The following diagram gives a visual depiction of the Closed-Loop Marketing strategy in action:

Image © Reside.  All rights reserved.

The concept of Closed-Loop Marketing has been around for decades, but has recently become more complex - and more powerful - due to advances in online technologies.

Closed-Loop Marketing is essentially the process of creating a customer profile based on aggregated data and documented behaviors.  The technology system behind this process incorporates at least three fundamental systems, including: Website(s), email, and a customer relationship management database (CRM).

Ultimately, a truly closed-loop marketing strategy involves collaboration between all online and offline marketing efforts, from the initial “attract” elements (both traditional and interactive), through engagement and ongoing nurturing; tying all activities and touch-points back to the individual record to create a 360-degree view of the customer.  Based on profile attributes, the marketing mix and messages can be individually-tailored to deepen engagement, trigger activities, and build brand loyalty.