ICP, Attention

Hi There,

Question: What is an ICP really?

Answer: I know, that you know, it's an ideal customer profile, but what does that mean?

When is a customer ideal?

Here's what I think it is, it's the customer who:

  • Costs the least to acquire
  • Brings in the most amount of revenue (or profit)
  • Gets the biggest impact possible from your product

So when we're defining an ICP we're building a predictive model on who that will be.

I think that's a better framework to use when defining the ICP than the executive exercise it commonly is.

This also means it's a model, it should be updated.

Tracking CAC, LTV, CAC:LTV, velocity, product usage, impact (if possible from your product, e.g. recruitment software can track hires as impact)... you can build out this model to be dynamic based on data from your customers, building highly specific ICPs.

I think this is one of the closed-loop systems where AI will be utilized to evolve GTM. (Might be working on this at GTM Engineering, will share the general model as soon as I've finished it)

Tool of the week

Attention

It's 2024, time for note-taking is over. Attention - for those who don't know - is a meeting assistant that automated note-taking, scores calls and automatically updates your CRM. I'm a fan because attention is one of the few that allows customer prompts.

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