Okay, let’s admit this. Learning about marketing strategies can be (slightly) overwhelming. You need to master rules, deal with bots, experience several channels, enhance SEO, SMM, and rank on the SERPs while also maintaining brand loyalty and providing customer satisfaction. It is an ocean where you could drown or it could be the best dive you’ve ever had!
Although marketing strategies can be a lot to handle, let’s also tell you this, you need it. You need it to know your target audience, to communicate, to make a profit and most of all, to survive.
It is also vital to test the waters before diving; hence, researching and experiencing a vast range of strategies before picking the right ones for your business are paramount. There are several case studies that prove strategies are here to make your brand image better and to help you literally take your business to the next level.
These several marketing strategies are layered over a bunch of success-oriented rules. In this blog, let’s explore one such significant rule that pretty much makes or breaks your strategy. Ever heard of the 95:5 rule?
What is the 95:5 Rule?
Take a deep breath, as this might shock you – 95% of the potential buyers in your market are not ready to purchase your product today. Yes! But calm down, because here we tell you how to use this to your advantage!
Professor John Dawes of Ehrenberg-Bass University published a study that states that most buyers are not in the market at present. The current 5% of the buyers are in the market and will purchase your brand. But this percentage isn’t your ultimate target. The big bucks come in from the 95% who aren’t ready. This rule will most likely change the perspective of your marketing.
The 95% of customers who are out market today will soon become ‘in market’ but how do you reach them when they do?
Simple – You don’t reach them when they need you, rather, you make a permanent presence in their memory. A brand that is most remembered is a brand that is most bought! Targeting your advertising and marketing strategies to create brand relevant memories is what you should be doing.
Let’s tell you a small story, a man, when he was around 30 years old, wanted to buy a car, he could have afforded to get any car he wanted, but opted to buy one that was an old model simply because the brand made an impact on him years ago. That particular brand did not advertise the model anymore but still managed to be remembered and relevant years ago. This is stimulation of brand memory, and this brand has all the right marketing tools. With this example, we can confidently say that only a buyer can push himself to be ‘in market’.
Therefore, this rule emphasizes that advertising should be aimed at creating that impression rather than shoving products down buyer’s faces. Even though a buyer is not in your funnel, he is still watching you waiting to be impacted.
The intent of advertising must be aimed at targeting and mentally impacting the larger 95% of the buyers because that is where there is future cash flow. Your marketing strategies must be focused on long-lasting campaigns, expanding the market, growing and managing to stay in business.
A B2B buyer purchases a product only when there is a need. Advertisements can neither create the need nor pursue the buyer to make the buy. ‘Out market’ buyers are most likely to stay there for years sometimes but will definitely look for familiar and trusted brands when they become ‘in the market’. Building brand loyalty is vital. When a customer is satisfied, more often than not, they come back to the same brand rather than searching to find similar other brands.
Reaching out to new buyers is possible with large-scale marketing by reaching people who do not need your product at present. As expressed earlier, the 5% of customers who are ready to buy will choose you based on your marketing, but it is not wise to set sail solely on this percentage.
Banking on the 95:5 marketing rule
You ‘ve crossed half the bridge when your brand managed to remain relevant over the years. Brand relevance means you are most likely to make a profit. It might seem like a long haul while flowing your finances over a marketing strategy rule that does not make an immediate profit. But this is what will help keep you relevant. With all this said, the rule does not mean that you should not focus on the 5% ‘in market’ buyers. It is all about finding the right balance for your strategies (long and short term). Your effort should be on creating brand awareness and building long-term customer relationships.
Why should you adopt the rule?
- Future profits
- Creates brand loyalty
- Targeted marketing strategies
- Gives you a better understanding of your market
- Pushes you to advertise relevantly
- Helps understand the buyer’s mindset
- Supports set long-term business goals
- Helps plan future and present investments
- Paves the way for steady cash flow
The future of digital marketing
People have the luxury of purchasing a product at their fingertips and this is where the challenge lies for brands. The competition is tremendous; when you don’t have the right strategies, you can lose a sale in just a second.
Social media marketing and multi-channel digital marketing must make an impression, boost brand awareness, engage with followers, reach out to non-followers and remain consistent.
Every brand wants to flourish, but in the end, only a brand that has the right marketing wins. You can explore and implement infinite rules or strategies to make you win, but what if you don’t have the time? This is where qualified professionals from trustworthy companies like Wild Creek can do that for you! Wild Creek specializes in helping you enhance your digital presence while creating online communities that generate brand loyalty.