The 95-5 Rule: What Is It and How It Can Help Boost Your B2B’s ROI?

Ever wondered how some brands do not advertise for the longest period of time but still have sales? This is because the best ads have the power to build memories and influence our buying decisions years later.

This long-lasting impression of brand advertising is based on the research conducted by LinkedIn which is known as ‘The 95-5 Rule’. This practice lays emphasis on the fact that 95% of your potential buyers aren’ ready to buy today. Only 5% of your entire TAM is in the journey to look out or buy at the moment; the rest 95% may not be your customers for today but they might be for tomorrow.

Here are some factors to consider when implementing this approach:

1. Lead Nurturing: Develop a systematic process for nurturing leads over time. This involves regularly engaging with prospects through various channels such as email marketing, social media, content marketing, and personalised communication to provide value, answer questions, and address their needs.
2. Segmentation and Targeting: Segment your leads based on factors such as demographics, behaviour, interests, and buying intent. Tailor your communication and marketing efforts to each segment to ensure relevance and effectiveness in engaging potential customers.
3. Education and Thought Leadership: Position your brand as an authority in your industry by providing educational content, thought leadership articles, webinars, and workshops. Offering valuable insights and information not only helps to establish trust but also keeps your brand top-of-mind when prospects are ready to make a purchase decision.
4. Relationship Building: Focus on building genuine relationships with potential customers by understanding their needs, challenges, and preferences. Engage in personalised communication, listen actively, and demonstrate empathy to strengthen connections and foster trust over time.
5. Customer Experience: Provide exceptional customer experiences at every touchpoint of the buyer’s journey. Offer seamless interactions, personalised recommendations, and responsive customer support to enhance satisfaction and loyalty, even before a purchase is made.
6. Lead Scoring and Qualification: Implement lead scoring and qualification criteria to prioritise leads based on their likelihood to convert into customers. Focus your efforts on leads that exhibit higher levels of engagement and buying intent while nurturing others to progress them through the sales funnel.
7. Data Analysis and Iteration: Continuously monitor and analyse customer data, engagement metrics, and sales performance to refine your strategies over time. Identify patterns, insights, and areas for improvement to optimise your approach and maximise the effectiveness of your efforts.

This strategy offers several benefits to businesses such as:

1. Long-Term Relationship Building: By focusing on nurturing relationships with potential customers who may not be ready to buy immediately, businesses can cultivate trust and rapport over time. This can lead to stronger and more loyal customer relationships, resulting in repeat business and referrals.
2. Increased Customer Lifetime Value: Investing in long-term relationship building can contribute to higher customer lifetime value (CLV). Customers who feel valued and supported throughout their journey are more likely to make repeat purchases and engage with additional products or services offered by the business.
3. Reduced Customer Acquisition Costs: Engaging with potential customers early in their buying journey can help businesses reduce customer acquisition costs. By nurturing leads and building relationships over time, businesses can convert prospects into customers more efficiently, minimising the need for costly advertising or promotional efforts.
4. Improved Conversion Rates: Building trust and credibility through ongoing engagement and relationship building can lead to higher conversion rates. When prospects feel confident in the value proposition and trustworthiness of the business, they are more likely to move through the sales funnel and make a purchase decision.
5. Enhanced Customer Satisfaction: The “95-5 rule” emphasizes providing value and support to potential customers throughout their journey. This focus on customer-centricity can result in higher levels of customer satisfaction and loyalty. Satisfied customers are more likely to become brand advocates, promoting the business to others and contributing to its long-term success.
6. Better Understanding of Customer Needs: Engaging with potential customers over an extended period allows businesses to gain deeper insights into their needs, preferences, and pain points. This understanding can inform product development, marketing strategies, and customer service initiatives, enabling businesses to better meet the needs of their target audience.
7. Competitive Advantage: By adopting a long-term approach to customer relationship management and sales, businesses can differentiate themselves from competitors who may focus solely on immediate sales transactions. Building strong relationships with potential customers can become a competitive advantage, as customers are more likely to choose businesses they trust and feel connected to.

Overall, the “95-5 rule” can help businesses foster meaningful connections with potential customers, drive customer loyalty, and achieve sustainable growth in the long term.

To know more about this, tune in to our flagship podcast with the guest speaker Mr.Deepu Nair, Senior Account Director at LinkedIn and Ms.Benita Bhatia Dua, CEO of Vanilla Skills. You can watch the entire episode here: https://youtu.be/gkTNsjiUzS4?si=xXQreaKBfHGxdn6s