What is an ideal customer profile (ICP)? Template and examples

Identifying an ideal customer profile (ICP) is crucial for businesses launching early-stage products, as it helps focus efforts on users who are most likely to benefit from and engage with the product. The process begins with hypothesizing a broad target audience and analyzing user behavior to identify the most engaged 1% of users. This group provides insights into the product's perceived value and ideal usage, allowing businesses to refine their ICP and adjust their product roadmap and marketing strategies accordingly. Instead of fixating on a narrow niche too early, companies should start with a broad approach, gather meaningful data, and gradually niche down to focus on the core features that bring the most value to their ideal users. Once the initial niche is successfully targeted, businesses can consider expanding to additional segments. This iterative process ensures that teams make informed decisions about product development and market positioning, ultimately leading to a stronger market presence.