75% of companies buy computers once every 4 years.
80% of companies change banking services once every 5 years.
And in B2C, 90% of consumers buy new cars every 10 years.
Why should you care?
Only 5% of your audience is ready to buy
Because for most products — especially B2B products and high price point items — only about 5% of the market is ready to buy right now.
It’s easy to focus on ready-to-buy audiences…
The big bucks eventually come from the 95% who aren’t yet ready.
That’s the principle behind the 95-5 Rule: Advertise to buyers who are not likely to buy from you… yet.
For example: You don’t buy a BMW because you saw an ad on Facebook.
You buy it after you have been exposed to the brand for years.
Eventually, when you can afford it or it’s time for a new car, you become the proud owner of a BMW.
So yes, target “hot buyers.”
But don’t forget to allocate a budget for “future buyers,” too.
After all, they represent the biggest share of the market.
… And your future cash flow will largely depend on the ads you launch today.
One final note
Test this theory before you commit to it 100%. Why? Because not every product or service faces a market of “on” and “off” buyers.
Generally speaking, there are about five stages of awareness in marketing, and the customers in those stages might represent more than 5% of your market.