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How to find your first ICP Guide
- Ideal Customer Profile (ICP) defines the properties of most valuable customers, while target market or total addressable market includes every possible company that might buy product or service.
- ICP should be a description of perfect customer for B2B SaaS business and encapsulate who customers are from a firmographic perspective as well as their use cases or JTBD.
- Identifying ICP ultimately helps focus on attracting and selling to the right customers and building a product that delivers maximum value to them and in exchange, they stick around the longest, spend the most, and spread the word for you.
- The hidden costs of not defining an ICP include wasted marketing spend, lower conversion rates, increased customer churn, product-market misalignment, inefficient use of resources, loss of competitive edge.
- Quantitative analysis identifies most profitable and loyal customer segments, qualitative analysis provides a deeper understanding of their needs and behaviors, and market analysis validates the opportunity from market perspective.
- ICP should be constantly refining and redefined entirely as gaining a new understanding of market and customers.
- Aligning team around an ICP is one of the single biggest high-impact activities a company can do to reduce churn and accelerate growth.
- Courses like 'How to find your Ideal Customer Profile 'ICP' in B2B SaaS' can be helpful for learning more.
- Defining ICP is not a set-and-forget exercise, and you should be constantly refining and, in some cases, redefining it entirely as you gain a new understanding of the market and your customers.
- Aligning your team around an ICP is one of the single biggest high-impact activities you can do as a company to reduce churn and accelerate growth.
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