The most liberating thing I did in 2022: Decimating 75% of our pipeline.
In yesterday’s CEO Mastermind, we reflected on the most significant learnings over the last 12 months. One thing instantly rose to the surface: The underestimated importance of having clarity on your Ideal Customer Profile.
Here’s a quote that illustrates the essence
When I looked at the analytics of our funnel, customers that did not fit our ICP were getting 25 to 30% discounts. They were getting a considerable amount of custom services. And you know what? They were still not happy and not going to grow.
In contrast, when I compare that to our ICP: they are getting zero discount. They need very little professional service attention. Are super excited. And when I look at ‘In-logo growth,’ they grow 4x in one year.
Here’s the thing:
Just because two prospects look identical from the outside doesn’t mean they are wired equally inside. So many things are different—the business’s dynamics, goals, aspirations, what they care about, and so on.
Therefore, they’ll all need and want something different when they look at a SaaS vendor and, as such, value your offer differently.
What does this mean? You’d better start seeing the definition of your ICP as a process to create your favorite segmentation cocktail (Check this long-form blog to get going)
And then be brave: clean up. Take a lesson from that same CEO.
I decided to decimate the pipeline, throwing 75% of the pipeline out.
It was one of the most liberating things that I’ve done. Because once done, everybody was on target. All metrics changed dramatically within one quarter.
To become a better company, we have to shift our focus to customers who genuinely value the product we are building rather than sell to customers who don’t
Question for you to reflect upon:
What would happen if you’d throw away 75% of your pipeline to focus exclusively on customers that genuinely value what you’re building?
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