19.02.2022 09:30

Firmographic Segmentation: Neglected but Essential B2B Marketing Strategy

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Businesses are now attempting to develop the perfect marketing strategy so that the products or services they provide appeal to potential customers. As the audience expands, so does the number of people with unique requirements and preferences. In this situation, businesses try everything to make their marketing message relevant to their audience and find their customer.

As a result, segmenting the target market is essential. This approach enables the company to build a more precise image of its client base to satisfy its specific desires and needs. The more personalized your ad is, the more successful conversions you get.

In marketing, segmentation is the separation of your target market into accessible and understandable groups. Demographic, firmographic, geographic, psychographic, and behavioral factors are the typical bases for market segmentation. You may also categorize customers based on their priorities and interests. Knowing your company’s market segments will allow you to use this information for efficient targeting that will influence sales.

To reach your corporate goals, you will need the assistance of a marketing professional, if not more than one. Business process outsourcing is becoming increasingly popular as a way to recruit marketing experts at a reasonable cost. The choice of segmentation type directly depends on the needs of your company. But for B2B organizations, firmographic segmentation is a must. 

Two Approaches to B2B Segmentation: Firmographics and Demographics

Many B2B firms lead their customer insights initiatives driving innovation in marketing analysis. Several B2C companies are using daily social and internet transactions to improve marketing strategies, improve customer support and boost sales. In this blog, we will explore some ways of segmentation that helps the B2B companies get a better understanding in understanding their buyer and increasing sales ROI. This blog discusses how this means helps them understand buyers or ROI to improve their ROI and increase revenue and customer satisfaction. We are happy to provide an exclusive glimpse at some best ways to classify your clients.

In this article, we will discuss firmographic segmentation, its characteristics, main variables, and benefits for B2B marketers. We’ll also explain the distinction between firmographics and demographics, as these two segmentation approaches have some similarities. 

What Is Firmographic Segmentation and Why Is It Important?

Before we go into firmographic segmentation, it is necessary to understand what firmographics is. This term refers to the characteristics of any firm, including companies, organizations, nonprofits, and corporations. These descriptive attributes can help identify the target audience and categorize individual companies into key market groups. Firmographics allows companies to target their marketing messages towards organizations that tend to be interested in what they offer. In short, firmographics for companies are the same as demographics for individuals.

Marketers use firmographics to classify their customer groups. B2B marketers research a company’s industry size location to understand its market. This segmentation approach assists businesses in positioning products and services in their ideal markets efficiently. Firmographic Data includes business description financial performance industry insights as major categories with specific variables for every type of business description and industry insights for each marketer’s business type.

While demographics and psychographics are segmentation methods that focus primarily on B2C organizations, B2B companies, and B2B marketers need a different approach. In essence, firmographic segmentation is a fundamental practice for B2B or ABM marketing. This type of segmentation is the process of evaluating and classifying business-to-business clients based on the general attributes and characteristics of the company or organization.

Organizations may better understand their audience, effectively build and target their marketing efforts with the help of B2B firmographic segmentation. At the same time, the process of analyzing and dividing the market into segments is remarkably similar to how B2C marketers employ demographic segmentation.

Firmographic segmentation will pay attention to criteria such as the size of the company, the number of employees, or the industry in which it operates.

The Difference Between Firmographics and Demographics

Demographics remain one of the simplest and most commonly used forms of segmentation in B2C companies. The products and services that customers choose and use often depend on demographic factors. Firmographics provide a similar approach, but on a bigger scale, covering entire companies.

In general, demographics concentrate on the personal traits of the client that distinguish him into a separate group. This method allows you to examine your customer’s appearance, preferred activities, occupation, income, education, and nationality. You may segment the market based on these characteristics.

Firmographics essentially combine demographic and geographic factors and apply them to businesses. The firmographic data you will need may vary depending on your product. Each product or service will necessitate its specific strategy.

7 Common Variables in Firmographics

This market segmentation strategy defines customer categories primarily via the use of seven firmographic variables. We’ll tell you all about them.


Since it is directly related to the company’s activities, industry firmographics is a reasonable variable. Segmentation by industry allows you to narrow your target audience, but at the same time, increase the effectiveness of advertising. This method is practical because you look for clients in related fields or areas that require your products or services.


Location firmographics involve the classification of businesses according to their location. Geographic factors can include places such as city, state, country, region, or continent. By applying this variable to market segmentation in your marketing campaigns, you may analyze your consumers’ reactions. You can check, for example, which regions show the highest support for your product.


Performance in firmographic segmentation is a metric that measures how well an organization operates over time. It is necessary to consider the company’s existence, business execution strategy, its pace of growth or decline, earnings, and losses to assess this characteristic. Later, based on the collected data, you can compare information about your firm with other companies. You may locate businesses with similar performance this way. And performance similarity attracts the need in a shared solution, whether it’s a product or a service.

Company size.

Company Size is another variable in firmographic segmentation. This feature determines the company’s capacity and identifies firms’ needs. What is the purpose of it? Because various sized businesses are likely to respond differently to various messages and advertising techniques. For a large corporation, advertising focused on small businesses will not be as successful. Business process outsourcing (BPO) solutions may be effective in resolving potential issues.

Status and structure.

A firmographic variable representing the link of one business to another or the legal status of an organization is the status and structure of a company. Independent enterprises, subsidiaries of larger organizations, standalone entities, franchisees, limited liability corporations, government organizations, partnerships, privately or publicly-owned companies are just a few examples of your potential clients. You may substantially increase the quality of your marketing strategy by identifying what sorts of companies could be interested in your product.

Executive title.

Companies, particularly the large ones, consist of many people of different specialties, from decision-makers to local team heads. You may segment the groups of people who are most likely to require your product or service based on their occupation. To do this, you’ll need to figure out which specialists in which fields are most willing to buy your goods.

Average sales cycle stage.

Your sales efforts will be fruitful and your annual revenue will surely increase. This variable in firmographic segmentation exists to determine where your potential client is in the buying process. The average sales cycle depicts how long it takes in general to close a deal, what the line is between potential customers willing to buy and those who do not intend to purchase anything.

6 Benefits of Firmographic Segmentation in B2B Marketing

There are many benefits to implementing firmographic segmentation in your company. Here are a few of them:

Understanding of B2B marketing.

Firmographics can assist in answering queries like what firms are out there, what goods they’re launching, and where they’re based. Getting to know companies in the market will allow you to find new customers sooner.

Data from firmographic data will aid organizations in determining whether or not B2B customers are suitable candidates or not. Segmentation offers many useful features and benefits to any organization such as segmentable information that categorizes prospective clients into size, location revenue, or current growth trajectory. If marketers have access to segments of information they no longer need to separate this data between themselves. Instead, potential purchasers will be pre-sorted according to relevant categories. Segmented information reduces the distance.


Applying a firmographic segmentation marketing strategy will increase your monthly or annual revenue, boost your ROI and reduce expenses on targeting the wrong audience. The cost of incorporating firmographics into your marketing strategy is minimal, so you may get a good outcome without spending a lot of money. And for significant savings, we recommend business process outsourcing services.

Increased marketing effectiveness. 

It is the most significant and crucial benefit of well-implemented firmographic market segmentation. You may discover more effective methods to meet your clients’ demands and improve their engagement and experience with your company by better understanding their needs.

Does a customer who bought in the same place actually need the same product? You have company details including name, address zip code, address, and other data for every purchase transaction. Using purchased goods product size of customer and NAICS code of a company or firm data, marketers may target customers with similar business variables. This analysis is called propensity modeling. It assesses the chance that similar B2B customers would buy the same products, helping sales and marketing target likely customers.

Increasing customer engagement.

You may create a marketing strategy that gives clients solid reasons to purchase your goods and services again. Firmographic segmentation will help you boost your customer engagement and loyalty.

Enhanced customer service.

Firmographic data can help improve employee experience and improve company operations. Suppose a manufacturer is located in only one state — chances are they prioritize partners who deliver local services. Multinational firms tend to favor online distributed digital services.

Make your brand stand out.

The goal of market segmentation is not only to help you reach your audience but to allow your customers to see the genuine value of your brand through marketing that speaks to them – and thereby puts you ahead of the competition.

Performance is Key in Firmographic Segmentation

Segmenting based on performance at any given time allows us to understand the current situation of an organization and anticipate its future behavior. To do that, collecting firmographic data is key. The requirements for a business experiencing a slump compared to a business with rapidly growing profits and employment rates will differ greatly. Segmentation helps you tailor your marketing and sales effort as far as possible. Generally speaking, there can be a wide range of factors when adjusting the compensation and benefits packages including performance over the period, revenue, and employees’ permission to bring in new shiny products. This can help you understand how an organization has behaved and what it has accomplished with time. 

Closing Thoughts about Firmographic Segmentation for B2B

Firmographic segmentation is a complex marketing strategy for your business but it should be an essential element of your marketing and sales strategies. You may end up with many conversions and new clients if you do a comprehensive study of all the variables and modify them to your unique product.

Segmentation will also help you identify your target market and sell your products or services more efficiently. Firmographic segmentation is a great way to segment your business and narrow down your targeting to bring in sales success. You will be able to offer many companies a personalized approach instead of a standard one, which will boost your financial return and revenue.

We hope that you will find these insights valuable and be able to apply them for your own company! If you want a partner who can make it easier for you to implement these strategies, contact us now. Our team would love to help grow your business by leveraging our expertise with SEO or digital marketing strategy development.

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