Firmographic data is often held in a dataset or database and contains basic information about businesses of all sizes. Information about companies, such as location, name, revenue, is often referred to as attributes or data attributes. Firmographic data can be about active companies locally or globally, and can also include information about companies that are not currently active. It's essential for businesses that want to improve their marketing efforts, target ideal customer profiles or simply need information about businesses for other purposes, such as finding business partners or planning new investments - there are probably millions of use cases.
This guide explains what firmographic data is, what it contains and how it is used. If you are interested in firmographic data services and would like to acquire, validate or enrich such data, please visit the firmographic data services page linked to the right above.
The most common firmographic data attributes
- Company name (this very often includes trade name and directory name)
- Company ID (unique and universal)
- Date of registration
- Address
- Official company language
- Contact details (phone, email, fax)
- Social media and website
- Industry in which company operates (SIC and NACE codes)
- Legal status and VAT (or relevant)
- Turnover
- Directors (CEO and others)
- Company size (number of employees)
- Headquarters and branches
- and more
Why do companies collect firmographic data?
Gathering firmographic data is vital for any business that wants to improve its marketing efforts and effectively engage with potential customers, as well as seeking new partnership opportunities or planning new investments. By collecting and analysing firmographic data for marketing purposes, organisations can identify their perfect customer profiles and segment audiences more accurately, leading to improved engagement.
Data segmentation as a first step after obtaining firmographic data
After obtaining firmographic data, companies always segment it for different purposes, depending on how the data will be used.
For example: A B2B software company segments potential customers by industry (e.g. healthcare, retail, finance) and company size (e.g. small, medium, large) in order to target different product levels. This company can then efficiently tailor the products it offers to specific industries and their needs.
Use cases for firmographic data
- Targeted marketing campaigns
Using firmographic data to personalise marketing initiatives leads to higher engagement and conversion by addressing specific customer needs. When marketers combine this data with technographic and demographic information, they are able to tailor solutions and build detailed profiles of their customers.
Example: An enterprise cloud provider uses firmographic data to create customised campaigns for different segments. The company obtains contact details (phone, email) and social media URLs for a medium-sized company in the retail sector and large companies in the technology sector. It then tailors messages according to the company's industry and size. The advertiser can better address the needs of each audience.
- Competitor analysis
Companies gather data to learn about their competitors. This allows them to plan strategically based on the strengths and weaknesses of their competitors, identifying areas where the company has a competitive advantage or where the competitors' customer base can be targeted.
Example: A consumer goods company collects firmographic data on competitors' size, sales and market presence in different geographical regions. Analysing this data shows which regions are dominated by competitors and which are less competitive, helping the company to focus expansion in underserved areas.
- Market research and analysis:
Companies analyse firmographic data to understand market trends, identify potential opportunities and benchmark against competitors. For example, analysing industry trends or geographic concentration can reveal untapped markets.
Example: A telecommunications company looking to expand its 5G services conducts firmographic analysis to understand the size, location and technology adoption rates of businesses in different sectors. This helps identify the industries and regions most likely to adopt 5G early, such as large technology companies or urban business centres.
- Growth opportunities
Businesses also get firmographics for growth opportunities, so they can find and help other businesses grow while increasing their sales and revenue.
Example: A financial services company uses firmographic data to identify high-growth companies, such as tech start-ups or fast-growing retail chains, that may need capital to expand. By monitoring revenue growth and company size, the company can target these companies with tailored financial solutions, from business loans to investment opportunities.
- Partnership opportunities
Businesses often partner with each other for mutual benefit in order to expand their offerings, services and sales.
Example: A logistics company looking to expand its network finds potential partners by analysing the firmographic data of retailers and distributors in target regions. By identifying companies with compatible market reach and distribution needs, the logistics company can propose partnerships to jointly reach new markets.
Key points
- Firmographic data helps businesses categorize companies based on key attributes like size, industry, revenue, and location, leading to better-targeted marketing strategies.
- Utilizing firmographic data improves market segmentation, enhances lead generation, and allows for more personalized marketing efforts, resulting in higher engagement and conversion rates.
- Collecting firmographic data can be done through various methods, including online searches, customer surveys, and third-party data providers, which are essential for ensuring data quality and compliance.
Frequently asked questions
What is firmographic data?
Firmographic data is nothing more than basic information about companies, containing information such as company name, address, headquarters, VAT number, executives, contact information, company size and more. This data can be stored in a dataset (file) or in a database.
What is an example of firmographic segmentation?
An example of firmographic segmentation is the ability to sort companies in a file or dataset. Companies can be sorted by location, number of employees, industry, revenue and more. Any data attribute is a criterion.
Where can I find firmographic data?
You can find firmographic data through public records, marketing databases, business directories and third-party data providers. This article provides much more information about firmographic data providers.
What are the benefits of using firmographic data?
Firmographic data can help you improve your market segmentation, enhance lead generation and marketing campaigns, find new potential business partnerships, learn about your competitors and get their contact information, and more.