Firmographics, the study of firm behavior by demographic characteristics, has become an increasingly important part of B2B marketing. Segmenting your target audience helps to identify the best prospects for your product or service.
Firmographics & Segmentation is an important aspect of sales and marketing in business that deals with
- Target customers
- Selecting the appropriate market segment to approach for sales
- Developing the best formulation to reach out
- Communicating effectively and efficiently so that customers can buy your product/service at the desired time.
“If you target everyone, you target no one.”
Firmographics & Segmentation also includes demographic information i.e., age group, population, type of family (nuclear or joint), religion, education level achieved by them, etc. which helps you in knowing your customer better and providing an enhanced customer experience.
‘’Market Segmentation is a natural result of the vast differences among people.’’ – Donald Norman
How to Use 8 Common Variables to Target Your Audience
1) Industry:
- Each industry has its own unique characteristics and norms which can be used to create a target list for your business.
- Research your target market’s industry to identify the main issues affecting that particular industry, such as total employees, financial figures, etc.
- Identify which direction your marketing should take in order to have a greater impact on your organization.
2) Annual Revenue:
- The size of the company’s sales and yearly profits are the main factors that define an industry.
- The more revenue a company has, the larger the impact it can have on its market and consumers.
3) Company Size:
Company size is useful for new markets to know whether the prospects targeted to fit into:
- Startup
- Small
- Medium
- Large size company
4) Location:
- 83% of companies involve segmentation for executing email marketing strategy.
- Define the location of the customer.
- Target customers according to products or services you are selling in the local, domestic market, or international market.
- Location helps in selecting your marketing approach and distribution strategy.
5) Sales Cycle Stage:
- Sales cycles vary in length depending on the industry, product type, market conditions, and other factors when creating a marketing strategy.
- Find out whether the prospects are at the beginning, middle, or end of the sales cycle to equip your sales strategy.
6) Status:
- Each industry has its own status quo to create a more targeted list of prospects.
- Identify if they are at the top or bottom of the status chain.
7) Performance over time:
- Measuring performance over a period of time will help you to pinpoint your sales cycle stage.
- It can be useful even during the early stages of your sales cycle.
- Tracking performance over time can help you to identify the best times to talk to your prospects.
8) Executive Title:
- Personalized outreach help in increasing the reply rates up by 45%.
- It is necessary to identify the right person that you need to market your product or service towards.
- This will allow you to target customers in a more effective way and help you reach the decision-maker in the organization.
Conclusion
Firmographic market segmentation reveals valuable insights that may be used to inform and enhance advertising campaigns. By prospective grouping organizations based on similar attributes, you will benefit from more advertising options, targeted messages, and increased ROI. The more data you have about a prospect, the more personal the value proposition can be offered, and the more likely it will resonate and lead to the desired action. Make sure you maintain relevancy in the post-click stage once you’ve personalized ads for your target audience.
