Let’s start with this: closed loop reporting isn’t new. In fact, it’s about as old as marketing itself. Of course, it hasn’t always been called closed loop reporting. What’s more, the idea of it was (and remains) notoriously difficult with traditional/interrupt marketing. In fact, with some campaigns, there’s no loop to close. There’s more of a soft, fuzzy hope that there’s ROI at the end of the rainbow.
However – and thankfully for businesses that foot the bill – closed loop reporting is a fundamental part of inbound marketing, and that’s why this term is generating a lot of traction and buzz. So no, closed loop reporting isn’t new. But yes, it’s being realized in its totality and full glory for the first time.
What is Closed Loop Reporting?
Simply put, closed loop reporting is the ability to track leads and marketing spend back to the online campaign (or initiative, project, strategy, event or tactic) that generated them.
Obviously, the goal here is to identify which campaigns are working and which aren’t. But just as importantly, as noted by HubSpot the process helps align sales and marketing teams, and tightly integrate marketing software and CRM systems (e.g. set sales assignment rules, custom lead scoring systems, lead nurture campaigns, etc.).
Implement a Closed Loop System
Every business needs to implement a closed loop system that wraps around its specific variables, campaigns and goals. As such, there’s no one-size-fits-all template. However, generally speaking there are 4 fundamental steps in a closed loop system:
Step 1: Tracking incoming website visitors.
The entry-point to a closed loop system is tracking where visitors are coming from. For example, leads may be arriving from blog posts, social media, PPC ads, specific campaigns built around assets like ebooks and white papers, and so on. Tracking is handled automatically in the background by setting a cookie on the referral source/page.
Step 2: Tracking lead actions.
Next, cookies are used to track visitor behaviors, such as which pages they’re accessing, what they’re clicking (and in what order), how long they’re staying, and so on.
Be aware that linking referral cookies (step 1) with on-site cookies (step 2) is a tough challenge that many closed loop reporting systems don’t handle well. Unfortunately, when that happens businesses cannot effectively credit or criticize a lead source. Alas, the loop is loopless.
Step 3: Converting visitors to leads.
From there, visitors are ushered and nurtured by the website (or other digital property, such as a microsite or social media community) to complete a form, after which they graduate into legitimate leads. The amount of information that businesses can reasonably expect to generate depends on many factors, including the type of buyer persona and where they are on the buyer’s journey.
Generally, the earlier customers are on the journey (or the higher up they are in the funnel), the less they’re willing to share. At Leap Clixx, we don’t advise our customers to ask for anything more than a name and email early in the relationship.
Step 4: Turning leads in customers.
Last but not least, the ultimate goal of the closed loop system is to develop leads into customers. This can (and usually does) take multiple touchpoints and engagements, and B2B relationships are usually much longer and more elaborate than B2C relationships. However, as mentioned, the goal is to leverage information generated in step 3 and launch a consultative sales process that, ultimately, ends up in a transaction.
Closed Loop Reporting is the Spotlight
As you can see, closed loop reporting is the spotlight that businesses (or again, agencies on their behalf) shine on this system, to see what’s working and what isn’t. Decisions can then be made and adjustments made accordingly.
Learn More
To learn more about closed loop reporting, and how to objectively determine if your marketing spend is generating maximum ROI, contact the Leap Clixx team today. Your consultation with us is free.
Topics: Inbound Marketing
