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Performance

ICP (Ideal Customer Profile)

Also known as: ideal customer profile

Definition

An ICP is a documented description of the customer type a business is best positioned to serve profitably, defined on firmographic, behavioural and economic criteria rather than demographics.

A useful ICP is exclusionary. If it does not rule out a meaningful share of the market it is not a profile, it is a wish. The point is to concentrate scarce sales and marketing effort where win rates, deal sizes and retention are demonstrably better.

Build it from evidence in your own data — which customers renewed, expanded, referred and complained least — rather than from who you would like to sell to. Then encode it into lead scoring so the definition actually governs behaviour.

More in Performance

Attribution window

An attribution window is the period after an ad interaction during which a resulting conversion is credited to that ad — commonly 1, 7 or 28 days for clicks and 1 day for views.

CAC (Customer Acquisition Cost)

CAC is the total sales and marketing cost required to acquire one new paying customer over a given period, including media spend, agency fees, tooling and salaries.

Cohort analysis

Cohort analysis groups customers by a shared starting characteristic — usually acquisition month — and tracks their behaviour over time, revealing retention and value patterns that blended averages hide.

Consent mode

Consent mode is a mechanism that adjusts how analytics and advertising tags behave based on a user's consent choices, allowing modelled measurement when tracking consent is withheld.

Contribution margin

Contribution margin is revenue minus all variable costs — cost of goods, shipping, payment fees, returns and marketing — showing what each sale actually contributes toward fixed costs and profit.

Conversion rate

Conversion rate is the percentage of visitors or sessions that complete a defined action — a purchase, form submission or booking — within a measurement period.

All 87 terms
Put it to work

Definitions are free.So is the cost review.

A short call, then a written review inside 72 hours: what your marketing costs, what it produces, and what is worth fixing first.

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