Short excerpt from a YouTube video (Jason M. Lemkin) on defining an Ideal Customer Profile (ICP). The speakers advise defining ICPs by analysing existing power users—customers with very high usage and enthusiasm who actively help improve the product—and prioritizing where you create customer value (not just close rate or CAC) when choosing where to focus.
So how did you go through that process of defining the icp?
Yeah, we looked at our existing customers that were power users, so really high usage. They were. Were newing. These were raving fans. They loved the product. They were giving us feedback, really helping us build a better version of the product every month. And so we said, okay, who are these folks? And then we defined it off of that and said, we're just going to focus in here. And yes, there's a lot of interest in a lot of different places, but if we do that, there's.
Boom, all star. Because most people, when they do that, they look at the close rate and the cac. No, you want to look at where you're creating customer value to drive that decision. Okay.
