StrategyMarket model
The 95-5 rule
In B2B, roughly 5 percent of your potential buyers are in the market at any given moment. The other 95 percent will only buy later, but are already forming an impression now. Ads aimed at purchase intent reach that 5 percent. Content also reaches the 95 percent: someone who reads today how to compare quotes may buy in eighteen months, and will then think of whoever helped them earlier.
- Origin
- Professor John Dawes, Ehrenberg-Bass Institute, for the LinkedIn B2B Institute, 2021.
- Suits
- Explaining why content needs time, and why you should not only target people who are buying today.
- Effect after
- A way of thinking, usable straight away
- Difficulty
- Apply straight away
How to start
- Estimate how often your customers switch suppliers: every five years is about 20 percent per year, or 5 percent per quarter.
- Divide your content: some for those buying now, the largest share for those buying later.
- Measure the 95 percent on recognition and preference, not on this month's leads.
Watch out Using the 5 percent as a fixed number. It is an estimate based on switching frequencies, not a measurement in your market. In sectors with short buying cycles it is higher.