Here’s the scenario: Company AB and Company YZ have identified the same exact target audience to sell their software into. Both companies have access to the same demographic and firmographic prospect data—yet Company YZ also has access to technographic data.
This data reveals the tools their prospects use, what they use them for, how long they’ve used them, and much more.
We don’t need to tell you who has the upper hand here (Company YZ)!.
What are B2B Technographics?
At the most basic level, Technographics are the essential technologies and tools organizations use to run their business (Think of it is as showing the companies investing in their company, and the ones using Open Source and less likely to buy). Think everything from CRMs, Ads, Marketing Automation, Servers etc. Beyond that basic definition, technographics can also include information about how and when your prospects use their technology.
While demographic and firmographic data are essential to B2B sales, technographics completes the picture. Without them, you have very little insight into how a company operates, how they make their purchase decisions, and where they are lacking in the technology department.
Think of it this way:
“Your competitive sweet spot is where firmographics and demographics intersect with technographics, helping you to identify your best-selling opportunities—whether you’re offering a compatible or competitive solution! This is used for your your customers and prospects, this means you’re no longer pushing hit-or-miss messages at them. Rather, you’re able to build proactive, results-oriented messages and solutions from the grassroots up in response to your understanding of their real needs.” (This is the power of technographics)
Why is technographic data so important?
On the surface, this data may seem unimportant. Sure it’s nice to know if a prospect is working with a competitor or a compatible product—but what else is there to know? As it turns out—a lot more than you think!
Every company’s tech stack says something different. It says what they’re willing to spend money on or not, their level of technical expertise, and other factors unrelated to the technology itself as well if they use everything as open source etc.
Here’s an example from VentureBeat: A financial tech firm noticed that Eloqua marketing automation was a predictive signal for its top prospects. The company is in a completely separate vertical, so it wouldn’t make sense to personalize messages about this platform, however it did help them deduce a few things. They recognized that companies running Eloqua tend to have a certain level of technical sophistication, and are usually big enough to be able to afford premium enterprise systems.
7 Ways Technographics Improve Sales Prospecting
So you may wonder what are the real ways this data will change your business for the better here are 5 examples.
1. More informed sales conversations.
We’ve already covered this, but it’s worth mentioning again—understanding what technologies a company uses and how they use them provides a world of insight. Think about how this will change your business! Using this information for sales reps can further tailor their sales pitches and have more informed conversations with prospects.
2. More targeted prospecting.
Think about it, if you don’t thoroughly understand your best buyers, how will you target new, qualified prospects? Knowing their technologies and needs will help you pitch and qualify new prospects in ways never done before.
Take this example—Say your target market is made up of e-commerce companies who receive a lot of web traffic. While that’s a good start, technographic data can take it a step further.
Analyzing the technology stack of some of your best customers, you realize that 90% of their websites use the same shopping cart management system. Using that information, you can get more granular with your targeting and search for e-commerce websites, who receive a lot of web traffic, and use a specific cart-management tool.
3. Penetrate new markets.
As growing companies look to expand, understanding the technological landscape can reveal opportunities to reach new markets. Whether through prospecting or the development of new products, seeing how technologies interact with each other can uncover the demand for new products and services.
4. Improve close rates.
More informed sales conversations. More targeted prospecting. And new markets. This results in better leads, improved close rates, and more sales. With more advanced prospect information, organizations see improved lead scoring and nurture programs. These factors combined ultimately lead to stronger buying signals and more sales.
5. Gain a competitive advantage.
This one is self-explanatory. Technographics data provides valuable competitive insight. Use this information to target your competition’s customers, see when big accounts are considering a change, and much more.
6. Improve customer retention.
Getting instant alerts when a customer drops or installs a new technology wikll give you insights to upsales or potential churn of a client.
7. Installation Alerts.
Getting instant alerts when someone trials your competitor gives you a cutting edge and helps you land clients from your competitors prospecting work or marketing work.
If you’re among the 71% of organizations that say closing more deals is your top priority, then it’s time to incorporate technographic data into your sales prospecting, lead generation, and customer success activities (source).
Technographics provide a 360-degree view of your prospects and put their buying and selling activities into context. Use this data to align your internal teams and strategies for success.