Whether you’re selling a great product as goods or service, trying to address everyone will result in superficial relationships with no results. Not all companies must be interested in the products you sell. So, you don’t have to convert every lead you find into a customer. Instead, you should define what type of companies your products are suitable for. B2B ideal customer profile is the determination of common customer criteria.
What is B2B ideal customer profile?
ICP —Ideal Customer Profile— is an important marketing asset. It allows you to clarify the customer’s profile suitable for your products and company. In B2B marketing stratiges, business-to-business (B2B) ideal customer profile is used to define valuable customers. An ICP built with accurate data is the best way to get to know your B2B potential customers in advance.
Definition of B2B ideal customer profile
ICP is a fictional company that symbolizes the form of customer that will benefit the most from your product or service. By comprehending your ideal customer definition, you can ensure that your sales, marketing, product and business development teams collaborate effectively and keep focused on common goals.
B2C marketing systems have been using ICP for a long time by a different name. B2C marketers name the ICP as a buyer persona. Since it is a successful identification method, ICP has been actively used in B2B sales strategies in recent years.
One of the significant factors for maintaining the sales momentum is to make sure you target and reach the right leads. That’s what ICP does. It provides you a roadmap through the accurate target and shows you the qualities of a good client.
Define your good customers
The advantage of using ICP is that it defines the patterns about your ideal customers. These patterns are; what distinctive ideal client characteristics they should have, why they need your product, and how they make purchasing decisions. Ideal customer profile allows you to understand the characteristics of a good client that you can sell to, what problems they face and what solutions they need.
B2B ideal customer profile is essentially a characterization of a fictional organization (a corporation, a government organization, or a non-profit institution) that obtains substantial value from your product/service and also contributes considerable value to your business. It’s the type of customer you desire, as well as the type of customer who wishes to purchase from you.
There are several methods for generating a B2B ideal customer profile, but the most common is to examine your current best customers and determine what they have in common.
The reason for failed sales prospecting and lead generation activities is a lack of understanding. If you do not understand your leads’ interests, problems, and requirements, how can you sell to them? All of your efforts will come to nothing without a deep understanding of the characteristics of potential customers.
These are the results of my own research conducted for the last ten years that shows the benefits of using a B2B ideal customer profile:
- Companies that conduct ICP analysis reach three times more potential customers and sales turnover than those who don’t use ICP.
- 90% of companies that exceed their sales targets classify leads according to ICP.
- 70% of industrial vendors state that they find more valuable leads by using ICP.
Generating thousands of useless leads doesn’t provide you any profits. The actual target is to find valuable leads that you can convert into customers. That’s why B2B ideal customer profile is so beneficial. It helps you target-oriented prospecting instead of wasting your time with a large crowd.
Benefits of B2B ideal customer profile
As a salesperson, your time is your most valuable asset; ensure that you spend it wisely on the customers most likely to use your solutions. To accomplish this, you must first define your Ideal Customer Profile (ICP) in order to identify the specific types of businesses that you should target.
- By identifying who are our customers, you can: Concentrate your sales and marketing efforts on the businesses most likely to purchase from you now.
- Sell to businesses that have the greatest potential for success with your product or service. A customer who is not a good fit for your service consumes valuable time from your customer service team and may end up costing your business more than the partnership is worth.
- Create intelligent short lists of companies to target, monitor buying signals within these potential customers, and act quickly when a sales opportunity presents itself.
- Make your marketing efforts hyper-targeted. Once you’ve identified your ideal customer profile, you’ll know who to write content for and who to target with your ads.
When generating your ICPs, look at the entire organization, not only one person in charge. A customer profile does not cover an individual, it reflects the entire customer company. Usually, one person makes the final decision, such as the company’s owner or general manager.
It may look like this from the outside, but be sure that the truth is different. As I mentioned earlier, an industrial company’s procurement process is commonly carried out by a team of specialists.
Generate ICP for companies, not individuals
The final decision-maker always considers the evaluations of this procurement team. As a result, the purchasing decision is mainly given by a team comprising buyers and technical experts —B2B procurement team— who play a role in this process.
Keep this in your mind. When you are generating your ideal customer profile, examine not only the individual behaviors of final decision-makers but also the functions of procurement teams.
You will see the benefits of using B2B ideal customer profile
Since generating an ICP is a significant point, I want to tell you everything about it. I can sincerely state that knowing, understanding, and using the advantages of ICP will provide outstanding benefits to you through your industrial sales career.
An ideal customer is a company that may purchase your products. It has requirements, willingness, and financial sources to order. Besides, they can like your products and appreciate you as a supplier. In conclusion, that is a customer that will be happy with you.
B2B ideal customer profile contributes significantly to the value of your business. It focuses your marketing and sales activities, allowing you to focus on securing high-quality leads rather than wasting time and money pursuing leads that may never materialize.
You can develop more effective marketing and sales strategies that add value to your business. If you want to increase the quality and quantity of leads coming into your business, generating a B2B ideal customer profile is critical.