Companies are still struggling to improve the reach and reliability of customized data about potential clients plus customers.
Part of the problem is provide — bigger data volumes offer greater insight around B2B and B2C purchasing preferences both immediately and over time.
But variety furthermore plays a role. While information regarding individuals at a company (demographics) and the technology they use (technographics) can help enhance marketing and sales outcomes, there’s also a place intended for firmographics , which are datasets that assist businesses effectively segment companies into meaningful categories.
The task? Although this is a great high-level definition, it doesn’t offer much in the way of specifics or actionable strategies.
In this complete facts firmographics, we’ll define firmographic data with a look at key forms and functions, discover how it’s used for segmentation, and dig into the sorts of questions that can help your company locate — and leverage — firmographic data.
What is firmographic data?
Demographic data targets information tied to individuals. Information such as contact names and customer purchase preferences are usually examples of demographic assets which you can use to drive targeted marketing promotions.
Firmographic data shifts the focus to agencies — or firms — to collect and analyze key information about the operation of enterprises themselves. Common firmographic data examples include:
- Industry type — From manufacturing or logistics organizations to financial, professional or legal service firms, industry type is really a key vector for segmentation. Worth noting? Many businesses occupy more than one industry straight and can also occupy several firmographic segments.
- Company size — How big is the organization, both in conditions of physical location plus staff size?
- Complete sales and revenue — Both quarterly and annual information is relevant here. While annual product sales and revenue data can drive long-term sales strategies, quarterly results can help pinpoint more immediate needs.
- Current location — Where is the company headquarters located? How many satellite offices do they have, plus where?
- Ownership framework — Is the company a public firm? A private enterprise? An NGO, charity or non-profit? Each comes with their own unique market method.
- Growth trends — Is the company growing, downsizing or keeping its current market position? Many three movement metrics offer opportunity, but must be contacted in different ways.
There’s also a crossover portion of firmographic and demographic data as it relates to specific job roles, titles, sections, and potential buying power.
By understanding more about the individuals responsible for decision-making within an company along with the operational framework that surrounds them, businesses may better target marketing attempts to receptive audiences with the power to take immediate action.
Benefits of Firmographic Segmentation
The primary goal of firmographic data is to help organizations segment potential B2B customers straight into meaningful segments, which in turn is able to reduce the distance between observation and action.
If marketers, sales teams, and C-suites get access to segmented information that classifies prospective clients by dimension, location, revenue, or current growth trajectory, they don’t have to spend time and effort separating this data before making choices. Instead, potential purchasing partners are pre-sorted into related categories.
Segmentation offers specific benefits for organizations, like:
1 . Improved market focusing on.
Understanding the physical and market size of potential B2B buyers can significantly enhance sales targeting. Here’s the reason why: Smaller, “mom and pop” businesses don’t have the same requirements as larger enterprises — while both are possibly valuable clients, their paths from initial contact to sales conversion are considerably different. For example , while many SMBs want one-size-fits all methods to help reduce total complexity, numerous enterprises are after custom-built tools and technologies to help deal with specific issues.
2 . Enhanced customer service.
Leveraging key firmographic data about where businesses are located and how their workers are geographically distributed can help improve customer service offerings. Think about a manufacturing firm located entirely within a single state — chances are they’ll prioritize companions that can deliver local program. Multinational firms, meanwhile, frequently prefer on-demand, distributed digital services.
3. Long-term purchasing potential.
Companies moving up the marketplace offer the potential for B2B businesses to get in on the ground ground and enjoy increased conversion volume over time. Enterprises that are currently downsizing, meanwhile, also include sales potential but need a different approach with solutions that are both cost-effective for the short term and can scale over time since revenue targets evolve.
Important Firmographic Questions
So how do you gather firmographic data which is relevant to your brand and may help drive corporate success? It all starts with requesting the right questions. Commonly-used inquiries include:
- When was the business founded?
- How many employees in total does the business have?
- The number of staff at each office or satellite location?
- What is the company’s revenue each year?
- What percentage of their target market share does the company currently have?
- Are they currently in a growth phase, downsizing or outstanding relatively consistent?
- What does their organizational framework look like (flat leadership, standard hierarchy, etc . )
When it comes to collecting firmographic data, you have got three broad options: Survey companies directly, conduct online reconnaissance or purchase firmographic information from a data clearinghouse or similar service.
Almost all three come with potential advantages and disadvantages. For example , while surveys provide the most accurate firmographic information, many companies prefer not to share this data — especially if you’re taking a “cold call” approach.
Online searches, meanwhile, can turn up a host of useful firmographic data yet there’s no guarantee about its accuracy or relevance; the particular actionable value of data gathered this way depends heavily over the source and the date the info was obtained.
Purchasing data from a reputable seller offers the most accurate and up-to-date option, but prices vary significantly and it’s worth cross-referencing this information with publicly available sources to ensure sellers are consistently accurate.
Finding a Firm(ographic) Foundation
Timely, accurate and actionable “graphic” data — demographic, technographic, and firmographic — can help B2B businesses create custom-built sales and marketing strategies and improve overall conversion rates.
To ensure firmographic frameworks deliver intended final results, it’s critical for companies to pay attention to both segmentation forms and decision-making functions.
By wondering the right questions, accurately segmenting potential customers and using this information to inform sales and marketing efforts, companies can reduce the time between information and activity while simultaneously increasing product sales success.