5 Benefits of Firmographic Data

Various kinds of businesses, governmental and non-profit organizations are known under the umbrella term “firm.” When it comes to businesses collecting information, the firms that they are most interested in are, naturally, other businesses.

From data on other companies, we gain a lot of valuable knowledge that helps us in making decisions. Firmographic data is an important part of such information. This type of data allows us to measure firms against one another and ourselves and draw a comprehensive picture of the business environment that surrounds us.

The world of firms

Societies are made up of many different people. These people can be categorized in various ways. When we try to understand a particular society, we look at the demographic information to find out how many and what types of people are living or have lived in that society.

Similarly, we can think of companies as making up a sort of business society or societies. To know more about such a society, we look at the information on the legal persons that make it up. This information is called firmographic data, otherwise known as firmographics.

The information that is considered to be firmographic data is the kind of data type that would help us place the company in various statistical categories. For example, the following kinds of information are firmographics.

• The size of the company. This can refer to both the number of employees and the number of locations.
• The geographical location of the company’s headquarters and other departments, factories, plants etc.
• Whether the services of the company are provided business-to-business, business-to-customer, business-to-employee, or business-to-government.
• Also, whether the company is owned privately, publicly, or by the government.
• How long the company has been in business.
• Growth trends of the company. Is it going stable, growing, or declining?

In short, any kind of data that would help us define a company and its place in the business world is considered firmographic data. Thus, for example, e-mail addresses of the employees are not firmographic data, as it does not tell us any general, statistical information about the firm.

5 benefits of utilizing firmographic data

Analyzing various types of data is an essential part of doing business profitably today. Naturally, firmographic data is among the most important types of information to be collected and analyzed.

The benefits of utilizing such data are numerous. Here are a few examples that stand out.

1. Knowledge for potential investors. From firmographic data, investors can see how the company is funded and how it is doing right now. Naturally, such information is vital for deciding whether to invest or not. Additionally, investors can understand certain industries and markets better from various firmographic data, as it reveals much about the companies in the industry.
2. Improved lead generation and scoring. If you are selling to businesses, firmographic data will allow you to segment the market and determine potential customers better. This means a more efficient generation of better leads. It will also allow to differentiate among leads and score them so that the effort of the sales is directed correctly.
3. Improved sales intelligence. Salespeople are better equipped to properly handle the leads when firmographic data is available. The buying capacities and preferences of the firms can be determined from the information about the company’s current standing, size, and other firmographics. This will allow sales personnel to prepare better engagement strategies and pitches.
4. Preparation for competition. To get ahead of the competition, you have to understand what you are up against. Firmographic data is a great way to know the companies that provide similar services and products. Seeing your advantages and drawbacks against competitors will allow better business strategies and get your share of customers.
5. Better marketing and customer support. Naturally, the more you know about certain companies, the better you can market for them. Additionally, firmographic information helps to ensure high-quality customer support, which is crucial for attracting and retaining customers. For example, knowing the geographical location of the firm will allow to take notice of opening hours and local customs, which will help to ensure smooth communication.

Business as social science

The trends of business this century have made it clear that to stay competitive, one has to take advantage of data science methods. Firmographic data is an obvious choice to be among the first types of information to be analyzed.

Firmographics is a kind of social science adapted to business. As social sciences allow us to analyze people and societies to advance our understanding, so does firmographic for firms and markets.

Analysis of various types of data helps us segment markets in order to have a better understanding of the business environment we are facing. When data is of high quality and analysis done right, we can raise this understanding to an almost scientific precision. This leads to better business decisions and higher rates of success.