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4 Firmographic Data Business Use Cases You Need to Know About

Businesses are becoming more reliant on data with every passing year. Data can help companies improve their internal processes, evaluate markets, boost sales, and achieve operational excellence. However, the specific benefits of using data depend on an appropriate data type. That’s precisely the case with firmographic data.

If you are considering using it, you should truly understand what it is and how it can benefit your business. The best way to do it is to see firmographics in action by familiarizing yourself with its most common use cases. Before we explore those, let’s quickly define firmographics.

What is firmographic data?

Firmographic data or firmographics is a specific type of data. The best way to understand it is to compare it to demographics. B2C companies use demographics because they help them understand their customers. Demographics include age, income level, education, and so on. Well, if there is a corporate alternative to demographic data, it’s firmographics.

Out of all B2B companies’ data, firmographics are the most common. Unlike demographic data, which features information about individuals, firmographics include data about companies. Firmographics can include:

  • Company name – the official registered name of a company;
  • Industry type – the name of the industry vertical the company occupies;
  • Current location – the company’s headquarters, branches, and foreign offices;
  • Company size – the size of the staff and physical location the company occupies;
  • Growth – the information to help you discover whether the company is stable in its market or it’s downsizing or growing;
  • Sales and revenue – company’s yearly and quarterly revenue and sales reports.

Most common use cases

Companies use firmographics to achieve various goals. Here are the most common use cases of firmographic data.

Gathering next-level investment intelligence

Making investment decisions is something you should never take lightly. Basing your decision on a previous experience or gut feeling can be misleading, exposing you to huge risks. Basing every investment decision on accurate and updated data will lead you to profits. That’s why companies use firmographics for investment intelligence.

Firmographic data comes with many data points that facilitate reaching investment decisions. Data points such as company size, growth trends, and sales and revenue can help you efficiently assess companies, group or filter them by growth, and narrow down your investment options. Plus, it meets all data quality standards, so you can entirely rely on it.

Empowering sales teams

The effectiveness of your sales teams depends on how efficiently they can deliver relevant sales pitches to B2B buyers. Whether you are selling goods or services, you need to know your potential clients’ backgrounds.

Companies often use firmographics to empower sales teams with actionable insights. They use firmographic data to custom-tailor their sales pitches for each client individually. It helps improve sales, generate more revenue, and build strong customer relationships.

Accurately assessing markets

Some markets will always be better than others regarding the number of potential customers and sales opportunities overall. On the other hand, market research is costly and takes time. Nevertheless, you need those reports to decide which market to penetrate.

That’s where firmographics come in. Whether you want to invest or make direct sales, firmographics can help you discover potential markets. You can cross-reference markets, forecast sales, and choose the market that offers the most opportunities for your business growth.

Improving marketing operations

The success of your marketing operations depends on the marketing channels you decide to use and marketing messaging. Companies spend a lot of cash fine-tuning their marketing approach. With firmographics, you can take shortcuts and efficiently improve marketing operations.

Firmographic data equips your marketing team with actionable information. You can personalize your messaging for every potential client and benefit from account-based marketing. It will help you better engage the prospects, capture more leads, and boost your sales.

Two ways to obtain firmographic data

There are two ways to obtain firmographic data. You can launch an extensive survey to collect information directly from companies. Keep in mind that it is challenging as many companies don’t share sensitive information.

Another way is to buy relevant firmographic data from data providers like Coresignal to access ready-to-use data sets.

Conclusion

Firmographic data is valuable information that can benefit businesses in many ways. You can use it to make informed investment decisions, empower marketing and sales teams, and compare and assess markets.

Since businesses are just starting to unlock the power of data, it’s safe to assume that we will see additional firmographic use cases in the foreseeable future.