The startup world has exploded with new initiatives and innovative products in recent years. However, despite the abundance of new startups, many struggle to find success. And one of the main reasons for this is that they fail to identify and address the correct audience.

But how can organizations stop making bad assumptions about their product market fit and not walk around blindly? Well, the answer lies in finding the correct ICP for their business.

What does ICP mean, and why is it so important for startups and businesses to define it?

First things first, ICP stands for Ideal Customer Profile. And to translate the term even more, it is safe to say that it's the sum of the characteristics that make up a company's perfect customer. Hence, finding the correct ICP allows organizations to tailor their tactics. It allows them to find the right message to appeal to the people most likely to become loyal customers.

Naturally, many entrepreneurs may argue that settling for just a class of possible buyers is not the right choice. And their point of view is perfectly understandable. We acknowledge that selling to everyone interested in your product or service is tempting. But that is adrift sailing. And this approach leads to high rates of customer churn and dissatisfaction.

In other words, without a clear understanding of your ideal customer, you risk wasting time and resources. And that translates into marketing efforts that are unlikely to yield results. 

Instead, by defining your ICP, you can focus on the people most likely to benefit from your product or service. And doing so increases your chances of success.

How to define an Ideal Customer Profile?

The process of defining an ICP is a complex one. It involves collecting valuable data by conducting interviews and surveys. It requires reading between the lines, looking for patterns and then analyzing them objectively. Everything from demographics to behavior, age to location, job title, and interests is important. Each pain point and trait can provide valuable insights into who the ideal customer is and how to reach them. 

However, as hard as it may sound, it is a doable task. And it is certainly possible for startup founders to define their Ideal Customer Profile (ICP) on their own. Yet, there is another option to consider. And that is hiring a third-party company to handle the process for you.

Working with an external company may be a better option

Here are the main benefits of contracting an external company to help find the correct ICP: 

• Objectivity:

As mentioned earlier, objectivity is a must. And an external company can provide a fresh perspective. They can analyze your existing customer data. And they can do it without being blindsided by your initial assumptions. This can help in identifying patterns and characteristics that you may have overlooked on your own.

• Efficiency:

Defining an ICP can be time-consuming, particularly if you do not have experience in this area. A third-party company can streamline the process and get it done quickly and efficiently. Doing so allows you to focus on other aspects of your business.

• Cost-effective:

While there is a cost associated with outsourcing ICP discovery, it can be more cost-effective in the long run than trying to do it on your own. An external company can help you create a more accurate and effective ICP. And thus, reduce the cost of customer acquisition.

In conclusion, discovering your ICP is crucial for the progress of every organization, especially startups. It is the foundation of an effective marketing and sales strategy that can make or break a business. 

Therefore, my advice to startup founders and business owners is this. Take the time to discover and define your ICP correctly. Doing so will decrease the chances of failure and increase the chances of success. Remember, it's not about selling to everyone interested in your product or service. It's about selling to the people most likely to become loyal customers. So, invest in your ICP discovery process, and watch your business grow and thrive. 

Want to learn more about defining your ICP? Let us guide your steps.