🕵🏻‍♂️ 6 pillars of a B2B ICP

#Key 1: Historical Growth Analysis - Understanding Your B2B Sweet Spot

The foundation of a strong B2B Ideal Customer Profile (ICP) lies in understanding who fuels your company's growth. 

Why it Matters: B2B markets are rarely homogenous. Different segments within your target market will have distinct buying behaviors and needs. By analyzing your historical growth, you can identify the sweet spot – the segment that consistently drives revenue, wins deals quickly, and retains customers effectively. 

What to Analyze:

This analysis hinges on diving deep into your existing customer data. Here's a breakdown of key metrics to consider:

• Revenue by Market and Segment: This unveils which segments generate the most revenue, highlighting areas of strength.

• Number of Customers: Analyze the volume of customers within each segment. A high number of customers with lower average revenue might indicate a high-volume, low-touch sales approach.

• Year-over-Year (YoY) Growth:  YoY growth reveals which segments are experiencing the fastest expansion, indicating potential for further investment. 

• Win Rates: Identify segments where you close deals most efficiently. 

• Sales Cycle Length: Analyze the average time it takes to close deals in each segment. Shorter sales cycles suggest a more streamlined buying process.

• Churn Rate: Understand customer retention across segments. Lower churn rates indicate a stronger fit between your product and customer needs.

Taking Action:

Once you've analyzed this data, select the segment with the most favorable combination of metrics. This segment forms the initial foundation of your ICP. 

Remember: Historical analysis is just the first step.  Combine these insights with further research on industry trends, customer interviews, and competitor analysis to build a comprehensive ICP that drives future success.

#Key 2: Key Account Analysis - Unlocking the DNA of Your Ideal Customer

Building on the insights from historical growth analysis, let's delve deeper into the specific accounts that contribute most to your success. This is where key account analysis comes into play. 

You can leverage your CRM to uncover valuable data:

1. Top 5 Most Profitable Customers: Identify the customers who contribute the most to your bottom line. Analyze their industry, size, buying behavior, and any unique characteristics.

2. Top 5 Fastest Deals:  Examine the deals that closed with exceptional speed. What factors contributed to such a smooth buying process? 

3. Top 5 Successful Use Cases & Easy-to-Work Customers:  Identify customers who are not only happy with your product but also leverage it effectively. Understanding their implementation process and what makes them "easy to work with" provides valuable insights.

4. Top 5 Lost Deals: While analyzing wins is crucial, learning from lost deals holds immense value. Analyze the reasons behind these losses to identify potential dealbreakers and refine your targeting strategy. 

Unearthing Common Threads:

By analyzing these top performers, you'll start to identify recurring patterns.  Look for commonalities across:

• Industry: Do your most successful customers belong to specific industries? 

• Company Size: Is there a sweet spot in terms of company size for your product or service?

• Decision-Making Process: What buying process do your ideal customers typically follow?

• Challenges and Pain Points: What common challenges do your ideal customers face that your product solves effectively?

The Takeaway:

Remember, key account analysis isn't just about replicating past successes. It's about identifying the core DNA of your ideal customer, allowing you to attract and convert more high-value clients in the future.

Here are the 6 pillars of B2B ICP

𝐚. 𝐅𝐢𝐫𝐦𝐨𝐠𝐫𝐚𝐩𝐡𝐢𝐜𝐬.

• Geo markets

• Segments/verticals

• Stack

• Other important criteria

𝐛. 𝗧𝗶𝗲𝗿 𝘀𝗲𝗴𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻.

It's true, not all clients are the same. If a single company can bring in 10 times the revenue of others, why should they be approached with the same prospecting and marketing strategies?

Segment all accounts by three tiers:

• Tier 1: Highest revenue potential

• Tier 2: Medium revenue potential

• Tier 3: Lowest revenue potential

Define firmographics per tier:

• Team size

• Revenue, etc.

𝗰. 𝗔𝗰𝗰𝗼𝘂𝗻𝘁 𝗾𝘂𝗮𝗹𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗱𝗶𝘀𝗾𝘂𝗮𝗹𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗰𝗿𝗶𝘁𝗲𝗿𝗶𝗮.

Define tangible criteria based on a key account analysis:

- What makes an account a good fit?

E.g. Losses are stated in the annual report because of the currency volatility.

- What makes the account a bad fit even if it fits firmographics?

E.g. The CFO is in the 1st year in a current position and doesn't want to change the current hedging policy.

𝗱. 𝐁𝐮𝐲𝐢𝐧𝐠 𝐜𝐨𝐦𝐦𝐢𝐭𝐭𝐞𝐞.

You don't sell to B2B companies, you sell to concrete people who create a buying committee.

Here is a typical buying committee structure:

• Champions

• Decision-makers.

• Influencers

• Blockers

• Insiders

𝗲. 𝗝𝗼𝗯𝘀-𝘁𝗼-𝗯𝗲-𝗱𝗼𝗻𝗲.

Define jobs-to-be-done, KPIs, goals, and challenges of a typical buying committee member. You'll use these insights for marketing messages, content, and buyer enablement.

f. 𝐀𝐜𝐜𝐨𝐮𝐧𝐭 𝐄𝐧𝐫𝐢𝐜𝐡𝐦𝐞𝐧𝐭.

Your ICP won't be complete without understanding how your customers are buying and why. Here are 4 points you need to know

• Buying triggers

• Research and vendor evaluation process

• Value they got from your product

• Channel presence: where do they get industry information? Whom do they follow?

PS: Ready to elevate your B2B marketing game? Join our online academy and unlock the keys to B2B marketing success with our comprehensive courses.

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Adechina ODJO