One of the biggest challenges in B2B sales is to identify the right prospects. Businesses pay large amounts of money to fill their sales funnel, however, half of these leads are unqualified. And even when they are qualified if you can’t properly segment your audience on firmographic and technographic references, the effectiveness of your outreach will suffer.
Segmenting your audience makes it much easier to create relevant content that is used to convert prospects into leads and leads to customers. As the old marketing saying goes, “if you target everyone, you target no one.”
In this article, we are going to walk you through what firmographic data is, what it includes, and how you can apply it to make your sales and marketing efforts more productive.
Let’s jump in.
What Is Firmographic Data?
B2B demographics, in the business world, are called firmographic info.
Firmographic information encompasses company-wide information and detailed user-level information. B2B segmentation with firmographics lets you paint a picture of who your customers are so that you can reach specific markets with appropriate content.
Firmographic data include details like:
- Annual Revenue
- Type of Industry
- Number of Employees
Although firmographic data on its own is not enough to create highly relevant content for your buyers, it is the place to start your segmentation process.
Where Does Firmographic Data Come From?
There are multiple resources available to collect the firmographic data.
- Business Directories and Listings
- Data Intelligence Tools
- Buying a List
That said, you need to choose the most reliable source of data. Business directories aren’t frequently updated. Same with buying a list as it involves risks of data errors. The fastest way to get updated data is using a data intelligence tool.
Why Should You Care About Firmographics?
Personalization is critical in B2B as we enter 2020.
According to the Salesforce State of Marketing report, 65% of businesses will consider switching vendors if a brand doesn’t make any effort to personalize communication.
The latest Salesforce report states that 84% of consumers – and 83% of company customers – claim that being handled as a human being rather than a number from a list of phone numbers or email addresses is the secret to winning their business. Buyers demand a consumer-like experience from brands whose deeply customized content is essential to make this possible.
Understanding your existing customers’ needs and supportive firmographic data helps you answer your prospects’ questions, solve their challenges, and understand what they expect from you.
Benefits of Firmographic Segmentation
1. Potential clients can benefit from the knowledge.
Firmographic data can show how the company is funded and how it is performing right now. Naturally, such knowledge is critical when selecting whether or not to invest. Furthermore, diverse firmographic data may help you better understand certain sectors and marketplaces because it exposes a lot about the organizations in the field.
2. Lead generation and scoring have been improved.
If you sell to companies, firmographic data will help you better segment the market and identify possible clients. This translates to more effective lead generation. It will also help you to discern between leads and rate them, ensuring that your sales efforts are focused effectively.
3. Improved sales intelligence.
When firmographic data is accessible, salespeople are better positioned to manage leads. Firms’ purchasing capacity and preferences may be assessed using the information on the company’s present standing, size, and other firmographics. Salespeople will be able to build stronger engagement plans and pitches as a result of this.
4. Improved marketing and customer service.
Naturally, the more you know about a company, the better you will be able to promote it. Furthermore, firmographic information aids in the provision of high-quality customer service, which is critical for acquiring and maintaining consumers. For example, understanding the firm’s geographical location allows you to be aware of opening hours and local traditions, which will aid in easy communication.
What Is Firmographic Information Used For?
Firmographic data is used for creating personalized content strategies.
For instance, a buyer working for a Fortune 500 company has different requirements than a startup trying to rapidly scale. If they have different demographics, they will have different challenges and thus different objectives to achieve. Why would they read the same blog posts and watch the same videos?
Firmographic data is crucial for both sales reps and marketers. Even within a company, firmographic data is important for creating personalized content.
1. Quickly Identify Qualified Sales Leads
Once you start incorporating firmographic data into your sales workflow, segmenting and identifying qualified prospects becomes easy.
Suppose your solution is relevant to B2B SaaS companies with over $500K in annual revenue, and you just want to see companies based in Austin, Chicago, and NYC? You can use SalesIntel to filter and identify companies that fit your requirements instantly with a few clicks. This makes it easy for your team to focus on targeting your qualified prospects rather than throwing darts in the dark.
2. Improve Sales And Marketing Messaging
77% of consumers have chosen, recommended, or paid more for a brand that provides a personalized experience.
Having an understanding of your prospects’ revenue, the size of the company, locations, and other vital information will allow your team to send them relevant information about your offering and to personalize their sales pitches and marketing communications.
When you start using firmographic data, you will be able to speak to prospects and provide more value than ever.
3. Optimize Your Ad Targeting
Advertising based on assumptions is hard. If you make the wrong assumptions, you will be wasting money, advertising to uninterested audiences. Instead, by collecting as much data as possible on your ideal prospects, you can then use that data to target your ads more effectively.
For example, if you are running ads on LinkedIn, you can target audiences by several different types of firmographic data.
SalesIntel helps you identify companies that fit your firmographic requirements to be qualified as a lead. This way, you can have all the information to add to your LinkedIn audience while setting up your ad campaigns.
4. Account-Based Marketing (ABM)
We all know that with the rise of account-based marketing, firmographic data is a necessity. How does it apply to ABM?
Marketers have been using firmographic data for a long time. However, for ABM there are many use cases. ABM experts have long recognized the impact of bad data on ABM.
The whole idea behind ABM is to target specific and applicable accounts rather than selling and marketing to your entire total addressable marketing (TAM). When you identify who the right companies are, you can target these companies with super-personalized messaging.
The next step should be to collect verified contacts from those companies that suit your profile. Firmographic data, therefore, helps to initiate the process; that is, finding the right set of companies or accounts to target.
Additionally, Firmographic data can be used to create…
- Relevant email campaigns and newsletters
- Authoritative blog posts
- Tutorial and explainer videos about your company
- A/B testing
Firmographic data is crucial to ensure your team spends their time focusing on leads and companies who are well qualified for your product or service and to ensure your messages are as relevant as possible to your audience.
Every time you create a specific piece of content, keep a specific firmographic segment in mind. It sounds easy and exciting, but it takes practice, trial and error, and constant improvement.
Access Only The Best Firmographic Data
The biggest challenges with personalization are gaining insight quickly enough (40%), having enough data (39%), and having accurate data (38%). (source)
SalesIntel is a one-stop solution for all three challenges as it gives you access to millions of human-verified firmographic and technographic data points in one place at the click of a button. SalesIntel goes a step further and offers buyer Intent Data to help you identify ‘ready-to-buy’ prospects.
Many B2B data providers claim to offer accurate firmographic data. However, when it comes to accuracy and reliability, their ‘data’ turns out to be just a four-letter word.
The best example is one of the most popular companies in our industry that recently went public and always promotes themselves for data accuracy. However, the ground reality is far from the claims. For instance, a company like Toys ”R” Us which declared bankruptcy in 2017 and ceased operations in 2018 still lists as employing 64,000 people in their database. This shows that they are simply overstating their coverage and misleading customers.
For those trying to compare data providers, we have a handy head-to-head comparison.
SalesIntel’s data is re-verified by our human researchers every 90 days to ensure data accuracy. Additionally, if you need the data of your prospects or accounts that are not listed in our database, our team will provide you the accurate data with a quick turnaround time using our unique Research-on-Demand service.
When all is said and done, it is crucial for you, as a customer, to invest your budget and resources to access accurate data. After all, if your firmographic data is inaccurate then it’s impossible to reap its benefits.
See it to believe it. Schedule a demo and get your queries resolved.