An ideal customer profile is critical to business success because it informs:
- How you’ll allocate your marketing budget
- How many sales reps to hire
- How much revenue is available in your Total Addressable Market (TAM)
Additionally, an ICP will help avoid wasting time on poor-fit prospects who won’t convert and/or those who – even if they did buy – would likely churn out soon after implementation due to a misalignment between their goals and your solutions.
An effective ICP will:
Enable marketers to spend more efficiently on programs with the highest ROI, allowing highly targeted campaigns, landing pages, and messaging.
Provide clarity to sales, help identify where reps are needed – as well as how many – and focus their efforts on your total addressable market (TAM).
Enable sales and marketing alignment with data-driven definition that’s agreeable to both teams focusing on pipeline revenue.
Provide a focus for the organization. With a clearly defined ICP, everyone on your go-to-market team will be on the same page.
Your ICP is dynamic. Your ideal customer can and will change as you release new products, the market evolves, competitors pivot, and companies leave (or enter) your qualification standards.