I imagine most of you at some point will have been in a situation where you feel like your marketing efforts just aren't delivering the results you want. Feels like you’re doing all the right things - running ads, posting on social media and sending emails, but the conversions just aren't there. 

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The topic I wanted to talk about this week might help you understand why you feel that way – and more importantly, help you adjust your strategy for better long-term success.

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The truth about your audience

At any given moment, only about 5% of your potential customers are actually ready to buy. The other 95%? They're just... not there yet. 

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This is known as the 95/5 rule, and it’s not just a lofty theory, it comes from research by Professor John Dawes at the Ehrenberg-Bass Institute (2021), and it's critical to how we should be thinking about marketing.

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Think about your own buying habits for a second. When was the last time you saw an ad for something totally new and immediately made a purchase? Probably pretty rare, right? Most of the time, we need to marinate on decisions – especially the bigger ones. We research, we compare, we think about it, and then eventually, we buy.

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Why this changes everything

This reality means we need to rethink our marketing approach. Instead of pouring all our resources into converting that 5% who are ready to buy now (and competing hard for their attention), we need to play a smarter, longer game.

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Rather than focusing solely on immediate sales, we need to invest in building brand awareness and staying top-of-mind so when our audience eventually does need what we’re selling, we’re first on their list.

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Here's how you can apply this thinking to your business:

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1. Think marathon, not sprint: Instead of chasing quick wins, invest in building lasting relationships with your target audience.
2. Stay visible: Maintain a consistent presence through content, social media, and other relevant brand building activities (could be events, podcasts, reports, etc - this will depend on what makes sense for your audience and your industry) – even when it doesn't drive immediate sales.
3. Add value first: Focus on being helpful and informative rather than always trying to close the sale.

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Making it work

Let me share a quick story that illustrates this. 

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Let’s take a B2B software company, focused purely on lead generation and sales activities. Their marketing is all about demos, trials, and discount offers. The result? They’re constantly struggling to hit their numbers and feel like they  are always starting from zero each quarter. 

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Then they switch things up. They start creating helpful content about industry trends, they start a podcast with top industry voices sharing their experiences and knowledge, and they build a strong presence on LinkedIn (where their target audience are spending a lot of time) – all without the hard sell. 

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They’re still doing traditional conversion focused activities, but now it’s only about 40% of their focus. The rest goes into brand building and audience nurturing.

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The outcome? Their sales increased. Because when companies in their industry needed the software they were selling, they already knew, liked, and trusted them. They built the relationship long before the purchase decision was made.

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Your action plan 

Ready to put this idea to work? Here's your game plan:

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1. Audit your current marketing activity: Look at your marketing budget and tactics. Are you overly focused on immediate conversions? Aim for roughly 60% brand building, 40% direct response.
2. Create value-first content: Develop helpful content that serves your target audience as a whole, not just the ready-to-buy prospects. Think educational blog posts, insightful newsletters, and useful resources. And keep it ungated. 
3. Stay consistent: Don't go dark when immediate results aren't there. Remember, you're building familiarity and trust - this takes time. But the sooner you start, the sooner you’ll start to see results. 
4. Measure differently: Look beyond immediate conversion metrics. Track things like brand awareness, engagement rates, and content consumption – these are indicators you're building future demand.

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Remember, this isn't about abandoning conversion-focused tactics entirely. It's about finding the right balance between capturing existing demand and nurturing future demand.

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The 95/5 rule isn't just another marketing theory – it can help you build a more sustainable, successful marketing strategy. By acknowledging that most of your audience isn't ready to buy right now, you can focus on building the kind of brand presence and relationships that turn into sales when the time is right.

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Has this given you food for thought? I’d love to hear how you might take this and make changes to your approach. Keep me posted! 

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P.S. I was invited to speak on the She Founds podcast last year - talking about how to get your first wave of customers - have a listen here!