Knowing what works in marketing has long been a popular goal, but the growth of people-based marketing and availability of transaction data have finally made it more achievable. The ability to tie groups of people to their sales enables businesses to close the loop between marketing investments and sales outcomes.
As Google has shown us, this type of measurement is not only possible but can also help drive performance when action is quickly taken. According to a Bloomberg article, an agency that tested this feature for a big advertising client saw marketing returns nearly double.
Simply stated, closing the loop allows you to adjust your current direction based upon deterministic results. The ability to measure and correct is key to any high-performance team or process. My company helps retailers grow sales by closing the loop using transaction data from merchant processors and payment networks. We’ve found this to be a great fit for marketing measurement, as these channels have the data history and speed to capture and report aggregate in-store and online purchases.
While the best data source for measurement varies by industry, there are six critical principles in running any closed-loop system.
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