Exercise 8: Who are your ideal customers?
Below is a step by step approach to define ICPs:
Identify and list your customer segments by analyzing your customer profile mapping across the existing customer base. If there are additional potential customer segments not in your current customer base, add them.
Dive deeper! Do additional research to further understand who the customer is, what pain points they face and how your product solves their pain points. Understand what differentiates you from competitors solving their needs.
Make an ICP for each segment of customers using the following template:
|IDEAL CLIENT PROFILE|
|Number of Employees|
|Type of Product/ Service|
Now in order to prioritize your ICPs, follow those three steps:
Define one or more specific goals you wish to achieve at this stage. This can also be a value you need most from your customers. For example, goals can be – X number of new customers with Y average annual revenue, X number of customer advocates, etc.
Define a time frame to achieve this goal. Three to six months is generally a good time frame to start with, but it really depends. This is where you consider parameters that can affect your goal like your typical sales cycle, number of touchpoints, etc. from customer profile mapping.
Prioritize these ICPs based on the goal and time frame you decided in step 1 and 2. Revise goal, time frame and ICPs if needed until you have a clear fit between one or more ICP with goals and timeframe.
You can use the following template to prioritize your ICPs or any tool that supports such functionalities.
|Customer||Use Case||Contract Details||Deal Size||Active vs One Time||Client since when||Current Status||Company Size||Notes||How They Support the Goal||Time Frame||Customer Segment||Ideal Customer Profile|
|Customer 1||Customer Segment 1||ICP 1|
Remember that these are hypotheses which have to be edited as you learn more about your customer segments.
These ICPs will be your first hypotheses about the ICPs in the US market. However, just as in your current market(s), you should prioritize them to meet the goal and timeline of Market Outreach. In order to do so, repeat the 3 step approach to prioritization from above to choose ICPs that are going to be the best fit for Market Outreach.
Who should perform this activity:
Founder | Head of Sales | Marketing Manager