Do you know that only 3% of the people in the marketplace are ready to buy? The follow up of that consist of only 7% are the people who have the need but not actively searching to buy.
These accounted for just 10% of the pie that most company fighting for in the war ground. The competition is high, and the advantages lean more towards the well-established player within the market. If you’re a new player, it can be hard to enter the market, especially without a USP (Unique sales proposition).
Let’s take a look at the bottom 90%,
What are they consist of and how you can use it to your advantage?
The bottom 90% consist of:
30% have a need but not enough to act.
30% do not have a need.
30% are not interested in your product.
Even the more prominent and well-established players see the opportunity within the bottom 90% of the marketplace. That’s how they able to grow to the size they are.
You are engaging your future customers!
Your business can target the bottom 90% of the population to build trust and rapport. Trust is particularly important when you’re starting or have little to no testimonials — taking the time to educate your audience about your USP and the benefits of choosing you instead of your competitor’s.
For small players, it helps to win customers trust early on before their initial buying process. It’s human nature to choose the first thing that comes up in our mind or something that they are most familiar with.
Taking me for an example, before my need of creating a website, I was exposed heavily through advertisement by Wix featuring Karlie Kloss then by the owner Via their ads through YouTube. Guess what web development platform I use to create my music website?
Should you still target the top 10%?
In this blog, I’m not saying that you shouldn’t target the top 10%. What I’m saying is that the competition is high and that you need patience and persistence to find the opportunity further down the line. It is especially hard if the market saturated with businesses offering the same product and services. Therefore, you must be smart and focus on the future of your business. You can still target the top 10% of the marketplace, but you must put more effort to concentrate on the lower 90% of the market. It’s a great way to build followers, get to know your customers and find the niche or the gap within the market that your competitors have missed.
Split your budget accordingly
You can split your campaign into three by allocating your budget accordingly:
Top 10% (30% of the budget)
They already know their problems and desire; therefore, you must finetune your creative to explain to them why your product/ service can fulfil their wants/ need.
Bottom 90% (70% of the budget)
Because they don’t particularly need your product and service, you need to start with the foundation of any business “Trust”. Then, depending on your audience, you must create content that shapes their desire or get them to acknowledge their problems and how it can be beneficial once’s eliminated. The idea is to engage your customer before they need your product/ services.
You must know your market size and the intensity of the competition. If customers being overwhelmed with choices, you must back away and engage with the potential audience instead. Use this time to identify the gaps and what can be improved while building a group of followers that you can expand on.
Jeremy Miller, 3% rule: Engage customers before they need your services, Sticky Branding, 05/05/2015, https://stickybranding.com/3-rule-engage-customers-before-they-need-your-services/
Chunka Mui, Five Dangerous Lessons to learn from Steve jobs, Forbes, 17/10/11, https://www.forbes.com/sites/chunkamui/2011/10/17/five-dangerous-lessons-to-learn-from-steve-jobs/#27436d103a95