Why 95% of Your B2B Customers Are Not Ready to Buy Yet

The 95% rule explained

Most B2B customers are not actively looking to buy products or services at any given time. The "Ehrenberg-Bass Theory" means that 95% of potential buyers are not actively considering a purchase. This is called the 95-5 rule and it shows the importance of building strong brand awareness for all customers in the customer buying journey and not just the active buyers in the 5% crowd.

Building brand memory for future sales

It might seem like the wrong strategy to follow, but it's actually very important to still continue to advertise to the 95% of customers who are not yet in the market to buy from your company at this time. Many companies think it's better to only advertise to the 5% who are in the market for a solution at this time and forgets the other 95% of the customers. They think "why advertise and waste money on customers who won't spend money today?".

That seems like a logical argument to make. But the 95% rule says otherwise, because most companies think like this of the active 5% of customers. The advertising costs becomes very expensive because everyone is competing for their attention.

The key point in the "Ehrenberg-Bass Theory" is to make brand memory and raise awareness for the other 95% of the customers who are not ready to make a purchase yet.

Why advertise to non active buyers?

Advertising helps your company to raise brand awareness and get a mental connection for your customers that your company knows the solution to their problems. It can even be problems that they are unaware that they even have yet. But when they finally enter the market for a solution for their problem, subconsciously they are going to think about your company first because you stand out from the others and made it into their subconscious mind already.

The goal is to always stay "top of mind" early when other companies are chasing the smaller crowd of 5% who are active buyers. Consistent advertising over timer makes your company feel more familiar and you build better trust. So when they start to actively search, you're the brand with the solution tho their problems. Because you have built awareness and trust over a longer time period than the competition.

Advertising made memorable

It's not enough to just advertise to your customers. To take advantage of the 95% rule your advertising needs to be memorable to stay "top of mind". Some strategies to use for memorable advertising:

• Branding needs to be clear and consistent across channels to be memorable.

• Storytelling with emotional content makes deeper connections.

• Unique and valuable solutions, what makes your solutions unique from the competitors?

• Channel presence, use channels that your target audience spend time at.

The more brand awareness you gain, and the better you can show how to solve customers problems in a clear, personal and emotional way the stronger brand memory your company gets. Which will make you the "top of mind" solution.

Even though 5% are ready to buy now, the other 95% are future customers who will buy a solution for their problems in the future.

Source: https://www.marketingweek.com/ehrenberg-bass-linkedin-b2b-buyers/.