In a fast-transforming digital world, a lot of data is into play that’s collected mainly by the marketing and sales professionals. A system that enables the availability of this data information to both – Marketing and Sales is referred to as the Closed Loop Reporting (CLR) system. The CLR involves automation of processes related to customer segmentation, data integration, and campaign management. In this article, we will learn more about Closed Loop Reporting and Closed Loop Marketing.
Closed-Loop Reporting: Intro
We are aware of the various reporting and analytics tools that enable us to track the journey of leads. These tools or software also enable us to monitor anonymous individuals via self-identification processes that help to convert them into leads. A component of this automation tool that’s associated with marketing is the Closed Loop Reporting.
A term that you need to acquaint yourself with is closed-loop analysis. It refers to that data coming from sales and used by marketing which tells it about what brought leads to a website and what motivated them to make a buy. Marketing usually collects data using their marketing automation tools. The data that sales collect is usually displayed in their CRM system. The closing of this data loop between marketing and sales, Closed-Loop Reporting, allows marketers to make their decisions that help to drive the sales and increases the ROI.
As per the Content Marketing Institute, only 21 percent of B2B marketers successfully track their ROI. The closed-loop reporting tool is turning out to be the most powerful tool to handle this issue. Marketers are now efficiently focusing and reporting on their business-pipeline contributions – they are no longer restricted just to lead generation at the funnel top.
Why Implement Closed Loop Marketing?
As per Forrester Research, only 38% of marketers know how their prospects interact with digital content or know about their purchasing journey. As per Forbes’ Insights, 69% of CEOs believe they are wary of spending money on their marketing initiatives. What does all this mean? It only goes on to show that most marketers create content that they are unsure of producing ROI for their business. Isn’t that equivalent to online gambling with content? That’s where closed-loop marketing comes to the rescue of any business. Closed-loop marketing definition – it is a process that leads to improved ROI by making use of analytics’ and insights’ tools for better marketing campaigns.
Marketer can connect leads, opportunities, and prospects to their marketing campaign that initially attracted them to the business. Further, closed-loop marketing enables marketers to know which of their campaigns that are generally related to your website, or content, or blogs, or email campaigns, or other SEO tactics was able to generate the best ROI.
Closed-Loop Reporting – Ways to Effectively Implement
Analyzing the Return on Investment (ROI) of the overall campaign along with identifying the best and worst-performing ones is crucial for any marketer. And, it is closed-loop reporting that enables you to relate your sales revenues to your marketing campaigns.
Before your closed-loop reporting implementation, you need to ensure a consistent way that determines your campaign costs. This is important because no one can calculate a return value without knowing the campaign costs. And while doing so, you need to be consistent in your approach. Let’s note some of the steps when implementing your Closed-Loop Reporting.
Focusing on First-touch Entities
The sources that attract the highest leads that are quality-ridden, it is these leads that you need to focus on the most channels. You should start engaging with them through your sales funnel accordingly. For beginners, this type of focus that attributes to the first-touch audience is an effective way to start. You may very well call it the closed-loop attribution – It lets you understand how your paid marketing investment campaign drives your business growth.
Analysis & Planning
The HubSpot tool is a good example to explain the analysis and planning part. The reports generated in this tool can enable you to understand where in your sales funnel you are getting direct traffic, referrals, email marketing responses, organic searches, or social media interactions. The report enables marketers to build relationships thereby converting their leads to customers. That way a closed-loop report helps to show a marketer where to invest their time and budget.
Closed-looped marketing enables marketers to gain insights into audience behavioral patterns – you can know how prospects interact with your content, and what content attracts their actions. After all inbound marketing is all about understanding buyer personas! It facilitates your lead identification areas and effective nurturing. It also enables marketers to ask the sales team to reach out to their leads appropriately.
Without setting goals it’s not possible to measure the success of any campaign. A closed-loop reporting system enables you to set your goals. These goals are based on metrics down your sales funnel by looking at qualified leads, opportunities, and customers. These metrics can be associated with a visitor-to-lead conversion rate, and further lead-to-customer conversion rate. It helps you to understand what works and isn’t. The data gathered from closed-loop reporting enables you to set your goals to improve your conversion rates.
Spending Marketing Budget Effectively
No marketer has the luxury of having an unlimited marketing budget. Closed-loop reporting data facilitates the identification of channels that generate results. It helps you to understand the channels where you should focus on and invest your business growth. Using the CLR system understanding channels that bring in the most leads and revenue for your organization is possible. And, this helps you avoid wasting time, money on campaigns that do not provide returns.
Implement Your CLR that is Backed with Robust Data
As seen above, marketing that relies on data and insights from closed-loop reporting is referred to as closed loop marketing. The term “closed-loop” only means the reporting of sales teams to marketing with regards to the leads that they received. Closed-loop tracking and marketing enable you to focus on those campaigns or channels that matter the most. Enabling you to set the right goals and expectations, it minimizes your cost per lead. Closed-loop marketing helps to shorten your sales cycle, and learn more about your audience. Closed-loop marketing can work at its best when you have the right marketing software, an integrated CRM, and most importantly the data that you use. As the name suggests, closed-loop marketing is marketing that relies on data. Therefore, for effective marketing, you need robust data. Big Data Provider company that deals in databases and contact lists that are regularly updated, verified, and conforming to international guidelines; can help you. For a sample database, you may reach us at [email protected]