Technographic segmentation is reshaping B2B marketing in 2024. Here's what you need to know:
- Definition: Grouping businesses based on their tech stack and usage
- Why it matters: 75% of B2B customers expect personalized messages based on their tech use
- Key benefits:
- Laser-focused marketing campaigns
- Better lead identification
- Anticipating customer needs
How to implement:
- Define objectives
- Identify key technologies
- Gather data (tools like BuiltWith, Cognism)
- Analyze and create profiles
- Integrate into marketing strategy
- Monitor and refine
Real results:
Top tools:
- HG Insights
- ZoomInfo Operations
- BuiltWith (for website tech)
Remember: Good data is crucial. Keep it fresh and accurate for best results.
By mastering technographic segmentation, B2B companies can create stronger connections, drive innovation, and grow in a competitive market.
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What is Technographic Segmentation
Technographic segmentation is a B2B marketing strategy that's changing the game. It's all about slicing up your market based on the tech that businesses use.
Basic Elements and Definition
At its core, technographic segmentation looks at:
- What software and tools a company uses
- How quickly they adopt new tech
- Their IT setup
It's not your grandma's segmentation method. This approach digs deep into a company's tech world, giving you the inside scoop on their digital game.
Picture this: You're selling a fancy new CRM system. With technographic data, you can spot companies still stuck with old-school CRMs. Now you know exactly who needs your shiny new solution and why.
"Every company out there uses technology. And in the SaaS world, knowing the specific technology that a given account uses could make or break a sale."
This quote nails it. In B2B, it's not just about knowing your customers - it's about knowing their tech.
How It Differs From Other Methods
Let's break it down:
| Segmentation Type | What It's About | Where The Data Comes From | Who Uses It Most |
|---|---|---|---|
| Technographic | Tech stack and usage | Tech reports, IT surveys | Tech companies, software vendors |
| Firmographic | Business details (size, industry) | Business directories, financial reports | General market segmentation |
| Demographic | Personal info | Surveys, public records | Consumer marketing |
| Behavioral | Actions and decisions | Purchase history, web analytics | Customer experience pros |
Technographic segmentation is the new kid on the block. It gives you a peek into a company's tech world that other methods just can't match.
Think about it: Firmographic data might tell you a company's size, but technographic data tells you what kind of tech they're running. That's gold for B2B marketers.
Here's a fun fact: Demandbase says 66% of B2B marketers are now using technographics to spot competitive opportunities and target new accounts. That's a lot of smart cookies jumping on the technographic bandwagon.
Why is it so hot? Because it lets you get super specific. Instead of targeting all manufacturing companies, you can zero in on the ones using a specific system that plays nice with your product.
With technographic data, B2B marketers can:
- Create laser-focused marketing campaigns
- Spot their ideal customers more easily
- Tailor their sales pitch to hit tech pain points
It's like having a secret weapon in the B2B marketing world. And who doesn't want that?
How to Collect and Analyze Data
B2B companies need technographic data to segment their market effectively. Here's how to gather and make sense of this info:
Finding Digital Data
Companies leave digital footprints everywhere. Here's where to look:
Website Analysis: Tools like BuiltWith or Wappalyzer can tell you what tech a website uses. For example, BuiltWith found that 37% of the top 10,000 websites use Google Analytics. That's a big clue about what analytics tools are popular.
Social Media: Check out LinkedIn. Employee profiles often mention the tools they use at work.
Job Postings: Want to know what tech a company uses? Look at their job ads. They often list the tools new hires need to know.
Using External Data Sources
Don't just rely on what you can find yourself. There's a whole world of data out there:
Third-Party Providers: Companies like Cognism, ZoomInfo, and SalesIntel sell technographic data. And it works. Just ask PeerNova:
"With Cognism, our open rates are 12-15%, with little to no bounce rates. These statistics are fitting for the enterprise space."
Industry Reports: Gartner and Forrester often publish reports on who's using what tech in different industries.
Surveys and Interviews: Want the inside scoop? Ask people in the industry directly about what tech they're using.
Checking Data Quality
Bad data leads to bad decisions. Here's how to keep your data in top shape:
Data Validation: Use automated checks to spot weird or old data. Compare info from different sources to make sure it's right.
Regular Updates: Tech changes fast. Set up a schedule to refresh your data regularly.
Data Governance: Make clear rules about how to collect, store, and use data. This keeps everyone on the same page.
Harvard Professor Dustin Tingley puts it well:
"To transform data to actionable information, you first need to evaluate its quality."
Step-by-Step Implementation Guide
Ready to use technographic segmentation in your B2B strategy? Here's how to do it:
Define Your Objectives
First, figure out why you need technographic data. Is it for better marketing? Smarter product development? Maybe both?
Take HubSpot, for example. They used technographic segmentation to spot two key groups: "early adopters" and "traditionalists". This helped them craft better messages and boost engagement big time.
Identify Key Technologies
Next, pinpoint the tech that matters most to your business. This could be CRM systems, marketing tools, or cloud services.
For a B2B software company, knowing that many potential customers use Salesforce for CRM and Google Workspace for teamwork can be a game-changer.
Gather Technographic Data
There are a few ways to get this info:
- Check your website analytics, CRM data, and how people use your product
- Use tools like BuiltWith or Datanyze to see what tech websites are using
- Just ask your customers about their tech setup
- Team up with companies like Cognism or Bombora for deep insights
PeerNova tried this out with Cognism and got some impressive results:
"With Cognism, our open rates are 12-15%, with little to no bounce rates. These statistics are fitting for the enterprise space."
Analyze the Data
Look for patterns and group your audience based on the tech they use. This helps you understand how tech-savvy they are and what they prefer.
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Create Technographic Profiles
Build detailed profiles that include:
- What tech they're using
- How they use it
- How quick they are to adopt new tech
These profiles will be your roadmap for targeted strategies.
Integrate into Your Marketing Strategy
Use your new insights to:
- Craft messages that resonate with each group
- Focus on leads that are a good tech fit
- Spot chances to sell more to existing customers
Salesforce nailed this approach. They created different messages for companies at various tech levels. For small businesses still using spreadsheets, they talked up the perks of CRM software. For big companies already using CRMs, they highlighted their advanced features.
Monitor and Refine
Tech data isn't set in stone. Keep your profiles and strategies up-to-date. Set a schedule to refresh your data and rethink your approach regularly.
B2B Use Cases
Technographic segmentation is changing how B2B companies market and sell. Let's look at some real examples of businesses using this approach to get results.
Boosting ABM
Account-based marketing (ABM) is big in B2B, with 79% of sales opportunities in 2020 coming from it. Technographic segmentation makes ABM even better by showing what tech target accounts use.
Snowflake's ABM Win
Snowflake, a cloud data company, used tech data to improve their ABM. In 2018, they personalized their approach for over 2,000 top accounts. The results?
- 75% more SDR-booked meetings
- 3X higher meeting rates for well-matched accounts
Hillary Carpio from Snowflake says:
"We made sure our ABM campaigns reflected input from sales, product marketing, partner marketing, field marketing, and our SDRs."
Cognism's Smart ABM
Cognism uses its own tool to boost ABM. Tim Hughes from Cognism explains:
"For LinkedIn ABM, I create specific audience filters. We can easily get emails and phone numbers from LinkedIn with our Chrome Extension. This means we show the right ads to the right people."
Hughes also uses intent data:
"Our intent data helps find accounts searching for topics related to our solution. It shows which accounts we should focus on based on their activity."
Checking Out Competitors
Tech data isn't just for finding customers. It's great for sizing up the competition too.
E-commerce Price Wars
An online store used AI to watch competitors' prices. They spotted a rival offering a big discount on a popular item. Their quick move:
- Changed their own price
- Launched a targeted ad campaign
- Result: 35% more sales for that product
SaaS Company's Service Edge
A SaaS firm used AI to analyze what people said about their competitors. Here's what they did:
- Looked at reviews and social media posts
- Found users unhappy with a competitor's service
- Highlighted their better support in ads
- Result: Won over customers fed up with the competition
Odaseva's Demo Makeover
Odaseva, an IT company, used tech insights to change how they do demos:
- Cut demo prep time from 90 minutes to 3 minutes
- Let over 50 sellers give demos on their own
- Made a demo library for different markets and uses
- Result: Better customer experience and growth into new markets
By knowing the tech landscape, Odaseva made their sales process smoother and stood out to customers.
In today's tech-heavy B2B world, technographic segmentation isn't just a fancy term - it's a must-have tool. From supercharging ABM to outsmarting competitors, companies using tech data are setting themselves up to win in 2024 and beyond.
Software and Services
Let's look at the top technographic segmentation tools shaping B2B strategies in 2024.
Leading Technographic Data Providers
Two big names dominate: HG Insights and ZoomInfo Operations.
HG Insights is user-friendly and easy to set up. It's great for lead generation and refining target customer searches. One user said:
"It's a great tool for lead generation and profiling, gives great insights and helps refine target customer searches."
ZoomInfo Operations boasts a huge, regularly updated database with advanced filtering. Users love its integration capabilities. A happy customer noted:
"The database is very large and is updated regularly, and the advanced filtering options really help refine target results."
Both offer solid product support, but ZoomInfo Operations seems to better meet business needs according to G2 reviewers.
Specialized Solutions
Need website tech intel? BuiltWith is your go-to. It's perfect for ad and competitive intelligence related to websites.
SalesIntel claims 95% accuracy for B2B account and contact data. They offer a full package of contact and company data, plus technographic insights.
Emerging Trends
AI and machine learning are changing the game. They're helping providers dig out better insights and make data more relevant.
Take Cognism. They're using AI to mix different data types, giving a fuller picture of potential customers. It's great for businesses wanting to really understand their target market's tech stack.
Falcon Corporate Systems
Falcon Corporate Systems isn't a data provider. Instead, they help B2B companies use technographic data effectively. They focus on boosting B2B sales and marketing strategies, with a keen eye on tech integration.
Falcon doesn't just gather data. They help you understand and use it. Their services include:
- Creating strategies based on technographic insights
- Improving workflows to use technographic data better
- Using AI to boost data analysis and application
By working with Falcon, B2B companies can turn raw data into real business strategies. It's about making technographic segmentation work for you, not just talking about it.
Tracking Results and Making Improvements
After implementing technographic segmentation, it's crucial to track results and refine your approach. Here's how to measure success and tackle common challenges.
Success Metrics
Focus on these KPIs to gauge the effectiveness of your technographic segmentation:
- Conversion Rates: Compare how well each tech-based segment converts against your baseline. A B2B software company might see a 25% jump in demo requests from accounts using complementary tech.
- Customer Lifetime Value (CLV): Look at how technographic targeting affects long-term customer value. HubSpot found their "early adopter" segment had a 40% higher CLV than average.
- Engagement Metrics: Keep an eye on open rates, click-throughs, and time on site for each segment. Snowflake booked 75% more SDR meetings after implementing tech-based ABM.
- Customer Acquisition Cost (CAC): Compare the cost of acquiring customers across different tech segments. You might cut your CAC by up to 30% by targeting companies with specific tech stacks.
- Churn Rate: See how technographic segmentation impacts customer retention. Salesforce saw a 15% drop in churn for accounts targeted based on their existing tech stack.
The key is linking customer insights to financial results. As one expert puts it:
"At the end of the day, success in measuring ROI and effectiveness is all about connecting the dots between customer insights and financial results."
Problems and Fixes
Even with a solid plan, you might hit some snags. Here are common issues and how to tackle them:
1. Data Quality Issues
Problem: Bad data leads to bad decisions.
Fix: Get serious about data management. SalesIntel re-checks their data every 90 days, keeping 95% accuracy. Team up with reliable data providers or invest in tools to keep your info fresh.
2. Over-segmentation
Problem: Too many niche segments can scatter your efforts.
Fix: Start broad, then narrow down. Begin with 3-5 key tech segments and expand based on what works. Cognism found success by mixing tech data with intent signals for more focused targeting.
3. Ignoring Context
Problem: Relying only on tech data misses the bigger picture.
Fix: Mix technographic insights with firmographic and behavioral data. Falcon Corporate Systems helps B2B companies create full profiles that consider tech use alongside company size, industry, and buying habits.
4. Lack of Personalization
Problem: Generic messages despite having detailed tech insights.
Fix: Tailor your content to specific tech pain points. Odaseva cut their demo prep time from 90 minutes to 3 minutes by using tech insights, leading to growth in new markets.
5. Neglecting Continuous Improvement
Problem: Treating technographic segmentation as a one-and-done task.
Fix: Set up regular reviews. Check performance quarterly and be ready to adjust your segments and strategies. The Cognism team warns:
"Poor quality data can be a real deal killer. It prevents sales leaders from forming effective, relevant strategies, negatively impacts your ability to report accurately on performance and ultimately leads to lost revenue."
Conclusion
Technographic segmentation is changing the game for B2B marketing and sales in 2024. It's all about understanding what tech your potential clients use, so you can tailor your approach just right.
Why does this matter? Let's break it down:
It's personal: 75% of B2B customers want messages that fit their tech use. Companies using technographic data are nailing this, leading to more engagement and better conversions.
Better leads: By focusing on prospects with the right tech, businesses can zero in on high-potential leads. This means using resources more efficiently and closing deals faster.
Staying ahead: Knowing a prospect's tech stack helps companies anticipate needs and position their products better. In today's B2B world, this can make or break a deal.
Supercharging ABM: Account-based marketing gets a boost from technographic data. Companies can create laser-focused campaigns that speak directly to their ideal customers' tech challenges and opportunities.
Data-driven decisions: 66% of B2B marketers use technographics to spot competitive opportunities. It's clear: data-driven strategies aren't just nice to have - they're a must.
The results speak for themselves:
PeerNova saw open rates of 12-15% with low bounce rates using Cognism for technographic targeting.
Companies using technographic insights for lead nurturing have seen up to 50% more sales-ready leads.
While the average B2B marketing ROI is 5:1, those using technographic data effectively can expect to do even better.
Want to make the most of technographic segmentation? Here's how:
1. Get good data: Team up with reliable providers or build your own solid data collection methods.
2. Use it everywhere: Weave technographic insights into all your marketing and sales processes.
3. Keep improving: Regularly fine-tune your strategy based on how it's performing and what's new in tech.
4. Think bigger: Use technographic data to guide product development and find potential partners.
As we dive deeper into 2024, the companies that master technographic segmentation will be the ones to watch. By aligning what they offer with the tech their prospects actually use, these businesses will build stronger connections, drive innovation, and grow steadily in a tough market.
FAQs
What is a technographic target audience?
A technographic target audience is a group of potential customers grouped by their tech usage and online habits. It's not about age or company size - it's all about the tech they use.
Think of it like this: instead of saying "we want to target millennials", a B2B software company might say "we want to target businesses using Salesforce as their CRM."
Other examples might include:
- Companies with cloud-based ERP systems
- Organizations using AI-powered analytics tools
Why does this matter? James Isilay, CEO of Cognism, puts it well:
"Technographic data allows us to create hyper-targeted campaigns. We can speak directly to a company's pain points based on the technologies they're currently using or lacking."
By knowing what tech a company uses, businesses can craft messages that really hit home.
What is an example of technology segmentation?
Let's look at how data companies use tech segmentation to tailor their marketing. They might split their prospects into three groups:
1. Compatible Tech Users
These folks are already using tools that play nice with the data company's product. The pitch? "Hey, our tool will make your current setup even better!"
2. No Solution Yet
These companies don't have a data management system. The message here is all about the basics: "Here's why you need this kind of tool in the first place."
3. Using Competitor Products
For these prospects, it's all about comparison. "Here's why our tool is better than what you're using, and switching is easier than you think."
Snowflake, a cloud data platform, nailed this approach. In 2018, they personalized their outreach for over 2,000 accounts based on tech data. The results?
- 75% more meetings booked by SDRs
- 3X higher meeting rates for well-matched accounts
Hillary Carpio from Snowflake says:
"By tailoring our messaging to each account's specific tech environment, we saw a dramatic improvement in engagement and conversion rates."