Funnel, leads and sales

What is an ICP (ideal customer profile)

Also known as: ideal customer profile, ideal client profile

Rodrigo Fávaro, founder of ROO3
Rodrigo Fávaro Founder of ROO3
Published
The word ICP in large letters on a dark background, with the address roo3.co/marketing
Short answer

An ICP, short for ideal customer profile, is the kind of company, or customer, that gets the most out of what you sell and brings the most return to the business. It is described by objective traits such as industry, size, region, revenue and business stage, and it guides where to prospect, who to serve first and who to say no to.

Hypothetical example

A time tracking software company reviews its 120 customers. Those in logistics and manufacturing, with 50 to 300 employees, pay three times more on average, churn half as often and close faster than the rest.

That becomes the ICP. Ads, prospecting lists and content focus on that group, and requests from very small companies go to a simple self serve plan, without taking up the sales team's time.

ICP and persona

In B2B sales, the two go together: the ICP says which companies to target, the persona says who to talk to inside them and what to say.

Two different descriptions
DescribesExample criteria
ICPThe company, or customer type, most worth servingIndustry, size, region, revenue, technology used
PersonaThe person who decides or influences the purchaseRole, goals, pains, objections, where they get information

How to define your ICP from current customers

The most used criteria in B2B

From most objective to most subtle
How to check it
IndustryThe company's line of business, from public registries or industry codes
SizeNumber of employees or revenue
RegionWhere the company operates and where you can serve it
StageHiring, opening locations, switching systems
TechnologyTools the company already uses that your product works with

What the ICP is for in practice

Common mistakes

Frequently asked questions

What is an ICP?

The ideal customer profile: the kind of company, or customer, that gets the most out of what you sell and brings the most return to the business.

What is the difference between an ICP and a persona?

The ICP describes the ideal company or customer type. The persona describes the person who decides or influences the purchase inside it.

How do I define an ICP?

By analyzing current customers: separate the best ones by revenue, margin and retention, and find out what they have in common.

Does an ICP apply to B2C?

Yes, with other criteria, such as income range, region, life stage and purchase frequency. The term is more common in B2B.

How often should an ICP be reviewed?

A review every six months is usually enough, or sooner if the product, pricing or market changes.

Related terms

Sources
Rodrigo Fávaro

Rodrigo Fávaro

Founder of ROO3, a marketing and technology agency in São José do Rio Preto, Brazil. Builds AI products running in production (Tobia, gerar.app, Pense Mercado) and maintains the AI Benchmark, a public ranking of AI models.

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