BY MARSHAD BARRY
In business development, we try to implement different types of models in order to improve and enhance the business. One such model identified by many leading organizations is the RACE model which is a framework for the strategic planning of digital marketing activities or Omni channel communication plans. The RACE model consists of four stages; each aimed at customers in a different stage of the customer life-cycle, with the aim of building relationships and increasing customer loyalty. This model was developed by Dr. Dave Cheffey.
RACE is an acronym formed of the four stages of a marketing framework. These stages are recognized as “Reach, Act, Convert, and Engage”. This model is known as a practical and action oriented focus on strategies one can implement in digital marketing communications. This also assists in establishing a customer life-cycle of relationship building and creating awareness; generating leads from new prospects while converting prospects to sale online or offline, encouraging loyalty, repeat sales and advocacy such as social sharing.
At the “Reach” stage of the RACE model, the organizations aim will be to create awareness and exposure to the Brand, Product or Services using both online and offline media platforms. Thus, the organization can measure the success of the efforts by tracking the traffic generated by the campaigns in their website or social media. In this stage of the model, it is highly recommended to launch a website and educate customers on the products. Such exposure will aid the increase of higher return on investment.
The ‘A’ in RACE stands for “Act”, which indicates to Interact. In this stage, the organization is required to generate new business leads offering something of value to prospects in order to encourage them to use the product and start off a relationship. Thus, it would inspire prospects to share your content with many others who will be interested.
The third stage is the “Convert” stage which requires you to take the leads generated in the second stage and turn them into paying customers from online transactions or offline channel purchases. This will be reinforced by the creation of a survey and sending it to the target audience subsequently building customer profiles based on the knowledge in the previous stages.
The final stage of this model is “Engage”. This stage is aimed to develop a long term relationship with the customers and most importantly turning the first-time customers into loyal customers or brand ambassadors of your product who will advocate for your brand, products or services. Furthermore, it is advisable to conduct customer satisfaction surveys at least biannually to get the essential feedback on their preferences and areas for improvement.
RACE framework is a simple and effective method of improving the return on investment. It is helpful to find new ways forward in order to adapt and find new opportunities of digital marketing. Often, scholars have observed that businesses did not have a planned, strategic approach to digital marketing to take their businesses to the next level. With the RACE model, it is now possible.
