Developing an ideal customer profile (ICP) is an essential element of any B2B strategy plan. An ideal customer profile is a description of the type of company that would be the most likely to benefit from your product or service. Companies that align with your ICP are essential for growing your business as they are more likely to buy, stay loyal to your product, and recommend you to others.
Here are the steps you should take to create an ICP for your business:
Step 1: Identify your best customers
A great way to understand who you should target is by analyzing your existing customers and making a list of the best ones.
Put together a list of the customers with the highest MRR, have been with you the longest, have referred you to others the most, or whatever success looks like for your business.
It’s also a good idea to define what your least ideal customer looks like to avoid wasting time and effort on prospects that are unlikely to become customers.
Step 2: Connect with them
It is essential to learn as much as possible about your ideal customers and why they are the best fit for your business.
How can you find these answers?
Talk to your customers. Gaining insight into your ideal customers requires engaging with them directly. Speak to your top ten customers to learn more about their needs, challenges, and expectations when using your product.
The end goal is to discover the following:
- Their buying processes
- Who was involved in the buying process
- How they found you
- Why they purchased
- How they’re benefitting from your product
Learning about your customer’s challenges and motivations helps you approach them with targeted messaging and may also reveal new ways of serving them.
Additionally, current customers can help you determine how to target accounts with the same pain points they did.
Here are the questions we at Digital Wasabi typically tell our clients to ask their customers to get a better understanding and reasoning behind their purchasing decisions:
- What steps do you usually take when looking for a solution like ours?
- How did you first hear about our product?
- What pain points were you looking to address when you bought our product?
- What factors influenced your purchasing decision?
- Were there any referrals that influenced your decision to buy?
- Why did you decide to purchase our product?
- What do you love most about our product?
- Are you satisfied with everything (quality, service, support, results, etc.), or something that can be improved?
- Who are the decision-makers when making your purchase decision?
- What benefits do you get out of using our solution today?
- Where do you look for information from your industry? Which blogs, websites, or influencers are you following?
- Which social media platforms do you hang out on?
Step 3: Analyze the data
Once you have completed your interviews and gathered the answers, you should look for any shared characteristics.
What common attributes do these customers share?
Identify any pattern or similarity and use these insights as you move on to the next stage of building your ideal customer profile.
Step 4: Create your ICP
The next step is to use all the data and insights you’ve gathered to create a detailed description of your ideal customer.
It’s time to compile all the information you have gathered and construct your ideal customer profile. Make sure to include the patterns you have identified among your most successful customers.
Step 5: Refine and update
Creating an ICP isn’t a “once-and-done” project. Instead, you should regularly review and update your ideal customer profile to reflect changes in the customer base and the market.
To sum up, it is essential for any B2B business that wants to increase ROI and foster customer loyalty to create an ideal customer profile. Knowing who your ideal customers are, allows you to create content, campaigns, and sales pitches that are specifically tailored to their needs. This will help you make sure that your resources are being used in the most efficient manner.