Why 95% of your audience isn't buying

This newsletter comes from the hosts of The Marketing Architects, a research-first show answering your biggest marketing questions. Find us on Apple Podcasts or wherever you listen to podcasts!

This week, we're exploring the 95/5 rule, a principle that's reshaping how marketers think about reach, timing, and the real purpose of advertising. 

—Elena  

At any given moment, only 5% of potential buyers are actively shopping.

This insight about B2B buying habits from the Ehrenberg-Bass Institute challenges the popular 80/20 rule and forces marketers to rethink their efforts to appeal to both the 5% in-market and the 95% out-of-market.

Why the 95/5 Rule Changes Everything                    

Most marketers obsess over tracking and converting the tiny slice of people ready to buy today. Meanwhile, they often overlook the much larger group they need to win over before purchase consideration begins. Here's what the research reveals: 

1. Long purchase cycles mean fewer buyers at any given time. If people buy cars every 7 years, only ~14% are shopping in a year. Break that into quarters, and just 3.5% are in the market.

2. Memorability wins. When people enter the market, they don't always search for information. They choose brands they already know. Familiarity is often built before the buying moment, not during it.

3. Light buyers matter most. While heavy buyers generate short-term revenue, your customer base consists mostly of people who buy infrequently. These light buyers collectively contribute enormous volume and drive market share gains.

4. Create distinctive assets. Focus creative on logos, colors, and audio cues. Make them so memorable that your brand comes to mind when purchase decisions happen months later.

5. Think like a farmer, not a hunter. Hunters chase immediate results. Farmers invest in consistent care so crops are ready when the season arrives. The same goes for marketing. Sow the seeds of brand familiarity now so you'll be chosen later. 

Listen in on our discussion.

"The 95/5 Rule"        

Professor John Dawes' article explains why most potential buyers aren't in-market and how this insight should reshape your marketing strategy. Essential reading for understanding the science behind memory-based marketing. 

Read the article.

The Power of Memory             

“It is very difficult buying something you can't remember.” 

— John Hegarty, Advertising Executive