Segmenting your Total Addressable Market (TAM) while carefully and accurately understanding your Ideal Customer Profile (ICP) will help you focus on those strategies that will generate more leads for your B2B SaaS company. ICP is defined by firmographic and technographic indicators, implementing which will generate revenue.
Firmographics in B2B resembles a demographic profile in B2C. According to Hubspot, “Firmographic data shifts the focus to organizations — or firms — to collect and analyze key information about the operation of enterprises themselves” (Source: Hubspot, “The Complete Guide to Firmographic Data”). Therefore, instead of gender, age and income, you need to define the following parameters:
- Industry type
- Geographical Location
- Number of employees
- Number offices or office locations
- Annual Sales / Revenue
- Growth trends
- Amount of investment (or stage of investment)
- The speed of company’s development
- The number of representations in other countries
- The budget for marketing/sales /another process for which you are creating a product.
According to Hubspot, “Technographics is a portmanteau of the words “technology” and “demographics”, and refers to information that describes the use of technology solutions, their adoption rates, and the potential challenges they present for organizations…. Put simply, it’s the practical application of information about the technology stack used by a prospective customer — everything from the infrastructure and network tools they’re using to the applications they prefer and the adoption rate of these applications at scale.” (Source: Hubspot, “What is Technographic Data? And Why It Matters”)
Technographics are especially important for B2B SaaS companies. No matter how good your product is, it has to be technically compatible with the software your ICPs use. At this point, some SaaS companies stumble, chasing a great idea, forgetting to think through the important details.
To make your software effective you need to analyze technographics. It is a set of technologies ranging from hardware to software. Consider the following questions relating to your ICPs that will assist you in analyzing technographics:
- What equipment and software does the company use?
- How technology-dependent is the company?
- Is your product exactly compatible with the hardware and software of the company?
The proper identification of your ICP will help your B2B SaaS to improve your ads, websites, and offers. After all, it is the identification of ICP that will help you not to waste time and encourage the customers to buy.
Having gathered the data on firmographics and technographics in a concise manner you will be more effective in more accurately identifying your ICP which will help your B2B SaaS company generate more leads for your sales.
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