The 95-5 rule: are you ignoring most of your future customers?
- Digital strategy
In B2B marketing, we’re conditioned to chase the lead. We celebrate the click, the form fill, the immediate conversion. Our dashboards are filled with metrics that tell us who is ready to buy right now. But what if this relentless focus on the present is blinding us to our greatest source of future growth?
This is the critical question raised by the 95-5 rule, a concept popularised by the LinkedIn B2B Institute and based on the foundational research of the Ehrenberg-Bass Institute. The rule states that at any given time, only 5% of your potential customers are actively in the market for your product or service. The other 95% are ‘out-of-market’—they may have a future need, but they aren't looking to buy today.
For many businesses, this is an uncomfortable truth. It suggests that the vast majority of our marketing effort, with its laser focus on bottom-of-the-funnel tactics, is concentrated on a tiny fraction of our total addressable market. We are, in effect, ignoring the people who will become our customers next month, next quarter, and next year. By only marketing to the 5%, we enter a perpetual, high-stakes battle for a small pool of buyers, leaving the creation of our future pipeline almost entirely to chance.
Beyond demand capture: the art of creating future demand
The 95-5 rule doesn’t suggest you should stop trying to convert the 5% who are ready to buy. That would be foolish. Instead, it demands a more balanced, strategic approach—one that divides its attention between capturing existing demand and creating future demand.
Marketing to the 5% (Demand Capture): This is the sharp end of the spear. It involves targeted ads, compelling calls-to-action, and frictionless sales funnels. Your goal is to persuade an active buyer that your solution is the best choice. This is familiar territory for most marketers.
Marketing to the 95% (Demand Creation): This is a different discipline entirely. The goal here is not an immediate sale, but to build ‘mental availability’. You want to become so familiar and trusted that when one of those out-of-market buyers eventually develops a need, your brand is the first one that comes to mind. This is the long game.
This long-term strategy is about building brand salience so that future customers feel they already know you. When their buying journey begins, you aren’t a cold, unfamiliar name in a Google search—you’re the obvious, easy choice.
How to build a brand that the 95% will remember
Engaging an audience that isn't actively looking to buy requires a shift in mindset from selling to helping, from persuasion to brand building. Here’s how to do it effectively.
1. Be generous with your expertise
The 95% aren't interested in a sales demo, but they are interested in getting better at their jobs and understanding their industry. Create content that provides genuine value without asking for anything in return. Think insightful articles, helpful guides, and original research that address their challenges and opportunities. This positions you as a credible authority and builds the trust that is essential for a future sale.
2. Focus on broad reach and mental pathways
To be remembered by future buyers, you first need to reach them. Brand-building campaigns should prioritise reaching as much of your category’s audience as possible. But reach alone is not enough. You must also create memorable brand assets—a distinctive tone of voice, a recognisable logo, or a consistent visual style—that are easy to recall. The goal is to build strong, positive associations that link your brand to specific buying situations.
3. Tell compelling stories, consistently
A brand is not what you say it is—it’s what your audience perceives it to be. This perception is built over time through consistent messaging and storytelling. Don’t just talk about what your product does; talk about why it matters. Share customer successes, communicate your company’s point of view on the industry, and build a narrative that resonates on an emotional level. It is this emotional connection that creates lasting brand preference.
A balanced strategy for sustainable growth
The 95-5 rule is not an academic theory; it is a practical framework for building a more resilient and predictable business. It encourages us to move beyond the short-term addiction to lead-generation metrics and invest in the long-term health of our brand.
By dedicating a meaningful portion of your budget—many experts suggest a 60/40 split in favour of brand-building—to engaging the 95%, you are doing more than just marketing. You are shaping your future market. You are ensuring that when tomorrow's buyers are ready, they won't just be looking for a solution; they'll be looking for your solution.