Why developing your Ideal Customer Profile is crucial for growth

In a recent webinar we hosted as part of our ECI Unlocked series, where we bring together our portfolio leaders to discuss shared challenges and opportunities, we looked into one pillar of growth: the Ideal Customer Profile (ICP).  

Hosted by our Commercial Team Partner, Lewis Bantin, we were joined by Dave Kirby, CEO & Founder of Coppett Hill Growth Advisory, and Jon Stead, CRO of ECI portfolio company CMap. 

We’ve distilled the key takeaways on why defining and developing your ICP isn’t just a nice-to-have – it’s imperative for growth.  

What exactly is an ICP?

Let’s start with the basics. Dave Kirby defines it as, “An ideal customer profile is a description of the customers that you’d most like to acquire for your business.” It goes beyond simple demographics and delves into the specific characteristics, needs, and challenges of the customers who will derive the most value from your offerings and, in turn, be the most valuable to your business. 

Getting your ICP right isn’t just about ticking boxes; it’s about creating harmony within your organisation. When you have a clear understanding of your ideal customer, Dave explains “The business should feel simpler… Like musicians in tune with each other, there’s clarity and simplicity.” This alignment permeates every aspect of your operations, from sales and marketing to product development and customer success. 

Conversely, lacking a defined ICP can lead to challenges. Without a clear target, Dave flags “you’ll see sellers ploughing their own furrow, high variability in customer profitability, and difficulty forecasting growth.” Resources are spread thin, efforts are diluted, and achieving consistent, predictable results becomes an uphill battle.  

Why ICPs matter: the tangible benefits

Investing time and effort in developing a robust ICP yields significant returns:

• Laser-focused efforts: Dave illustrates, “It allows us to customise our product and service, tailor our messaging, and know exactly where and how to find our customers.”

• Improved efficiency and ROI: A great ICP leads to higher conversion, shorter sales cycles, better retention, and ultimately, stronger profitability.

• The power of narrowing focus: CRO of CMap, Jon Stead, explains “Once we narrowed down our sectors, that’s when everything clicked. Doing less, but better, has led to our success.” Resisting the urge to be everything to everyone can unlock significant growth. 

• Strategic reprioritisation: Jon continues, “We aligned the business around just two sectors, two geographies, and a size range, and our team finally had brain space. That laser focus changed everything.” Committing to your ICP may require making tough decisions about where to invest your resources. 

• Cultivating internal alignment: Jon shared, “Internal culture shifted: The sense of ownership in their sectors changed how we worked together.” ICP-based teams can foster a stronger sense of ownership and expertise. 

How to define your ICP: A practical approach 

• Start with key dimensions: We think about our world principally through three dimensions: sector, size, and geography. These are often foundational elements for B2B ICPs.

• Ensure prospectability: Your ICP dimensions should be prospectable. If you can’t find data on a trait, it shouldn’t be part of your ICP. Focus on attributes that are measurable and accessible through market research, databases, and other data sources

• Tailor your go-to-market strategies: Your ICP is only as good as your ability to engage with it. Different ICPs require different outreach and engagement strategies. 

• Align operations with ICPs: Structuring your teams and processes around your ideal customer segments ensures targeted and effective engagement. 

• Iteration is key: Your initial ICP might focus on certain targets. However, as you engage with the market, you might discover unmet needs or features that make you adjust your ICP. Iterating allows you to fine-tune your understanding of what truly drives your ideal customers. 

Smart targeting with AI: The future of ICP engagement

Tools powered by AI have changed the way ICPs can be identified and targeted. Sophisticated AI tools now autonomously analyse company websites, intelligently categorising them into precise ICP segments. This automation dramatically reduces the resource burden on your team, freeing up valuable time:   

• Precision targeting with automated account scoring: Allowing for a more precise approach to the most promising leads.

• Data analysis & insights: Uncover valuable patterns and insights from in-depth data analysis, allowing for highly personalised messaging and a deeper understanding of your target audience.

Key learnings: essential takeaways for having a successful ICP

• The discipline of saying no: Resisting the temptation to chase every opportunity is critical for maintaining focus. 

• Effectiveness before efficiency: Initial experimentation and iteration are necessary to refine your ICP and go-to-market strategies. 

• Tailoring your approach: Recognise that different ideal customer profiles will require different go-to-market strategies. What works for one segment may not work for another. 

Developing a well-defined Ideal Customer Profile is not a one-time exercise but an ongoing strategic process. By understanding who your best customers are, where to find them, and how to best serve them, you can unlock significant efficiencies, drive sustainable growth, and build a more resilient and focused business.  

Please reach out to Lewis Bantin in our Commercial Team if you would like to discuss this more, or if you would like to see a copy of the recording.