If you’re reading this post, chances are you’re familiar with the use of demographics in helping to define and understand your target audience. Demographics are objective criteria such as age, sex, income or geography/location. You also may be familiar with psychographics. Psychographics are qualitative characteristics of your audience–whether they are family-oriented, enjoy the outdoors, etc.
But, if you’re in the B2B (business to business) space, there’s another marketing term that you should be focused on: firmographics. Firmographics are business-related criteria that can help you narrow down your audience to focus in on those organizations most likely to represent potential clients or customers. These criteria might include such things as:
- Company size in terms of revenue
- Company size in terms of number of employees
- Company size in terms of “footprint” or square footage
- Company location(s)
- Industry
- Types of products sold
- Types of customers served
There may be additional criteria based on what you have determined to be your highest potential value customers. The key is, just as when targeting consumers (B2C marketing), it pays to take a rifle, versus a shotgun, approach to your sales efforts. Sometimes, this approach may seem counter-intuitive and many new business owners resist narrowing their market because they think targeting everyone logically means they will have more sales opportunity.
The reverse is true, of course. The more you try to be “all things to all people (or businesses)” the less likely you are to adequately meet any segment’s needs.
Narrow-casting is best. Identifying and serving a niche market that represents the sweet spot for what you have to offer.
If you’re in the B2B space, consider how you might use firmographics to hone in on a core set of business prospects. What would you add to the list above?
Recommended Reading:
The Everything Guide to Customer Engagement
Tags: demographics, firmographics, Marketing, prospecting, psychographics, Sales, sales success