Businesses have always used data to improve their market reach and efficiently target potential customers. However, this came with several challenges. On one side, data can be quite difficult to collect and analyze at an organizational level. On the other side, the variety of the data sources is essential, too.
Traditionally, companies have used demographics and technographic (information about the technology used by clients and customers) in their decision-making process. However, firmographic data has become more and more important nowadays for B2B firms.
This is information that helps businesses to categorize businesses, which leads to a problem of specificity. How do you leverage firmographic data? Let’s check out these four things you should know about firmographic data.
What is Firmographic Data?
Firmographics refers to information that allows you to categorize organizations. For instance, demographics refers to data related to individuals (name, shopping preferences, and others), and these data are used to craft more efficient marketing campaigns. Firmographic data is similar to demographics, but it collects information about businesses, not individuals.
For example, firmographic data can categorize firms according to their industry type. Although some companies may be in the manufacturing industry only, there are numerous companies nowadays that occupy more than one segment.
The size of the business, sales and revenues, ownership framework, growth trends, and even current location are types of firmographic data datasets. Let’s see what you should know about this type of data and how you can leverage it to consolidate your business performance. Read more about firmographics.
1. Importance of Firmographic Data
Firmographic data bring numerous benefits to any B2B company as its primary purpose is to sort all of your potential clients into easily accessible categories.
For instance, if your sales team and marketers, along with other departments, have access to this readily available data, they do not need to spend more time sorting the data before making their decisions. This saves time and allows your teams to focus on more profitable activities.
2. Benefits of Firmographic Data
There is an abundance of reasons why your B2B company should use firmographic data. As mentioned above, it is the equivalent of demographics used by B2C companies to target their customers. Similarly, getting to know your potential purchasing partners is the key to enhanced market targeting.
For example, your business offers accounting services to companies. You can use firmographic data to assess and understand your potential buyers on the market. A small company and a large enterprise are valuable customers for your firm, but they require different services.
In this case, you can create a marketing campaign advertising one-size-fits-all accounting solution software for your smaller clients. Simultaneously, you can target larger enterprises by marketing customizable accounting solutions that can solve specific issues and complex challenges.
As firmographic data provide broad information about your clients, you can leverage this to enhance your customer service. More specifically, it allows you to categorize businesses according to their location.
Companies in some industries, such as manufacturing, are more likely to enter into contracts with local businesses than those located in other states. Alternatively, if you have multinational clients, you can invest in your digital services instead.
3. Who Should Use Firmographic Data?
Firmographic data is necessary for all B2B companies, regardless of their industry, size, or location. This is because it offers you access to organizational data regarding your potential clients, so you can create the most efficient marketing campaigns. In other words, all B2B companies should use firmographic data to maximize their business potential.
4. How to Get Access to Firmographic Data
The benefits of firmographic data may be easily understandable now, but how to access this information can remain a challenge. The main options include surveying potential clients directly, online research resources, or purchasing firmographic data from a data provider, such as Coresignal.
Surveys may be quite accurate, but individually contacting businesses comes with numerous challenges. Apart from being time-consuming and expensive, firms may not be willing to share this information with you, especially if you do not have an established business relationship with them.
Online research may offer you insightful data, but there is no guarantee that it is correct. This depends massively on how you collect these data and the trustworthiness of your sources.
Finally, contacting a data provider is one of the quickest methods for your business. You should also choose a trustworthy business that can offer you actionable information in a user-friendly manner.
Different types of industries will require different marketing segmentation. Firmographic data contains information across a broad range of indicators, so you can filter the information according to your unique business needs.
This allows you to contact businesses that may be interested in your products and services, so you create more efficient marketing campaigns. Using firmographic data when creating your marketing strategy is the best way to ensure it is the most efficient and beneficial so that you can get in contact with the best-matching partners.