What is an Ideal Customer Profile?
An Ideal Customer Profile (ICP) is a set of criteria used to define the best kind of customer for your business. Generally that means someone that’s easy to sell to and who’s likely to remain a customer for the long term. Identifying your ICP is a key part of an ABM strategy, as well as any effort to narrow down your true Total Addressable Market (TAM); the universe of businesses or consumers you can actually sell to.
Figuring out your ICP often relies on analysis of your existing customer base, centered on three core questions:
- Ability to serve: How effectively can you serve the needs of this business?
- Ability to sell: How effectively can you sell your product to this business?
- Ability to extract value: How lucrative are these businesses?
Written by Jack Segal. Shoot me an email with questions or comments, and if you'd like to support my writing, you can send me a tip using Stripe!
Date
2023-01-30Subscribe
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