What Is Closed-Loop Marketing and How Does It Work?

shukla7789 · Post by **shukla7789** » Mon Jan 20, 2025 6:59 am

What is closed-loop marketing? Closed-loop marketing is a marketing analysis strategy that uses data and insights to improve your return on investment (ROI). “Closing the loop” means your sales and marketing teams will work together to understand what happens to your leads.

Did you know that 63% of marketers don’t feel confident in effectively measuring how their marketing efforts impact their ROI?

If you fall into this percentage, we’ve got the perfect solution for you: closed-loop marketing, also called closed-loop attribution or closed-loop reporting.

Keep reading to learn more about how it can help your business earn a higher ROI!

Top tip: Want even more digital marketing advice from award-engineer database marketers? We’ve built a virtual filing cabinet of over 35 marketing guides just for you! Read our free marketing guides to learn how to drive more revenue with your marketing strategies today!

cta image
We’ve built out a virtual file cabinet with 35+ FREE marketing PDFs — just for you.
Explore Our Free Marketing Guides
What is closed-loop marketing?

Closed-loop marketing is a marketing analysis strategy that uses data and insights from your campaigns to improve your ROI. The “closed-loop” portion of the phrase refers to how your sales and marketing teams work together to report and track leads in an endless loop.

How closed-loop marketing works
So, how does closed-loop marketing work?

Closed-loop attribution works by tracking how your prospects arrive on your website and whether they convert into customers. We can break this process down into four steps:

A visitor arrives on your website
The visitor browses your website
The visitor converts into a lead by completing a lead generation form
The lead converts into a customer or client
Let’s break each step down into more detail below:

1. A visitor arrives on your website
When a visitor arrives on your website, it’s the entry point of your closed-loop cycle. You’ll want to track where your visitors arrive from at this stage.