Podcast Summary: The 95/5 Rule: Rethinking Reach and Timing

Podcast Information:

• Title: The Marketing Architects
• Host/Author: Marketing Architects
• Episode: The 95/5 Rule: Rethinking Reach and Timing
• Release Date: June 17, 2025

Introduction to the 95/5 Rule

In this episode of The Marketing Architects, hosts Lena Jasper, Angela Voss (CEO of Marketing Architects), and Rob DeMars (Chief Product Architect of Misfits and Machines) delve into the 95/5 Rule—a contemporary marketing principle that challenges traditional marketing paradigms. The rule posits that 95% of potential buyers aren't actively in the market for a product at any given time, while only 5% are actively shopping. This concept contrasts sharply with the well-known 80/20 Pareto Principle, which suggests that 80% of results come from 20% of efforts or customers.

Background and Origin

Lena Jasper introduces the origin of the 95/5 Rule, highlighting Professor John Dawes of the Ehrenberg Bass Institute, who published the foundational article in 2021. The principle emphasizes that most advertising efforts reach consumers who are not immediately ready to purchase, thereby shifting the focus from immediate conversion to building long-term brand memory and mental associations.

Lena Jasper [03:23]: "If you're in the mattress space and consumers buy a mattress every 10 years, then only 10% are in market."

Applicability to B2B and B2C Markets

The discussion explores the rule's application across both B2B and B2C sectors. While initially grounded in B2B contexts with long purchase cycles—such as corporate banking or payroll services—the hosts argue that the logic extends to various B2C categories, especially those with extended inter-purchase intervals like cars, mattresses, and home appliances.

Reactions and Initial Skepticism

Angela Voss shares her initial disbelief upon encountering the 95/5 Rule, questioning its feasibility given traditional marketing practices.

Angela Voss [04:34]: "I thought 5%, like that's such a small percentage of the total market."

Similarly, Rob DeMars expresses skepticism regarding its applicability to B2C products with higher purchase frequencies, such as Coca-Cola, where he feels the statistic may not hold true.

Rob DeMars [05:37]: "I struggle with that stat, but I've heard it."

Clarifying Misconceptions

Lena Jasper clarifies that the rule is more pertinent to B2C categories with longer purchase cycles, distancing it from examples like Coca-Cola where purchase frequency is inherently high and continuous.

Lena Jasper [05:57]: "In B2C this rule applies more strongly when they have long purchase cycles."

Impact on Marketing Strategies

Angela Voss emphasizes that the 95/5 Rule challenges the modern marketing assumption that precise tracking and targeting can drive sustainable growth.

Angela Voss [06:55]: "It reminds us that most of your customer base, often 60 to 80%, are light buyers... they contribute an enormous portion of your total volume."

Rob adds that this principle complicates the justification of marketing expenditures focused solely on the active 5%.

Rob DeMars [07:59]: "They're gonna be like how do you increase that percentage?"

Balancing Brand and Performance Marketing

The conversation pivots to balancing brand marketing with performance marketing. While performance marketing targets the immediate 5%, brand marketing seeks to engage the remaining 95% by building brand familiarity and mental availability.

Angela Voss [16:18]: "The balance needs to shift from performance first to brand led performance should harvest the demand that brand creates."

Creative Strategies Under the 95/5 Rule

Rob DeMars underscores the importance of memorable and emotionally engaging creative content that resonates with a wide audience, ensuring that the brand remains top-of-mind when consumers are ready to purchase.

Rob DeMars [11:47]: "Your creative should be memorable, relevant, emotionally engaging so that when people are ready to consider you for that purchase that they remember you."

Conversely, he warns against overly rational or CTA-heavy messaging that may fatigue or alienate the audience.

Rob DeMars [12:42]: "Hammering an audience with 'Buy now' can cause fatigue and even resentment against your brand."

Implementing the 95/5 Rule

The hosts provide actionable steps for marketers to apply the 95/5 Rule:

1. Identify Purchase Cycles: Determine the average purchase frequency in your category through industry reports or customer data.

2. Adjust Campaign Timeframes: Break down the purchase cycle to align with your advertising schedule, ensuring sustained presence rather than sporadic bursts.

3. Conduct Brand Studies: Measure mental availability and brand recall to understand your current position and inform long-term strategies.

Rob DeMars [17:21]: "How can you understand how you can achieve a bigger state if you don't even understand what state you're in?"

4. Enhance Distinctive Brand Assets: Evaluate and refine logos, colors, slogans, and other brand elements to ensure they stand out and are easily remembered.

Lena Jasper [18:43]: "Just look at your brand, your colors, your logo. Do you have a mascot? Do you have a jingle?"

Challenges in Organizational Adoption

Angela Voss points out the difficulty in shifting organizational mindsets from immediate performance metrics to long-term brand building, emphasizing the need for education and gradual transition.

Angela Voss [13:42]: "The goal isn't to just show up when someone's ready to buy, it's to be the brand that they already know and remember when that moment comes."

Rob DeMars adds that patience is crucial, as brand-building efforts may not yield immediate results but are essential for sustainable growth.

Rob DeMars [15:08]: "Having that patience to let your brand seed and to let it grow is hard but necessary."

Practical Steps to Begin Implementation

As a takeaway, the hosts suggest practical actions for brands to start embracing the 95/5 Rule:

• Understand Light Buyers: Investigate why light buyers choose your brand occasionally, through interviews or synthetic audiences.

• Initiate Brand Studies: Start measuring mental availability and brand recall to inform your strategies.

• Enhance Distinctive Assets: Review and bolster your brand's unique elements to ensure memorability and differentiation.

Angela Voss [17:21]: "How can you go ahead like tomorrow, start a brand study?"

Real-World Examples and Reflections

The episode concludes with personal anecdotes from the hosts about brands they engage with infrequently but consistently return to, highlighting the effectiveness of strong brand memory and emotional connections.

Lena Jasper [21:25]: "I think it's a great reminder that brand growth isn't one size fits all. Loyalty in running shoes looks different than it does in snacks."

Rob DeMars [22:35]: "Airbnb is just starting to break into my consideration set... they're technically in market all the Time."

Conclusion

The 95/5 Rule offers a compelling framework for modern marketers, urging a shift from short-term, performance-driven tactics to long-term, brand-focused strategies. By prioritizing mental availability and building enduring brand memories, marketers can effectively engage the vast majority of potential customers who are not actively seeking their products but may become future buyers. This approach not only complements traditional marketing principles but also lays the foundation for sustained growth and market leadership.

Notable Quotes:

• Lena Jasper [03:23]: "If you're in the mattress space and consumers buy a mattress every 10 years, then only 10% are in market."
• Angela Voss [06:55]: "It reminds us that most of your customer base, often 60 to 80%, are light buyers."
• Rob DeMars [11:47]: "Your creative should be memorable, relevant, emotionally engaging..."
• Angela Voss [16:18]: "The balance needs to shift from performance first to brand led performance."