The 95-5 Marketing Rule: How Understanding B2B Marketing Can Transform Your Strategy
Marketing and sales are often used interchangeably, leading to a misunderstanding of what marketing really entails. Some people view marketing as simply a tool to sell products or services, but this is not entirely true.
The role of marketing goes beyond just selling. It's about generating demand, building relationships with potential customers, and creating brand awareness, just to name a few. As a marketing expert, I have observed that understanding the role of marketing is crucial for success in business-to-business (B2B) marketing.
What is the Marketing 95-5 Rule
One of the most important things to understand about marketing is the 95-5 rule. Only 5% of your market is ready to buy right now, while the other 95% are not yet in the market. This means that while salespeople focus on closing deals, marketers should focus on creating demand and generating leads. In other words, marketers need to focus on the 95%.
To keep things simple, you can divide your marketing efforts into three groups: create, capture, and close. Most people focus on catching and closing, but they are only 5% of the pie. Therefore, as a marketer, focus on creating demand, for example, by creating content that meets the needs of your target audience. By creating valuable and informative content, you can attract potential customers in the 95% category. Eventually, when they're ready to make a purchase, they'll definitely remember you.
Here are some examples of how to create demand for a product or service using digital marketing strategies:
Create valuable and informative content that meets the needs of your target audience, such as blog posts, videos, white papers, and webinars. Share your content on social media platforms and other relevant websites to reach a wider audience.
Search engine optimization (SEO)
Optimize your website and content for relevant keywords to improve your search engine rankings and visibility. This will make it easier for potential customers to find you when searching for your product or service information.
Use email marketing campaigns to stay top of mind with your audience, offer special deals or promotions, and share valuable content.
Social media marketing
Use social media platforms to engage with your audience, build brand awareness, and share valuable content that meets their needs. For example, consider using paid social media ads to reach a wider audience and target specific groups of people who are likely to be interested in your product or service.
Partner with influencers who have a large and engaged following in your industry to help promote your product or service. This can effectively reach a wider audience and build trust and credibility with potential customers.
Encourage your existing customers to refer their friends and family to your business by offering rewards or incentives. This can be an effective way to tap into the power of word-of-mouth marketing and generate new leads.
Remember, the key to creating demand for your product or service is to focus on providing value to your target audience. Then, by understanding their needs and creating content and marketing campaigns that meet them, you can attract potential customers and build long-term relationships with them.
Your Website Should Be Your Biggest Lead Generator
In B2C, it's a given that your website is your biggest lead generator. However, in B2B, many companies rely on multiple sources to drive leads, with the website often being a necessary placeholder but not seen as a driver for new business. This has to change. Your website should be your biggest lead generator.
Your website is your digital storefront. It's where potential customers go to learn about your company, products, and services. If your website is not generating leads, then you're missing out on potential business. Make sure your site is easy to navigate and provides valuable information. It should be optimized for search engines, so potential customers can find you easily.
The Power of Earned Media in B2B Marketing
Earned media is one of the most misunderstood aspects of B2B marketing. It refers to publicity gained through promotional efforts other than paid advertising and can come in many forms, such as media coverage, social media mentions, and customer reviews. Earned media is crucial for B2B marketing because it helps to build trust and credibility with potential customers. People who hear about your company from a third-party source are more likely to trust you. This is especially true in today's world, where people are bombarded with ads and are skeptical of traditional advertising. Moreover, earned media can be a powerful tool for improving your website's search engine optimization (SEO). It can help you build the four key components of EEAT: Experience, Expertise, Authority, and Trust.
When you are mentioned or featured in a publication, podcast, or video, for example, it signals to search engines like Google that you are an expert in your industry and that other people value and trust your opinion. As a result, search engines may be more likely to rank your website higher in search results, leading to more traffic and more business. But the benefits of earned media for SEO go beyond just traditional backlinks. Google has been placing more emphasis on social signals, which essentially indicate your brand's popularity and relevance across social media platforms.
When people share your content on social media or when your brand is mentioned in posts, it signals to Google that it is relevant and popular. This can help improve your website's rankings in search results, even if those social media mentions don't include a traditional backlink.
Additionally, earned media can help improve your website's domain authority, which measures the strength and relevance of your website in your industry. When you are mentioned in high-quality publications or other authoritative sources, it can help signal to search engines that your website is also an authoritative source of information, which can help improve your domain authority and rankings in search results.
As mentioned, marketing is crucial in increasing market share - not just capturing it. To succeed in B2B marketing, any marketer needs to understand the 95-5 rule, focus on creating demand, make your website the biggest lead generator, and leverage earned media. Doing so will attract potential customers, build trust and credibility for your brand, and ultimately grow your business.