How to Define Your ICP for SaaS
In SaaS, an Ideal Customer Profile (ICP) defines the type of company most likely to buy, adopt, and continue using your product. A strong ICP goes beyond company size or industry and captures the specific problems, urgency, and buying behavior that lead to predictable revenue.
Many SaaS startups define ICP too broadly, assuming they will “narrow it later.” In reality, unclear ICP is one of the biggest reasons GTM efforts fail.
Envizon’s 3-Layer ICP Framework for SaaS:
- Problem Fit
What painful, expensive, or risky problem does your product solve? If the problem isn’t urgent, conversion will be slow
- Persona Fit
Who feels this pain most directly, and who owns the budget or decision? Usage persona and buying persona are often different.
- Priority Fit
Is solving this problem a top-three priority for the customer right now, or a “nice to have”?
A good ICP filters out interest that won’t convert and protects your sales team from wasted effort.
“Your ICP isn’t who can buy your product. It’s who should buy it first. Clarity here makes every downstream GTM decision easier.”
FAQs
What is the difference between ICP and target market?
A target market is broad. An ICP is a narrow, specific slice of that market where you win most consistently.
How often should SaaS startups revisit their ICP?
Early-stage startups should revisit ICP every 6–9 months, or whenever conversion rates start to drop.
Can a SaaS company have more than one ICP?
Yes, but only one primary ICP at a time. Multiple ICPs require separate messaging and GTM motions.
This content is part of the Envizon GTM Wiki. Browse all terms, frameworks, and playbooks
Explore more from Envizon
Explore the Envizon Wiki for frameworks and definitions that complement these sessions - from ICP design and outbound sequencing to AI-powered GTM dashboards.
Fractional Services
Marketing leadership and execution support for startups that want to grow right.
About Envizon
Learn about our approach to fractional CMO leadership and full-stack GTM execution.
Marketing Articles
Read insights on B2B marketing, growth strategies, and startup GTM systems.