With consumers making purchasing decisions online, one of the most critical factors that affect where they buy from is their...
What is Closed Loop Marketing?
Traditional marketing methods have always made it difficult for companies to reliably measure the return-on-investment (ROI) associated with their marketing efforts. If your organization relies on print ads, billboards, and television or radio spots to get the word out to prospective customers, how can you accurately determine which of these marketing sources led to a specific sale or conversion? In this paradigm, quantifying the real effectiveness of individual marketing efforts or campaigns is nearly impossible and marketing teams may end up wasting large amounts of their budget on channels that don’t produce the intended results.
Digital marketing makes it significantly easier for organizations to collect and analyze data from customer interactions and leverage that into more effective marketing campaigns that increase ROI. For organizations that sell B2B, closed-loop marketing is a useful methodology for tracking individual leads and customers throughout the entire sales cycle and using that data to continuously refine and optimize marketing spend and funnel design.
The defining feature of closed-loop marketing is the use of data analytics to track individual customers from their first interaction with your marketing funnel through the entire sales cycle. This helps your marketing team determine the most profitable and effective components of your marketing initiatives and get a better understanding of where your efforts are producing the greatest return-on-investment.