Why the creation of an Ideal Customer Profile is the foundation of data driven marketing success

 

Before you can execute ABM programs. Before you can send targeted campaigns. Before you can build accurate Intent algorithms. Before you can sensibly enrich data. Before you can create personas. Or a buyer’s journey. Before you can do pretty much anything – you need to build an Ideal Customer Profile (ICP).

This applies from the largest enterprises to the smallest SMBs. And even for start-ups have to, well, start from somewhere. (And we will tell you how.)

Let’s look at why you need an ICP and how it adds value; what a complete ICP looks like; and then how to develop one. And how Demand Studio can help.

Why? After all, most of us will have to reach beyond the “ideal customer” to at least parts of the Total Addressable Market. But an accurate ICP will give you the following insight:

  • It will help you understand the characteristics (firmographic, monetary, and behavioral) of companies where your product or solution resonates most. You may have a good idea – but this will take out the guesswork.
  • In turn you will be able to prioritize and segment your first and third party data so you can target “lookalike” businesses with appropriate messages and content
  • ICP supports personalized engagement tactics
  • You will be able to acquire and enrich data with more focus
  • And you will be able to score customers with propensity for upsell and renewal (and attrition) and build models accordingly
  • It will enable the accurate and efficient allocation of sales and marketing resources that can drive a more productive ABM strategy
  • Intent data usage becomes better defined. If your ICP is a small business then you need different keywords from those required for detection at enterprise level. Decide what

 

What does an Ideal Customer Profile look like?  

The first point is that it is not just a 360 degree customer view that relies on internal data, important though that is. Here is a matrix showing what are typical data fields that can be used and why they are needed.  They will then need to be integrated, aggregated, and segmented into deciles. This practice goes back to the decades old Pareto principle but modern analytics and data science now makes it much more actionable for the digital age.

Data Field

Outcome Result 

Customer History 

  

Date acquired 

Lifetime value

Financial revenue and margin

Lifetime value and profitability

Products/solutions bought 

Product portfolio analysis and cross/upsell opportunity

Seniority of contacts

Customer penetration needed 

Breadth of contacts 

Influencer grouping 

Sales Data 

  

Sales cycle length 

Sales and marketing effort needed 

Level of sales/client success engagement

High or low maintenance – are we matching requirements to action? 

Renewal issues 

What factors are in play? Price/usage? Attrition modelling

Marketing Data 

  

Customer touchpoints 

How much is needed and what is too much? 

Customer engagement metrics 

Engagement levels needed 

Web site visits

Interested in us – or competitors? 

Intent scores (by product) 

Are these helpful? If not why not? 

Data completeness 

Are we missing key contacts that adversely affects our outreach? 

Firmographics 

  

HQ or site and company structure 

Where are decisions taken? 

Size

Sweet spots by product 

Industrial classification 

Sweet spots by segment 

Geography 

Sweet spots by region 

How to Build an ICP

For a large or existing business:

  • Decide what data points are important – and what are easily obtainable. The great can be the enemy of the good!
  • Involve internal stakeholders so use cases are clearly defined
  • Data integration at scale and speed of all the needed data components is essential – so make sure you have the available tools to do this
  • Keep in mind privacy and security especially of personal data at all times

For new companies and start-ups with limited customer data:

We all have to start somewhere! Begin with your initial business plan, early sales conversations and even investor pitches. Then work with experts to acquire relevant data and digital engagement.

How Demand Studio Can Help

We have developed a process model that integrates data and develops actionable models with best in breed technology – without the expense or burden of yet another platform. Here is a quick overview of the process:

 

We would love to tell you more!

About Demand Studio

Demand Studio provides a unique and global approach to planning, implementing and delivering integrated demand acceleration solutions.
Our services ensure full alignment and integration with our clients’ environment and sales and marketing goals.