The RACE model was created in 2010 by Dave Chaffey, author, and co-founder of the digital marketing training and consultancy site Smart Insights. Chaffey developed the model after his research showed that 50% of businesses did not follow a digital marketing plan when marketing their products.
- Understanding the RACE model
- The four steps of the RACE model
- Key takeaways:
- Other connected business strategy frameworks
Understanding the RACE model
Practical and action-oriented
The focus of the RACE model is on tactics and their implementation across multiple platforms.
Modern marketing activity integration
Based on a performance improvement process
The four steps of the RACE model
The RACE model features four steps across the customer lifecycle that comprise the RACE acronym.
Below we have provided an explanation of the four steps:
The first step is to build awareness of a brand and its products and services over online and offline channels.
Traffic should be sent to different web presences such as microsites, social media pages, and landing pages.
Reach can be maximized by the utilization of paid, earned, and owned media.
Relevant KPIs include social media followers, value per visit, and unique website visitors.
Act is an abbreviation of interact and concerns persuading visitors or prospects to progress to the next step.
For B2B businesses, this normally entails lead generation.
In either case, a lead magnet that provides value to the prospect is a good way to encourage the start of a relationship.
Marketers also need to develop ways to encourage prospects to share their content with others.
KPIs for this step include leads, lead conversion rate, shares, likes, and time on site.
This step describes the process of transforming a lead into a paying customer.
It’s important to note that most businesses will not hit a home run on the first attempt, with many strategies experiencing low conversion rates.
Different CTAs on a landing page, for example, could be split tested to identify the one that converts the best.
Alternatively, the marketing team can survey its target audience to build a detailed, data-driven customer profile for each segment.
KPIs include average order value (AVO), online sales, offline sales, and revenue.
The final step deals with creating long-term relationships with first-time buyers that encourage repeat purchases and brand loyalty.
At the very least, the company should interact with buyers via social media and email.
But many are also turning to SMS, phone, live chat, and online communities to build customer lifetime value.
In addition to initiatives that improve customer experience, relevant KPIs here include repeat purchases, customer retention, and positive mentions.
Customer satisfaction surveys should also be used to determine Net Promoter Score (NPS).
- The RACE model is a framework that enables organizations to take a more structured, agile, and strategic approach to digital marketing.
- The RACE model provides a simple framework that combines online and offline communication channels. It is practical, action-oriented, customer-centric, and KPI-focused.
- The RACE model is an acronym for four stages: react, act, convert, and engage. Collectively, the stages loosely represent the customer progression through a traditional marketing funnel.
Other connected business strategy frameworks
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