An ICP, or Ideal Customer Profile, is a detailed outline of a companys most valuable customers and prospects that are most likely to buy their product or service. It defines the firmographic, environmental, and behavioral attributes of accounts that are expected to become a companys most valuable customers. Unlike the total addressable market or total available market, which are calculations or estimates of the universe of potential target customers, the ICP is focused on the most valuable customers and prospects. The ICP is a foundational, organization-wide decision impacting downstream sales and marketing efforts. It aligns marketing, sales, service, and executive teams to the highest-value accounts and creates focus on scalable and repeatable strategies and tactics to engage and convert top accounts.

ICPs are all about sales targeting. To be successful in B2B sales, companies need to understand which types of businesses represent the most value, so they can focus on the most important opportunities first. By understanding the unique characteristics of ideal customers, companies can make it easier to cut out the noise and laser focus their marketing campaigns and budget on prospects more likely to convert.

Creating an ICP is critical to sales and marketing success. Companies that invest in a well-defined ICP achieve compelling business results, including increased closed-won deals, higher close rates, and improved overall efficiency of the sales process. An ICP can inform the entire sales and marketing strategy, from content creation to advertising to sales outreach.