The ‘95-5’ Principle: Why most B2B buyers aren't ready to purchase
Understanding marketing effectiveness in B2B markets, why timing matters…
Did you know that up to 95% of business clients are not actively in the market for your products or services at any given time*? This ‘rule’ has been floating about for a few years now, and whilst critics can pick over the methodology behind reaching that stat, the fact remains that an awful lot of B2B buyers simply aren’t looking to buy at any one time.
Yes, it’s a bit of a deflating stat (particularly to me, just at the start of my expedition into the world of the self employed!) but this simple metric can guide your marketing strategy:
When clients do eventually enter the market, brands that have successfully embedded themselves in the minds of their target market will have a competitive edge. The key question businesses should ask is: does our marketing efforts actually achieve this?
The B2B buying cycle: why most businesses aren’t ready to buy
Long purchase cycles in business markets
Consider your own business. Have you recently made a major purchase, perhaps a new CRM system, payroll software, or annual accounts, or an audit? If so, it’s unlikely you’ll be in the market for the same product anytime soon – let’s say a minimum of a 12-month contractual term, and even then, potentially only if you’re really unhappy with the service or product. There may be other reasons too – reciprocal business, or a good referral system flowing from strong relationship building.
It’s thought that companies change key service providers like banks or law firms only once every five years on average. This means that, at any given time, only about 5% of potential buyers are actively looking to purchase.
How marketing works when potential clients simply aren’t in the market
Branding v immediate sales: the role of marketing
Since the vast majority of potential buyers are not in-market at any given moment, marketing cannot primarily function as a direct sales tool. Instead, it plays a crucial role in brand-building by creating and reinforcing memory links. These memory associations ensure that when buyers eventually do enter the market, they recall and consider your brand over competitors.
The power of email campaigns in brand-building
One of the most effective ways to maintain brand presence over time is through regular email campaigns. Email marketing allows businesses to nurture leads, reinforce brand messaging, and stay front-of-mind without being overly intrusive. Even if recipients are not ready to buy immediately, consistent, high-value email content ensures they remember your brand when they do enter the market.
What is Mental Availability?
Mental availability refers to how easily a brand comes to mind when a potential customer is considering a purchase. It’s a key concept in marketing and brand-building, particularly in B2B and consumer markets, where buyers often rely on memory rather than extensive research when making decisions.
Why is mental availability important?
- It influences buying decisions: When buyers enter the market, they are more likely to choose brands they are already familiar with.
- It reduces the need for immediate marketing tactics: Instead of relying solely on short-term marketing, businesses can benefit from long-term brand-building.
- It increases market share: The more frequently a brand is recalled in relevant buying situations, the more likely it is to be chosen.
Benefits of email marketing for mental availability
- Email marketing keeps your brand in buyers’ minds: Regular newsletters and updates ensure continuous engagement.
- It educates and builds trust: Providing valuable insights, industry news, and case studies helps establish credibility.
- It encourages gradual relationship-building: Unlike one-off campaigns, email marketing allows for sustained brand reinforcement over time.
- Affordable and high ROI: Compared to paid advertising, email campaigns are cost-effective and can deliver long-term benefits.
Other ways to build mental availability through marketing
- Consistent brand exposure: Regular marketing over time ensures sustained visibility.
- Strong brand associations: Connecting your brand with specific needs, emotions, or buying situations (think conveyancing, divorce, tax season etc)
- Distinctive brand assets: Using memorable logos, colours, slogans, and messaging helps reinforce brand recognition.
- Multi-channel marketing: Engaging with customers across different platforms (email, social media, events, PR, and traditional marketing) ensures wider reach.
How long does it take to build mental availability?
As much as I’d love to say it’s immediately impactful, it’s a long-term process – typically years, not months. Market-leading brands often achieve 50% recognition with key buying situations, while smaller brands may struggle to exceed 20-30%.
The long-term approach to B2B marketing
Why targeting immediate buyers isn’t enough
While targeted advertising to in-market buyers can yield short-term results, it is not a sustainable growth strategy. Brands that only focus on short-term client wins risk missing out on the broader market of future buyers. Instead, businesses should invest in continuous brand-building efforts to ensure they remain front-of-mind when buyers eventually enter the market.
How to calculate in-market buyers
This helpful formula, devised by the Ehrenberg-Bass Institute of Marketing Science, goes a long way to understanding the percentage of buyers who are actively in-market, but requires knowledge of the average ‘client-win’ time for your industry. For example, if the average purchase cycle for your service is two years, around 50% of your market will make a purchase within a year—equating to roughly 13% per quarter.
Conclusion: why long-term marketing wins in B2B markets
B2B marketing is not about driving immediate sales—it’s about building a brand that buyers remember when they eventually enter the market. The 95-5 theory highlights the importance of long-term brand-building strategies over short-term marketing tactics. By consistently reinforcing memory links through effective marketing and regular email campaigns, businesses can position themselves as the preferred choice when buyers are finally ready to make a purchase.
- Source: https://business.linkedin.com/content/dam/me/business/en-us/marketing-solutions/resources/pdfs/advertising-effectiveness-and-the-95-5-rule.pdf