Firmographic data focuses on data that can be derived from organizations and business. It involves collecting and analyzing key information about how a business operates. Common firmographic data points collected include:
Industry type — What industry does a particular business belong to? From manufacturing or logistics organizations to financial, professional or legal service firms, industry type is a key data point for firmographic segmentation.
Organizational size — This is indicative of how big the organization is. It comprises physical location and staff size.
Total sales and revenue — This allows you to classify and target companies based on what their total sales and revenue numbers looks like. It can help you pinpoint what pain points a business is facing.
Current location — The location of an organization can play a major role in determining the purchase intent of a prospect, especially in the service industry. In these kinds of cases, the proximity between a business and a prospective client may serve as a key point for a client to consider before a conversion can take place.
As you can see above, there is a crossover of firmographic and demographic data. This is because it relates to specific job roles, titles, departments, decision-makers, and buying power.
The primary goal of firmographic data enables businesses to classify their prospective customers into meaningful segments. This helps marketing, sales, customer success teams to have access to segmented markets that they can target. They do not need to spend any time figuring out the size, location, revenue etc., about their prospective customers. Instead they can focus their time and efforts on developing relevant campaigns for them.
Each business has different needs. For example: When you compare enterprise companies with mom and pop stores, you can see that they have different needs and require different strategies when trying to convert them to customers. SMBs require one-size fits all solutions while enterprise companies require more complex solutions for their problems.
Firmographic data allows your business to improve customer service by tuning into the needs of your prospective and existing customers based on the location of their company and the geographical distribution of their employees.
Companies scaling up rapidly have more buying potential and power when compared to companies downsizing. So segmenting your prospective customers into their buying potential buckets will enable you to prioritize which customers to target.
Timely, accurate and actionable firmographic data can help your business to create custom-built strategies and improve your conversion rates. Always ask the right questions to accurately segment customers by using firmographic data. This will allow your teams to make data-driven decisions and reduce time taken by your teams to perform an action.