What is a Closed-Loop Marketing?
Feb. 23, 2019, 1:11 a.m.
A Closed - Loop Marketing concept, ie closed-loop marketing, had a theoretical overtone for a long time. The reason was the difficulty in linking the work of various departments of the company. Currently, technology allows any company without major problems to put it into practice. And although not in every case its effects will be equally spectacular, it certainly can be used to significantly improve the financial results of most businesses. What is Closed Loop Marketing and what benefits can be brought by the introduction of this concept? This is what we will deal with in this text.
A closed loop marketing is a business strategy based on cooperation between marketing and sales departments in order to better understand the sales process and customer behavior. This cooperation should take place both in the area of data collection, processing, and analysis, as well as adapting sales and marketing activities to the conclusions drawn on their basis. The reference to the loop is meant to mean the joint work of the marketing and sales department in all of these ranges, including the needs and reactions of customers in the same sequence. Simply put, such a cycle can be visualized as a way of activities undertaken by a person from the moment of its entry to a given website until the sale is finished.
As part of the closed loop marketing, information is collected about which sources the user has visited our website, what content he was looking for, which resulted in his conversion to a lead (if he left his data), and then sales. At the same time, however, data about the Internet user - as well as his or her professional profile - are also collected. This information comes from different channels and departments of the company, but they must be considered as a whole so that the analysis of customer behavior becomes possible. Thanks to this, we will be able to assign to each final customer a specific marketing action that led to the sale.