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Closed-Loop Marketing Definition

Marketing Definitions

15 Oct 2019 • 1 min read • Austin Shong

Closed-Loop Marketing Definition

What is Closed-Loop Marketing?

Closed-loop marketing definition: closed-loop marketing is the act of using data from a closed-loop feedback system to inform a brand’s marketing decisions.

Closed-loop marketing allows brands to see the ROI of different marketing channels. The data gathered can be used to influence decision making.

The closed-loop can be split into four parts:

  1. User visits your website
  2. User browses (and takes actions) on your website
  3. User converts into a lead
  4. Lead converts into a customer

When a lead converts into a customer, the closed-loop system assigns credit to the traffic source, to enable you to see the most effective content channels.

For example:

  1. User visits website from Twitter
  2. User reads a blog post
  3. User joins the mailing list via a content upgrade
  4. User buys a product

The closed-loop assigns credit to Twitter.

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