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  • Europa Communications

Why an always-on demand generation approach leads to better ROI/sales….


For many years the sales and marketing strategies have been based on the Pareto principle that 80% of results are a product of 20% of your actions, so whether 80% of your sales came from 20% of the base, or marketing trying to apply it to optimise marketing campaigns to reach target audiences, it is well understood and used on a regular basis.


It seems that now more businesses are considering the 95-5 Rule, which suggests that only 5% of potential buyers are actively searching for products or services at any given time. These individuals are considered “in-market.” The remaining 95% of the audience is not currently in an active buying stage; they are “out-market.” However, this larger group will eventually transition to an “in-market” state in the future. This is particularly relevant where there are long sales cycles.


In the same way as Pareto previously, the 95-5 rule can be applied by sales and marketing, and relevant actions taken.  As in-market means those prospects actively looking for solutions ready to make a purchase decision, sales should be focusing on closing deals with this group. The out-market consists primarily of potential buyers not actively searching and who may not be ready to buy right now. Thus, marketers should concentrate on creating awareness and demand, generating, and nurturing leads and trying to gain understanding as to when these prospects will become in-market.


As always, the trick in all of this is to ensure an always-on approach to demand generation, by using short term tactical campaigns you may miss customers and prospects ready to move in-market. Understanding when a small portion of the market is ready to buy, as per the 5% rule, involves a combination of data analysis, customer behaviour tracking, and strategic observation, ideally through direct engagement, but some indications can be drawn from engagement with content combined with lead scoring and pipeline analysis to help focus your direct efforts at the right time.


Whether cross selling to existing customers, where account managers should be aware of upcoming relevant projects and when to approach with new offers, or targeting new customers and understanding whether there is a sales opportunity, the need to have direct dialogue is key. Passive surveys, or intermittent, vague enquiries are less likely to result in a conversation at the right time than having ongoing dialogue.  Whether this is done by account management, inside sales teams, or by outsourced demand generation specialists, the insights that can be drawn from a conversation can be invaluable in achieving sales success.  Building and maintaining rapport is key, as well as accurately recording relevant information and scheduling call backs at the right time so you don’t miss the prime opportunity as prospects move in-market.


We have proven experience of how an always on approach can drive effective results. If you are looking for an always-on approach to nurture your 95% out-market prospects to become qualified sales opportunities, talk to us today to understand how we already support our clients to do this.

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