Firmographics are used by B2B organizations to identify ideal customers and create market segments for targeting. Using firmographics, you might categorize companies according to their industry type, geographic location, their customer base, type of organization (corporation, non-profit, government entity, educational institution, etc.), what types of technology they use, and what market or economic forces they face.
Using firmographic data allows B2B sellers to better target potential accounts and provide more relevent data. Here are some reasons you should consider using firmographics in your sales and marketing strategy:
- Firmographics help you understand what companies exist in your target market spaces, what types of products they sell, where they are located, the types of business they engage in, and how they operate.
- They help you create more relevant, targeted marketing and sales strategies and support content.
- By being more targeted and relevant, you will identify the most promising leads more quickly and reduce the risk of missing out on opportunities by focusing on the wrong leads.
- Being more relevant also helps you create more personalized outreach, which builds trust with targeted accounts.
- Firmographics are also an important ingredient in retaining customers. When you understand your customers beyond a specific product you can suggest other solutions and predict future buying behavior.
Here is a list of the types of firmographic data:
- Industry (specific vertical or verticals).
- Business type. Are they a manufacturer, service firm, professional firm, retailer?
- Employee head count.
- Physical location(s) and location(s).
- Geographic focus. What are their markets, and do they have physical locations in all those markets?
- Total sales and revenue.
- Ownership framework. Are they public, private, an NGO or non-profit? How are they structured? C-Corp? B-Corp? Partnership? 501(c)3?
- Performance. Is the company growing, stagnant, or shrinking? How is it positioned in the market?
The following types of firmographic data may seem like basic demographic data but, particularly if being used in an Account-Based Marketing (ABM) play, should be included in firmographic data.
- Specific contacts within the company
- Company roles in terms of function
- Company roles in terms of purchasing activity relative to your product or service
- Company titles
- Organizational structure
- Overall Buying power
- Decision makers
Ultimately, all these benefits of firmographics can add up to increased sales and profitability, particularly if you are using firmographics as part of a well-structured account based marketing (ABM) process.
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