Do you know why digital marketing is preferred over traditional marketing?

Because in most types of traditional marketing, you don’t have a chance to have a one-on-one conversation with your target audience.

Billboards, newspapers, TV ads are very generic and you hardly know whether it’s reaching its target audience or not. So there are very low chances of conversion rate and not so cost effective.

There is one unsaid rule in marketing, that says

“If you are talking to everyone, you are talking to no one.”

While strategizing your content marketing you must have one person in your mind. You must write content while keeping that one person’s problems, pain points, goals, and needs in your mind. And digital marketing lets you do that.

In all the strategies of digital marketing you can have 1-1 conversations with your audience. 

But when it comes to having 1-1 conversations you must know your audience well.

If you have a very small customer base you can do this very easily.

But what if your target audience is very large?

That’s when firmographic segmentation comes in.

Yes, firmographic segmentation is the way to know your target audience and understand them on a deep level so that you can curate your content in a way that can easily resonate with them.

If you want to know what it is firmographic segmentation, what are its different variables and its benefits, then this blog is for you.

Let’s get started with some definition of firmographic segmentation.

What is firmographic segmentation?

what is firmographic segmentation

Firmographic customer segmentation is segmentation/dividing your target audience’s attributes into different categories to know them better. This way you can identify potential customers, their behavior and can make marketing and sales decisions.

Different variables of firmographic market segmentation are 

  • Type of Industry
  • Company Size
  • Location
  • Job title
  • Company Structure
  • Annual Revenue
  • Performance overtime

And so on.

Let’s see the benefits of firmographic segmentation.

Benefits of Firmographic Segmentation

benefits of firmographic segmentation

Trustworthy and long lasting relationships with your potential customer are some of the first and important benefits you get when you do B2B firmographic segmentation of your target audience.  And when your audience trust you, conversion happens easily.

Let’s see other benefits of firmographic segmentation:

1. Resource Allocation

Firmographic segmentation helps you identify your potential customers. When you know your potential customers you can put your efforts, time and resources in that direction. You won’t chase the wrong audience, which saves your time and money.

This helps you get maximum ROI of your time, efforts and money. It also helps you increase your conversion rate.

2. Improve Customer Engagement

Firmographic segmentation helps you understand your target audience better. When you understand them better you can curate your content strategy in a more personalized way. 

You can make your audience feel that the content has been written for them only. Due to this, they can’t resist themselves from engaging with your content.

Once they engage, they convert easily.

3. Increased ROI

Segmenting your audience will help you to identify potential customers. When you know your potential customers, you can invest your time, money and energy in that direction only that drives you increased revenue. This increases your ROI.

4. Improved customer retention

More than your product, what your customers like about you it’s your customer service. When you segment your customers firmographic you can understand them better when any problem arises, and can provide them satisfactory customer service.

Improving customer satisfaction helps you retain them for longer. 

Achieving these benefits become easy when you segment your target audience into some important firmographic categories.

Let’s see some of the important firmographic variables that help you to achieve these benefits easily.

Variables of Firmographic Segmentation

There are 6 important variables of firmographic segmentation to have an effective and well-defined firmographic segmentation. Let’s see which are they.

1. Industry

Segment your audience as per the industries when you have product/service serving multiple industries. Divide your audience according to the types of product/service they provide, i.e restaurants, grocery stores, fashion retailers and so on.

Dividing your audience as per their industry will help you to connect with them on a more personalized level by curating the content strategy effectively. Such segmentation will help you to know your audience better and understand their needs better.

2. Location

Location is another important factor for which you need to segment your audience. When you segment your audience based on their state, city, you can assume the best time when they require your product/ service. 

This information you can use to have a bit of informal conversation with them, that may help you to build a good relationship with them.

3. Size of the Company

Size of the company is another very very important factor for firmographic segmentation.

There are two factors to consider while segmenting through size of the company, i.e

  • Number of employees
  • Annual revenue

Both of these factors help you to know the potential of your audience converting into your customer.

When you know how much revenue they are generating, you can have an idea whether they will purchase your product or not.

Same way, the number of employees also affects their buying decision.

4. Organization Structure

When you know under which category your audience market falls into, you can improve your marketing strategy. The company can be divided into following structures

  • Sole proprietorship
  • Partnership
  • Limited partnership
  • Corporation
  • Limited liability company
  • Non-profit organization
  • Cooperative
  • Publicly owned companies

5. Company Performance

Knowing and segmenting your target audience as per their company performance is equally important as other factors. Because when a company is constantly growing and making enough profit, then only it makes any monetary investment.

If a company is not doing good, and just surviving then it won’t invest in any new product and service, as that will just add up to their cost.

That’s why segment your audience based on their year on performance, or you can say the profit they have made and new clients they have serviced.

6. Executive Tile

When you segment your target market as per the executive title, you will come to know the person with the highest decision making power. This will help you to avoid any gatekeepers and directly have a conversation with the decision maker. 

Generally the company has following few decision makers like

  • CEO
  • CFO
  • Marketing director
  • Managing director


Thus firmographic segmentation will help you to know your target audience on a deeper level and understand them and curate the marketing strategy in the best possible way.