Ideal Customer Profile (ICP)
Components of an ideal customer profile (aka Ideal Account Profile – IAP):
- Company size (# employees is more available than revenue)
- Geography
- Industry
- Other
Anything criteria which (a) correlates strongly with win rate and (b) is readily available as a data source (ex: technographics; # people in a given job function; etc.). I recommend excluding information that can only be gathered through discovery.
One may also wish to articulate an ‘anti-ICP’ – the types of companies know to have poor LTV:CAC.
Buyer Personas
Components of a buyer profile:
- Job title (level & function)
- Key responsibilities, objectives, and/or priorities
- Messaging
Addressable Market (TAM/SAM/SOM)
- TAM (total addressable market): TAM is the total market demand for a product or service, regardless of who the provider is.
- SAM (serviceable addressable market): SAM is the segment of the TAM that a company can realistically reach and serve. It is typically defined by factors such as geographical location, customer demographics, and product or service capabilities.
- SOM (serviceable obtainable market): SOM is the portion of the SAM that a company can realistically capture. It is typically defined by factors such as the company’s competitive landscape, marketing and sales resources, and financial resources.