How The 95/5 Rule Leads to a Consistent Sales Pipeline
Published by Katy Doss, Script CEO | October 15, 2024
The 95/5 rule is a marketing principle that basically says at any given time, only 5% of your target market is actively looking to buy a product or service like yours. The other 95% is sitting on the sidelines. They might be researching, dreaming, or saving up, but they’re not ready to pull the trigger right now.
The key takeaway is that you can’t just focus all your marketing efforts on the 5% – you’ve got to nurture that 95% so that when they are ready to buy, they choose you.
Many businesses, especially in the luxury outdoor space, tend to zero in on people who are ‘hot’ – those ready to buy right now – and forget about everyone else. But that’s a mistake, because businesses like yours with high-end, luxury products and services – are selling investments. These typically aren’t quick decisions.
So how do you get the 95% to remember you when the time comes?
The first step is really understanding that brand awareness is a long game. For luxury businesses, especially those targeting affluent buyers, it’s about consistently being in front of them with the right, targeted message, year-round.
Many outdoor product companies turn on their ads in spring and summer when people are thinking about outdoor spaces, and then just go dark for the rest of the year. But if you only market when everyone else is marketing, you’re missing out on the chance to plant seeds in the off-season.
And remember, especially with affluent buyers – they plan ahead. They might not be ready to pull the trigger on that outdoor kitchen now, but they’re thinking about it for next summer or the summer after that, and they’re gathering ideas in the meantime. So, even if they’re not ready to buy, they’re saving ideas, pinning photos, and researching.
So what are some strategies we can use to stay relevant with that 95% who aren’t ready to whip out their wallets?
Consistent, year-round marketing is key. You can’t just flick the switch on and off with your marketing. You’ve got to keep a steady presence, so when that buyer finally moves into the 5%, they already know you. It’s kind of like dating—you don’t want to just show up when it’s time to propose, right? You’ve got to put in the time.
When you’re not running paid ads consistently, every time you turn them back on, you’re throwing them back into a “learning phase.” They’re having to ramp back up and that’s wasting time and dollars.
Additionally, you want to educate your audience. Every piece of marketing material you put out there doesn’t need to SELL SELL SELL. You want to show that you can help people by actually helping them.
That means giving tips that relate to what you do, providing resources, and becoming the expert in your target clients’ minds about everything that relates to your business.
We also know that buyers make decisions based on emotions and experiences.
Especially with affluent buyers – you’re not just selling them a fancy outdoor firepit—you’re selling the experience of gathering with friends and family around it on a cool evening. So, make sure your marketing speaks to that emotional connection. Tell stories. Show them what their life will feel like with your product or service.
We talk a lot about storytelling in our business and in this blog – it’s so important for building your brand, especially for the 95% of people who aren’t ready to buy.
Buyers need about 10 to 15 touchpoints before they’re ready to make a decision. So you can’t just rely on one channel like Google Ads or Facebook. You need to spread out across platforms—Pinterest, Meta, Google, email… Affluent buyers are on these platforms gathering ideas, so make sure your brand is there every step of the way.
For example, Pinterest is huge for affluent buyers in the luxury home space. We know that 1 in 3 Pinterest users have an income over $100K. They’re using Pinterest to gather inspiration for big home projects, so make sure you’re part of that conversation with great visuals and targeted ads that are running all year.
One thing we know when we’re nurturing potential clients who fall within the 95 of the 95/5 rule is that social proof – meaning reviews and client testimonials – play a huge role in planting a seed in that potential client’s mind.
They want to know that other people—especially people like them—have had a great experience with your product or service. If you’ve got a client who raves about their custom outdoor rock wall, showcase that testimonial everywhere—on your website, in ads, on social media.
One aspect we hear a lot when we talk about the 95/5 Rule is that it’s tricky to measure your return on investment (ROI), because if they’re not pulling out their credit cards today, how do you know if your marketing is actually working?
But just because they aren’t buying right now doesn’t mean your marketing efforts aren’t paying off. You have to look at long-term metrics and indicators that show you’re building brand awareness and staying top-of-mind for when they are ready. Here are a few key metrics to track:
One of the best indicators that your brand awareness efforts are working is an increase in website traffic. You might not see those visitors convert right away, but if you’re getting more people on your site, especially from organic search or your social ads, that’s a great sign your campaigns are getting noticed.
Pay attention to time spent on site, pages visited, and bounce rates. Are visitors staying longer and browsing more pages? That’s a good signal that they’re interested and engaged, even if they don’t fill out a form just yet.
On social media, look at likes, comments, shares, and saves that indicate your audience is interested in your content. For platforms like Pinterest, tracking saves and repins is a huge indicator that your product is in their consideration set.
For paid ad campaigns, track your impressions and reach to see how many people are seeing your ads. For the 95%, it’s all about repeated exposure. If your impressions and reach are high, that means more people are seeing your brand multiple times, which helps with brand recall when they eventually move into the buying phase.
You can also use frequency to measure how many times the same person sees your ad. Too low and they might not remember you, too high and they might get fatigued. A sweet spot is generally around 5-7 views per person over a period of time.
The key is to think beyond immediate sales conversions and look at these other indicators to measure your success. If you’re seeing more traffic, more engagement, and more social proof, then you know your efforts are working—even if it doesn’t show up in sales right away.
The payoff from nurturing the 95% might not come next week or even next month, but over time, those buyers are going to remember you when they’re ready. And by staying consistent, you’re positioning yourself as the go-to brand when they make that switch from the 95% to the 5%.
OK we’ve covered a ton today, so let’s recap:
Stay consistent, stay visible, and when those buyers are ready to move from the 95% to the 5%, you’ll be their go-to brand.