Top Use Cases for Firmographic Data
There are many ways to categorize and analyze industries for better understanding and well-informed business decisions. One thing that all these ways have in common is that they have to be based on high-quality data. Thus, the demand for reliable data is increasingly high in modern business. An important type of such data that is in growing demand today is firmographic data, also known simply as firmographics. This kind of data helps to segment industries by various categorizations of firms. Using such analysis businesses are able to build strong marketing and development strategies. Click here to learn more about firmographic data that can help your business.
Seeing Firms through Statistics
When we try to make sense of a big and complicated network, we use statistics and other categorizing information to group the network’s agents in various ways.
For example, when we are talking about countries of the world, we can use such data as size, population, GDP, or coordinates to categorize them in many different and sometimes interlinked ways. It helps to put the countries on the map both literally, by telling, for example, that some country belongs to the group of countries in Asia, and figuratively, by putting them in, let us say, the chart of richest countries.
And the same can be done with the network of firms that interests us. For this, we use such information as the firm’s annual revenue, size and age, industry position, growth trends, product life cycle, and many other types of data collectively known as firmographics. When firms are categorized in the ways that such types of information allow, it is easier to draw important conclusions about them and the entire network.
We can analyze categories with the possible aim of developing our own company to get into those categories. Or we can look at the specific firms and categories that these firms belong to until we determine what kind of potential these firms have to become our customers.
These are very general ways in which firmographics can be utilized in business. Let us now look at some of the more specific use cases of such data for business advantage.
Firmographics in Action
In our times, all kinds of data are being utilized for business needs more and more. There are many ways to take advantage of data and many more ways are constantly being discovered.
Firmographic data is in itself very varied as it encompasses information on different features of the firms. Thus, it is not hard to find diverse ways to use this type of data. Here are a few of the cardinal use cases for firmographics.
Marketing and lead generation for B2B
Firmographic data is extremely useful for companies that sell business-to-business. Segmenting the market according to various firmographics will allow such companies to identify which groups of firms are their leads. It will also help to determine the potential value of firms in specific groups for the company looking to sell. Knowing more about the companies will also enable them to create better marketing strategies, thus not only generating leads but also making steps towards conversion.
Market and competition analysis
Firmographics are useful not only for B2-B companies. Whoever your customers are you are going to want to know what sort of competition you are facing. All kinds of firmographic data, from financial information to product life cycle and many others will let you know what other firms are doing. On the one hand, analysis based on such data will show you what works and what does not. On the other hand, it will display the strengths and weaknesses of your competition and assist in recognizing your main competitive advantages.
Information for investing
Another very important use case for firmographic data is in the field of investment. Investors invest in companies based on information about these companies and the industries they are in. Firmographics is precisely this kind of information. Thus, quite obviously, investment and firmographic data are a match made in heaven. In the times when investment is more and more tightly related to data analysis, firmographics stand out as one of the most important resources for investors.
Strategical development
Opportunities displayed by firmographic data are important not only for investors but for businesses as well. Business development strategies need to be based on knowledge of all the options and conditions in the industry. Firmographics provide such knowledge and allow to make development decisions based on a deep understanding of the company’s prospects.
Data for you
Above are the top use cases for firmographic data presented in a more or less general form. What should be understood is that firmographics are many diverse kinds of data.
This means that for every specific case, there are specific types of firmographic information that can be used to great advantage. Thus, it is advisable to look into it and find the data that will work for you.
