Firmographics are one of the frequently-used types of data in B2B sales and marketing. Just as technographic data includes insights tied to the technology use of companies, and demographics relate to socioeconomic information about people, firmographic data focuses on organizations.
Firmographics are a set of unique identifiers, attributes, and characteristics of firms or organizations that help segment, analyze, and study them. Firmographic data includes key insights about organizations based on growth trends, location, ownership framework, revenue growth, merger and acquisition, total sales, company size, etc.
Let’s look at why it is important to use firmographic data in B2B sales and marketing.
Personalization
With detailed data and insights about target companies, firmographic data enables you to effectively personalize your B2B sales and marketing messages and content. Statistics show that companies using advanced personalization report a $20 return for every $1 spent.
Personalization is a great way to improve your B2B sales and marketing ROI. So, it makes sense to use firmographics to achieve your personalization goals.
Creating ICPs
Organizations with a strong ICP achieve 68% higher account win rates. Firmographics are one of the types of data you can use to build accurate, data-driven ideal customer profiles. Once you have an ICP, you can know which companies can be your “best customers.” Furthermore, you can better target them with your B2B sales and marketing efforts.
This helps generate qualified leads and not waste your time and resources pursuing those that are not valuable to your business. Firmographic data can also be used to score leads and identify the C-Suite or decision-makers at target companies.
Assessing long-term buying potential
When targeting prospects, it is important to know their budget or how much they are willing to spend. This helps you better target prospects and customize your sales and marketing tactics. With firmographic data, you can not only know the revenue or budget of your target companies but also their organization size, market share, annual spending, etc.
If your firmographic data tells you Company A has gained market share or increased earnings, you can target Company A with high-budget, top-of-the-line products. You can also promote product renewals or upgrades to win more business from Company A.
Increasing ad campaign ROI
Ad campaigns cost a significant amount of money. If you don’t get them right, you’ll end up wasting your marketing budget. Firmographic data helps you optimize your ad targeting and reduce assumptions. It does so by enabling you to target prospects that fit the firmographic requirements to become your most ideal customer.
Firmographics allow you to avoid wasting your marketing or advertising dollars on unqualified leads or uninterested prospects. Additionally, you’ll be able to use ads to target contacts and companies based on specific firmographic criteria.
Improving ABM
Account-based marketing (ABM) is all about identifying and targeting high-value and best-fit accounts. If you don’t target companies that have the potential to benefit your bottom line the most, you’re missing the whole point of running ABM campaigns.
Firmographic data is one of the data tools you can leverage to know who your top-value accounts are and how you can effectively target them in ABM. It can also be used to take a tailored, personalized sales and marketing approach when targeting your ABM-focused accounts and contacts. Furthermore, it can help you increase relevance in your ABM efforts.
Firmographic data is a must-have if you are to increase the effectiveness of your B2B sales and marketing efforts. When buying firmographic data, ensure that you choose the right B2B data provider. Data accuracy and coverage, data privacy and protection compliance, human verification of data, and data integrity are some of the key factors to consider when choosing a B2B data vendor.