The closed-loop marketing approach measures the results of marketing and communication initiatives by tracking the response of targeted groups. The results of responses, such as completed surveys, promotional entries, coupon redemptions and purchase behavior, are added to a database for tracking and evaluation to improve future marketing decisions. Marketing campaigns can then continuously adapt to the customers' wants and needs, creating a true relationship. Simply put, marketers can develop and monitor targeted strategic campaigns based on a wide variety of customer histories and behaviors.
Closed-loop marketing process
Organizations do not leap into target marketing. Organizations that are working towards a targeted closed-loop approach plan the introduction carefully and over some time, beginning with developing a segmentation strategy.
Closed-loop marketing involves a never-ending cycle of ongoing analysis, ongoing marketing, and ongoing response management. As we market, we learn. As we learn, we develop new marketing strategies. New marketing strategies lead to changes in how we manage responses.
New market opportunities are identified through trend analysis. A new opportunity may address a weak area within a marketing plan or may identify a new group.
Closed-loop marketing refers to the cycle of:
1. Developing metrics and benchmarks for the desired transactional behavior
2. Ensuring that business processes are in place to maximize the customer's experience and to build loyalty.
In essence, once a customer is introduced into our loop, we ensure that they never want to leave.