[fullwidth background_color=”” background_image=”https://www.jemsu.com/wp-content/uploads/2015/12/shutterstock_97819241.jpg” background_parallax=”fixed” enable_mobile=”no” parallax_speed=”0.3″ background_repeat=”no-repeat” background_position=”left top” video_url=”” video_aspect_ratio=”16:9″ video_webm=”” video_mp4=”” video_ogv=”” video_preview_image=”” overlay_color=”” overlay_opacity=”0.5″ video_mute=”yes” video_loop=”yes” fade=”no” border_size=”0px” border_color=”” border_style=”solid” padding_top=”100px” padding_bottom=”100px” padding_left=”20″ padding_right=”20″ hundred_percent=”no” equal_height_columns=”no” hide_on_mobile=”no” menu_anchor=”” class=”” id=””][title size=”1″ content_align=”left” style_type=”default” sep_color=”” class=”” id=””]Prove ROI with Closed Loop Marketing[/title][/fullwidth][separator style_type=”none” top_margin=”20″ bottom_margin=”20″ sep_color=”” border_size=”” icon=”” icon_circle=”” icon_circle_color=”” width=”” alignment=”center” class=”” id=””]
Today’s rapidly changing online landscape is a wild ride for modern marketers. On one hand, digital tools and analytics are making it easier than ever to track your marketing metrics. On the other hand, creating meaning out of those metrics and proving the ROI of your marketing efforts can be incredibly challenging. If marketing teams want to justify their efforts (or even existence), they have to be able to provide hard data that connects marketing campaigns to revenue.
Most marketing teams already know which channels and campaigns are producing the most — and hopefully the best quality — leads. But, of course, tracking marketing ROI doesn’t end with the number of leads you generate. You have to take into account which leads close, how much revenue they generate, and which leads result in the most net profit. Ultimately, it’s up to your sales team to close marketing-generated leads and create the revenue. But it’s up to marketing teams to attribute that revenue to particular marketing campaigns and dollars spent — a key step in closed loop marketing.
Marketing managers need to know and analyze:
- The number of leads your marketing efforts are generating
- The lead source for each closed deal
- The cost per acquisition for each lead source
- The conversion rate for each marketing channel and campaign
The importance of a CRM solution
The bottom line is that the more precisely you can track your marketing ROI, the better you can justify company investment in your strategies. Perhaps obviously, the best way to do this is via a CRM system that allows you to track a lead through the funnel and beyond. This closed-loop marketing strategy is an integral part of not just tracking your marketing ROI, but optimizing all of your efforts.
And what if your boss doesn’t think your company needs a CRM? Well, you might have to track and report on these metrics using old-school spreadsheets for a while. But as soon as you can show how spending on marketing is directly impacting revenue, it should be a short leap to convincing CEOs and CMOs that your marketing team needs investment in the right tools and technology to be successful.
What if closing the loop doesn’t show ROI?
Of course, as the connection between marketing budgets and sales revenue becomes increasingly transparent, marketing departments will be held to the fire when a larger budget doesn’t correlate to higher sales. However, marketing managers should not be wary of getting the data, even if the current results are less than stellar. Closed-loop marketing — or understanding how each of your marketing efforts directly impacts the bottom line long-term — can only help you improve the numbers and increase your department’s value to the company.