How to set the right ICP when building a sales process?

Setting the right Ideal Customer Profile (ICP) is a critical step in building an effective and targeted sales process. There is a lot to say here, but I will try to limit this essay to the logical accents that I find most important for every sales team in building their sales strategy.

The ICP serves as the foundation for your entire sales strategy, guiding your team in identifying and engaging with the most valuable prospects, which makes the process of creating it a crucial point in the whole sales process.

Let us take a look at the most 'sensitive' steps in building ICP, which may influence your whole sales strategy.

Step 1. Understand Your Current Customer Base

You've got to start by analyzing your existing customer base. Identify common characteristics among your most successful and satisfied customers. Look for patterns in demographics, industry, company size, location, and any other relevant factors. This analysis forms the initial basis for your ICP.

A simple conclusion like, "Well, everybody focuses on North American region, so will I" is not right, because you are not 'everybody'. You've got to answer the question "Why?" and "How my business and my product/services is different from everyone else's?" every time when you come up with an idea regarding your sales strategy.

Step 2. Conduct Market Research

Go beyond your existing customer base and conduct comprehensive market research. Understand the broader industry landscape, market trends, and the needs and challenges of potential customers. This research helps you identify opportunities and refine your ICP based on the current market dynamics.

While you were following your last year's strategy, some market trends might have experienced changes; knowing this and using this in your planning for the next period of time sets a good basis for success of your sales policy.

Step 3. Collaborate with Sales and Marketing Teams

Doing a good job of marketing is a guarantee of success for every business nowadays. So, creating a habit of close collaboration between your sales and marketing teams is a must. Do not ignore this 'rule' during the ICP development process. Sales teams can provide valuable insights into the characteristics of successful deals, while marketing teams can contribute information on lead generation and customer behavior. A collaborative approach ensures a holistic understanding of your target audience.

Step 4. Define Firmographic and Demographic Criteria

Specify firmographic and demographic criteria that align with your target audience. This includes factors such as industry, company size, location, revenue, and employee count. Make sure that you can clearly outline the characteristics that make a potential client company an ideal fit for your product or service.

It is also important to review your ICP once in a while during the year. In our dynamic world, even a perfectly built ICP may have to be reconsidered under the impact of global market changes on your business domain.

Step 5. Identify Pain Points and Challenges

Understanding the pain points and challenges of your potential customers is crucial. Conduct surveys, interviews, or market research to gather insights into the issues your target audience faces. Remember: your ICP should reflect the specific problems your product or service is designed to solve.

Step 6. Analyze Buying Behavior

To do this well, you've got to examine the buying behavior of your ideal customers. How do they research products or services? What factors influence their purchasing decisions? Understanding the decision-making process helps you tailor your sales approach to meet the needs and expectations of your target audience.

Do not forget to do this quite regularly. Using ICP as the basis for your sales strategy is a process, not a one-time action. It should be revised and altered regularly, along with every change in general business strategy.

Step 7. Evaluate Technographic and Psychographic Factor

This factor is becoming more and more significant in the world of technology. In addition to firmographic and demographic criteria, consider technographic (technology-related) and psychographic (values, interests, and lifestyles) factors. This can include the use of specific technologies, preferences in communication channels, or shared values that resonate with your product or service.

Step 8. Review and Refine Regularly

Market conditions and customer preferences evolve over time. As I mentioned above, it is critical to review and refine your ICP to ensure it remains aligned with the changing landscape. This can involve analyzing new customer data, monitoring industry trends, and staying responsive to shifts in your target market.

Step 9. Seek Feedback from Sales Team

Your sales team is on the front lines and interacts directly with potential customers. Regularly seek feedback from your sales team regarding the effectiveness of the ICP. They can provide insights into whether the defined criteria align with the realities of the sales process and suggest adjustments if needed.

Step 10. Document and Communicate the ICP

Once you've defined your ICP, document it clearly and communicate it across your organization. Ensure that everyone involved in the sales process understands the criteria for identifying and prioritizing potential customers. This alignment ensures consistency in targeting and messaging.

Summing up, let me repeat and stress that setting the right Ideal Customer Profile is a dynamic and ongoing process that requires a combination of data analysis, market research, collaboration between teams, and a keen understanding of customer needs. A smartly built ICP is your tool to successful navigation through the ever-changing sea of global business.