Embrace the 95 to 5 brand strategy rule

Written by Carl West

95 to 5 rule long and short of it

From smartphones, cars and furniture to computers, home appliances or holidays, research indicates that roughly 5% of a brand’s category is ever ‘in market’ ready to buy a product or service now, with 95% of the category being ‘out of market’ and potential buyers for the future.

So, it is somewhat bewildering as to why so many brands and marketers spend invest almost their entire budget on short term lead generation…resulting in a colossal waste of time and budget.

The smart brand managers and marketers understand and embrace the 95:5 rule in that most of their category are not ready to buy today, tomorrow, or even next week, so they invest a significant portion (at least 50%) of their budget in emotive, year-round brand building campaigns which reach the entire category.

These emotive campaigns position the brand, grow category entry point salience for buying situations and lay the foundation for the short-term lead generation campaigns to leverage, for when eventually, the customer is ready to buy.

Marketing Lab is a brand management and marketing consultancy working with regional, national, and international businesses to mitigate marketing investment risk, ensuring more informed decisions are made with a view to improving sales and profitability, growing market share, and building brand equity. Request a FREE 30-minute brand management consultation.

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