The whole sales cycle of B2B companies is becoming longer and longer. Organizations need to take the proper steps to help their representatives reach the right people at the right time for more optimized business results.
Marketers are constantly improving their efforts with new technology and data trends. One of the latest trends in adopting firmographic data enables organizations to reduce the length of sales cycles and boost conversions.
Before we start talking about how firmographic data can help companies do this, let’s explain the basics of firmographics.
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The meaning of firmographic data
Firmographic data is widely available, but many still don’t know what it means or represents. This data enables market segmentation or company segregation based on different parameters, including:
- Company size
- Number of clients
- Organizational structure
- Types of products and services
Firmographic data collection and analysis can be focused on companies’ macro and micro levels. The macro level categorizes companies by size, industry, number of customers, etc. On the other hand, the micro level focuses on things like revenue, sales cycle, conversions, etc.
Simply put, the macro level gives you an overview of company data externally, while the micro level shows how the organization functions from within.
Why is this data relevant to B2B companies?
It’s important to target companies by their size and industry. Every industry is specific and has different needs. On the other hand, you don’t want to focus on companies with low revenue and can’t afford the products or services you offer.
All B2B clients look at the broader picture before buying products or services. With this in mind, B2B sellers also need to acquire and analyze relevant data to provide better offers to their clients. That’s where firmographic data comes into play.
Firmographic data is refined and sophisticated and can always be used by marketing and sales teams to make better decisions. Knowledge is power, especially in the B2B sector, where clients expect sellers to understand their needs and offer tailored services or products according to their needs and capabilities.
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How firmographic data helps improve business results
Firmographic data is a valuable asset that you can use across the whole organization. Every process can be refined and enhanced with this kind of data if appropriately analyzed.
Acquire quality data
Your sales pipeline needs to be built on accurate and widely-scoped data. Firmographic data needs to be normalized, reviewed, and enriched with contextual information so you can make accurate conclusions. Luckily, many third-party companies gather this kind of data and deliver it to their clients in a structured and organized manner.
Perfect account-based efforts
The whole sales process in the B2B sector requires winning over several key players before companies can make purchase decisions. Firmographic data allows companies to set up a framework for personalized and direct engagement with the right individuals and organizations to advance the sales cycle quickly.
Improved lead generation and qualification
Every lead is different, and while you might find some that can be converted right away, some require more nurturing. Firmographics can accurately tell you which lead deserves your immediate attention.
Organizations can create a scoring system for their leads with this data to facilitate better prioritization and segmentation. With firmographic data, you can reduce the time wasted on trying to convert leads that aren’t ready to buy.
Sending out a marketing message promoting your products or services to potential clients and telling them how you can help them expand while downsizing won’t get you anywhere near a sale. You need to deliver timely messages with relevance, value, and personalization if you want to grab the attention of your potential customers.
Doing this requires you to understand the whole organization you’re targeting but also the individual you’re communicating with. Firmographic data can help you understand the situation in that organization, its plans, and future moves.
Finding new segments
Data analytics opens up many new opportunities and gives valuable insights. Analyzing your firmographic data can tell you more about which companies are interested in your service/products, help you discover new markets, recognize potential leads at different locations, etc.
These insights can be used to segment audiences and capitalize on new opportunities. Companies often can’t find new customers because of a lack of data.
Understand potential ROI
Firmographics are often crucial in determining the potential ROI from specific leads. For example, the size of a company can tell you whether it’s looking for an “enterprise” or “simple” package. On the other hand, understanding their revenue might help you tailor the price more accurately.
Rich firmographic data can also help you understand how soon a company might need your services or whether they need upgrades.
These are just some ways you can use firmographics to achieve your business goals. This relatively new type of data offers many opportunities, especially when combined with other data types companies use.