Outbound Wiki

Ideal customer profile

Defining the companies most likely to buy and succeed, from firmographics to the problems they have.

An ideal customer profile earns its keep when it changes who you pursue, what you ask, and when you walk away. It should show whether an account is a fit or a bad bet before a rep invests in a sequence or a call. Your best ICP may be defined as much by customers you should stop adding as by customers you want more of.1 Build it from accounts that succeed with your offer, then turn those patterns into rules a rep can apply. A working ICP changes a target list. Without that effect, the profile is only a description.

Define what the profile must decide

Start at the account level and decide what the profile needs to predict. This keeps the work tied to commercial and delivery outcomes.

An ideal customer profile describes the companies a business is best at winning, serving, retaining, and expanding.2 It answers four operating questions: who will buy, who will buy smoothly, who can be implemented and serviced, and who will renew and expand.3

Keep the account rule separate from the buyer persona. The ICP describes the company through factors such as revenue, industry, headcount, technology stack, and trigger events, while the persona describes the person inside that company who evaluates and buys.4

Before adding fields, ask which companies can be won without forcing the sale, which can get value without creating delivery strain, and which are likely to stay and expand. Together, these questions cover the customer journey. A company that buys quickly and becomes difficult to serve is a poor ICP even if the first deal looks attractive.

Start with real accounts

Build the profile from accounts that have already shown you how the business works. Begin with customers whose outcomes you want to repeat.

Your most successful deployments are likely to represent your ideal customer profile.5 Existing best customers can serve as an avatar or benchmark for evaluating potential customers.6 Use those accounts as reference points, then compare them with customers that consumed effort without producing the same result.

Ask, "What does a single customer look like?"7 Then ask, "Which are the best and why? Which are the worst and why?"8 Look for the conditions behind the result, including how the account bought, adopted, and received service. After building a few profiles, look for a pattern across them.9

A trait belongs in the ICP when it helps explain why the account succeeds with you. Size, a familiar industry, or a recognisable stack alone do not establish that.

Turn patterns into account rules

Convert observations into fields a rep can check before spending time. The profile needs enough detail to guide selection and enough flexibility to be tested.

An ICP should contain firmographic and technographic criteria, explicit disqualifiers, and scoring and tiers in the CRM.10 Include functional components and psychographic factors in the profile.11 Useful account dimensions include company size, geography, industry, and incumbent solution.12

Write each criterion so two reps would reach the same answer from the same account information. For every positive condition, define what would make the account a poor fit. For every disqualifier, state whether it ends outreach or only lowers priority.

Keep the criteria close to observable account information. "Cares about efficiency" is too loose to guide a list. A condition tied to the company, its current setup, or a trigger can be checked and scored. A belief that lives only in the rep's head cannot.

Make the rule usable in prospecting

Make the profile change the decisions reps make during account selection and review. Give the team a short fit check to use before research expands.

Use the question, "Is this an ICP fit?" when reviewing a deal or target account.13 The profile helps representatives understand why they are calling on particular prospects and arrive more informed on calls.14 Sellers should look at ICP data early because it indicates which prospects resemble customers and may be likely to buy.15

Turn the answer into an action. A clear fit earns research and outreach. Keep a partial fit on the list only when there is a reason. A disqualifier closes the loop. The rep should be able to explain the account's fit without reading a paragraph back to the team.

Test and revise it in outbound

Treat the first version as a working hypothesis. Test whether real prospects that match the profile behave like the customers used to build it.

Come up with a hypothesis for what the ideal customer looks like, then research prospects against it.16 Expect revision: most founders initially got their ICP wrong.17 Use outbound results to decide which attributes predict interest, progression, and customer quality. Data from outbound sales is described as a better signal of what is working than leads from investors and friends.18

Revise the rule when the pattern breaks. If accounts that score well repeatedly struggle to buy or succeed, inspect the criteria that admitted them. If accounts outside the profile progress and become strong customers, record what the current profile missed before changing it.

What not to do

Common failures come from choosing an audience loosely and leaving the decision in prose. Catch them before the profile reaches the prospecting team.

  • Give customer selection comparable attention. Companies that failed to spend comparable time figuring out who to solve a problem for often regretted it.19
  • A strong idea can look bad when conversations use the wrong audience, leading you to abandon it.20
  • Separate what a good or potential customer looks like from what a poor-fit customer looks like.21
  • Scored criteria and explicit disqualifiers should carry the decision; prose alone is insufficient.22

Sources

  1. 1
    “Be careful: don’t create an idealized, fictional profile. Instead, look for customers who represent where you’d like to take the business versus those who are actually preventing your future success. You want more of the former and fewer of the latter.”
  2. 2
    “The standard definition: an ideal customer profile (ICP) is an account-level description of the companies you are best at winning, serving, retaining and expanding.”
  3. 3
    “It answers four questions: who will buy, who will buy smoothly, who can be implemented and serviced, and who will renew and expand.”
  4. 4
    “An ICP describes the company worth selling to — revenue, industry, headcount, tech stack, trigger events. A persona describes the person inside that company who evaluates and buys.”
  5. 5
    “Your most successful deployments are likely to represent your ideal customer profile.”
  6. 6
    “And based on what they look like, that should serve as an avatar or a benchmark of what”
  7. 7
    “What does a single customer look like?”
  8. 8
    “You already have a few clients. Which are the best and why? Which are the worst and why? Reverse-engineer the best buyer profile. (PS. Forget about market segments. That’s old school.)”
  9. 9
    “After building a few profiles, you should start seeing a pattern.”
  10. 10
    “It is a short list of firmographic and technographic criteria, plus explicit disqualifiers, scored and tiered in the CRM.”
  11. 11
    “Another example is the functional components down to a psychographic level, you know, are”
  12. 12
    “attributes? Maybe it's company size, geography, industry, incumbent solution. What are those”
    Hall of Fame: Cory Bray

    30 Minutes to President's ClubBack to the text

  13. 13
    “Is this an ICP fit?”
  14. 14
    “they're calling on and be more informed and sharper when they get on those calls.”
  15. 15
    “That should be one of the first things you look at because it's an indicator of people with propensity to buy in a certain sector that look like other customers.”
  16. 16
    “come up with a hypothesis for what your ideal customer looks like, and then do research”
  17. 17
    “Most founders initially got their ICP wrong.”
  18. 18
    “Data from outbound sales is the best signal for what’s working, versus leads from investors and friends.”
  19. 19
    “When they didn’t do this, they often regretted it.”
  20. 20
    “If you’ve got a killer idea but you’re talking to the wrong people, you’ll come away thinking your idea stinks, and give up.”
  21. 21
    “a good customer looks like or a potential customer looks like versus one that doesn't.”
    Hall of Fame: Ryan Reisert

    30 Minutes to President's ClubBack to the text

  22. 22
    “An account-level definition of which companies you are best at winning, serving, retaining and expanding, expressed as scored criteria and explicit disqualifiers rather than prose.”