Closed loop marketing is a process of gathering data for the purpose of refining and improving lead generation. “Closed loop” refers to the cycle of customer interaction that goes from the site visit, to the conversion into a lead, to the sale.
To use this method, marketers must have a source of real-time data in order to identify qualified leads and sales opportunities. This allows analysis of key factors such as website activity, web form completions, online purchases and phone leads. With this information, you can determine:
- if visitors find the site relevant
- how easy it is for visitors to take action
- which online activities lead to conversions
- if customers are moving through the sales cycle
- ROI for the campaign
Closed loop marketing is valuable for many reasons—
- Gives marketing and sales teams insight to make smarter decisions about which leads to pursue and how to nurture them
- Offers a 360-degree view into sales so that you can “connect the dots”
- Measures marketing returns to give clear data about what is producing revenue
- Helps identify best and worst channels and campaigns, and where these channels are coming from
When engaging in closed loop marketing, analytics software tracks new website visitor data such as sources of traffic, bounce rates, how long each visitor stays at the site, page views and where they exit. You can then ask yourself some important questions:
Are my visitors engaging with the site?
Review metrics to see how visitors are using your site. Are they engaging? Responding to calls to action? Do they find the content relevant and interesting?
Is the site user-friendly?
How easy is it for visitors to take action? Which pages are effective and why?
Which site elements drive conversions?
Look at traffic sources and activities that drive sales such as web forms, phone contact and online purchases. Is your content successful? Your PPC campaign? How bout your social media marketing efforts?
Are visitors getting through the buying cycle?
Can you do more to get visitors through the sales funnel? If you’re experiencing high drop-out rates, for example, lead nurturing can build relationships through education. This helps people make informed buying decisions.
Are we getting a good ROI?
Where should you allocate resources? Compare your spending to conversions, then to revenue for the campaign. Experiment with ways to compel visitor action.
Not all leads are created equal. Closed loop marketing can give you the information you need to determine which ones are worth pursuing, and how you can help your qualified leads through the funnel. It can generate more customers and shorten the sales cycle. The insight it brings helps you to close the loop, and close the sale.
Photo by JohnBurke