Warrier Wala's Test + Learn

In the world of B2B marketing, one principle that stands out from the Ehrenberg-Bass Institute’s research is the “95-5 Rule.” This concept is both simple and profound, with significant implications for how businesses, including those in the fleet car industry, should approach their marketing strategies.

The 95-5 Rule: A Brief Overview

The 95-5 Rule, as discussed in the Ehrenberg-Bass Institute’s white paper, posits that at any given time, only about 5% of your potential customers are actively in the market for your product or service. This means that 95% of your audience is not currently considering a purchase. This insight is critical because it shifts the focus of marketing from immediate sales to building long-term brand awareness and mental availability.

Why This Matters

In B2B markets, the purchasing cycles are typically long, and decisions are made with careful consideration. For example, companies managing large fleets of vehicles don’t replace or upgrade their vehicles frequently; such decisions may occur only once every few years. Therefore, most of the time, these potential customers are not actively looking for new fleet cars or related services.

However, when they do enter the market, the brands that are top-of-mind are the ones they are more likely to consider. This is where the 95-5 Rule becomes crucial: your marketing efforts should be focused on ensuring that when the 95% of non-buyers eventually enter the market, they think of your brand first.

Applying the 95-5 Rule in the Fleet Car Industry

For companies in the fleet car industry, the implications of the 95-5 Rule are clear:

1. Focus on Brand Building: Instead of concentrating solely on lead generation and immediate sales, fleet car companies should invest in brand-building activities that enhance their mental availability. This could include consistent advertising that highlights the unique strengths of their fleet vehicles, sponsorships of industry events, or thought leadership content that addresses common challenges faced by fleet managers.
2. Create Lasting Impressions: Marketing campaigns should be designed to leave a lasting impression, even if the potential customer isn’t ready to buy. This might involve creating memorable advertisements, using distinctive branding, or associating the brand with specific category entry points (e.g., safety, reliability, cost efficiency) that are relevant to fleet managers.
3. Engage the 95%: Since most of your audience isn’t in the market at any given time, it’s important to engage them with content that adds value without pushing for an immediate sale. This could be through educational content, such as webinars on fleet management best practices, or tools like cost calculators that help fleet managers plan for future needs.
4. Long-Term Strategy: Recognize that the impact of these marketing efforts may not be immediately visible in sales figures. However, over time, as more of the 95% enter the market, your brand’s strong mental availability will pay off, leading to increased consideration and ultimately, sales.

Conclusion

The 95-5 Rule is a powerful reminder that in industries like fleet management, where purchase cycles are long, the key to growth lies in long-term brand building and mental availability. By focusing on these areas, companies can ensure that they are the first choice when potential customers finally enter the market. This strategic approach is essential for sustained success in the competitive landscape of the fleet car industry.