What is Your Ideal Customer Profile (If you don’t know, stop everything and define it!)
Having a clear definition of your Ideal Customer is critical. I know we hear this broad statement a lot but defining this is business critical. Simple.
The ICP (Ideal Customer Profile) should define everything from the features and functionality to who and how you build your sales and marketing strategy.
How to describe your ICP’s core challenges is the most important exercise to maximize your sales and marketing. It will help you:
- Find targeted prospects more easily with smart targeting
- Disqualify poor prospects a lot more efficiently.
The result of this will be a clear criteria list with associated explanations.
The ICP indicates your sales sweet-spot where companies represent the best fit for your product. To clarify these are the people who will genuinely benefit from your product and provide longevity to you as customers. Target these as your top priority.
Some of the common segmentation for ICP is:
- Annual Revenue
- # Employees
- Industry vertical
- Sales footprint
- Buyer role
All sounds relatively simple but how do you build an ICP? Here’s a few simple steps:
- Pull reports or review past 24 months of sales data by industry grouping, size of customer, i.e. SMB, Enterprise etc.
- Determine the top 3 industries represented in your customer base.
- Identify the customer size that best represents your current install base (annual revenue, # employees)
- Confirm the sales footprint for your current customer base.
- Confirm the buyer of your product
Get this data visual. Here’s an example.
An important note. This is an iterative process that needs refining, adapting and your operations brought inline with you ICP.