The companies are still struggling to improve the scope and reliability of personalized data on prospects and clients. Part of the problem is supply: Larger data volumes offer a greater understanding of B2B and B2C purchasing preferences both immediately and over time. But variety also plays a role. While information about a company’s people (demographics) and the technology they use (technographics) can help improve sales and marketing results, there is also a place for firmographies, which are data sets that help businesses. to segment organizations effectively into meaningful categories. The challenge? Although this is a great high-level definition, it doesn’t offer much detail or actionable strategies. In this comprehensive guide to firmographics, we’ll define firmographic data with a look at key forms and features, explore how it is used for segmentation, and delve into the types of questions that can help your business locate and leverage firmographic data.
What is firmographic data?
Demographics focus on information tied to people. Data such as contact names and customer purchasing preferences are examples of demographic assets that can be used to drive specific marketing campaigns. Firmographic data shifts the focus to organizations, or companies, to collect and analyze key information about the operation of the companies themselves. Common examples of firmographic data include: Industry type – From manufacturing or logistics organizations to financial, professional, or legal services companies, industry type is a key vector for segmentation. Is it worth pointing out? Many companies occupy more than one vertical industry and may also occupy multiple firmographic segments. Organization size: How big is the organization, both in terms of physical location and personnel? Total sales and income: here both the quarterly and the annual information are relevant. While annual sales and revenue data can drive long-term sales strategies, quarterly results can help identify more immediate needs. Current location: Where is the company headquarters located? How many satellite offices do they have and where? Ownership framework: is the company a public organization? A private company? An NGO, charity or non-profit? Each comes with its own unique market approach. Growth trends: is the company growing, reducing or maintaining its current position in the market? All three movement metrics offer opportunities, but they need to be addressed in different ways. There is also a cross-segment of demographic and firmographic data in regards to specific job roles, titles, departments, and potential purchasing power. By understanding more about the decision makers within an organization along with the operational framework that surrounds them, companies can better target marketing efforts to receptive audiences with the power to take immediate action.
Benefits of firmographic segmentation
The main purpose of firmographic data is to help organizations segment potential B2B customers into meaningful segments, which in turn can reduce the distance between observation and action. If marketers, sales teams, and executives have access to segmented information that categorizes leads by size, location, revenue, or current growth trajectory, they don’t need to spend time and effort separating this data before making decisions. . Instead, potential buyer partners are pre-classified into relevant categories. Segmentation offers specific benefits for organizations, such as:
1. Improved market targeting.
Understanding the physical and market size of potential B2B buyers can significantly improve sales targeting. Here’s why: Smaller, “family” businesses don’t have the same needs as larger businesses; While both are potentially valuable customers, their paths from initial contact to sales conversion are significantly different. For example, while many SMBs want one-size-fits-all solutions to help reduce overall complexity, many companies are looking for custom tools and technologies to help address specific problems.
2. Improved customer service.
Leveraging key firmmographic data about where companies are located and how their employees are geographically distributed can help improve customer service offerings. Consider a manufacturing company located entirely within a single state; they are likely to prioritize partners who can provide local services. Meanwhile, multinational companies often prefer distributed digital services on demand.
3. Long-term purchase potential.
Companies moving up the market offer the potential for B2B companies to enter on the ground floor and enjoy higher conversion volume over time. Meanwhile, companies that are currently downsizing also have sales potential, but require a different approach with services that are profitable in the short term and can scale over time as revenue goals evolve.
Firmographic key questions
So how do you collect firmographic data that is relevant to your brand and can help drive corporate success? It all starts with asking the right questions. Commonly used queries include: When was the company founded? How many total employees does the company have? How many employees are in each office or satellite location? What is the annual income of the company? What percentage of your target market share does the company currently have? Are they currently in a growth phase, shrinking in size, or staying relatively consistent? What does your organizational structure look like (flat leadership, standard hierarchy, etc.)? When it comes to collecting firmographic data, you have three broad options: survey companies directly, conduct an online survey, or purchase firmographic information from a data clearinghouse or similar service. All three come with potential pros and cons. For example, while surveys provide the most accurate firmographic information, many companies prefer not to share this data, especially if you are taking a “cold calling” approach. Meanwhile, online searches can generate a great deal of useful firmographic data, but there is no guarantee of its accuracy or relevance; The actionable value of data collected in this way is highly dependent on the source and date the information was obtained. Buying data from a trusted seller provides the most accurate and up-to-date option, but prices vary significantly and it is worth comparing this information with publicly available sources to ensure sellers are always accurate.
Finding a business base (graphic)
Timely, accurate, and actionable “graphical” data – demographic, technographic, and firmographic – can help B2B organizations create personalized sales and marketing strategies and improve overall conversion rates. To ensure that firmographic frameworks deliver the expected results, it is critical that companies focus on both forms of segmentation and decision-making functions. By asking the right questions, accurately segmenting leads, and using this data to inform sales and marketing efforts, companies can reduce the time between information and action while increasing sales success. .