This is not just a statistic from a recent Forrester report, but a reality that the COREDO team faces every day, helping businesses enter new markets, obtain licenses, and build compliance strategies. Why, despite the availability of analytical tools, do so many companies continue to use a scattergun approach, instead of building precise targeting, personalizing offers, and focusing on customer value?
What if your marketing and sales could work 2-3 times more effectively simply by correctly defining the ICP? How can you find and retain the very target audience that will not only deliver maximum ROI but also become a source of long-term growth and business resilience?
If you want to understand how to define the ICP for legal support, AML services, and company registration in different jurisdictions, read to the end. Here you will find not only answers but also concrete steps for business growth and scaling.
What is an ICP and how does it differ from a target audience (TA)?
ICP and TA are two terms that often appear in marketing and sales, but they represent different concepts. To build truly effective communications with customers, it’s important to understand how the ideal customer profile (ICP) differs from the broader concept of the target audience (TA), and how this approach helps companies focus on those who will bring the greatest value.
Definition of ICP: what is it?
In COREDO’s practice we start by building a client portrait: we analyze the industry, company size, decision-making structure, geography, regulatory requirements, as well as behavioral patterns — for example, how decisions are made about registering a company in the EU or choosing an AML service provider. Such a profile is always based on real data, not hypotheses.
Differences between ICP and the broader target audience
The target audience is a broad circle of potential customers who may be interested in your product. The ICP is the “concentrate” of that audience — the segment with the greatest potential for growth and high customer value (Customer Value). Segmenting customers by ICP allows you to avoid spreading resources thin and to focus on those who deliver the maximum customer lifetime value (CLV) and predictable return on marketing investment.
COREDO’s experience has shown: if you build a marketing strategy only around the broad target audience, you risk low sales conversion, high lead-generation costs, and customer retention problems. Market segmentation and building an ICP make it possible to create personalized communications, improve lead quality, and optimize the sales funnel.
Why ICP is important for international businesses and lawyers?
In international legal support and AML consulting, requirements for clients and businesses are much higher than in most other fields. For example, Registration of legal entities in the EU, Asia, or Africa requires not only an understanding of local legislation but also a deep analysis of risks, compliance, and regulatory adherence.
A solution developed by COREDO for one European fintech company showed that a correctly defined ICP not only helped accelerate obtaining a license, but also reduced the risk of regulator refusal. In the B2B legal services segment, ICP becomes a tool for risk management, improving AML effectiveness, and building long-term client relationships.
The Importance of ICP for Business Growth
The importance of ICP for business growth cannot be overstated: a clear profile of the ideal customer not only helps focus resources but also forms the foundation for effective growth. Understanding who brings the most value to the company allows companies to increase ROI, optimize marketing, and achieve strong financial results.
The Impact of ICP on Marketing and ROI
Accurate data on the ideal customer profile make it possible to choose relevant promotion channels, craft a value proposition, and forecast marketing ROI. International studies (for example, Gartner, 2024) confirm: companies that integrate ICP into their marketing strategy achieve a 30–50% increase in sales conversion and a 20–40% reduction in customer acquisition cost (CAC).
COREDO’s practice confirms: using ICP in B2B legal services not only increases the effectiveness of marketing campaigns but also quickly identifies “bottlenecks” in communications, optimizes budgets, and improves key performance indicators (KPIs).
ICP and Sales Funnel Optimization: How to Identify and Set Up
An accurate ICP is the key to high sales conversion. When the sales department works with a lead that fully matches the ICP profile, the likelihood of a deal increases 2–3 times. This is because the customer is already “ripe” for purchase; their pain points and needs align with your offering.
The COREDO team implemented a project to register companies in Singapore and Estonia for clients who had undergone preliminary ICP segmentation. The result — 68% of leads moved to the contract discussion stage, and the average deal cycle shortened by 25%. This effect is achieved through targeting and retargeting, as well as ongoing work on lead quality.
Turning to retention and loyalty issues, it is important to consider how a properly constructed ICP affects long-term customer relationships and the rate of repeat business.
ICP and Customer Retention: What You Need to Know
Long-term customer retention and CLV growth are impossible without an accurate ICP. If a company focuses on its “own” clients, customer loyalty and repeat sales increase while retention costs decrease. COREDO’s practice shows: implementing ICP in legal support and AML services makes it possible to build individual retention strategies, personalize the customer experience (Customer Experience), and increase customer loyalty.
How to determine ICP: methods and steps
How to determine ICP: methods and steps is not a one-off exercise, but a comprehensive process that requires a careful approach at every stage. Only through collecting and analyzing relevant data can you form a profile of the ideal client that best aligns with your business goals and ensures effective returns from marketing and sales.
Collecting and analyzing data for ICP
First step: collecting and analytics of client data. This uses both internal CRM systems and external sources (reporting, market research, Big Data). At COREDO we analyze not only demographic parameters but also behavioral patterns: how clients make decisions about registering a company in the EU, which AML requirements are critical for them, and which communication channels they prefer.
Data collection technologies — from automated CRMs to Big Data tools — allow building dynamic ICP profiles and quickly responding to market changes. This approach is especially important for international business, where compliance requirements and AML may change annually.
ABCD client segmentation for accurate ICP
One effective method is ABCD client segmentation. It allows dividing the database into four categories:
- A – key clients with maximum value and growth potential;
- B: promising but less stable clients;
- C, low-margin clients;
- D: irrelevant or problematic clients.
At COREDO we use ABCD segmentation to assess the client base when registering legal entities in Europe and Asia, as well as when implementing AML services. Such analysis helps determine which segments to focus on to increase marketing ROI and optimize the sales funnel.
Building ICP for legal support and AML services
- Analyze current clients: who brings the highest revenue, demonstrates strong loyalty, and poses minimal risk?
- Study industry trends: which companies most often seek registration in the EU or licensing in Singapore?
- Implement regular ICP audits: the market changes, and the ideal client profile should be updated at least once a year.
- Use personalization technologies: marketing automation and integrating ICP into CRM allow quickly adapting offers to the needs of different segments.
COREDO’s solution for one fintech client included building ICP based on analysis of the client base and industry data, which made it possible to increase conversion in B2B sales of legal services by 42%.
Mistakes in defining ICP and how to avoid them
Mistakes in defining ICP can cost a business not only time but also significant resources, since a poorly compiled profile leads to ineffective client management and lower conversion rates. To avoid common pitfalls and increase returns from sales and marketing, it is important to know the main mistakes when creating an ICP and to establish the right approach in advance.
Common mistakes in creating an ICP
- Focusing on an overly broad or abstract client profile.
- Ignoring behavioral and legal specifics of the market.
- Insufficient data analysis and lack of regular ICP updates.
COREDO’s experience shows that such mistakes lead to problems with scaling the business, decreased marketing effectiveness, and higher customer acquisition costs.
Consequences of an incorrect ICP for legal businesses and AML
- Reduced marketing ROI due to low lead relevance.
- Increased risk of AML non-compliance and fines when working with unsuitable clients.
- Loss of competitive advantages in international markets.
In one of COREDO’s case studies for a client entering the UK market, an incorrectly defined ICP led to delays in obtaining a license and a 30% increase in the cost of marketing campaigns.
How to minimize risks and adjust the ICP?
- Implement regular ICP reviews: at least every 6–12 months.
- Use feedback from the sales department and clients to update the profile.
- Integrate compliance and AML requirements data into the ICP structure.
The COREDO team recommends building the ICP updating process as part of the risk management system and strategic planning.
ICP for finding a target audience in international legal business
An ICP for finding a target audience in international legal business is a tool that allows you to systematically describe the key characteristics of potential clients, taking into account the specifics of global markets. The approach to forming an ICP helps law firms accurately determine who to target when entering new countries and regions and to build development strategies that consider the characteristics of each target group.
Features of ICP for the markets of Europe, Asia and Africa
International business requires taking into account clients’ cross-cultural characteristics, differences in legislation and industry specifics. An ICP for companies in Europe and Asia should consider not only business size and industry, but also parameters such as compliance requirements, language and cultural barriers, and decision-making peculiarities.
In COREDO’s practice of registering legal entities in the Czech Republic, Slovakia, Cyprus and Singapore, we take into account local regulatory requirements as well as behavioral patterns of clients from different regions. This approach allows adapting the ICP to regional specifics and increasing sales conversion.
How ICP helps choose promotion channels
An accurate ICP is the foundation for selecting effective promotion channels: from specialized B2B platforms to personalized email campaigns. Using an ICP in marketing enables building targeting and retargeting, personalizing offers and optimizing the marketing funnel.
COREDO’s solution for one client in the AML services sector included integrating the ICP into an automated CRM system, which reduced cost per lead by 35% and improved lead quality for the sales department.
Examples of applying ICP in legal support and AML
- For a fintech company entering the EU market, the COREDO team built an ICP based on analysis of the client base and industry trends, which increased conversion in B2B sales by 42%.
- In a company registration project in Singapore, using an ICP reduced the deal cycle by 25% and increased client satisfaction.
- Implementing an ICP in AML consulting for an international payment system identified and eliminated 18% of irrelevant leads, reducing risks of regulatory non-compliance.
Conclusions and recommendations for entrepreneurs and executives
- Start by analyzing current customers: identify who brings the most value and demonstrates high loyalty.
- Collect and analyze data: use CRM, Big Data, external research, and feedback from the sales team.
- Implement ICP into marketing and sales: integrate the customer profile into the CRM system, automate personalization and targeting.
- Adapt ICP for international markets: consider cross-cultural specifics, local regulatory requirements, and industry specifics.
- Update ICP regularly: at least once a year, and more often when entering new markets.
- Avoid mistakes: don’t target an overly broad profile, and don’t ignore behavioral and legal particularities.
| Benefits of a proper ICP | Risks from errors in the ICP |
|---|---|
| Increase in marketing ROI | Decrease in marketing effectiveness |
| Improved lead quality | Higher customer acquisition costs |
| Acceleration of the sales cycle | Problems scaling the business |
| Reduction in AML risks and fines | Risks of non-compliance |
| Increased customer loyalty | Loss of competitive advantages |
| Improved customer experience | Decrease in CLV and repeat sales |
Conclusion of the SEO article
Defining an ICP is not just a marketing tool but a strategic asset for legal support, AML services, and the registration of legal entities in international business. In-depth analysis, regular updates, and the integration of the ICP into business processes help minimize risks, increase marketing effectiveness, and ensure long-term growth.
If you want to take your business to the next level, start by building or optimizing your ICP. The COREDO team is ready to share the experience and tools that will help you find and retain your “own” clients: in Europe, Asia, and around the world.