July 26, 2012 by Bob Hill
Posted in: In this week's e-newsletter - Sales & Marketing, Industry Spotlight - Sales & Marketing, Latest News & Views - Sales & Marketing, sales management
How should your company be prioritizing which opportunities have the most potential for boosting sales and revenue? Firmographics … that’s how.
Sales expert Daniel Korten defines firmographics as “a set of characteristics that describe prospects who are most likely to spend money on your product or service.”
In other words, these are the buyers your company should be prioritizing above all others. The key to using firmographics as an ongoing sales resource is creating a list of which factors have the most impact on determining who your high-probability prospects are.
Here’s a list of the most common “firmographics,” courtesy of the Sales Benchmark Index:
- Industry: Perform an audit of your sales from the past 1 to 2 years to determine which industries are really buying from your company.
- Size of company: Are you best served pursuing prospects from small- to mid-size companies or Fortune 500 clients?
- Geography: Does it pay to focus more on local prospects? National ones? Do you have the best reps possible canvassing each region? Make sure they’re an ideal match for buyers in that territory.
- Annual revenue: There’s usually a clear correlation between how significant a company’s annual earnings are, and whether a buyer would have money in the budget to afford doing business with a company.
- Executive title: Which titles are proven most likely to need your products and/or services?
- Average sales cycle: How long does the average sale take too close? What is the official dividing line between prospects who want to make a well-informed buying decision and those who have no real intention of buying.
Source: “The Most Important Word Missing From Your Go-To-Market Strategy,” by Daniel Korten, Sales Benchmark Index, 6/8/12.