What is Industry Codes?
Industry codes are standardized classification systems, such as SIC and NAICS, that categorize companies based on their primary line of business. In B2B sales development, they are used to build targeted prospect lists, define ideal customer profiles, segment territories, and power data-driven outreach, ensuring SDRs focus on accounts that actually operate in the industries they can serve most effectively.
Understanding Industry Codes in B2B Sales
Industry codes matter because industry is one of the most powerful firmographic variables in B2B segmentation. Research on B2B segmentation shows that firmographics (including industry) are among the most widely used bases for business market segmentation, with an estimated 81% of B2B marketers relying on this approach.en.wikipedia.org When industry codes drive targeting and messaging, sellers can speak directly to vertical-specific pain points. A Salesforce-cited study found that industry-specific personalization delivered a 22% lift in engagement and 33% higher conversion rates, while SIC/NAICS-based campaigns have been shown to generate around 42% higher engagement than generic lists.salesfully.com
Modern sales organizations treat industry codes as a backbone of their data model. Codes are used to define ICPs, build outbound account lists, prioritize territories, route inbound leads, and run A/B tests on which verticals respond best. Firmographic research indicates that 88% of marketers rely on third-party data (including industry codes) to power their firmographic strategies, yet 87% say firmographic data remains underused-highlighting a gap between what’s possible and what’s actually operationalized in CRMs and sequencing tools.landbase.com At the same time, data decay has accelerated, with recent studies showing annual B2B contact decay rates as high as 70.3%, which makes ongoing enrichment and code validation essential.landbase.com
Industry codes themselves have evolved. The U.S. government’s Standard Industrial Classification (SIC) system, first created in the 1930s, was officially replaced by NAICS in 1997, but SIC remains heavily used by private data vendors for marketing and sales purposes.naics.com Providers such as Dun & Bradstreet extend the original 4‑digit SIC into proprietary 8‑digit schemas with over 18,000 code values, enabling extremely granular vertical targeting (e.g., Italian restaurants vs. generic eating places).dnb.com At the leading edge, AI models can now auto-classify companies into industry codes with over 92% accuracy using limited labeled data, making scalable, high-precision classification more accessible to sales teams.arxiv.org
For B2B sales leaders, this evolution means industry codes are no longer just a compliance checkbox or data append field. When maintained accurately and embedded into daily SDR workflows and reporting, they become a strategic lever for higher response rates, cleaner territory design, and more predictable pipeline from outbound programs.
Key Statistics
Expert Tips
Start with Negative Industry Code Filters
When building lists, define and exclude SIC/NAICS codes that you know are poor fits-such as government entities, very small local trades, or heavily regulated sectors you can't sell into. This negative filter approach immediately improves list quality and keeps SDRs out of low-probability accounts.
Use Granular Codes for A/B Testing Verticals
Instead of blasting one broad 'software' segment, break it into specific sub-industries (e.g., HR tech vs. cybersecurity) and run separate cadences. Compare reply rates, meeting rates, and ACV by code cluster to identify which micro-verticals deserve more SDR capacity.
Cross-Check Codes with Public and On-Site Signals
Don't blindly trust vendor codes. Spot-check high-value accounts using public tools like NAICS/SIC lookup and the company's own website. If the website headline conflicts with the assigned code, correct it in your CRM and feedback that insight to your data provider or enrichment workflow.
Align SDR Specialization to Industry Clusters
Assign SDRs to industry pods based on code groupings so they can develop repeatable talk tracks and objection handling for their verticals. Over time, this specialization compounds into deeper domain knowledge and higher conversion rates within each industry segment.
Monitor Performance by Code and Refresh Targets Quarterly
Build dashboards that show opens, replies, meetings, and revenue by primary industry code. Each quarter, double down on your best-performing codes, pause or refine underperformers, and refresh lists with new accounts in top segments to avoid over-saturating a narrow universe.
Related Tools & Resources
ZoomInfo
A B2B data platform that provides company and contact data, including industry classifications, used for building targeted prospect lists and powering SDR outreach.
Apollo.io
A sales intelligence and engagement platform that offers firmographic filters like SIC and NAICS codes for list building, plus sequencing for SDR teams.
NAICS.com (NAICS Association)
A specialized data provider and lookup service for NAICS and SIC codes, offering targeted business lists and enrichment APIs that append accurate industry codes.
SICCODE.com
A dedicated industry classification and list provider that maintains detailed SIC/NAICS datasets and delivers verified, industry-segmented B2B contact lists.
Clearbit
A data enrichment platform that appends firmographic fields, including industry and sub-industry, to leads and accounts in CRMs and marketing tools.
LinkedIn Sales Navigator
A prospecting tool that leverages LinkedIn's company categories and industries to help SDRs research and build lists aligned with specific verticals.
Partner with SalesHive for Industry Codes
Because B2B data can decay at alarming rates-recent research shows contact data decay approaching 70.3% annually-SalesHive doesn’t treat industry codes as a one-time append.landbase.com The team continuously verifies and refreshes account data, normalizes codes across multiple providers, and removes obviously miscoded companies from outbound lists. SalesHive then layers vertical-specific scripts and email copy on top of those clean code segments, using AI-powered personalization (via tools like eMod) to reference industry-specific pain points. The result is higher connect rates, more relevant conversations, and a scalable outbound engine across cold calling, email outreach, and fully outsourced SDR teams.
For companies without the internal bandwidth or RevOps sophistication to manage complex firmographic schemas, SalesHive effectively becomes an extension of your sales operations function. Their specialists operationalize industry codes inside your outreach strategy-designing target verticals, building and cleaning lists, and running multi-channel campaigns-so your internal team can focus on running discovery calls, closing deals, and expanding into proven industries with confidence.
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Frequently Asked Questions
What are industry codes in the context of B2B sales development?
Industry codes are standardized classifications-such as SIC and NAICS-that describe what a company actually does. In B2B sales development, they're used to filter and segment accounts for outbound campaigns, define ICPs, and analyze performance by vertical so SDRs can focus on the industries most likely to buy.
Should my team use SIC or NAICS codes for list building?
Most U.S. government data and many modern providers favor NAICS, while legacy systems and private data vendors often still rely on or extend SIC. Many B2B teams use both: NAICS for alignment with government and economic data, and detailed 6-8 digit SIC extensions for finer-grain marketing and sales segmentation. What matters most is picking a standard and using it consistently.
How accurate are industry codes from third-party data providers?
Top-tier data vendors invest heavily in classification, but no provider is perfect-especially as business models evolve. Studies show that B2B data can decay very quickly, with some research citing annual decay rates upward of 70%, which impacts the reliability of firmographic fields like industry codes.landbase.com The best approach is to sample-test, cross-check with company websites, and refresh codes regularly.
How often should we update industry codes in our CRM?
At a minimum, review industry codes for active opportunities and strategic accounts every 6-12 months. For high-velocity outbound motions, many organizations pair ongoing enrichment from data providers with quarterly list refreshes for their core target industries so that SDRs are always working from current, accurate vertical classifications.
Can a company have multiple industry codes, and how should SDRs handle that?
Yes. Many companies have a primary industry code and one or more secondary codes when they operate across several lines of business. For outbound, prioritize the code that best matches the product or business unit you're targeting; in your CRM, store both the official primary code and a 'go-to-market industry' field that reflects how your team wants to treat the account.
How do SDRs practically use industry codes in their day-to-day work?
SDRs use industry codes to build and filter call lists, enroll accounts into vertical-specific cadences, and tailor their openers and discovery questions. For example, an SDR may run a daily view of all new leads with manufacturing-related codes and then use a manufacturing-specific script that references supply chain, safety, or plant efficiency instead of generic productivity language.
