteristics.
Healthcare Terminology
DRG (Diagnosis-Related Group):
A healthcare classification system that groups patients with similar medical conditions and treatment needs into categories. DRGs are used for inpatient billing and reimbursement and are maintained by the Centers for Medicare & Medicaid Services (CMS).
MDC (Major Diagnostic Category):
A healthcare classification that organizes principal diagnoses into mutually exclusive categories. Diagnosis-Related Groups (DRGs) are grouped into MDCs. MDCs are maintained by the Centers for Medicare & Medicaid Services (CMS).
