Marketing Turned Smartketing: Jeremy Miller and the 3% Rule

You've set up your business. 

You know you have a valuable service or product to offer.

Now you just need to figure out how to reach those customers who need what you're selling! 

You need to create a brand that sticks. 

What do we mean by that? And how do you do it? 

Let's start by learning about Jeremy Miller's 3% rule. Then we'll look at how that rule applies to the various aspects of digital marketing. 

What Is the 3% Rule?

The 3% rule is a concept that Jeremy Miller writes about in his book Sticky Branding (more about Sticky Branding below).

Basically, the 3% rule states that at any given time, about 3% of your market are active buyers - the rest are not. 

The 3% rule breaks the marketplace down into the following percentages: 

• 3% are active buyers. These are the people that need your product or service, and they are already actively searching for someone to buy from. 
• 7% intend to change. These people also need your product and service, although they are not actively searching for someone to buy from. However, they are open to your marketing efforts for the product/service that they need.
• 30% have a need, but won't act on it. This portion of your marketplace needs what you're offering, but they don't need it badly enough yet to actually buy it.   
• 30% do not have a need. Maybe your product or service doesn't apply to them at this point in time. Maybe they've just purchased from someone else. Whatever the case, this portion of your marketplace isn't going to be receptive to your marketing efforts right now.
• 30% are not interested. This is the portion of the marketplace that just isn't going to purchase from you. Perhaps they will never need your product or service. Perhaps they are loyal to another brand or company. Don't stress about these people. 

How Does the 3% Rule Apply to Digital Marketing? 

You might think this rule is implying that you should direct most of your marketing efforts towards that top 3% of the marketplace since they're the only active buyers. 

Traditionally, most companies put the majority of their marketing budget into targeting that top 10% of the marketplace -- in reaching out to the people that are ready to purchase.  

"Sticky Branding" actually flips that idea on its head. A Sticky Brand focuses its marketing energy on the lower 90% of the marketplace. 

The goal behind this strategy is to get those 90% engaged with your company before they need your product or service. That way, when they do need your services (i.e., when they become part of the 3%) -- you'll be the first name they'll call, because you've already built up the necessary personal connection. 

So what do we mean with all this talk about "sticky branding," and why is it so important to Montreal digital marketing companies? 

What Is Sticky Branding? 

A Sticky Brand is a brand that sticks in customers' minds. 

When most people think of "branding," they think of logos, business names, colors, etc.

Jeremy Miller defines branding as "your organization’s strategy to engage customers so they like and trust it, so they buy."

Sticky Branding is all about building a relationship with your customers. You want your company to be the first one they think of when they have a need and the one they recommend when someone else has a need. 

You want to be the one that sticks in their mind.   

So how can you apply these concepts to your company's digital marketing strategy?

SEO and the 3% Rule

People who are searching the web for something are likely already in the top 10% or even 3% of your marketplace.  They have a need, and they are already looking for someone to fill that need. 

If your company has a first-page ranking in their search results, you are already communicating a message to your potential customers. You're showing them that you're reputable and trustworthy, because Google trusts you enough to place your site in front of other sites with similar services and products. 

However, best practices of SEO are not about tricking search engines, but rather about engaging with the real people that visit your site in search of helpful information or specific products and services. 

You want to make sure that your web content is not only marketing towards the top 10%, but also engaging with the 90%.

As we know, location plays a key role for many Internet searchers. They are often looking for a specific service in a specific place.

You want to be sure that you are using specific  SEO hyper targeted strategies to engage with your audience.

but more importantly...

You need to be providing value to your customers, because driving traffic is only one ingredient to the recipe, but what about the experience they receive and the value they get once they land on your site. That is the most important and often most overlooked.

Pay-Per-Click Marketing (PPC)

Pay-per-click (PPC) advertising works together with your company's SEO strategy to get your business name out there and to turn your company into a Sticky Brand. 

PPC advertising makes your brand show up ahead of organic search results, which means immediate traffic for your site.

A good PPC campaign not only measures clicks and traffic, but also monitors things like sign-ups and purchases. That way, your company is able to see exactly what's working (i.e., what's making you money) and what's not.

In order to measure the effectiveness of your campaigns, and truly implore a digital-direct response marketing approach. You will need to setup Google Tag Manager with specific goal completions that track every level of your marketing process.

Again, you'll want to be sure that you are using specific Montreal PPC advertising strategies in order to ensure that your PPC ads show up to the appropriate Montreal audience. 

Sticky Branding Through Facebook & Instagram Advertising

Social media advertising is an excellent way to engage with the other 90%.

With over 3 billion people worldwide using social media, it only makes sense to create a social media presence for your business. 

Facebook and Instagram are great tools for engaging potential customers and building up relationships with them before they need your services. The interactive nature of social media helps to build up trust and rapport among your following. 

Facebook's advertising capabilities allow you to zero in on your audience, targeting your ads directly towards your potential customers. 

Turning Your Company into a Sticky Brand 

Digital marketing is a powerful tool, but it involves so much more than just creating a website, starting a Facebook account, and hoping for the best. 

When you understand the concepts behind Jeremy Miller's 3% rule, you know that your digital marketing strategy needs to focus on building relationships with the 90% before they become the 3%. That way, when they're ready to buy, they'll come straight to you.

Want to learn more about how you can use Montreal SEO to engage your local audience?

Check out the local SEO section of our blog!