Close-looped marketing refers to the practice of integrating sales and marketing data collection processes and management. By combining the data that the marketing department collects, which is usually through marketing automation systems, and the sales department collects, which is usually through customer relationship management programs, marketing management will better understand what factors drive the greatest ROI and customer engagement. Closed-loop reporting is one of the most powerful inbound marketing tools because it allows management to focus on the entire business pipeline instead of just funnel lead generation.
Closed-loop Reporting Models
A first-contact attribution model is the preferred basic model, but there are advanced ROI models for complex sales and marketing infrastructures. This model analyzes the lead to define how they found the website and gives all ROI credit to the original source. This helps marketing managers identify which online sources produce the highest quality leads. This helps them to streamline the most popular marketing channels to create engaging customer experiences that help leads move through the sales funnel. Depending on the online business, they may receive the most direct traffic from search engine results, customer referrals and social media platforms. If online traffic mostly comes from Facebook and LinkedIn, then the marketing manager can build relationships with other similarly influential sites to earn new referral links.
Special Benefits
Closed-loop reports show marketing professionals where they should and shouldn’t invest their time and budget. Marketing activities that use closed-looped reporting help managers invest in efficient blogging, email marketing and social media strategies that build organic search rankings. Social media platforms are the best way to improve lead traction and conversion rates. Closed-loop reporting identify the leads and conversions that drive the most business, so marketing efforts can focus on customizing deals and offers to the highest performing demographic group. Closed-loop reporting minimizes the guesswork involved with creating new marketing materials for general audiences. It gives marketing professionals the ability to accurate data and statistical analysis to influence the directions of all marketing campaigns. Thus, it is directly associated with marketing campaign preparation and associated sales forecasts.
Marketing Techniques
Marketing programs that rely on closed-loop data will enable marketing professionals to comprehensively understand their target demographics. They will gain insight into the demographics’ actions, behaviors and preferences. Marketing professionals will understand how customers are specifically interacting with content and what topics generate the most calls-to-action and social media buzz. Inbound marketing focuses on understanding buyer personas and their associated needs and challenges in order to provide customized solutions. Buyer personas and market demographics will always change with time and industries and technology will continue evolving, so marketing data helps business professionals to go with the flow and remain competitive. A simple review of the collective lead history may reveal there are certain sales challenges or funnel clogs that are impeding flow and revenue.
Close-looped marketing clearly identifies the exact steps that prospects take before becoming a customer, so marketing professionals can selective cultivate certain sales funnel stages and processes. Marketing data helps business owners to understand metrics, set achievable goals and take advantage of new opportunities and customers. Read about potential marketing careers here.
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