So, do you?
If you’re in the B2B world, this is a must for marketers to know (and wouldn’t hurt the CEO and Sales too).
NAICS stands for North American Industry Classification System and is an hierarchical system of classifying business by what they do. It was created tandem with NAFTA and therefore covers industry in Canada, The U.S. and Mexico.
Click here for gov’t information links and a quick overview of NAICS. Its fast read so go ahead and have a look, then come back here.
So why is it important to know your customer’s NAICS code? Its important because the industry code of a customer is a corner stone of creating customer profiles.
By analogy, in the B2C world, profile information includes age, gender, geo location, household income, education, etc. Also known as demographics, they’re essential for knowing who your customer is and how to market to them.
In the B2B world, the equivalent of demographics are called firmographics and include geo location, size of business in employees and sales, years in business, number of locations and …. industry code.
Ideally, this information is known for all your customers enabling you to create comprehensive profiles of who are your BEST customers. With that info, you can license business databases from the likes of D&B, Acxiom or Experian and target prospects that look just like your best customers.
Have you used NAICS before? Do you have a preference for Standards Industrial Classifications codes instead?
Thanks for reading my blog.
Authored by: Geoff Vincent