One of the main challenges sales and marketing teams face is prioritizing their outreach on the right accounts. If you have a database filled with hundreds, or thousands, of accounts, it can be tough to segment your outreach properly so that you target the right audience with the most relevant message. The companies that do this best start their process with a clearly defined ideal customer profile (ICP).
Knowing your ICP is critical because understanding what types of customers are most likely to purchase your products will help you focus your efforts on accounts with the highest inclination to buy. Mapping out a well-defined ICP can also help you target accounts that represent larger deal sizes and identify companies that are ready to buy from you sooner rather than later.
According to TOPO research data, “Organizations that have adopted account based strategies and developed a strong ICP average a 68% higher account win rate. And 81% of top-performing organizations are confident that their ICP represents their ideal accounts.” Creating a clear ICP is critical, follow these 3 simple steps to create your own:
Step 1- Take Notes From Your Wins
No matter what kind of product you are selling, the best place to start when creating your ideal customer profile (ICP) is to look at who you have already sold to. By analyzing your won accounts and seeing what characteristics your best customers have in common, you can start to identify the companies most likely to be interested in your products. These characteristics can be broken down into two main groups to help you accurately define the exact types of accounts that you should be targeting:
Step 2- Understand Your Customer With Firmographics
Firmographics are to organizations what demographics are to people. In other words, firmographic data is made up of descriptive attributes of companies that can be used to categorize accounts into meaningful market segments. This information can include the geographical location, size, number of employees, annual revenue, and the industry type of a company. Looking at these similarities between your closed accounts will give you a general sense of what type of accounts you should be targeting in your outreach. However, this information does not provide the level of detail your ICP needs to help you target the right accounts, identify strategic intent, or develop the precise account scoring you need to find best fit companies for your solution.
Step 3- Find Your Best Fit Accounts Using Technographics
Technographic intelligence provides valuable information on the technology footprint of your best accounts. With it, you know what technology products your accounts have installed, how much they spend on them, and when their contracts are up for renewal. With technographics your ICP definition becomes much more valuable, giving answers to the questions that are most important:
What does their technology footprint look like?
☑ What competitor products do they have installed?
☑ Do they have the product you enhance with your complementary solution?
☑ Do they have products from partners that you work well with?
☑ What business strategies do my target accounts use? (ABM, multi cloud, AI, open source, etc.)
What do they spend on IT products in different categories?
Do they have an IT Service contract?
☑ Which vendor services the contract?
☑ Is the vendor a company you have worked with in the past to land big wins?
☑ What are the contract terms and when is it up for renewal?
When you have this type of tech intelligence built into your ICP, it is much easier to generate more revenue faster from your sales and marketing outreach, because you can focus your efforts on:
- accounts with the highest revenue potential
- reaching prospects using products you compete well against or complement your own solution
- accounts that are up for renewal or are working with an integration partner you prefer
Technographics in Action – Case Study
To see how our 3-step ICP process works in accordance with our insights, look at how Tegile, a Western Digital company, used our technographic data identify accounts that were 64% more likely to win and boosted sales by 49% from their target accounts.
“Tech install data from HG Insights helped us identify accounts with the right technology profile for our solutions. As a result, we can now identify the accounts that are 64% more likely to turn into closed/won revenue for us.
– James Schoensiegel, Global Marketing Ops Manager, Tegile
Learn More About Technographic Insights
HG Insights provides comprehensive data that allows you to see the complete technology footprint of your accounts. We also have a a platform that tracks IT spend and contract intelligence in 22 different industries and more than 100 plus sub industries. To learn more, visit our HG Insights Platform page.