Learn how closed-loop marketing uses sales data to boost revenue. Discover the benefits, steps to get started, and related articles. Plus, get information on LiveAgent and subscribe to our newsletter for more tips!
If you’ve read or watched any content about digital marketing before, you might have
heard the phrase “data-driven marketing.” But have you heard of “closed-loop marketing”?
Anyway, data-driven marketing is just what it sounds like. It’s a type of marketing
where you run your campaigns based on existing data. That data might relate to how well other
campaigns have performed, who your customers are, and more. But the point is, you use the
information you have to improve your marketing. Closed-loop marketing closely relates to
data-driven marketing, and trust me, it’s something your company wants to be doing.
But what is closed-loop marketing, exactly, and why do you need it? Keep watching to find out!
What is closed-loop marketing? Closed-loop marketing is a type of
marketing where you use sales data to improve your marketing. As you generate new customers,
you use the data from those customers to help you drive even more customers in the
future. This data loops from your sales to your marketing team for better performance overall.
To understand closed-loop marketing, it helps to visualize it. A lot of times, businesses can think
of marketing and sales as a straight line. You start at the top with some introductory marketing,
and you progress down to the bottom of the line, which ends with a purchase.
But closed-loop marketing changes the image. Instead of a straight line, this type of
marketing is a circle. You market to people, some of those people become customers, you analyze the
data from those customers, and you use that data to improve your marketing — and then it repeats.
What are the benefits of closed-loop communication?
There are quite a few advantages to using closed-loop marketing at your business.
Here are three of the biggest ones! 1. You can improve the quality of your marketing
The first benefit of closed-loop communication is that it just makes your marketing materials
better. For example, let’s say you’ve been running a few different email marketing campaigns.
One of them is super professional, while another is more casual.
Then your sales team gets back to you about some of the people who saw those emails and then became
customers. Turns out, almost all of the people who became customers got the more casual email.
That tells you a casual tone in your emails will drive way more sales. So,
you revamp your email campaigns to take a more casual tone, making them more effective.
It’s not just email that can benefit from closed-loop marketing — that sort of improvement
can be made across lots of different strategies. 2. You can focus on the right strategies
Speaking of different marketing strategies, your closed-loop efforts can help you find the best
strategies to use. After all, there are lots of different marketing strategies out there.
In all likelihood, some of those strategies will work better for you than others.
For example, maybe you find out that most of your sales are being generated by search
engine optimization, or SEO, and your paid ads aren’t driving many sales at all.
Based on that data, you know you should be putting more focus on your SEO — either that,
or you really need to improve your paid ads. 3. You can target the right audience
Another way closed-loop marketing is useful is that it helps you focus on
the right audience. Your marketing only works if it reaches the right people, and if it doesn’t,
it won’t lead to many sales. Even if you’re on the right track, there may still be more you
can do to improve your audience targeting. Closed-loop marketing can help you figure
out how to do that. Your sales team may notice that your customers follow particular trends,
or fit into particular categories, that you hadn’t noticed before.
Then you can rework your marketing to target those groups of people. That’ll help you reach
a more relevant audience and drive more sales. Now that you know what closed-loop marketing is
and why it’s useful, let’s talk about what you can do to start using it.
1. Track your customers’ journeys The first step to closed-loop
communication is data tracking. You have to track users’ journeys through the marketing and sales
funnels so that when people become customers, you can go back and look at how they got there.
You basically want to look at any kind of interaction users have with your business.
That might mean signing up for your email list, visiting your website from a paid ad,
or downloading content from your website. You can use different tools to help you gather
that data. One of the best tools to use is a customer relationship management platform, or CRM.
CRMs, like our partner company Nutshell, are useful for gathering, storing,
and analyzing customer data. 2. Return feedback from your
sales team to your marketing team When people convert into customers,
it’s time to see how they got there. If you’ve done the first step,
it means you’ve got plenty of data showing how all your customers progressed through the funnel.
Your sales team should work with your marketing team to look for helpful trends and patterns.
Maybe you’ll see that companies of a certain size tend to buy from you more than others,
or maybe you’ll find that your email marketing is driving more customers than any other strategy.
Whatever it is, make sure that’s something your sales and marketing teams learn.
3. Revise your marketing to drive more sales As you learn new info about your customers,
you should turn around and apply that info to your marketing campaigns. Maybe you’re shifting
your ad targeting to a more niche audience, or maybe you’re adjusting your messaging.
Whatever it is, take the time to improve your marketing based on what you’ve learned.
From there, the whole process starts over. But each time it loops, your marketing will improve.
The more times you complete the circle, the better your marketing will be,
and the more sales you’ll drive. That means your revenue will just keep evolving over time.
Now you know all the basics of closed-loop marketing. If you want to learn more about
digital marketing, you can subscribe to our YouTube channel — we’re always
talking about cool marketing stuff over here, don’t miss out.
Also, you can subscribe to our email newsletter, Revenue Weekly.
That’s all for now. Thanks for watching — see ya in the next one!
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