While you keep hearing people say this term, know your customer (KYC), an Ideal Customer Profile (ICP, on the other hand, is a little different. It’s a specific description of the company or person who gets the most value from what you sell. It is that exact target customer group that gives you the most value back.
Here’s how it works. You simply look at your current best customers, the ones who stay longest, spend the most, and never complain. You find the patterns. What industry are they in? How big are they? What problem were they trying to solve when they found you? That pattern becomes your filter.
Here's an example. Imagine you run a lead generation advisory firm. You’ve been advising companies on how to generate leads for their business to acquire sales. Your ICP could be those companies with bad experience spending a lot of money on marketing but don’t really produce results despite those investments. Now you know exactly who to target. Now you know exactly who to ignore. That focus saves you money, time and resources.
