How To Create an ICP for Sales: A Step-by-Step Guide

Which of the following is more specific?

• A software development firm.
• A 250 to 500-employee software development firm located in a North American tech hub focused on innovative product development and market expansion within the United States. 

You’re right if you answered the latter. And that level of detail is more important than you think.

In sales, these statements are known as ideal customer profiles, or ICPs — fictional representations of ideal customers. Understanding the specific needs and pain points of your ICP helps sales and marketing teams refine sales pitches, targeting relevant solutions that improve customer acquisition.

Here’s a guide to ICPs for sales with insights on reaching your target audience effectively.

Understanding the importance of an ICP in sales

An ICP is a snapshot of the type of person or company that would benefit most from your product or service. It typically includes details like industry, company size, location, and specific challenges the customer faces. With a clear picture of your ideal customer, sales and marketing teams can zero in on high-potential sales prospects and craft personalized pitches that speak directly to their needs. 

Instead of casting a wide net, ICPs facilitate focused sales strategies that target leads most likely to convert into loyal customers. But they aren’t just about narrowing down your audience. They’re a strategic asset that empowers businesses to build stronger relationships, speed up sales cycles, and drive sustainable growth. 

Sales ICP versus buyer persona: What's the difference?

When it comes to building your customer profile templates, two powerful tools come into play: ICPs and buyer personas. Think of your ICP as a blueprint for the kinds of companies and people you want to reach, while buyer personas create vivid portraits of specific individuals. Together, they form a dynamic duo that can supercharge your sales strategy. 

Let’s break down the distinctions to elevate your approach and help you engage with your audience. 

Ideal customer profile 

An ICP defines the characteristics of the ideal type of person or organization that will benefit most from your product or service. It defines broad attributes, including industry, company size, and general demographic. An ICP helps sales teams identify high-potential leads at an organizational level, guiding them to target those most likely to convert and generate long-term value. 

Let’s imagine an ICP for a software company that provides CRM tools. The ICP might be a mid-sized tech firm with 250–400 employees located in North America and generating $10 to $50 million in annual revenue. This company's success requires efficient collaboration and project-tracking tools, making it a good target. 

Buyer persona

A buyer persona is a semi-fictional representation of an individual customer, either on their own or within a target company. This is an opportunity for sales teams to get creative and imagine the personal attributes of specific decision-makers, including their job title, motivations, and challenges. Buyer personas help sales and marketing teams understand the nuances of their audience, engaging prospects with sales pitches tailored to specific needs. 

Let’s continue refining the needs of the same software company above. A buyer persona might be a mid-career project manager named Maggie who oversees several teams at the firm. She’s a driven leader who loves efficiency and seeks CRM tools that simplify and centralize communication and task management. And her most frequent pain points are navigating tight deadlines and team misalignment. With these details in mind, it’s easier to narrow down marketing and sales strategies to reach someone like Maggie.

How to create a sales ICP in 8 steps

Building an ICP is easy. Here's a step-by-step guide to brainstorm an ICP for your sales team:

1. Gather your team

Bring together everyone involved in the sales process — product, customer success, and marketing teams included. Collaborative brainstorming fosters diverse insights and helps avoid blind spots, leading to well-defined ICPs that build impactful sales strategies and marketing campaigns. 

2. List your best customers

Before imagining your ideal customer base, start with what you already know. Go through existing clients and customers to identify your most profitable demographics and those you enjoy working with. Consider who consistently returns for business. This foundational list sets the stage for your analysis. 

3. Analyze your customers

Dive deep into the data. Examine demographics and firmographics like company size, industry, and location of your target market. Behavior metrics such as website traffic and social media engagement are helpful as well, especially for identifying common pain points and goals. What patterns emerge? 

4. Compile a list of notable attributes

Based on your analysis, compile a list of key attributes your ideal customers share. Include specifics like position or industry, budget, and pain points. 

5. Identify your customer's challenges

Now, it’s time for some speculative brainstorming. What are the biggest challenges your ideal customers face? What are they trying to achieve? This is a good opportunity to conduct interviews or surveys with existing customers to gather deep insights. 

Consider using an AI meeting assistant like OtterPilot for Sales to record and summarize the call. Not only do you save time, but you document every word and avoid missing important insights. 

6. Leverage your unique value proposition

Articulate how your product or service helps the ideal customer overcome challenges and reach goals. Highlight what sets your offering apart — this is essential for crafting compelling sales pitches and standing out from the competition. 

7. Document your ICP

Once you have a good understanding of your ideal customer, document your ICP clearly and concisely. Make this document easily accessible to your sales team, ensuring everyone is aligned on who to target and why. Regularly revisit and update the ICP as your market and customer base evolve. 

8. Build it into your onboarding process

Your ICP shouldn’t live deep inside your company’s files. Make it an integral part of onboarding new sales and marketing team members. By familiarizing them with the ICP from day one, you align everyone on the target and sales strategy. This helps your sales team effectively identify qualified leads faster and tailor sales pitches that close deals. 

7 tips for creating an effective ICP

Creating an ICP sharpens your focus on the right prospects, enhances the qualification process, and ultimately drives more sales. 

Here are some simple tips to add to your team’s process:

1. Be specific

The more details you know about your ideal customer, the easier it is to identify and qualify prospects. Narrow down attributes, considering niches and specific challenges that set them apart. Rather than generalizing, precision helps you craft sharper customer targeting and marketing strategies. 

2. Be data-driven

We live in an information-rich world. Use it to your advantage. Leverage market research about your target audience to go beyond surface-level metrics and explore customer behaviors and trends. Finely tuned data will ensure your ICP reflects reality rather than assumptions. 

3. Be realistic

Even if your sales team can sell sweaters in a heat wave, it doesn’t mean they should. Your organization can’t be everything for everyone. Identify the customers that truly align with your offerings. These are the ones who engage and benefit from your solutions, increasing your chances of closing deals and cementing long-term loyalty. 

4. Be open to new perspectives

Your sales team doesn’t exist in a vacuum. They’re part of a unit that also includes customer support, product development, and marketing teams, so bring everyone on board. Varied insights reveal nuances about customer needs and expectations, enriching your ICP and the efficiency of individual departments. 

5. Be dynamic

An ICP is a living document. After all, markets and industries constantly shift and evolve. Regularly assess the ICP’s relevance against market changes to adapt your business strategy to real-time shifts and stay ahead of evolving customer needs. 

6. Be receptive to customer feedback

Regularly gather insights from your existing customers to validate and refine your ICP. Mix up your approach with formal surveys and regular team meetings to discuss feedback from sales calls and client interactions. Continuous dialogue helps your ICP stay relevant and align with customer needs. 

7. Use Otter.ai

Information is your greatest resource. Whether it’s a team brainstorming meeting or a call with a new prospect, Otter’s virtual meeting assistant creates accurate transcripts and extracts valuable insights. This saves time and keeps you from overlooking a single detail. AI can blast your sales strategy into the future, empowering your team to refine your ICP and improve your sales cycle.

Unlock your ICP's full potential with Otter

Are you ready to improve your marketing strategies and sales process? Unlock your ICP’s full potential and boost your sales efficiency with Otter.ai. 

With our powerful virtual assistant, your sales and marketing teams can capture impactful insights, streamline communication, and build innovative ideal customer profiles. Transform the way you work with Otter.