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Episode 32: Perfect Your ICP

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In this episode, co-host Camela Thompson sits down with Peter Kirk, Founder of Smooth Operator. Peter has helped organizations like Reddit and MongoDB refine their Ideal Customer Profile (ICP) to make better, data-driven go-to-market decisions.

Together, they tackle a crucial but often misunderstood topic defining and refining your ICP so that it actually drives revenue. From common mistakes to key data signals, this episode is packed with insights to help your team optimize its targeting, sales strategy, and customer success efforts.

Why Is ICP So Hard to Get Right?

Many companies have a general idea of their best-fit customers - dream clients like Apple or Google are easy to identify. But the real challenge lies in defining the gray area - where do you draw the line between a strong-fit customer and a poor-fit one?

"Most teams agree on who their dream customer is and who definitely isn’t a fit. But the challenge is defining everything in between - what attributes truly make a company a great fit versus just a ‘maybe?’” — Peter Kirk

🛑 Common ICP Pitfalls:

  • Relying on outdated assumptions instead of analyzing real sales and churn data
  • Targeting enterprises too early before the product is ready for large-scale adoption
  • Ignoring ICP evolution as your company scales

💡 Pro Tip:

If you haven’t updated your ICP since 2022, you’re probably leaving money on the table. Economic shifts and evolving customer needs mean it's time to revisit your ICP regularly - at least every six months. For guidance on this process, check out the ICP Data Management Checklist.

Large Companies ≠ Perfect ICPs

A common misconception is that big brands always mean big wins. But Peter explains that even the biggest companies need to revisit their ICP over time.

When Peter worked at Lucid Software, they launched two new products with completely different target customers. This shifted who they defined as their ICP, requiring new marketing and sales strategies.

📌 Key ICP Lesson:

Your ICP should change as your product and company evolve. If your revenue teams aren’t regularly discussing who converts best and why, you risk missing out on higher-converting segments.

“The ICP you used at $1M ARR is not the same one you should use at $100M ARR.” – Peter Kirk

For more insights on adapting your ICP across your go-to-market strategy, explore Finding and Unleashing the Power of Your ICP Across GTM.

Building a Data-Driven ICP

Peter breaks down a structured approach to defining ICP using both objective and subjective inputs:

🔹 Analyze Your Best Customers:

  • Which features do they use most?
  • How often are they engaging?
  • What integrations do they rely on?

🔹 Study Churned Accounts:

  • Are there patterns in who churns?
  • Are certain industries or company sizes consistently disengaging?

🔹 Evaluate Closed-Won vs. Closed-Lost Deals:

  • What do your best customers have in common?
  • Are there red flags that show up in lost deals?

🔹 Talk to Customers AND Internal Teams:

  • Customers can reveal what actually drove them to buy
  • Sales reps & CSMs often know which accounts always convert - and which ones ghost after a few calls

💡 Pro Tip:

If you’re only relying on CRM data but not talking to your sales and CS teams, you’re missing critical insights about what makes a great-fit customer.

For a deeper dive into leveraging data for your ICP, read 4 Ways RevOps Pros Can Excel in a Downturn.

Beyond ICP: Acceptable vs. Unacceptable Customers

Instead of just defining an Ideal Customer Profile (ICP), Peter encourages companies to also define:

✅ Acceptable Customer Profile (ACP): Customers who may not be a perfect fit but are still profitable

🚫 Unacceptable Customer Profile (UCP): Customers who are expensive to support, churn quickly, or create operational nightmares

"Not every customer will be ideal, but some are still worth bringing on. Others? Not so much. You need to define both to keep your pipeline clean." – Peter Kirk

For strategies on identifying and managing different customer profiles, see How To Dodge Death by Lead Score.

ICP Beyond Sales: Using It in the Full GTM Motion

Your ICP shouldn’t just be a marketing tool - it should influence your entire go-to-market strategy:

✔ Marketing: Use it to refine ad targeting and messaging

✔ Sales: Equip reps with clear scoring criteria to prioritize the right leads

✔ Customer Success: Identify which accounts are primed for expansion vs. churn risks

📌 Example:

If an account hits a certain usage milestone (like adding a key integration), that might be a strong expansion signal—triggering an automatic notification for CSMs to start an upsell conversation.

“Expansion is the easiest way to grow revenue. If you’re not layering in ICP signals to find expansion opportunities, you’re missing out.” — Peter Kirk

For a comprehensive roadmap on integrating ICP into your GTM strategy, watch Winning with RevOps and ABM: A Roadmap for Success.

How to Spot ICP Misalignment in Your Org

🚨 Red Flags Your ICP Isn’t Aligned Across Teams:

  • CSMs complain that new customers are a churn risk
  • Sales reps ignore leads that marketing says are high-quality
  • SDRs struggle to book meetings with inbound leads
  • Marketing focuses on lead volume without tracking conversion rates

How to Fix It:

1️⃣ Set up regular feedback loops between sales, marketing, and CS

2️⃣ Track conversion rates at every stage (MQL → SQL → Opp → Closed-Won)

3️⃣ Align on the 5 key ICP attributes and ensure everyone uses them consistently

For further guidance on aligning teams around a shared ICP and revenue strategy, read How Operationally Mature Are You?

Final Takeaways: ICP is a Living Document

✔ Your ICP should evolve over time - set a 6-month review cadence

✔ Go beyond demographics - analyze behaviors and product usage

✔ Listen to your front-line teams - they know what actually converts

✔ Define acceptable vs. unacceptable customers to avoid pipeline bloat

✔ Incorporate ICP signals into expansion strategies, not just acquisition

ICP isn’t just a marketing checkbox - it’s the foundation for a high-performing go-to-market motion.

Want More? Join the RevOps Co-op Community!

If you enjoyed this episode, be sure to connect with Peter Kirk on LinkedIn or check out his new agency, Smooth Operator (smoothoperator.cc).

Looking for more great content? Check out our blog, join our community and subscribe to our YouTube Channel for more insights.

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