Closed-loop marketing is a strategic approach that involves the collection, analysis and utilization of data throughout the marketing process. Its primary objective is to enhance targeting, personalization and overall effectiveness of the marketing campaign. Gone are day that marketers can rely solely on brand and prestige.
Marketers must collect data and determine what works and doesn’t to make the necessary changes. In the ever-evolving world of digital marketing, it’s paramount to stay ahead of the curve. Closed-loop marketing takes the emotion out of what might work and focuses on data-driven results to give your marketing efforts the best possible chance for success.
How to Set Up a Closed-Loop Marketing System
For a marketing team to achieve success, they must follow a multistep approach to establish a closed-loop marketing strategy. Regular communication and access to up-to-date analytics for a closed-loop marketing campaign are vital for both the sales and marketing teams. If the marketing team is having issues closing consumers, it needs to find where the consumer is dropping off in the lifecycle of their customer journey to try and close that loop.
Identify Your Goals
When planning a closed-loop marketing campaign, it’s crucial to establish clear goals for your team. With a defined end goal, your efforts may be well-spent. Consider what you hope to achieve through the campaign. Do you want to understand better as to why your target audience’s didn’t buy your product or service? Are you trying to determine how they discovered your product or service? Or do you want insight into why they decided to make a purchase? Identifying your goals upfront, will ensure your campaign is targeted to tackle that goal at hand.
Track Visitor Activity
To fully comprehend the experience of your customer base, it is essential to utilize analytics that can uncover their behavior during visits to your landing page. You can use advanced marketing tools to track your customers and gather data for effective marketing campaigns.
Some of the best tools marketers can use to track visitors are:
It’s essential to gather information such as their actions, whether there’s a high drop rate or leave items in their cart and exit, and if they show more interest in one product over another. Marketers must narrow down the main reasons your audience is dropping off.
Generate High-Quality Leads
Once you have set your goals and understand the behaviors of potential customers, the next step is to focus on lead generation, a vital component of a marketer’s role. High-quality leads can be generated from the best source: the customer. There’s no secret or magical way to gather customers’ information, and that’s by placing some form that will allow customers to freely give their information.
However, it’s easier said than done. Can you guess why? Every company out there is asking for the same information. After a while, it becomes tiring for people to give out their information. Furthermore, they often receive numerous ads causing chaos in their email inbox.
There are a few things you, as a marketing professional, can do:
- Don’t spam your customers they won’t appreciate it.
- Be the best source of information for your product and services.
- Entice your customer, give them something for their information (e.g., discounts or welcome gift)
Information is very valuable today, and if you can capture customer information, you will have a better chance of closing the loop in your marketing campaign. But, your target audience will know that their information is valuable, so making it easy for them giving a name and email, and what their interest are, can be more valuable than any discount or promotion.
Close the Loop
Now that you know the goal of your closed-loop marketing campaign, you know the customer’s behavior, and you have generated leads. It’s time to find out how to seal the deal. But, finding the issue is a lot easier said than done. Below is why marketers aren’t closing customers:
The Product/Service Wasn’t a Good Fit
Finding out a customer didn’t feel the product was a good fit is the bane of all marketers. Because marketers put their soul into copy and ads, and sometimes with all of the glitz and glamour of a product that caught the customer’s eye. The customer did further investigation and decided otherwise. However, getting the customer’s information could be a great way to recapture their interest.
Price of the Product
Price is sensitive, and marketers need to empathize better with the consumer. One way to gauge whether customers can afford a product is to see whether they leave items in their online cart. Is there an unexpected cost? Were expectations accurately set? Because if a customer cannot afford something, marketers need to either refocus on their audience or make buying more enticing. You can offer military discounts or promotions to lessen the financial impact of purchasing a product.
Lack of Trust
A lack of consumer trust is a real concept. But marketers need to acknowledge and accept that consumers will be cautious online, especially if the brand is new or if they haven’t heard of it. The best way to gain the consumer’s trust is to establish your authority with your product. Your brand must be yours, and the best information must come from you, including blogs, honest advertisements, and honest business practices to establish a good rapport with the consumer.
What are the Benefits of Closed-Loop Marketing
Closed-loop marketing offers significant benefits for companies looking to capitalize on their marketing efforts. One key benefit is improved insights into the entire customer journey. Businesses comprehensively understand which marketing activities and channels are most effective by tracking and studying every point in the process, from initial lead generation to final conversion. Businesses can create unique campaigns by addressing the customers’ needs during the closing process. This approach will increase engagement and possibly higher conversion rates and improve customer experience.
Conclusion
Closed-loop marketing is an important element in closing customers. Because, in any marketing strategy is important to understand that not every customer will be the same in the same position to buy. Even if you have created the perfect audience profile there’s no telling what the customer will do. That’s why closed-loop marketing is so important, it allows you to track your potential customers and finds ways to convert their business. Which is what marketing is all about.
