Close-loop marketing is a form of marketing that relies on data and insights. Closing the loop means informing the marketing team about what happened to the leads they received to understand their lead source. It basically tracks the journey of the customers starting from how they found out about your organization to the final conversion. This forms the basis for the next customer’s journey.
Steps involved in closed-loop marketing
- The visitor searches for any product and lands on your website. The marketing software tracks the original source of the visitor so that ROI can be credited to that source in the future.
- The visitor is directed to the demo offer through the call-to-action button on your website. His is tracked by the software. After filling the form on the demo page, the visitor becomes a lead.
- Now the sales follow up with the lead to close the sale and keep track of it using the CRM platform. The marketing team can now “close the loop” as it was able to track each touchpoint that leads up to the sales.
Need of closed-loop marketing
- It helps you to focus on channels and campaigns that matter the most - You can make a well-informed marketing strategy based on past failures and success.
- You are able to focus on the right goals - You can set the right expectations and goals with closed-loop marketing that lead to ROI. For example - “getting the most signups” can be a goal for you.
- It helps to minimize the cost-per-lead - You can lower the cost-per-lead by knowing what campaign and channels work best for you to close the most sales. This way you would not have to spend your time and money on things that don’t matter.
- Chance to know more about your target audience - Closed-loop marketing helps you to get a more holistic view of your leads and customers with some out-of-the-box insights.