The phrase ‘customer is God’ comes from a Japanese proverb. However, unlike other local proverbs the attitude towards which are subjective, the truth of this one is etched into the functioning of the business world.
The customer regulates the market. Their needs and pain points are what sets businesses in motion. To serve this customer best, is it important to identify the most minute details of their personality.
But considering you have thousands of customers finding the ideal one is an almost impossible feat. This is where the ideal customer profile comes in.
What is the ideal customer profile?
The ideal customer profile (ICP) is a representation of the type of customer who would make an account a good fit for your company by receiving the most value and giving the best possible in return. The goal of such a representation is to identify the problems your business is solving for potential customers, range your product/service with the needs of your customers, and collect information that would aid future alterations in the marketing strategy.
Difference between the ideal customer profile and the buyer persona?
A buyer persona is more comprehensive than the ICP. The ICP is focused on determining whether the lead is a potential client and does not delve into the individuality of the customer. A buyer persona, on the other hand, is a semi-fictional representation of your customers that provides structure and context to help create marketing strategies.
A company will only have a single ideal customer profile, but numerous buyer personas for the different kinds of customers. While the ICP tells you which leads to target, the buyer persona helps you define the best ways to market your offer to said lead.
How to define your ideal customer profile?
As mentioned before, the #1 purpose of having an ICP is to narrow down your leads. Hence, in order to define your ICP, you need to lay down the limitations and restrictions of your business. Here are a few questions you could answer to do so.
1. Which geographical locations do you sell your products/services in?
2. What is the lowest budget package on your list of services?
3. What is the age limit for your potential customer base?
Any lead that does not fit within the answers to these questions and many others would not make an ideal customer. Knowing this helps you make sure that your team is not wasting their resources on a lead who most likely won’t close a deal with the company.
Creating an ideal customer profile is a valuable exercise for any business. But it is important to understand that as your business grows and changes, so does the representation. Hence, it is necessary to update and revise them as often as possible. Now that you know what an ideal customer profile is, isn’t it time you created one for your business?