Every sales & marketing team aspires to target the most relevant companies for their campaigns. To achieve this precision, it’s crucial to initiate a data-driven list of the desired audience. This process is rooted in the creation of an Ideal Customer Profile (ICP) and Target Account List (TAL). So, let’s break it down.
Firstly, we’ll delve into what ICP means.
Through this article, I will unravel the essence of the Ideal Customer Profile (ICP), its construction, and its significance in demand generation and ABM campaigns.
What is an Ideal Customer Profile (ICP)?
Simply put, an ICP represents the characteristics of customers best suited for your product – those who are poised to deliver immense value to your venture. Here, by “customer,” we’re pointing towards target companies, rather than individual buyers or end-users.
In essence, your ICP illustrates the firmographic, technographic, and behavioral traits of companies or accounts predicted to emerge as your brand’s top patrons.
How to Build an ICP
Step 1: Gather Your Existing Customer Data
Begin by reaching out to your internal teams: sales, customer success, business intelligence, and operations. They hold the keys to the crucial customer data you require. Aim for data sources such as insights from your sales funnel, metrics from website visitors, records of customer interactions, Net Promoter Scores (NPS), financial reports, and any pertinent business intelligence data. This diverse pool of information sets the stage for crafting your ICP.
Step 2: Analyze Data Patterns & Highlight Attributes of Successful Accounts
Having amassed a wealth of data, your next mission is to pore over it. The aim? Spot common patterns and zero in on the distinguishing attributes of your ‘closed-won’ accounts. This analysis typically revolves around two core data types: firmographic and technographic.
To make things clearer, let’s dissect these two:
Firmographic Data:
– Industry: E.g., Retail, CPG, Aviation
– Geography: E.g., US, Europe, APAC
– Company Size: E.g., 500-1000 employees
– Revenue: E.g., $20Mn+
Technographic Data:
– Marketing Automation Platforms: E.g., Hubspot, Marketo, Pardot
– CRM Systems: E.g., Salesforce, Hubspot
– Email Platforms: E.g., Mailchimp, SendInBlue
– Website Hosting Vendors: E.g., Hostinger, GoDaddy
It’s important to note: while technographic data attributes can be quite diverse and specific to your business, firmographic attributes tend to be more consistent across industries. However, you’re always free to expand on these attributes based on your unique criteria and needs.
Step 3: Pinpoint Key Patterns and Formulate Your ICP
With your firmographic and technographic data neatly segmented, dive deeper into your sales funnel information. To refine your ICP, it’s essential to ask probing questions:
– Which industries or company sizes frequently feature in your ‘closed-won’ accounts?
– What revenue bracket do these accounts typically fall into?
– Geographically, where are the majority of these accounts located?
– Into which categories do these successful accounts predominantly fit?
– What narrative does your data spin about these triumphs?
By meticulously answering these queries and channeling the insights into a structured template, you’ll be well-equipped to crisply define your Ideal Customer Profile.
In Conclusion
Building an Ideal Customer Profile (ICP) isn’t just about gathering data; it’s about understanding the narrative behind that data. Through a structured, three-step process, we’ve learned how to extract insights from our existing data, spot pivotal patterns, and then articulate those patterns into a clear, actionable ICP. Remember, a well-defined ICP doesn’t just guide your sales and marketing efforts—it’s a blueprint for future growth and a touchstone for aligning your team’s strategies. As you continue on your B2B SaaS journey, refer back to this ICP guide whenever you need clarity on targeting the right accounts, ensuring you always hit the mark.
