The Importance of an ideal customer profile

Understanding the perception of customers is crucial for businesses. However, only one in five companies have buyer personas or ideal customer profiles (ICPs) and only one out of 10 companies conduct customer research on a quarterly basis. Having customer development functions, ICPs, or buyer personas leads to numerous benefits, such as higher NPS, increased willingness to pay, more efficient funnel, higher LTV to CAC, faster growth rates, and better retention. In the past, customer development was not necessary due to limited information available. However, in a more competitive market, businesses need to prioritize customer research and understand that it may not be 100% accurate, but it is their job to use judgment in conducting research.

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