B2B Marketing Strategy and the 95:5 Rule
A B2B marketing strategy built only for buyers who are ready now misses most of your market. The 95:5 rule explains why, and what to do instead.
Key takeaways
- The 95:5 rule, from the LinkedIn B2B Institute and John Dawes, estimates that only about 5% of B2B buyers are in market at a given time.
- Gartner reports that B2B buyers spend only 17% of their buying time meeting potential suppliers.
- A sound B2B marketing strategy builds memory with future buyers, then converts the few who are ready.
Most B2B marketing is aimed at people who are ready to buy. Lead forms, demo offers and sales sequences all assume the buyer is shopping now. Yet at any moment, most companies in your market are not shopping at all.
What the 95:5 rule says
The 95:5 rule came from the LinkedIn B2B Institute, working with Professor John Dawes of the Ehrenberg-Bass Institute. It estimates that only about 5% of B2B buyers are in market at a given time, while the other 95% are not, as the institute’s Peter Weinberg and Jon Lombardo explained in Marketing Week.
The logic is simple. Businesses change suppliers infrequently. Dawes notes that companies switch their principal bank or law firm roughly once every five years on average, so in any quarter only a small share of them are actively looking.
Why this changes B2B marketing strategy
If you only market to the 5%, you compete for the same small group as every rival. Meanwhile, the 95% form opinions without you. When their need finally arrives, they shortlist the names they already know.
Buyers also spend little time with vendors. Gartner reports that B2B buyers considering a purchase spend only 17% of that time meeting potential suppliers. The rest goes to independent research and internal discussion, so much of the decision happens before your sales team gets a call.
Two jobs for a B2B marketing strategy
- Build memory with future buyers. Reach the wider market regularly, so your name comes to mind when the need appears. Judge this work on reach and recall rather than on leads.
- Convert the buyers who are ready. Make it easy for in-market buyers to find, evaluate and contact you. Judge this work on pipeline and revenue.
Most companies fund the second job well and neglect the first. As a result, their pipeline depends on being found at the last minute, which is the most expensive time to compete.
What to do in practice
- Define the category clearly. Know which buying situations bring companies into your market, so your message links your name to those moments.
- Show up consistently. Steady presence across the year beats a burst before a trade show.
- Make it memorable. Use consistent visuals and a clear message, because future buyers will only absorb a little each time.
- Serve the whole buying group. Gartner notes that complex purchases often involve six to ten decision makers, so give each one a reason to remember you.
- Keep the door open. When buyers are ready, your website, case studies and contact process should make the next step obvious.
How to measure it
Do not expect brand work for future buyers to show up in this month’s leads. Instead, track the share of new opportunities that already knew your name, branded search trends and win rates on competitive deals.
Attribution tools will undercount this work, as we explain in our attribution guide. If you want help balancing your B2B marketing strategy, book a free diagnosis.
Related guides
Find out where your marketing is bleeding.
Brand Doctor is based in Vancouver and offers a free marketing diagnosis to businesses across Canada, in person or remotely. You leave knowing what’s holding growth back and what to fix first.
