How to identify your ideal customer profile (ICP)

Part three of Lenny Rachitsky's B2B series argues that founders should define their ideal customer profile early, alongside the problem itself. Drawing on interviews with dozens of startup leaders, it outlines a list of attributes to consider, signs that a founder is closing in on the right customer, and the idea that an ICP often takes months to pin down and will keep evolving.

01Key takeaways

• Most founders get their initial ICP wrong, so treat the first definition as a hypothesis to test.
• Define the ICP with about three unique, important attributes, such as company size, role, pain point, or workflow.
• Pay closest attention to outbound sales signals, since referrals from investors and friends can be misleading.
• Watch for rising conversion rates, growing enthusiasm, urgency to act, and a visible 'nod' when the pain is described.
• Narrow aggressively at first, then expand once customer love and engineering capacity allow it.

02Frameworks mentioned

Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.