How to use Closed Loop Marketing for Philippine Companies

Closed loop marketing may sound complex the first time, but it’s actually one of the most common strategies being used by businesses today, even in the Philippines. In fact, the technique of closed loop isn’t confined to just internet marketing but has been a refuge for many land-based ventures.

What is Closed Loop Marketing?

As the name suggests, this marketing strategy is basically a circle that moves around and has three basic elements: marketing, sales and analysis. After analysis, the loop goes back to marketing in a never-ending circle that manages to serve the business owner well.

  • Marketing – the business starts off by promoting their products to the target market through various methods. The strategy they use can be anything from newsletters, social media techniques or a combination of several.
  • Sales – once the marketing has been successfully launched, the next step would be to find out just how it affected the sales of the business. Did the marketing boost the profit of the business or was there significant decline?
  • Analysis – after determining what happened to the sales, the next step would be to analyze the situation. What marketing efforts developed the most response from the buying community? If a marketing technique is determined to be effective or detrimental, then the company can make the necessary changes and so forth. After analysis, another marketing strategy is created and the loop goes on.


The closed loop marketing cycle.

The closed loop marketing cycle.

How this Works

At first glance, the concept really is easy to understand but successfully pulling it off requires a bit of mastery. Here is a more detailed breakdown of the closed loop marketing process.


Step 1: Determining the Entry Point

The minute a Filipino or any visitor enters a website, the cookies will help determine the entry point of the said visitor. For example, did they enter through the URL placed in an article submitted online or through a Facebook link posted days ago? Even if the source is through an organic search, web owners will be able to trace it back and even pinpoint exactly what keywords were used. The whole point of this is to tally the sources that work best for the website. Note though that this can be difficult when marketing efforts are scattered all over the internet. Instead, business owners should make their website the center of all promotional strategies. Filter everything through the official domain to make tracking easier. For those who are bit more tech savvy, creating a tracking URL will provide more accurate records of the traffic sources.


Step 2: Deterring the Popular Pages

Knowing where the visitors are coming from is not enough. Business owners must also find out exactly how long the visitor stays in their site and what pages are most viewed. With a good application, owners can even find out the movement of the visitor as they go from page to page. What is the most common trajectory upon visiting the page and what does this tell you when it comes to improving and marketing your content? This is a crucial part of the closed loop marketing that offers a more in-depth view of the client’s point of view. Note that the tracking process itself might prove difficult if you’re not technologically advanced. Luckily, there are currently programs that make it easier to track the progress of visitors within the website. Try installing one of these to get routine updates for the purpose of analysis.


Step 3: Optimize Pages for Lead Capture

After finding out exactly what pages have the most appeal, the next step would be to add in a marketing pitch that will get you client information. Make sure that the incoming traffic is led to landing pages that will collect the client’s name and email address. Once you have this, it would be easier to pursue other marketing strategies and eventually closing the loop.


Step 4: Analyze and Decide

As the last step of the loop, the next thing web owners will have to do is figure out which pages got them the most response. What marketing strategies got the most profitable response and which one provided very little? More importantly, try to figure out exactly what elements of the web pages have made them popular or unpopular. Once this question is answered, it should be easy enough for the web owner to make the necessary changes of website optimization. This is when the final thread on the loop is closed and owners can start again on Step 1. Using the information they’ve gathered, they can edit their marketing strategies to reflect the preferences of the target and so forth. From here, waiting on the results of the changes, reflecting on them and adapting will follow for another 360-degree turn.

It might seem like a lot of work at first glance, but closed loop marketing is actually highly effective, especially when done using the best applications for the job. It doesn’t matter if the business is small, big – this strategy will always work for business owners in the Philippines.


Pitfalls and Advantages of Closed Loop Marketing

Note that no matter how good it sounds, closed loop marketing also has some pitfalls. When constructed incorrectly, the loop can be broken, providing business owners with unreliable data. It’s also an ongoing concern as the marketing strategy will need to change depending on the different information submitted each time the loop is completed. On the brighter side, this helps polish the marketing strategy, allowing for bigger and better techniques that will attract the paying market. Well-refined closed loop marketing even paves the way for monetary goal setting. As business owners understand the tricks of the trade, they can start estimating the marketing changes in relation to rise and dips in sales.

All in all, closed loop marketing is a worthwhile endeavor the web owners should definitely invest their time on. Keep in mind however that this isn’t the only marketing technique available nowadays. Try using other methods for the sake of verification and overall better results. Considering the number of competitors in various markets today in the Philippines, it will always pay to go the extra mile for the venture.

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Paul Agabin is the Founder and CEO of Wooka Interactive. He is an internet marketer based in the Philippines which deals with varied topics such as local industry news, seo strategies, content marketing, inbound marketing, social media management, website reviews, and the like. You can contact him at 0917-5069839.

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