Today, businesses all over the world are focused on an inbound marketing strategy. This is because, in order to succeed, all company activities must revolve around customers.
Everything from mobile marketing to social media management falls under this category.
However, how can businesses accomplish this? Closed-loop marketing has arrived.
We're going to explain what closed-loop marketing is in this article. We'll also go over some of the numerous advantages that this form of marketing can provide for your business.
Explaining Closed-Loop Marketing
According to research, 70% of marketers agree that converting leads into consumers is their top goal. Closed-loop marketing comes into play here.
Closed-loop marketing is based on the information gleaned via closed-loop reporting. Throughout the process, sales and marketing teams collaborate to determine where leads originate.
This aids the marketing department in determining the most effective lead sources. It then helps them to fine-tune their efforts in the future to generate more leads.
You can link every lead, customer, and revenue source to the marketing campaign that generated them using this form of marketing.
Over time, it allows businesses to contact their target audiences more effectively, resulting in increased revenue.
Can You Explain How It Works?
1. The Client Lands on The Website
A cookie is set on a visitor's referral source when they arrive on your website. As they proceed through your marketing and sales stages, this cookie will allow you to link them back to the appropriate channel.
You'll be able to track them back to their source no matter how they got to your site. You may compare channels and spot trends using this information.
Visitors may arrive at your website in a variety of methods, including but not limited to:
- Channels on social media
- Email marketing campaigns
The Website Is Browsed By The Visitor.
You may find out what your visitors are looking at on your website using tracking settings.
This data enables you to track their progress through the sales and marketing processes. You will be able to optimize your processes in the future as a result of this.
The Visitor Becomes a Prospective Lead
You must turn visitors into leads after they have explored your site. Sending your visitors to unique landing pages that allow you to collect information about who they are is one way to do this.
You could, for example, lead them to a form that they must complete. When a visitor completes this form, they become a lead, and you may begin to profit from your efforts.
Consider what you want to accomplish with these landing pages. Do you wish to know their name and age, for example? Is it more useful to have their address?
The Lead Turns into A Customer
Your sales and marketing teams must work together to convert a lead into a customer.
Conversions and other data from your sales team must be reported to the marketing team. They will be able to optimize campaigns in the future as a result of this.
It's vital to notice that the loop isn't closed until the marketing team has access to this data.
The Benefits of Closing the Loop 1- Conversion Rates Are Increased
You can determine which channels create the greatest sales with closed-loop marketing. You can do so by analyzing your marketing and sales data.
By identifying your most popular marketing channels, you'll be able to develop more relevant content in the future. As a result, you'll be able to boost your conversion rates.
2. Gives the Customer a 360-Degree View
You may get a 360-degree perspective of your customers by establishing a process in which your marketing and sales teams learn from one another.
By combining your marketing and sales efforts, you'll be able to discover:
How do visitors arrive at your website?
What pages do they go to the most?
When they progressed from being a visitor to becoming a lead, and how that lead turned into a customer
3. Costs of Marketing Are Reduced
You can better allocate your marketing budget now that you know how your consumers proceed through your sales cycle.
You have the option of deciding which channels to invest more money in. You can also figure out which efforts aren't worth spending a lot of money on.
4. Assists in Increasing Customer Satisfaction
You can tailor the pages on your website to match the needs of your clients using the information provided above. The information you collect will aid you in fine-tuning your marketing initiatives so that they are more effective.
Not only that, but this information will assist you in optimizing your customer's trip. This will help you realize a higher return on investment by shortening the sales cycle.
Even better, you'll have more customer satisfaction because your customers will:
- Spend less time looking for what people require.
- Spend less time reading the content on your website.
- Feel more assured that they purchased the correct product or service
5. Lead Management Is Improved
Closed-loop marketing allows your sales and marketing teams to work together to achieve a common goal. Your marketing team will focus on generating leads, while your sales team will follow up to close the deal.
You can pinpoint issue areas if data indicates that your marketing team is not generating leads. You can uncover flaws in your sales team's operations if they don't close a sale after the lead-generating process.
6. Provides Quantifiable Investment Returns
It might be difficult to determine what your marketing initiatives' return on investment will be.
Closed-loop marketing gives you all the data you need to figure out which channels are driving sales. You may also check which campaigns are the most successful in terms of conversions.
Hiring the Right Team to Manage Your Marketing
One of the most powerful approaches available today is closed-loop marketing.
Furthermore, the procedure allows you to monitor development in real-time. It allows you to convert more leads into clients, hence increasing your online revenue.
However, the procedure takes time. It also necessitates a certain level of competence and marketing knowledge.