What is Closed Loop Marketing?

By Paul Feeney | Brand Management

Make 2017 Your Year Learn More

Dec 08
man and woman in cafe
Closed Loop marketing is about Business Synergy and maximising the value of individual marketing strategies.

In order to maximise profits from online marketing, social media marketing, print and your website they must all be synergistically aligned. 

An example of a Closed loop marketing system within a bricks & mortar business model

Once Starbucks gets someone in their doors they up-sell, capture them as customers and create a return path for the next time.

However… this entire process begins with large volumes of ‘human traffic’ and Starbucks being found. Their stores are in high traffic areas where 1000’s of potential customers walk past every day.

I will create the same process for you but in an online capacity. No one (I'm afraid) will stumble upon your website by accident.

If the only way to find your website is by searching for your brand name then only existing customers can find you. This is not what a website is for.

Websites are for finding new customers. Potential customers will search for your products or services in Google and if they don’t find you, everything else is irrelevant.

Having continuous sales is not a sustainable business growing strategy
“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

It has been almost a hundred years since John Wanamaker spoke those words and yet still most business owners can relate. The frustrating irony is, is that today we have the technology we need to  “close this loop” between our marketing and our revenue, but few are taking advantage of it.

Closed-loop marketing at its heart is about collecting data.

“Closing the loop” simply means that when we spend money on marketing we can try and see where in the chain we lose the customer. What mediums are working and which aren't.

For most, setting up a closed-loop system remains too difficult, time-consuming and confusing to implement. To be effective you need to link every lead, every customer, every email collected back to the marketing medium that generated it.

Once implemented business owners can feel more confident in increasing their marketing budgets which in turn increases sales and efficiently reaches a larger audience.

closed loop marketing

The loop looks like this:

  • 1. A cold customer (someone who has had no prior interaction with your business) visits your site.
  • 2. The visitor is converted into a fan of your brand or an immediate customer.
  • 3. Through social media and email marketing, fans are converted into a follower or a subscriber.
  • 4. As social media and email marketing constantly direct followers/subscribers back to your website, those followers/subscribers are converted into warm customers while your website traffic increases.
  • 5. As your website traffic increases, your ranking in search engine results increases leading to more cold customers visiting your site;
    thus, the loop continues.

Your Website

Overview:

Increasing website traffic is the cornerstone of closed loop marketing. This centres around your website. Successful websites are well designed, easy to navigate, and able to capture visitors’ attention. However, an effective and profitable desktop website must also be mobile friendly and fast loading to connect with users in today’s digital world.

  • Over 80% of all search queries regarding cafes, bars, and restaurants occurs on smartphones. This increases to 90% with regards tourists
  • In 2015, ninety-seven percent of all 18-34 year-old Millennials were mobile users, while twenty percent didn’t use desktops at all.
  • According to Google, 57% of customers say they won’t recommend a business with a poorly designed mobile site and 40 percent have turned to a competitor’s site after a bad experience.
  • Of the small businesses with websites surveyed by eMarketer, 10% updated their site at least once a week, 33% at least once a month, and 21% once per year or longer.

Seo (Search Engine Optimisation) Blogging

Overview:

Articles containing keywords related to services you offer are added to your website to increase its ranking in search engine results. This increases traffic to your website every time someone choses the link to your website through an internet search.

  • Google gets over 100 billion searches a month worldwide, and in December 2015, they owned 94% of the worldwide mobile (smartphone and tablet) search market share.
  • As of May 2015, more Google searches take place on mobile devices than on computers in 10 countries including the US and Japan.
  • According to Google, 84% of customers visit a store within a day of their local search on a smartphone, tablet, or desktop computer.
  • June 2015 research of marketers by Ascend2 showed 89% worldwide rated SEO successful at achieving objectives of improved search rankings, website traffic, and lead generation.
The process of optimisation takes time. Usually after 9 to 12 articles, a café website will arrive on the first page of Google, but keeping your high ranking will require continued maintenance, tuning, testing, and monitoring.

You must also remain up-to-date on current SEO best practices.

Email Marketing

Overview:

Email marketing is the gateway that leads new customers to your website’s substantial marketing efforts. Your website and other marketing outlets, such as social media, must have a built-in email capture system that encourages sign-ups. Only then can continuous communication between you and your potential customers continue after they leave your website.

A 2015 Forbes article stated companies were still seeing substantial returns on their investments in email marketing.

Email marketing doesn’t take much to get going, and low-budget upgrades to your strategy (better email design, more appealing incentives, etc.) can offer massive returns.

Maintaining subscriber email lists; updating communications, delivery times, and incentives to match customer preferences; and measuring your results will be key to ensuring your email marketing strategy is profitable.

Social Media Marketing

Overview:​

You cannot grow a business based on a social media platform alone. However, it is still an important piece of the entire closed loop marketing strategy because it is a great platform to direct a growing customer base to your website.

  • If your business has 1,000 followers on Facebook around 4% (40 followers) will see a post. The low percentage cannot be relied upon as a steady revenue stream.

Growing your followers, posting regularly, and optimising posts for searches across multiple social media platforms can take time and a lot of management.

Sifting through responses to social media for feedback and analysing the progress of your social media campaigns for further development may prove time consuming. You must remain up-to-date on the latest trends in social media and alter your strategy to include those changes.

In Conclusion

Closed loop marketing is a multi-platform strategy to increase website traffic while converting website visitors to customers.

Having the right marketing strategy to connect with users in today’s digital world is more important than ever.

closed loop marketing
My system creates a never ending upward spiralling loop of growth for your business

Around and around it goes. An upward spiralling system which I manage fully.

You focus on your strengths, managing the day to day operations of running your establishment while I market and grow your business.

Want to take your Cafe, Bar or Restaurant to the next level? Get in touch today.

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About the Author

Paul Feeney is a Design & Marketing Consultant who helps Cafes, Bars & Restaurants increase traffic, attract more visitors, convert leads and close sales.

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