What is Closed Loop Attribution and How to Implement It?

Closed-loop attribution is a beneficial model for marketers to use. It allows them to credit marketing campaigns/channels for their effectiveness in relation to revenues and sales. This model is simple to implement. For its application, a few steps have to be carried out. They range from the identification of business goals to customizing marketing strategies using customer-related insights. Keep in mind that, largely, closed-loop marketing attribution is focused on the journeys of buyers. Hence, its implementation is also centered around their behaviors, actions, purchases, etc. Once the model becomes functional, it can simplify measuring ROIs, gaining valuable customer insights, making wise decisions, and more.

What is Closed-Loop Attribution?

The closed-loop attribution model is a type of marketing attribution. It enables marketers to credit all campaigns, ads, and channels for their functioning in converting prospects to buyers. As part of this model, the sales information falls back to a marketing professional in order to understand its actual impact on the journey of a buyer.

Is Closed-Loop Attribution Focused on Buyers’ Journeys?

Closed-loop marketing attribution is beneficial in determining vital touchpoints in the journey of a buyer with a business. Furthermore, it aligns the working of marketing and sales professionals. This alignment plays a crucial role in ascertaining success in business.

As a result of this alignment:

• Marketing and sales teams can continuously exchange information.

• This data can be customized as per the audience’s requirements.

• Thus, messages for marketing are tailor-made to improve customers’ experiences.

• These are effective in enhancing conversions.

• Further, such personalized messages result in satisfied and loyal customers.

How Do You Implement Closed-Loop Attribution?

Closed-loop attribution can be implemented by beginning to define business objectives. Afterward, tracking tools need to be activated. Then via the CRM system, analytical insights can be accessed and provided to marketers. Moving further, the insights can be examined and used for personalizing the marketing strategy. Following this, constant monitoring has to be ensured.

Start by Defining Core Objectives:

It is crucial to have clarity about business goals in order to apply the closed-loop marketing attribution model. Therefore, define the objectives as well as be aware of the main actions undertaken by customers on your application or website. See to it that these are the actions that result in sales.

These types of actions can be inclusive of but aren’t limited to:

• Submitting forms,

• Subscribing to services,

• Or, buying products,

Set up and Turn on Tracking:

In the next step of the implementation of closed-loop attribution, tracking is required to be set up and enabled. This should be undertaken for event and pixel tracking. Additionally, it should be ensured for other tools for marketing analytics that are vital for capturing the behavior of users over different marketing channels and the business website.

Utilize the Custom Relationship Management System:

For the model of closed-loop marketing attribution to work, the analytical information via the tracking tool(s) needs to be available to the associated professionals/teams. For this, utilizing the CRM system is important. It can be integrated with the tool. Post this synchronization, the required data can be accessed and provided to team members.

Assess the Type of Insights:

Going further in implementing closed-loop attribution, it is crucial to check the nature of insights. Through these, a marketer can understand how customers engage or interact with a business. Along with this, their interactions with specific landing pages can be understood through these insights. 

Such insights can provide information regarding important aspects of marketing.

• They can unfold data regarding the sources of traffic.

• Through these, marketers can learn about top-quality leads.

• It can offer insights about ad campaigns as well.

Manage the Customization of Your Marketing Strategy:

To make closed-loop attribution work, the next step is to personalize the marketing strategy. For this, a marketer can rely on several solutions for call tracking. Through these, campaigns can be instantly optimized. 

With the help of call-tracking services: 

• Keywords, ads, messages, terms, offers, etc., can be adjusted.

• The focus on revenue-generation techniques can be strengthened.

• Thus, it becomes possible to procure prospects without spending more.

Engage in Continuous Monitoring:

Keep in mind that the closed-loop marketing attribution model involves a consistent process. Therefore, it is required for marketers to monitor continuously and make adjustments as needed. Remember that certain metrics must be constantly tracked. These include marketing campaigns’ performance, data analysis, marketing strategy optimization, etc.

What are the Advantages of Closed-Loop Attribution?

An important advantage of the closed-loop attribution model is that it provides insights into the buying behavior of a customer. Moreover, it gives information regarding campaign performance. As the overall data is combined, it becomes possible to enhance campaigns, target potential customers, receive an increase in sales, and derive more revenue.

To Measure Returns on Investments (ROIs):

With closed-loop marketing attribution, ROIs can be accurately measured. This can be ensured for the revenue received via every marketing channel. For example, this benefit can enable a marketer to understand whether a specific paid ad can result in high sales. The information received can hint at whether or not such ads should further be invested in.

• In addition, this model can indicate whether content marketing is bringing in repeat buyers.

• For budget allocation, this type of marketing attribution is vital.

• Furthermore, to boost the return on investment, the model is effective.

For Crucial Customer Insights:

By implementing the closed-loop attribution model, insights regarding customers can be obtained. It can be useful for the measurement of customers’ journeys, starting from clicking the initial ad to making the purchase. It can unfold crucial insights about their behavioral patterns.

• Using these pieces of information, ad campaigns can be personalized.

• Through these, targeted offers can be extended via emails.

• Note that these emails will be as per the purchases made in the past.

To Make Better Decisions:

In order to make better decisions with respect to investments in marketing, closed-loop attribution is largely beneficial. It can indicate which touchpoints are more worthy of investing.

• A company can be associated with a considerably big audience.

• It can be a result of multiple touchpoints.

• They can range from social media platforms and blogs to online advertisements.

• Depending on which touchpoint is more beneficial, investments can be made.

For Better Reporting and Transparency:

One of the advantages of closed-loop marketing attribution is that it can make the reporting process better. Through this model, reports can be made clearer and more data-backed. Thus, it can exhibit marketing measures/efforts with clarity. It boosts transparency and also introduces accountability in marketing operations.

To Improve Marketing by Aligning Teams:

Closed-loop attribution can work as a beneficial measure for improving marketing through team alignment. To be clearer, this model can help align sales and marketing teams. Through data and insight sharing, this alignment is brought about. Following this, they collaborate and work to attain common objectives.

• As a consequence of this collaboration, goals become achievable through combined sales and marketing expertise.

• This results in marketing/ad campaigns being cohesive.

Why should Marketers Use Closed-Loop Attribution?

Marketers should consider using the closed-loop marketing attribution model for 2 main reasons. Firstly, it can help them in determining how profitable their marketing investments are. Secondly, this model can give a broader view of how the marketing expenditure is being spent. 

To Check the Profitability of Marketing Investments 

Closed-loop marketing attribution involves perceiving how the sum invested in a paid channel for marketing is generating growth for a business. Remember that only observing traffic via paid searches may not necessarily provide profit-oriented insights.

• At times, you may drive traffic through a specific keyword. However, it may not result in conversions.

• Being unaware of it, one may continually make investments.

• This helps in realizing why closed-loop attribution is important.

• It can prevent making investments unreasonably to ensure assured profits. 

Given that an organization is investing sums in marketing without being certain about profitability, it can result in a more financially draining situation. 

Attaining a 360-degree View of Marketing/Ad Spend

A marketer should rely on the closed-loop marketing attribution model to receive an end-to-end view of marketing or ad spending. This helps in understanding whether the spending is generating conversions as well as attracting optimization opportunities.

• With closed-loop attribution, effective marketing investment decisions can be made.

• The model can assist in identifying the keywords for campaigns that should be invested in.

• Further, it can make it easier to know how to optimize landing pages for a greater number of inbound calls.

Read More: Benefits of Marketing Attribution

 

All Things Considered

With closed-loop attribution, one can receive a broad view of marketing activities that essentially contribute to revenues/sales. Given that this model is beneficial, it can be implemented by outlining business goals, enabling tracking and syncing it with the CRM, and through other series of steps. Once applied, it can make several marketing processes easier for marketers.