Most prospecting tools give you basic filters that barely scratch the surface of a company (e.g. where it's based; how much revenue it makes; how many employees it has).
At Databook we wanted our prospecting tool - we call it Company Search - to give you real insight into the attributes of a company that might make it more or less likely to buy your solution.
When prospecting, we consider the following questions:
- Is the company in an industry and geography where your solutions are relevant?
- Does the it have a financial case for change that aligns with your solution? Does the company's management need to buy your solution to help them meet their financial targets?
- Does your solution align with the strategic priorities of the company.
You can find some basic instructions for using the Databook prospecting tool here, but in this article, I'd look to focus on using the tool to identify companies with a financial case for change.
In this example, we are looking for automotive companies who may need to focus on cutting costs.
If you have an offering for car and auto parts manufacturers that helps them reduce costs, the companies in this search could be ideal prospects.
- Open the Company Search prospecting tool
- Select Industry = Automobiles and Auto Components in the Company Filters section
- Scroll down to Financial Filters and select Profitability
- Select 'Lower than peers' or 'Weakness'
This search reveals car manufacturers whose profitability is worse than their competitors (i.e. whose costs may be proportionally higher than competitors) or is rated as a weakness by Databook's algorithm. They may be actively looking for ways to cut costs.
You can add these prospects to a list in Databook as explained here.
More information about Financial Filters
- You can choose combinations of Financial Filters (e.g. companies who are underperforming for revenue growth and gross margin)
- There are different options for filtering a company's financial performance:
- Higher / lower than peers. This assess performance vs the median for competitor group. For most metrics, lower than peers shows below-average performance. However for SG&A margin, 'lower than peers' means above-average performance.
- Strength / Average / Weakness. Databook uses an algorithm to asses how strongly a company is performing for a particular financial metric. We do this by looking at performance over the past three years, with greater weighting for more recent years. Where analyst forecasts are available, we also include these in our assessment, but weighted less than historical data.