To start off, there is no magic button that will make your campaigns convert like crazy. But, we have some rules and ratios that are proved to yield favorable results in marketing and are worth knowing. This is especially timely if you find yourself stuck while trying to convince your target audience to at least take a look at the product, let alone buy it. So, buckle up and let’s go down this math rabbit hole.
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The 95:5 rule states that 95% of your audience is not on the market, i.e., not ready to purchase from you. Marketers usually interpret it as they should concentrate all efforts on attracting the remaining 5% of the audience. Actually, it is not about pushing these 5% down the sales funnel, it is more about getting the message across to those 95%, as they are the ones to bring considerable long-term profit. It is important to make people aware of your brand or product, so that they know where to go when they are finally ready to buy it. This is about the importance of communication with a vast audience of potential customers to stay relative when they need you. As they say, today’s brand is tomorrow’s demand.
80:20 rule (the Pareto Principle)
This rule is also known as the power distribution principle, that states: 80% of all outcomes are produced by 20% of the efforts. It also relates to wealth distribution (80% of all riches belong to 20% of the population) and, of course, marketing.
When it comes to marketing and promotion, the 80/20 rule means that only 20% of your content will bring any returns. So, be prepared to spend 80% of your budget on pure experience before you get any results.
Also, this means that not all campaigns, landers, creatives, etc. are equal and a rare few perform while the rest just waste your time. But this is why you need split-testing, right? To sift through the 80% to get to the precious 20%!
Some scientists believe, that the power shift is even bigger than 80/20 and it is 90/10. Also, the proponents of this 90/10 approach claim that if you know what’s good for you and your business, you should forget about the wider audience that may yield results in future and concentrate your efforts on the already interested customers who constitute only 10%. You need to identify your ideal customers and their preferences, location, pains, needs, and doubts. Then adjust your strategy to bring them to you. It takes a lot of research and careful planning, but then you will be able to reject the cold audience and start cherry-picking. Sounds great!
The 60/40 rule urges you to invest more budget and effort in the long-term projects and strive for better brand/product recognition. It is similar to the 95/5 rule in saying that people who know about your product today are more likely to become your customers in a few months/years. It short, this rule is dubbed 60% branding and 40% marketing, where branding equals long-term investments and marketing means current promotional efforts.
Rule of 7
This rule is somewhat different from the rest, it says that a potential customer must encounter your message 7 times before he is ready to take an action. This rule has been formulated in the 1930s based on the research of many cinema-lovers who needed to see a movie poster many times (i.e., 7 times) before they bought a ticket.
In digital marketing, this rule is relevant to decide on the best frequency capping and the spread of targeted campaigns. However, this rule will not save the performance of your campaigns if you decide to stalk your audience with multiple appearances of your ad within a single day.
And finally, the longest rule that applies to online marketing in general and social media marketing specifically. The 70/20/10 rule says that you should create 70% of your content to create brand/product awareness, use 20% of reposted high-quality content, and only then use 10% of publications that promote a product directly with CTAs and such.
The 70% creates familiarity and awareness, the 20% establishes you and the product on the bigger arena and creates links to trusted sources, and the final 10% contribute to reaching the main goal — sales.
These rules and principles may come in handy when you are planning your next move or mapping a future campaign. Try to imagine how your audience perceives the brand and the product you promote, and then decide on the short-term or long-term approaches that will work best. And, of course, remember that these rules are no one-size-fit-all solutions but mere suggestions for you to split-test. And last but crucial: chose one strategy and stick to it, or you are going to drown in chaos and your performance will sink along.