Why You're Wasting Time Selling to the Wrong People & How to Fix It

Not having clarity on your Ideal Customer Profile (ICP) can cost you valuable deals, whether it's losing opportunities you could have won or winning deals that ultimately don't pan out. If you're a sales representative engaged in numerous conversations and deals but finding that your success rate isn't where you'd like it to be or that customers aren't achieving their goals, this blog post is for you.

It's crucial to pay attention if this situation resonates with you, as the exercise I'm about to guide you through can provide significant clarity and save you from many headaches. So, let's dive into it.

Imagine you're going on a date. Before you embark on that date, you probably have a specific type of person in mind – someone with a particular appearance, personality, background, and communication style. This person represents your ideal partner in the context of dating, relationships, or marriage. Interestingly, in sales, we follow a similar principle. Instead of referring to it as a relationship, we call it our Ideal Customer Profile (ICP). The lack of clarity regarding your ICP can, as mentioned earlier, cost you valuable deals.

Now, let's outline five key considerations to ensure clarity on your ICP:

1. Industry: Determine the industry your potential customers belong to. Are they tech companies selling to other tech companies? Or are you selling technology to homeowners? Understanding their industry helps you align your solution with their needs.

2. Company Size: Consider the size of the company that suits your solution. A company with $1 million in revenue has different requirements than one with $100 million. Tailoring your approach to the right company size is essential.

3. Geographic Location: Where are your potential customers located? Do you see more success in rural or urban areas, or are they international or domestic? Geographic factors can influence the suitability of your solution.

4. Budget: Analyze the budget required for customers to leverage your solution effectively. If your solution demands a substantial investment, targeting small companies may not be the best use of your time unless they represent a specific niche market.

5. Other Solutions: Consider the complementary solutions that your target customers may need. If your product or service often pairs with other tools, check if your potential customers are already using them. For instance, if you offer a lead generation service, prospects might need a CRM system.

Now, let's move on to the actionable exercise:

Step 1: Talk to Customers Begin with this step, as it's the foundation of understanding your ICP. Engage with your existing customers, whether they were acquired by you or the company's founder. Discover why they became customers. Understand how they fit into your industry, geography, company size, and other solutions. Most importantly, identify the pain points your solution addressed for both the buyer and the company.

Step 2: Assess the Impact Determine the impact or ROI your solution had on your customers. This step involves understanding the financial implications of solving their pain points. Customers invest in your solution for a reason, so ask them how they justified this investment.

Step 3: Define Your ICP Statement Craft a concise ICP statement that summarizes your ideal customer profile. This statement should include industry, company size, geographic location, budget considerations, and any other relevant factors. This statement will serve as your guide when prospecting for new customers.

Step 4: Find Lookalikes Once you have your ICP statement, search for ten companies that closely match it. These companies should align perfectly with your criteria. If they deviate from any aspect of your ICP, exclude them from your list. The goal here is to focus your efforts on the prospects with the highest potential for success with your solution.

By following these steps, you can gain a clearer understanding of your Ideal Customer Profile and target your efforts more effectively. Remember, successful sales are about helping people, and identifying the right customers is a crucial part of that process.