Vietnam’s rice noodles offer diverse flavors, each unique despite sharing the same base. Take Pho and Bun, for example – similar yet distinct rice noodles. While newcomers may mix them up, true experts with local experience can savor the differences.
Similarly, in marketing, we have two concepts: Ideal Customer Profile (ICP) and Persona. Some mistake them for being the same, but those who grasp the nuances can use them effectively. If persona is like Pho – well-known and understood by many marketers – then ICP is like Bun, more of a specialty mainly known by B2B experts. In this article, I’ll delve into persona and ICP, explaining their differences and when to use each.
1. What are Ideal Customer Profile and Persona?
An ICP is a description of the company or organization that is the best fit for your offer. This profile usually includes criteria such as company size, industry, turnover, geographical location, technological equipment and other relevant factors.
On the other hand, a Persona is a fictional representation of your ideal customer, including demographic information, motivations, pain points, challenges, goals and behavior patterns.
ICP helps focus marketing and sales efforts on prospects most likely to become long-term customers. Personas aid in understanding target audiences and tailoring messaging and content to resonate with them.
While both Personas and ICPs are used in the B2B context, Persona is a more common concept in the B2C sector. In B2B, the buyer ICP is first employed to analyze target businesses. Persona then comes into play to understand the stakeholders of the buyer group, such as decision-makers, champions, influencers and blockers.The combination of ICP and Personas is specifically beneficial in Account-Based Marketing (ABM), where customized messaging targets top potential customers in the buying group.
Here is a simple example illustrating ICP and Buyer Personas for a B2B project management software company in the construction industry (please note that I have no insight into the industry, the numbers are for illustrative purposes only):
Ideal Customer Profile:
- Revenue: €1B or more
- No. of employees: 1000+
- Type: General contractor
- Region: Germany (focusing on Bavaria and Baden-Württemberg)
- Growth stage: Expanding or established, focused on efficiency and innovation
- Decision-makers: Project Managers, IT Managers, CEOs
- Type of project: Mix of residential (multi-family homes) and commercial (office buildings) projects
- Project size and complexity: Budget range €1-5 million, moderate complexity with 10-20 stakeholders
- Technology adoption: Currently using basic project management software, looking for integration with other construction tools
Buyer Persona 1 (Project Manager Max):
- Role in the buying group: Decision maker, champion, influencer
- Company: XYZ Construction Group
- Background: 10 years experience in the construction industry, degree in Civil Engineering, certifications in project managemen
- Goals: Efficient project planning, seamless communication, resource management, risk mitigation, reporting and analytics
- Challenges: Team resistance to change, data security, scalability, time constraints, technical infrastructure
- Preferences: Detail-oriented, organized, values intuitive and user-friendly software. Prefers cloud-based solutions with mobile accessibility
- Objections: cost, compatibility, learning curve, customization, support & maintenance
- Channels: Email, phone call, in-person meeting, video conference, social media (LinkedIn), industry events
Buyer Persona 2 (Project Manager Alex):
- Role in the buying group: Decision maker, champion, influencer
- Company: XYZ Construction Group
- Background: 10 years in the construction industry, degree in Computer Science, certifications in project management and ITIL
- Goals: System reliability, technology integration, cost efficiency, compliance and security, user experience
- Challenges: System reliability, technology integration, cost management, compliance and security, change management, resource constraints
- Preferences: Detail-oriented, analytical, values reliability and performance, appreciates clear communication and proactive support
- Objections: Cost, compatibility, security, usability
- Channels: Email, webinars, demos, industry events, social media (LinkedIn), referrals
2. How to build an Ideal Customer Profile?
When building an ICP, it is important to reflect the characteristics of companies in your industry. While some guesswork may be necessary, you should strive to base your profile on real data whenever possible.
Here is a breakdown of the process:
- Research and analyze:
- Identify common characteristics among your most successful and satisfied customers
- Look for patterns in company size, industry, geographic location, revenue and other relevant factors
- Understand the broader market landscape and identify potential segments or industries that align with your offering
- Consider market trends, competitor analysis, industry reports to gather insights
- Define key attributes:
- Company size: Annual revenue, number of employees, market share, growth stage
- Industry: Identify industries or verticals that have a specific need for your product or service
- Geographic location: Determine regions or markets where there is a higher demand for your offering
- Technological stack: Assess the technology infrastructure and tools commonly used by your target companies
- Company pain points
- Buying behavior: Understand the typical purchasing process and decision-making criteria of your target companies
- Legality: Assess if there are legal aspects that limit (or promote) your potential customer base (location, government rules, age)
- Ask specific questions:
- What size of companies are most likely to see value in what we offer?
- What stage of business are they in? Are they established or just starting out?
- What industries or verticals benefit most from our product or service?
- Which geographic regions or markets have the highest demand for our solution?
- What common characteristics do our most successful customers share?
- What is their budget for your solutions or products?
- What technology stack or tools are commonly used by our target companies?
- What challenges or pain points do our ideal customers face that our product or service can address?
- How do companies typically make purchasing decisions in our industry?
- Refine and iterate:
- Continuously review and refine your ICP based on feedback, market changes, and new insights.
- Regularly update your ICP as your product or service evolves and as you gain more experience in your target market.
3. How to build a Persona?
When creating a persona, it is important to focus on substance rather than aesthetics. Here is a guide to building a persona:
- Research and collect data:
- Gather data from various sources, including your sales team (usually the best source in B2B), market research, customer surveys, interviews, website analytics, and social media insights.
- Analyze existing customer data to identify trends, patterns, and common characteristics among your target audience.
- Identify key attributes:
- Demographic Information: Age, gender, location, marital status, household income, education level.
- Psychographic Information: Interests, hobbies, values, attitudes, lifestyle preferences.
- Professional Background: Job title, industry, company size, role within the organization, level of experience.
- Behavioral Insights: Buying behavior, decision-making process, preferred communication channels, online habits.
- Goals and Challenges: Primary goals, aspirations, pain points, obstacles to achieving goals.
- Objections: Arguments they may have against buying your solution
- Ask specific questions:
- Who is our ideal customer?
- What are their demographics?
- What are their interests and hobbies?
- What are their goals and aspirations?
- What challenges do they face?
- How do they make purchasing decisions?
- What channels do they use to research products or services?
- What motivates them to buy? What demotivates them to buy?
- How can our product or service help them achieve their goals?
- Validate and iterate:
- Share the personas with your team and stakeholders for feedback and validation.
- Use feedback to refine and iterate on the personas, ensuring they accurately reflect your target audience
- Research and collect data:
Final thoughts
Both ICPs and personas are essential for understanding your target audience and crafting effective marketing strategies. Knowing the differences between them helps you use them more efficiently, leading to better marketing plans and outcomes.