Term

What is Closed-Loop Marketing?

3 MIN READ

Closed-Loop Marketing

Closed-loop marketing is a type of marketing strategy that relies on insights provided by the company’s sales teams and their customers. For example, when users visit an online shop and start browsing different items, their preferences are automatically logged in the website’s database, or visitors are asked about their categories of interest so that the next time they visit the shop preferred items will automatically pop up.

Sales representatives directly participate in closed-loop marketing. After contacting a group of leads, sales teams send the received feedback to the marketing department; hence, marketers can better understand which type of customers should be targeted and which products or services are more popular.

Stages of closed-loop marketing

The goal of closed-loop marketing is to turn each visitor of the website into a customer. There are 4 stages in this process:

  • User enters the website. This stage is also considered an entry point. To understand how this user came to the website, marketers enable cookie files to track the user’s activity and find the original source. Depending on whether users came from a paid promo, email marketing letters, or used organic search, cookies help find the original source and group visitors to better understand which practice is the most effective.
  • Visitor browses the website. When cookies are enabled, they track each action the visitor during his session. Cookie files track actions, which the user does on the website and provides data on what he’s interested in. For example, users may start with an article and then gradually move to products and services the company provides. Or, users have started with the company’s story to then read more about the company’s mission and achievements. Understanding what interests visitors in the first place can help marketers optimize the process of visitor-to-lead conversion in the future.
  • Visitor fills in the form. It’s important to offer visitors to fill in a short form (also called a submission form) at this stage because when visitors provide some additional information about them (such as email, first and last name) they convert into leads, which means that they’re interested in the product or services the company provides. There are many different fill-in forms, for example, “subscribe to the newsletter”, “keep me updated” and so on. It’s considered a good practice to attach submission forms to landing pages.
  • Lead turns into a customer. This is the stage when sales representatives start interacting with leads to offer cooperating with the company by becoming its clients. Each time the goal is achieved, an original source of the converted lead is mentioned, so that the marketing team can optimize strategies for future campaigns.

 

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