You hear it a lot, but what does “closing the loop” really mean. In different conversations, it can mean different things, but in local, it’s about the ability to track a digital lead converting into a real world transaction or visit to a business.
We come across lots of local business owners who spend anywhere from $100 to $500 per month on google advertising, or with firms that manage those ad budgets. That ad spend certainly drives leads and visits to the businesses website, but in local, it’s hard to drive action from a lead. So after spending $500 on ads, the business owner has no idea how effective the campaign really was. And to most local business owners who are incredibly busy, its unrealistic to think they can spend the time to properly nurture leads into customers. Which leads us to our next conclusion:
Local Businesses value customers more than leads.
That’s why our approach is to start with a way that can track a lead converting into a customer. For the local business owner, that means a promotion. Using Privy, a business can quickly create and distribute promotions to their facebook fans,twitter followers, email database or to inbound visitors on their website. From their, consumers can purchase the offers, or claim them, directly from that business website, and use their mobile phones to redeem the offers in store. That action triggers our server to notify us that the transaction is complete, or, the loop was closed.
For all the sophisticated marketers out there, consider these promotions as the bottom of the funnel. From there, you can wrap that same $100 or $500 monthly ad spend around your promotional funnel, and then you can finally drive action and track an ROI on your campaigns. If you take a look at the screenshot above, you’ll notice that most of the customers who purchased the promotion, have already redeemed the promotions using their mobile phones. The next time this Privy merchant logs in, they can actually understand who these customers are, and that their ten minute effort to create the promotion actually had an impact on their business.