The Benefits of Practicing Closed Loop Marketing
Today, companies across the world are focusing on an inbound approach to marketing. This is because all business processes have to revolve around customers to succeed.
This includes everything from mobile marketing to social media management.
But, how can businesses achieve this? In comes closed-loop marketing.
In this article, we're going to tell you what closed loop marketing is. We'll also share some of the many benefits this type of marketing can offer your company.
Keep on reading!
Closed Loop Marketing Explained
Research suggests that 70% of marketers say that their top priority is to convert leads into customers. This is where closed-loop marketing comes in.
Closed loop marketing relies on insights from closed-loop reporting. During the process, sales and marketing teams work together to establish where leads come from.
This helps the marketing department understand the best lead sources. It then allows them to fine-tune their efforts to create more leads in the future.
This type of marketing allows you to tie every lead, customer, and revenue source to the marketing campaign that created them.
In time, it gives companies the chance to reach their audience in a more efficient way, thus increasing income further.
How Does It Work?
1. The Visitor Arrives on the Website
When a visitor arrives on your website, a cookie is set on their referral source. This cookie will give you the chance to link them back to the proper channel as they progress through your marketing and sales stages.
Whichever way they land on your website, you will be able to trace them back to their source. With this data, you can compare channels and identify trends.
Some of the ways visitors could land on your website include but are not limited to:
- Social media channels
- Email campaigns
2. The Visitor Browses the Website
Thanks to tracking parameters, you can find out what visitors are looking at on your website.
This information allows you to identify how they develop through the sales and marketing stages. This will enable you to optimize your processes in the future.
3. The Visitor Converts Into a Lead
Once visitors have browsed your site, you need to convert them into leads.
You can do this by sending your visitors to specific landing pages that allow you to collect information about who they are.
For example, you could redirect them to a form they have to fill out. Once the visitor fills out this form, they become a lead, and you can start monetizing your efforts.
When creating these landing pages, think about what you want to achieve. For example, do you want their name and age? Or would having their address be more beneficial?
4. The Lead Becomes a Customer
For a lead to become a customer, your sales and marketing teams need to work in unison.
Your sales team must report conversions and other data back to the marketing team. This will allow them to optimize campaigns in the future.
It's important to note that if the marketing team does not gain access to this data, the loop is not closed.
The Benefits of Closing the Loop
1. Increases Conversion Rates
With closed-loop marketing, you can establish which channels generate the most sales. You can do this by looking at your marketing and sales insights.
Identifying your most popular marketing channels will allow you to create content that is more relevant in the future. This, in turn, will allow you to increase your conversion rates.
2. Provides a 360-Degree View of the Customer
Creating a process whereby your marketing and sales teams learn from each other gives you a 360-degree view of your customers.
Integrating your marketing and sales will help you find out:
- How visitors land on your website
- Which pages they visit the most
- When they went from a visitor to a lead
- How that lead became a customer
3. Reduces Marketing Costs
Now that you know how your customers progress through your sales cycle, you can better allocate your marketing budget.
You can choose which channels you should invest more money into. You can also identify which initiatives are not worth investing much of your budget into.
4. Helps Improve Customer Satisfaction
With all the information mentioned above, you can personalize the pages on your website to meet your customers' needs. The data you gather will help you adjust your marketing campaigns to make them more effective.
Not only this, this data will help you optimize your customer's journey. This will shorten the sales cycle and will help you see a higher return on investment.
Better yet, you'll get better satisfaction rates because your customers will:
- Save time searching for what they need
- Save time reading the information on your website
- Feel more confident that they have bought the right product or service
5. Improves Lead Management
With closed-loop marketing, you are allowing your sales and marketing teams to work towards a common goal.
Your marketing team will work on lead generation and your sales team will follow-up to land a sale.
If data shows that your marketing team is not gathering leads, you can identify problem areas. If your sales team doesn't close a sale after the lead generation process, you can identify failures in their processes.
6. Gives Quantifiable Return On Investment
Sometimes, it's hard to identify what your return on investment will be from your marketing campaigns.
With closed-loop marketing, you have all the information you need to identify which channels are bringing in sales. You can also see which campaigns generate the most conversions.
Hire the Right Team to Take Control of Your Marketing
Closed loop marketing is one of the most effective techniques available today.
Not only this, the process allows you to track progress in real-time. With it, you can convert more leads into customers, thus allowing you to increase your online revenue.
But, the process takes time. It also requires a certain amount of skill and marketing expertise.
At Mind and Metrics, we are a team of creative and analytical people that can deliver compelling inbound marketing strategies.
Contact us today to find out how we can help you reach your marketing goals.