ICP & Segmentation Decision Playbook

Decision scope

This playbook structures decisions on ideal customer profile, segmentation boundaries and exclusion criteria to improve deal quality, retention and capital efficiency.
It defines who to prioritise, who to decline and why; based on economics and repeatability rather than volume.

A decision model for defining who to serve, who to refuse, and why, based on economics and repeatability.

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When it is used

Use this playbook when growth is driven by volume but profitability and retention are inconsistent.

Broad targeting and inconsistent results

High variance in deal profitability

Churn that suggests mis-fit customers

Internal disagreement on the “right” customer

Inputs

Customer economics (margin, retention, expansion)

Sales cycle length and cost-to-serve

Customer outcomes and usage patterns

Competitive and market constraints

Outputs

ICP decision criteria and scoring logic

Segmentation model with clear boundaries

Exclusion rules and qualification prompts

Messaging and offer implications (high-level)

Review cadence and update triggers

Application

Applied in leadership alignment sessions to define a consistent customer boundary across marketing, sales and delivery.
The outcome is fewer misfit customers, clearer qualification and more predictable expansion.

Commercial terms

Terms depend on customer base
size and data quality.

Clarify your ICP and segmentation boundaries.

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