What is an Ideal Customer Profile (ICP)?
Ideal Customer Profile (ICP): The demographics, behavior patterns, wants, and pain points of a business’s ideal customer are all part of an ideal customer profile (ICP). An ICP is meant to help companies target their advertising and sales efforts to the customers who are most likely to buy.
Making an ICP can be helpful for businesses of all sizes. An ICP can help marketing teams focus on the proper channels and make content that resonates with their target group, even if they don’t have much money to spend on marketing.
It can be helpful for sales teams to use an ICP to find and qualify leads while they are doing sales marketing. When salesworkers know what makes a good customer, they can quickly rule out leads that don’t fit the profile, which saves time.
Synonyms
- ICP: The abbreviation for “ideal customer profile” is the more commonly used term within businesses.
- Ideal Buyer Profile: For DTC companies, e-commerce brands, and some business-to-business (B2B) companies, “ideal buyer profile” is a more accurate term since customers are typically the ones making purchasing decisions.
- Ideal Client Profile: For service businesses, an “ideal client profile” is better to use because clients are the ones who engage with and pay for the company’s services.
Why ICPs are good
The ICP helps the sales and marketing teams stay on track throughout the sales process. Businesses can make better choices about where to put their resources when they all have the same idea of the ideal customer.
Here are some specific ways that ICPs can help.
ICPs help marketers decide which campaigns to focus on.
Businesses need to determine which outlets and marketing strategies will help them reach their ideal customers the most when making a marketing plan. An ICP can assist them by showing them where to put their efforts.
For instance, sending marketing messages on Instagram and Twitter makes sense if the target customer is a young professional busy on those sites. When the ICP is an older adult who likes more traditional ways of communicating, on the other hand, businesses should focus on methods such as direct mail or TV ads.
An ICP can make it easier for leads to become customers
A dream customer for a company’s goods or services is what an ICP stands for. Before making a sale, sellers can use an ICP to find and qualify leads from the market groups that are a good fit for their business. Focusing on these high-quality leads can help sales teams close more deals and make the sales process run more smoothly.
It’s easy to make targeted content when you use an ICP
In content marketing, the right people must see your information. An ICP can help by telling you about the content that will appeal to your target group and who they are.
A business-to-business (B2B) company that sells software to small businesses might write blog posts, infographics, and guides that show people how to use the software to fix common issues. Bottom-of-funnel (BOFU) information that teaches prospects about a company’s solutions can work well in B2B sales, which are primarily consultative.
ICPs make account-based marketing work better.
One marketing strategy fits an ICP better than any other: account-based marketing (ABM), also known as account-based selling. By promoting and selling to specific accounts that are more likely to bring in money, ABM helps businesses make more money.
An ICP is the best place to start an ABM program because it’s a list of target accounts.
You can use ICPs to make characters.
A persona is a made-up character representing a part of a business’s target group. Personas are used extensively in sales and marketing to help teams learn more about the people they want to reach.
Using the persona to bring the ICP to life is helpful, whether to make a new product, sell a service, build a website, or even help new workers understand the target customer.
ICPs can help make new products.
For a business, the point is to make goods and options that people need and want. An ICP can be very helpful in this process because it shows you what possible customers want.
An ICP can be used to lead user interviews and focus groups because user research is such an essential part of making new products. Businesses can use this kind of input to ensure they’re on the right track and test out new product ideas.
It’s easy to meet demand with an ICP
Demand creation is all about making people aware of and interested in a business’s goods or services. This can be made more accessible with the help of an ICP, which can show you what kind of content will be most beneficial to customers.
Ideal Buyer Personas vs. Ideal Customer Profiles
Ideal customer profiles and buyer characters are ways to find and connect with your ideal customers, but the two have some essential differences.
A buyer persona is a made-up character that reflects the customer most likely to buy from a business. An ideal customer profile is a description of that type of customer.
Personas are primarily used in marketing to help make content more relevant to specific groups of people. In contrast, ICPs are mainly used by sales and marketing teams to help them find and qualify different types of buyers.
Here are some examples of ideal buyer profiles:
- Owner of a small business who wants to save time and earn more money
- A marketing boss at a big company who is in charge of getting new leads
- The founder of a new business who wants to find investors
- A web creator who is always looking for new styles
- The owner of an online store who wants to find ways to get more customers and make more sales
An ICP gives you a broad picture of your ideal customer, but a persona is more detailed and can include a name, demographics, hobbies, and motivations.
Most of the time, they are target groups shown by a single person’s complete profile. The character is made up, but the identity may be based on accurate information.
A character for a small business owner who wants to be more efficient might be named “Susan Smith.” She would be 38, have two kids, and live in the suburbs.
She might be interested in hacks for getting things done, saving time, and organizing.
One of her main goals might be to get more time off to spend more time with her family.
Core Qualities of a Customer
Take a look at some of the most important things that should be in the profile of your dream customer.
The place
Targeting people in the right area is vital, especially for goods and services only available in certain places. For instance, a software company that helps American business owners understand tax laws probably wouldn’t want to market their goods to people in the UK. Instead, they would need to focus on different accounts for each customer based on where they live.
Annual Income
Some businesses sell pricey goods that can only be bought by people with a lot of money, while others sell cheaper goods that small businesses and individuals can afford.
When making your ICP, you should think about what kind of customer can buy your services or products. It doesn’t make sense to sell a small business owner $10,000 worth of software or vice versa.
Size of the Team
Small teams that don’t need advanced features and solutions that can be changed won’t always be able to use enterprise software. On the other hand, small businesses and solopreneurs might not need company solutions for more prominent companies.
It’s essential to consider the target customer’s team size and what product they need when making an ICP.
Problems to solve
When making material or a product, you should think about the problems your target customer has. What hurts them the most? What do they want to do?
These can help sales teams make sales. They can also help marketing teams write messages that connect with the people they want to reach.
Why you should buy
One reason to buy is to deal with problems, but other reasons are to be more productive, save time, or make more money.
When making an ICP, these needs should be considered because they are emotional and rational.
The Goals
In business, goals are what people want to achieve. There are both short-term and long-term ones, as well as personal and business ones.
Goals can be things like starting a business, getting better data, making more money, saving time, becoming more efficient, getting more leads, and getting more traffic.
Characteristics of a Decision-Maker
The person or people who choose to buy are called “decision-makers.”
The person who makes the choice isn’t always the same person who uses the product.
When making an ICP
It’s essential to consider who will decide and what might affect their choice.
How to Make a Profile of the Perfect Customer
Step by step, let’s look at how to make an ideal customer description.
Write down a list of your best clients.
You can get a better idea of the kind of customer you want by starting with the ones you already have.
This is very helpful when you don’t have a lot of information to work with.
First, make a list of your best clients. Add as many details as you can, like:
- Name of the company
- Type of business
- Location
- Size of business
- Average order value
- Annual sales
- Number of workers
Talk to your best customers to find out what traits they share.
Talk to your best clients and find out about their work.
How hard are things for them? Why did they choose your item? What does your product do for people?
You can use this knowledge to determine which other customers would benefit the most from your product. You can also use it to make a sales plan, improve your product, and develop marketing messages that get people to buy.
Find out what issues buyers want to solve.
Your best buyers will likely have some things in common with each other.
You can then start to figure out what problems they’re trying to solve. This will help you make content and goods that meet their exact needs.
You can start making your ICP once you know the patterns and how to put them into groups.
Write down your ICP
Write down all the information you’ve gathered using an ideal customer description template. Putting your ideas in order like this will help you and your team stay on the same page.
Demographics, such as age, gender, area, and so on, should be in your ICP.
- Challenges: What do they want to achieve?
- Goals: What do they want to get done?
- The process of making a decision: who makes the decision, and what do they do?
You can use online tools for customer analysis to help you fill out this paperwork.
Let your company know about your ICP
You need to share your new description of your ideal customer with your company before you can use it. Your sales and marketing teams and anyone else who might help you get new customers are in this group.
You can use a customer profile form to share it with everyone in your company. This will be done to ensure that everyone has the same knowledge and knows how to use it.
It can then be shared throughout your company so everyone who needs it can get it.
To find sales prospects, use the profile of your ideal customer.
There are several successful ways for sales reps to find potential customers and decision-makers who match their ICP.
- Digital advertising: Use online search tools like Google AdWords and Facebook Ads to find people likely to be interested in your ICP. This ensures that your marketing reaches the right people who might become customers.
- More in-depth market research: Use tools like LinkedIn Sales Navigator for a more refined method. With the help of a Boolean search, you can find possible customers who meet your Ideal Customer Profile (ICP) criteria exactly.
- Using Relationships You Already Have: Don’t forget how powerful recommendations can be. Customers who are happy with your business can help you find new customers who fit your ideal customer description well.
- Site Analysis: Look over your site’s traffic and lead information regularly. This can show you which companies are interested in what you have to offer and whether they fit your Ideal Customer Profile (ICP).
- Professional Networking: Contact LinkedIn’s sizeable professional network to find leads. This site works exceptionally well for getting in touch with people and groups that embody your Ideal Customer Profile (ICP).
- CRM Integration: Use CRM software to keep track of leads and handle them effectively as they go through the buying process. More advanced CRMs can automatically divide leads into groups based on your ICP factors, such as the company’s size, location, and industry. This makes the sales process easier.
Remember that the key to success is not just using these tactics but also constantly evaluating how well they work and improving your ICP based on feedback and interactions in the real world.
