What is Closed Loop Marketing?

Closed Loop Marketing

Closed Loop Marketing


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Introducing Closed Loop Marketing

Marketing teams are often at odds with their sales departments.  Endless debates ensure about who is responsible for leads.  Even more arguments occur over the quality of leads and what should happen when they are not sufficient.  Closed loop marketing solves this issue by allowing marketers to review data about what happened to the leads they entered into the system.

Find out how to close the loop and how this approach can benefit you by reading on…

Defining Closed Loop Marketing

Half the money I spend on advertising is wasted; the trouble is I don’t know which half – John Wanamaker

This well known quote by John Wanamaker is often cited when people discuss Closed Loop Marketing.  The quote simply means that because of a lack of analysis and understanding, it is impossible to know which marketing techniques are working.

Not anymore.  This well known marketing term means that sales and marketing departments work together based on the data they have collected and processed.  The alignment of your sales and marketing departments allows a smooth flow of information between departments, improving communications.

You can identify where your campaigns are working and where they can be improved by closing the loop.  You can then take this insight to create more engaging, personalised and effective campaigns for the future.  The more data you have collected, the more accurate and widely applicable your insights will be.

Marketing isn’t one straight line from cold lead to purchase anymore.  People need to be nurtured before purchase and cared for afterwards.

Letting Data Guide Your Marketing Strategy

Once you have run a campaign and collected the results you can use these insights to make intelligent decisions for future campaigns.  Using a data driven approach to email marketing gives you a solid foundation for decisions within your marketing campaigns.

Before marketers close the loop, there is no way of identifying why a campaign is performing in a particular way.  Taking the data from campaign performance and re-inputting it into the system means that you can identify the reasons why a campaign performs in a particular way.

Marketers can identify where leads are getting stuck in the marketing loop.  Using the information they collect to identify common problems, they can then streamline processes and preempt issues that may be encountered.

How Closing The Loop Can Help You

Great.  So you can make your sales and marketing departments work more closely together but how does this impact campaign performance and effectiveness?  Here are the main benefits:

Deeper Understanding of Contact Behaviour:  You can use your insights to gain a deeper understanding of customer behaviours.  Each time you send an email campaign you are adding to the wealth of data that you store about your contacts.

Convert Leads with Ease:  Use the insights that you gain from your analytics to convert more leads.  As you feed information between your sales and marketing departments, you can ensure a higher conversion rate for your campaigns.  Use the data you collect to establish what qualities are present in good quality leads.  Future marketing campaigns can then be centered around the qualities you identify.

Save Time with Repeat Customers:  When a customer is approaching the end of the customer journey, you can use a well timed email to prompt a repeat purchase.  You can use this strategy to shorten the ‘Consideration’ phase of the marketing loop.

Save Time With Email Marketing

Higher Team Satisfaction:  Increase the level of satisfaction in your sales and marketing departments.  This strategy allows you to streamline your processes meaning that you can give your employees more accurate information about their performance.  Enacted correctly, this can improve motivation levels for your teams and provide them with realistic targets to work towards.

Target Paid Advertising:  After you have collected information about your leads and how they react when they go through your conversion funnel, you can target paid advertising campaigns at specific buyer personas and customer profiles.

How You Can Get Started With Closed Loop Marketing

To get started with this approach, you need to take a number of factors into consideration.

CRM System:  You need to have a central hub of data which collects data about all of your campaigns.  Centralising all of your data eliminates inconsistencies and makes the process of updating content much quicker.

Building the Team:  Your team needs to buy into the idea.  Using this strategy leaves no room for blame as insights indicate where your system is failing to perform.

Triggered Emails: Trigger email campaigns based on the places your customers are most likely to get stuck in the conversion funnel.  You need to identify where and how you are going to automate email sends and monitor their performance to ensure their effectiveness.

Empowering Customers:  Encourage customers to review your company after they have purchased.  Once you have created your streamlined marketing process, you need people to know how good it is.  For this purpose, there is nothing better than recommendations from people who have experienced it.


Aligning the sales and marketing departments in a closed loop model gives you the best possible decision making foundation.  You can use these insights to close the loop between sales and marketing.  This creates a more streamlined and effective conversion funnel which ultimately improves performance.

If you have enjoyed reading this article about Closed Loop Marketing, why not download a free copy of The Complete Guide to Email Marketing.  The guide contains information about all you need to know to create a successful email campaign.

Complete Email Marketing Guide

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