Deep dive
How to Find Your Ideal Customer Before You Scale
Keith Brown · Growth & Leadership
Sep 18, 2024 · 5 min read
Your ideal customer is the narrowest group that feels the problem most, can buy without a committee, and talks to each other. Start smaller than feels comfortable. A tight profile makes every decision easier — the message, the price, where to show up — and you can widen it once you're winning.
Selling to everyone costs the most
Ask a founder who their customer is and the most common answer is some version of everyone. It feels ambitious, and it's expensive.
When you sell to everyone, your message is vague, your ads are broad, and every deal looks different. Nothing compounds.
What an ideal customer profile is
An ideal customer profile, or ICP, is a description of the company and the person most likely to buy, stay and refer others. It is specific enough to make a list from.
- The company: industry, size, stage, and the trigger that makes the problem urgent.
- The person: the job title that owns the problem and can sign without three approvals.
- The pain: what it costs them today in money, time or risk.
- The watering hole: where these people already gather and listen.
Three signs you've got it right
- Deals close faster, because the buyer already knows they have the problem.
- Customers stay longer, because the product fits how they work.
- Customers refer people who look just like them.
If you're closing deals but they all look different, you don't have an ICP yet. You have a sales team working hard.
How to find yours
Look at the customers you already have. Rank them by how happy they are, how much they pay and how easy they were to win.
The top five usually share something you didn't plan for — an industry, a trigger event, a job title. That pattern is your starting profile.
No customers yet? Do twenty interviews with people you think have the problem. Watch who leans in and who is just being polite.
Common mistakes
- Defining the ICP by demographics instead of by the problem.
- Choosing the buyer you'd like instead of the one who's buying.
- Making the profile so broad it can't be turned into a list of names.
- Never revisiting it. Your best customer at $1M is rarely your best at $10M.
When to widen it
Widen your profile only when you're winning the narrow one consistently and the next group is a short step away. Jumping too early spreads a small team across too many conversations.
This also changes how you sell. When the founder is the only one who can close, a tight ICP is what lets someone else start doing it. More on that in How do I sell when I'm the only one who can close?
Start by doing things that don't scale
The fastest way to learn who your best customer is: sell to them yourself, one at a time. Paul Graham wrote one of the most useful essays on this:
One of the most common types of advice we give at Y Combinator is to do things that don't scale.
In practice, that means the founder makes the calls, sits in on onboarding and reads every support ticket. It's slow, and it's the only way to see the pattern up close.
You'll notice which customers get value in the first week and which ones struggle. You'll hear the exact words they use to describe the problem. Those words become your website, your ads and your sales emails.
Turn the profile into a list
An ICP is only useful if you can turn it into names. Test yours with a simple exercise.
- Write the profile in two sentences: the company and the person.
- Try to build a list of 100 companies that match, using LinkedIn, industry directories or association member lists.
- If you can't find 100, the profile may be too narrow or too vague to reach.
- If you find 10,000 in an hour, it's probably too broad to give you an edge.
The right profile usually produces a list of a few hundred to a few thousand companies. That's small enough to know well and big enough to build a business on.
Write the message for one person
Once you know who the buyer is, write every message as if it's going to one of them. Use their job title, their trigger event and the cost they feel today.
A message written for one specific buyer almost always beats a message written for everyone, even when it reaches fewer people. Fewer, better conversations are how small teams win against bigger ones.
Your profile also shapes your price and your valuation later. Customers who stay and expand make revenue more predictable, and predictable revenue is worth more. More on that in What is my company worth?
Signs your profile is working
You'll know a good ICP when the numbers start moving in the same direction.
- Your sales cycle gets shorter, because you spend less time convincing people they have a problem.
- Your win rate goes up, because you stop chasing deals that were never going to close.
- Your best customers start sounding alike on calls.
- Your marketing gets cheaper, because you know exactly where to show up.
If none of those are happening after a few months, revisit the profile. Talk to your five happiest customers again and ask why they bought.
Who should own it
In a small company, the founder should own the ICP. It touches product, pricing, marketing and sales, and only the founder sees all four.
As the company grows, the profile usually moves to whoever leads revenue. Even then, write it down and share it. Everyone in the company should be able to describe the ideal customer in one or two sentences.
Review it at least once a year, or whenever you launch a new product or enter a new market. The customer who got you to your first million is often different from the one who gets you to ten.
Build yours in five minutes
The ICP Builder walks you through the company, the buyer, the pain and the channels, then writes the profile out for you. No signup.
Revisit it every six months
Your ideal customer changes as the product grows. Look at your best ten customers twice a year. Ask what they have in common, how they found you and why they stayed. Update the profile, then update where you spend sales and marketing money. The ICP Builder makes this quick.
If you haven't tested the idea itself yet, start with Is my startup idea any good?
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