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Digital Sales Report 2024

Trend 4 —
Ideal customer profiles are under the microscope.

Trend 4 —
Ideal customer profiles are under the microscope.

You and your ICP:
A match made in heaven? 

There's nothing better than finding — or creating — the perfect profile. And thankfully, there's no swiping involved when it comes to your ICP. 

The perfect match in terms of solution provided, product fit, and relevancy, your ideal customer profile is your guiding light when it comes to knowing what kind of deals your sales team should spend their time on. 

If you're doing it right, you'll have spent much time and effort defining your ideal customer, using data, customer surveys, and research to shape the profile.

And yet, we found that 98% of revenue leaders we spoke to are planning to make changes to their ICP in 2024. 

So, what gives?

0

are broadening their target market.

0

are targeting different personas.

0

are targeting companies of other sizes.

Source: GetAccept's Digital Sales Report, 2024. The top 3 changes revenue leaders are considering making to their ICP in 2024. 

1 .

Competition

2 .

Product challenges

3 .

Incorrect deal qualification

98% (1)

 

of revenue leaders are planning to make changes to their Ideal Customer Profile in 2024.

Why are we falling out of love with our ideal customer profiles?

If what they say is 'nothing lasts forever', then what makes your ICP the exception? 

Exactly. Panic over. Your ideal customer profile is supposed to evolve!

From changes in your sales strategy to product or service developments that allow you to broaden your scope, it's impossible to expect that your ICP will remain static forever.

Strategy changes

Performance challenges

Scaling challenges

CAC and LTV discrepancies

Competition

Churn & complaints

Here are some of the signs that you might be ready to take a closer look at yours:

  1. Your business strategy has changed. If your company undergoes a strategic shift, such as entering new markets, launching new products, or adopting a different business model, your ICP may need to be adjusted to reflect these changes.
  2. Your sales team is struggling and it's not for lack of trying. If your sales team consistently faces challenges in converting leads or closing deals, it might be a sign that your ICP is the culprit. Analyze the characteristics of successful and unsuccessful deals to identify patterns that can help you to refine your ICP. 
  3. You're facing some scaling challenges. Sometimes it's not that your ICP isn't right, but that it's self-limiting. If your business is experiencing difficulties in scaling, it might be due to limitations in your ICP. In which case, it's time to reevaluate whether your current profile allows for scalable and sustainable growth.
  4. Something's not adding up with your Customer Acquisition Cost (CAC) and lifetime Value (LTV). Have you noticed a mismatch between these two metrics? Your ICP should be helping you to attract customers who provide long-term value, so discrepancies here might indicate your ICP needs some adjusting. 
  5. New competitors are appearing or existing ones are making big moves. Changes in the competitive landscape, including the entry of new competitors or changes in existing ones, could impact your ICP. Evaluate whether your current profile allows you to effectively differentiate yourself in the market.
  6. Your customers are churning or complaining a lot. Customer feedback, complaints, or requests might highlight areas where your ICP needs adjustment. Listen to your customers, as they can provide valuable insights into whether your current ideal customer profile is resonating with them.

70%

 

of those planning to amend their ICP are broadening their target market.

Mistakes you might be making with your ICP

Are you one of the 98% of revenue leaders considering making changes to your ICP in 2024? Then you might want to consider a few things before you start working on it again, like whether you've collected enough data and involved the necessary stakeholders across your company. 

Your ICP isn't backed by research and data

The first step to creating a solid Ideal Customer Profile is to dedicate a good amount of time to researching and collecting data about what is already working really well for your business.

Of course, there's no need to limit or put a damper on your ambitions, but your ICP is going to bring the most value when it's got a strong basis in reality and not fiction.

What kind of companies do you already have success with? Who is happiest with your product? Are there patterns when it comes to the companies bringing in the highest ARR?

Use customer surveys, data, and metrics like customer lifetime value (CLV), customer acquisition cost (CAC), and Net promoter Score (NPS) to help you get the most accurate answers to these questions.

You're not using your ICP to guide your marketing strategy

We've said it thrice and we'll say it again: The relationship between marketing and sales is super duper important. So once you've nailed down your ICP, it's time to use it to amp up your marketing strategy.

It can be used for creating content that addresses your customers' needs, goals, and pain points. It should also serve as a guide for lead generation and nurturing campaigns, aligning your teams and ensuring a common understanding of your customers.

And, of course, using data to track the success of these campaigns helps you to understand if you're attracting the right crowd, turning curious minds into customers, and making sure they stick around.

You're mixing up your ICP and buyer personas

When crafting an ideal customer profile (ICP), think of it as sketching the perfect company for your business—consider demographics, budget, number of employees, behaviors, the whole nine yards.

Now, buyer personas take it a step further, creating detailed profiles of specific individuals in your target audience.

To keep things clear, zoom out for big-picture ICP insights when planning overall strategies. Then, zoom in with buyer personas for the nitty-gritty during personalized campaigns. It's like having a dual lens – one for the broad view and another for those close-up details.

You create your ICP and then never look at it again

We've talked about using research and data to help build your ICP, and this isn't a once-and-done job — it has to be an ongoing process that reflects changes to your product, the market, and the macro environment.

You should aim to regularly revisit and refine your ICP based on new data, market trends, and customer feedback.

This will allow you to adapt to changes in the business landscape and ensure your profile remains accurate and relevant time after time.

"As a marketing and sales strategy, the ICP framework can deliver faster sales cycles, higher conversion rates and greater lifetime values."

The Framework for Ideal Customer Profile Development

Gartner

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