Business marketing is no longer selective. The traction of new technologies has given consumers access to a number of companies. In turn, this increases the choice consumers have. Without help, they can not make informed choices. This means it is important to use firmographics because you can focus your marketing efforts. Then, you can gain a larger reach.
Firmographics are the descriptive characteristics of a firm or entity. Examples of firmographics that are used are company size, location and revenue. This data is important as it can be used to help segment firms. Through segmentation, this will allow you to target your ideal prospects.
The value of firmographics
Segmentation is key to get the most value from your efforts. Knowing how customers respond to your product/service and which channels provide the most response is crucial. This means you can create a plan of action and allocate resources where it will give the best results. It avoids having to try too many methods and lets you focus on channels that are working well. There are many ways to segment your ideal prospects: by revenue, industry or size.
1. Segment by annual revenue
Firstly, you can segment by annual revenue. By segmenting your prospects based on their annual revenue or profit you can then tailor your sales approach to the company’s goals. Are they increasing their profitability by targeting new clients, or are they growing their customer base? If it is the former, then you may want to focus on giving them solutions related to streamlining workflow processes and increasing employee efficiency. For instance, you could offer ticket booking software for those music venues that need to automate parts of their ticket retail process.
Another reason to segment by annual revenue is that you may only be looking to sell to certain companies. This is as they are the ones that can afford your product or service.
2. Segment by industry
Secondly, you can segment by industry. This is as your product may only be relevant to some industries. By finding what industries could use your product or service, you will open up new markets. It will help grow your bottom line and help you win business by targeting prospects with the specific type of service.
3. Segment by company size
Thirdly, you should segment companies by company size. Company size means the number of employees it has. For instance, a business may have only little success targeting large businesses. This is important if they have no experience working within that industry. It is better to identify 500-1,500 member companies that are smaller. Smaller companies will be easier to appeal to if you have never worked with them before.
In conclusion, firmographics are a big part of digital marketing and sales. Knowing who and when to sell will improve your ability to get the right prospects quickly. Following segmentation, you can use tools like Triggr to help you reach the right prospects.
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