- January 3, 2022
- Posted by: Christina Milian
- Category: B2B
Personalizing data helps companies improve the reach and reliability of potential clients and customers. More enormous data volumes may offer a great insight around B2B and B2C marketing strategy, but there may also be a problem with supply, and there has to be some variety. While more extensive data, technology, and demographic data help enhance marketing and sales outcomes, firmographics also play a crucial role in effectively segmenting organizations and businesses into meaningful categories.
A survey conducted by Salesforce State of Marketing report in 2017 tells us that around 65% of businesses prefer vendors who try to personalize communication materials. Another latest news by salesforce shows that 84% of consumers – and 83% of business buyers say that personalization is the key to winning their business.
However, the challenge with firmographic data is its high-level definition and whether it can offer specifics or actionable strategies? Well! This article will get complete details regarding firmographics, their forms, functions, and how it’s used for segmentation.
What do you understand by firmographic data?
It is a type of information or characteristics related to companies and organizations that can be used or categorize organizations, their geographic area, technologies used by the organization, and the number of; many clients. Firmographics data collected is used to segment into meaningful categories. It works the same way as demographics but provides deeper insights to the B2B marketing teams and helps them leverage to target accounts that will benefit most from their products or services.
Firmographic data typically includes industry type, designations of a public-private corporation, non-profit charity, the size of the company, reach, annual expenditure and revenue, and growth information.
Below are a few examples of Firmographic categories:
- Company size it’s again broken down into a total number of employees and geographical locations.
- Ownership of the organization is categorized as public, government, private, or cooperative performanceof the organization, which might be further classified based on annual revenue and average sales cycle.
- The market trend may include whether the organization is growing, declining, or stable.
Why is Firmographic Data essential?
Dwelling deep through the comprehensive and data-driven marketing strategy can be a complex endeavor. B2B interactions depend on a diversity of information that provides insights into how people work, values, and operations. To boost your company’s performance, you have to understand how to sell your product to a representative and craft relevant messages accordingly that demonstrates why your offerings will uniquely address the needs of the business in question.
Firmographics data allows you to understand and personalize B2B marketing and B2C interactions. It also helps you cultivate a good and lucrative relationship by providing critical insight into your product’s relevance to a target organization. It also allows you to identify quality targets and save time spent on following poor leads by aiding you to make better marketing strategies that suit various business types.
Firmographic data allows audience segmentation and enhances relevant and personalized content for potential clients. It provides problem-solving solutions and needs based on the company size, location, and industry.
Implementing Firmographic data will help you reach a wider pool of potential clients by allowing you to understand every business unique that you contact. Not only does it help you build potential clients but it also. helps
- Design individualized marketing and sales conversion strategy.
- Improved and customized customer service interactions with target businesses.
- Encourage and nurture long-term relationships with target businesses.
- Helps optimize targeted marketing efforts by recognizing ideal client profile
Advantages of Firmographic Segmentation
The primary goal of firmographic data is to help organizations reduce the distance between observation and operation by segmenting potential B2B customers into meaningful segments. Firmographic data allows marketers, C-suites, and sales teams to access segmented information to make decisions without wasting their time and effort on unnecessary data.
Firmographic data already sort out potential purchasing partners into relevant categories. Apart from this, it also offers certain specific benefits for the organizations such as:
1. Improved market targeting
To improve your business’s sales and marketing, understanding the physical and market size of B2B buyers is crucial. Many needs as larger enterprises, even though both have potentially valuable clients. Also, smaller organizations/businesses usually don’t have the exact help.
For instance: Small enterprises may require one-size-fits-all solutions to reduce the cost, complexity, and workforce, many enterprises often custom-built tools and technologies to help address particular issues.
2. Strengthen customer service
With the help of firmographic data and knowledge about the company’s geographical locations and its employees, one can improve its customer service offerings. For example, a manufacturing firm in a single state may prioritize their partners to deliver their services locally. However, on the other hand, multinational firms prefer on-demand distributed digital services.
- Long-term buying potential
Companies using firmographic data and moving up the market present the potential for B2B businesses to enjoy an increased inflow of leads and their conversion volume over time. Meanwhile, it also helps enterprises that are currently downsizing and require a different approach with cost-effective services and can scale over time to generate revenues.
How to collect firmographic data?
Leverage your business with firmographic data by first collecting it. There are many ways you can collect firmographic data like:
● The sales team can collect the information upfront through lead sign-up forms and landing pages.
● Mining out data through LinkedIn, which is also an excellent source for B2B marketing
● Google the data
Are you thinking about collecting firmographic data that is useful for your brand and can assist in deriving corporate success? Well, it can start by asking some of the critical questions.
Some of the vital queries are about
- The number of staff at each office or some satellite location.
- When was the company founded?
- The number of employees the company has in total.
- The revenue per year of the company.
- The percentage of market share the company has at present.
- In which phase the company is now growth phase, constant or downsizing.
- The look of organization structure.
- When the matter is about gathering firmographic data, the three main options are
- Survey company directly
- Go for online reconnaissance
Buy firmographic information from any data clearing services.
All of the three options have huge benefits. The survey provides the most relevant data, but many companies do not like sharing data, especially with a cold call approach.
An online search can offer you a host of valuable firmographic data, but again there is a non-guarantee about relevance and accuracy. The actionable cost of gathering data relies on the source and the date on which the information was obtained. Buying data from a renowned seller offers the most accurate and updated option. Still, prices vary highly, and it is helpful to cross-reference this data with a publicly available source to ensure sellers are precise constantly.
How to find a firmographic foundation?
B2B organizations highly benefit when there is timely, precise, and most actionable firmographic data. IT helps companies to make custom-built sales and marketing plans and enhances total conversion rates. To ensure the firmographic data offers the required outcomes, it is essential to focus on the documentation forms and other decision-making functions.
Various aspects of firmographic data
- Performance: This data gives an idea of the organization’s annual and quarterly cost and expenses trends to offer opinions on essential clients. This helps you design an efficient long-term plan and recognize any company’s short-term requirements.
- Industry: This data looks at the client root industry and assist you in understanding the applications of product and services valid for daily operations. Business in various sectors will have different requirements, and this informs how you will design messaging which express your business capability to meet those requirements.
- Size: This data looks at the organization’s physical size and various individuals working within that organization. Yet again, businesses of different sizes will have multiple uses for the product.
- Ownership: This looks at how much control is the distribution or organization within a business. Whether your target is owned publicly or privately, a cooperative venture or a governmental organization offers you the best insight into sales potential.
- Growth trends: Data that look at what stage of development the organization is in. Whether your client is growing or downsizing, or stabilizing, this data offers you the approach you must take for marketing and contact to sales conversion road.
Thus, we can say that firmographic data is a critical aspect of marketing analysis that assists you in creating relevant and customized content for your important clients. The data gathered is easy to use when incorporated through an unparalleled data gathering platform.
This is exclusive data that assist you in recognizing quality targets and designing valuable and efficient marketing plans for easy sales and partnerships. Incorporation of firmographic data and technographic data and marketing analysis offers a benefit that assists in better knowing the target both inside and outside. Moreover, it also helps make you understand where you stand next to the competition.