Closed loop marketing – What is it, definition and concept | 2022

Closed loop marketing is a system that gathers important information about the cycle of how a visitor arrives, navigates, becomes a sales opportunity and becomes a customer for a company through the use of the web.

In other words, closed loop marketing functions as a document with key information on how users or new prospects for a company became effective customers. The purpose of taking this information into account is for the sales staff and the marketing team to know how the sales cycles of each user have been closed.

Of course, by knowing this valuable information, both departments (sales and marketing) will be able to work together to better focus on each user and increase the company’s revenue. The information collected helps to know if the marketing strategies that the company is using on the web are effective or not. Thus, based on the data obtained, the joint work of marketing and sales could help improve these strategies so that they are more effective.

Steps followed by closed loop marketing

The most important steps followed by closed loop marketing are the following:

1. The user arrives at the website

First of all, closed loop marketing starts when the user comes to visit the website. In this step, cookies must be designed that allow knowing where the contact channel with the potential client comes from. The channels of origin for the contact can be publications on social networks, posts or email marketing, to mention some that the company has used.

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Indeed, the information captured can be used to obtain data on the results of the responses of each channel used. This will help determine which channel has been most effective and which one(s) should be improved to optimize them.

2. The user browses the website

Secondly, when the origin of the user and how they arrived at the web have already been determined, the actions they carry out when browsing the site must be followed. This involves obtaining information about the pages you have visited and the time you have spent on each one. All this will serve to know the tastes, preferences and interests of the user.

Of course, having a track record of the visitor’s actions can help the company to enhance and optimize the process of converting the visitor into a sales opportunity. This, given that, with the information obtained on the tastes, preferences and interests of each user, it is possible to create customer profiles. With the designed profiles, it is easier to associate and make available to the user the information that interests him and wants to obtain.

3. The user becomes a sales opportunity

Thirdly, when the user has been able to become a potential customer or a lead, the company must make available a form that the visitor must fill out. The information on the form allows us to know who our customers are, which is vital to be able to close the sales cycle.

Naturally, in order to achieve this, it is necessary to offer him extra information about what interests him or what worries him regarding the product offered by the company. To do this, they must be provided with information that is more attractive and interesting to them in order to satisfactorily resolve the need they face. Of course, the company receives in return valuable information that allows it to get to know you better, which will help to create a more complete profile of the potential client. Likewise, it can be evaluated if it can be a good prospect for the company.

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Indeed, if the customer is willing to leave their data in exchange for content, we know that this user can already be pre-qualified as a potential customer who will buy the products or contract the services of the company.

4. The potential customer becomes a real customer

Finally, with all the information obtained and with the interaction process that has been had with the potential client, the company gets to know their needs. In this step it is time to turn the potential customer into a real customer. That is, it becomes an effective sale for the company.

For this, all the data collected from the potential client is transferred to the sales department. The idea is that in the sales department a salesperson is assigned who makes direct contact with the client and manages to close the sale.

Normally, in this step the CRM (Customer Relationship Management) is used. This, since in the sales department this information must be used to convert the potential client into a real one. For this, the most appropriate channel should be used to contact the client and finally close the sales cycle.

Closed Loop Marketing
Closed loop marketing steps

Benefits of using closed loop marketing

The benefits of using closed loop marketing are:

  • For the sales department: The information and data collected allow sellers to know, especially, the entire route that a visitor follows within the web. Also, by analyzing this information, the sales department will be able to use the most appropriate strategies to close the sale.
  • For the marketing department: The analysis of the information allows the marketing department to design and prepare the marketing content that is required to attract visitors and convert them into effective customers.

In conclusion, we can see that closed loop marketing is an entire information system about the steps that users follow on the web. This, from the moment they are attracted until the closing of the sales cycle. All this information system allows the marketing and sales departments to work together to improve the company’s results.

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