How to Define The Ideal Customer Profile For Your B2B SaaS Company
- Articles, Blog

How to Define The Ideal Customer Profile For Your B2B SaaS Company


– Hey there.
Dan Martell here. Serial entrepreneur, investor
and creator of SaaS Academy. This video I’m gonna share with
you how to define your ideal customer profile also known
as your ICP for your B2B SaaS business so that that way you
can focus on the customers that are excited, ready and
willing to buy your solution. Be sure to the end where
I’m gonna share with you my Rocket Demo Builder. Essentially it’s a process for
doing demo calls that will allow you to close twice as
fast and not do a boring demo. (upbeat music) So recently I was working with a
coaching client and one of the struggles they were having is
really getting the market to resonate with their solution. They have an incredible
technology that allows agencies to connect their product
information with their financial dashboard to show them
profitability but it wasn’t resonating as exciting
as they thought it would with the market. So what we did is we went
through the six core aspects of an ideal customer profile that
I’m gonna share with you to make sure that we could find not only
a focused customer segment but also the geography.
If you think about even just compression in
a market or awareness. Focusing on a geography is gonna
allow you to kind of build a mini-brand in a location because
if all of the customers that are similar start
using your solution, they’re all gonna talk about it. They’re all gonna be raving
fans and it’s gonna allow you to kinda expand, expand, expand. The way I think about it is
like air pressure in a tire. It’s really those last few pumps
that give it the definition of the tire but it’s all
that focus and work of pumping, pumping, pumping
up until that point. That’s what we want to do by
nailing a customer profile is so that you can actually start to
make the job of marketing and sales easier on yourself. So these are the
six key areas that I look at when working with a client. Number one, firmographics. The firm, the business,
what’s true about them? What industry are they in? What vertical do
they specialize in? What’s their
revenue band right now? What is their percent of growth? I mean do you want to work
with a company that’s losing market share every year? No. So here’s what usually happens
is you’re gonna get stuck on this ’cause you’re like, “Well,
I know who I want to work with “but who can I work
with based on our product?” Think about it this way, you’re
always gonna start typically at the bottom or the mid part of
the market and over time you’re product matures and
you’re gonna be able to grow up. So where could you really push
the limits of the size of deals and the size of customers that
you could work with based on the solution that you have today
that you know have sold really well into that industry? That is the firmographic
information that you want to use to apply to the profile. Number two, demographics traits. Think of the demographics of where your best
customers hang out. You know if I was
selling to the music industry, I’d probably be in LA. If I was trying to
the financial industry, I’d probably be in New York or
on Bay Street in Canada so you gotta ask yourself, “Where is
the highest concentration of “companies that
I want to target?” And then also ask yourself,
maybe it’s a physical thing. Maybe they have stores. Maybe there’s a
certain part of, you know, if you’re selling farm software.
Maybe it’s the midwest. But understanding geography
and the demographics is a huge filter of focus
for you to go after your ideal customer profile. Number three,
technographic tools. Essentially your ideal
customer has a tech stack. They have a marketing stack. They have a HR stack. They have a sales stack. They have a workflow stack,
an ERP solution. Whatever it is, if you
look at your best customers. You think of what would be
true about my best customers, they probably already use
a certain technology stack. This is the cool part is today
there’s tools like Built With, a site that allows you to
monitor and build a list of qualified leads of
companies that are using certain technologies. There’s other ones that can do
internal technology adoption and the way they do that is they
analyze the positions that are being posted from a recruiting
point of view to see what kind of technologies they’re
asking that the candidates have experience in and then reverse
engineering that for you. So technographic tools
is a huge opportunity for you to really trim down. If you have 50,000
potential customers, trim it down into the best 800
for you to go after based on your solution and
the technologies they’re probably already using. Maybe some
integrations you built so that you can get
those sales done quicker. Number four,
psychographic drivers. At the end of the day,
there are definitely mindset, beliefs and values that people
have that if they have the wrong ones will make your job
ridiculously hard to get them to adopt your technology. And if they have the right ones,
it’s almost like they’re pulling your solution to them. Just think about like
fixed mindset people versus growth mindset.
Early adopters versus laggards. Now you might be thinkin’, “Well, how can I even validate
that when I’m trying to design “my ideal customer profile?” It’s not that you
can do it up front but you can
definitely define it. My best customers, the
people that I love to work with, the ones that I get the best
results for have these values, they have these belief systems. These are the things
that are true about them. Just answer that question. Put it on the list and you’d be
surprised how that will inform your sales people, your
marketing people to produce content that
attracts those people, to have conversation that
qualifies the bad people or the bad prospects out of your list
to make it way easier to have success in your solution. ‘Cause to me SaaS should
stand as Success as a Service not Software as
a Service because that’s what you want
for your customer. You want to get them results and
making sure they have the right psychographic
traits is huge part of it. Number five, roles. Think about the
buyer in the business. Now if you sell to mid-market
or enterprise customers there’s probably several people involved
in buying so you want to define the roles within the
organization depending on who you put as an ideal customer
profile so that you can ensure that the marketing team or the
salespeople are building that connection and those
relationships with the various, the several people, you know,
from your champions, your internal champions, to the
economic buyer to whoever it is that’s gonna be
adopting the technology, they need to be on board. The complexity of sales
right now is almost like there’s always a group of people
that are gonna be involved in making that decision. If you don’t put the list of
those roles from the company you’ve identified, maybe in
the the firmographic information you’ve listed, then you won’t be
able to properly ask questions and qualifying them to make sure
that you reach out and connect and build relationships
with those people to make the sales process easier. Number six, name your avatar. Now one of my favorite things to
do with my coaching clients is to name their avatar and I’m
always looking for typically an industry or a vertical specific
understanding or role and then giving them a name that
starts with the same letter. So Hubspot is famous for
Marketing Mary and I know that Amazon and all the top
companies have an avatar. They’ve named them. Some of them put a physical
object in a chair in a meeting room so that everybody knows at
the end of the day we’re trying to serve that person. I have one of my
coaching clients, David, he went so far
about focusing on ideal customer profiles that he put
out a whole printed avatar of his perfect customer
and stuck it on the wall. So like got it printed with a
face and a description of what they are, who they are. And then to just even nail
that even further they put it, the PITA, the Pain In The Ah,
on the other side. So they kind of have the good
guy and the bad guy of who they love to work with and who they
don’t want to attract and they make sure that everybody sees
that in the conference room. That’s the level
of detail so for me, I like to work with what
I call Software Scaling Sam. This is typically, and
this could be Sam or Samantha, and these are people that want
to scale their growth business. There’s a whole bunch of
different characteristics that I’ve used and defined just
like I’ve shared with you but it’s really important
that you name your avatar. So the six aspects of
an ideal customer profile, an ICP, one,
firmographics details. Two, demographic traits. Three, technographic tools. Four, psychographic drivers. Five, roles and
six, name your avatar. So as I mentioned at
the beginning of this video, I want to share
an incredible resource to help you close deals faster. It’s called my Rocket Demo
Builder and in it I talk about the five key principles that you
need to start leveraging in your sales communication and
the nine box model and really conversation flow that you can
use to start not giving a boring demo and get people
to buy way quicker than you’re doing right now. So you can click the
link below and download that. If you liked this video, be sure to click
the like button, subscribe to my channel, and be
sure to share this video with anybody you
think it might serve. As per usual,
I want to challenge you to live a bigger life
and a bigger business. I’ll see you next Monday. Pop collars. Dollar, dollar. Gonna keep your pop collar.

About Ralph Robinson

Read All Posts By Ralph Robinson

4 thoughts on “How to Define The Ideal Customer Profile For Your B2B SaaS Company

  1. The 6 things you MUST know about your B2B SaaS customers to target and acquire them effectively. Hint: Knowing these makes selling 10x easier.

  2. The most important activity is to identify the ideal customer for your products or services, and then focus all marketing, advertising and sales efforts on this particular type of customer.
    Great Informative Content Dan. Keep Giving Value man!

Leave a Reply

Your email address will not be published. Required fields are marked *