Reading Materials for Module 6

DM Strategies for Online

Selling
Module Code: eCOMM

Article Title:

RACE Framework: Your Practical Tool for Effective Digital

Marketing

Date of Publication: 21 Feb 2023

Reference Link: https://www.spiceworks.com/tech/innovation/guest-article/the-future-of-

web3-and-e-commerce-strategy/

Filename: RACE Framework: Your Practical Tool for Effective Digital Marketing

The content in this document belongs solely to Intangibles Consultancy Pte. Ltd. and is not to be
circulated outside the designated coursework without permission. Copyright reserved 2023.
Title: RACE Framework: Your Practical Tool for Effective
Digital Marketing
According to the IAB report, ¾ of the advertising expenditures are forwarded to digital
channels. The statistics were developed on the US market basis, although similar
indicators also take place in Europe.

Considering the fact that 75% of marketing budgets are invested in digital, it is critical to
set the right goals and track the results, so that every $100 invested provides the
maximum benefit and ensures competition for the user’s attention.

The authors of the British platform for marketers called Smart Insights state that half of
the companies do not have a clear digital marketing strategy, in spite of large marketing
budgets. That is why the offered RACE framework is beneficial in tracking key
performance indicators and building data-driven plans for different companies.

The RACE framework essence

The authors of the concept developed the framework to be applied to all types of
companies, including B2B and B2C; small startups, mid-size enterprises, and large
corporations.

The acronym RACE includes the key metrics that need to be tracked digitally.

Reach > Act > Convert > Engage

There are 4 stages of interaction with the brand throughout the entire customer journey.

Smart Insights emphasize the fact that the so-called “zero” phase, namely Plan, is also
important. It refers to creating a strategy, setting goals, and developing a plan. This
phase ensures that the brand’s digital communications are aligned with its business and
marketing strategy. That is why this framework is sometimes called PRACE.
Let’s view all 4 stages of the framework in detail…

Experts believe that the main challenge in digital marketing is the conversion in the first
targeted action, namely the beginning of the customer’s interaction with the brand and
its transformation into a lead after the first contact. However, other steps are not less
important.

Reach

The reach stage deals with increasing awareness of the brand and its products in all
possible ways, such as using its social networks, blogs, microsites, media publications,
traditional offline advertising, offline events, etc. The tactics are important for the
maximum coverage of the target audience and the creation of many entry points for the
acquaintance of the potential client with the brand.
Act

It is necessary to note that “act” is a short form of “interact”. Motivating the target
audience to the first online interaction with the brand is a considerable challenge. The
stage refers to pushing website or social media visitors to take the next action in their
customer journey. On the one hand, it is associated with lead generation, especially in
the B2B sphere. On the other hand, the “act” stage deals with providing a customer with
the opportunity to learn more about your company, search for a product, or convert to a
blog post. A marketer needs to apply specific targeted actions depending on the niche
characteristics.

At this stage, Google Analytics may be beneficial with the following actions: “View a
product”, “Add to cart”, “Register” or “Subscribe to a newsletter”.

Convert

Eventually, the customer takes the next step which turns them into a profitable client.
Conversion to sales can take place both online and offline.

Sometimes after seeing an online advertisement, clients come to buy this item at an
offline store. And vice versa, traditional marketing can stimulate sales on the Internet. In
such a way that 29% of revenue generated in traditional marketing is recorded in the
online store. This is why keeping an effective balance between online and offline sales
channels is essential.

Engage

The “engage” stage of the framework deals with the development of the long-term
relationship of the customer with the brand, increased loyalty, and repeated purchases.
A high engagement rate can be reached through constant communication via website,
social media, email, or direct marketing tools used to increase the LTV (Lifetime Value).

Loyalty can be evaluated in the number of repeated sales, the UGC (user-generated
content), as well as the communication character with clients on social networks. It’s
also important to take into account the percentage of active readers of the newsletter.
We have proved the effectiveness of the retention marketing tactics for the “engage”
stage of the RACE framework working with the Red Park client that increased its
revenue by 20%, due to the properly implemented email marketing. At the same time,
the customer satisfaction rate can be evaluated using NPS, and feedback needs to be
tracked in various channels to assess the “engage” stage effectiveness.
Which metrics to analyze

Marketers consider a data-driven approach to be the best one for digital marketing.
Corporate goals and optimization plans must be based on reliable data that
demonstrate the effectiveness of the applied marketing tactics.

Below is a table with key indicators that form a RACE dashboard. Brands should not
only track these indicators but also identify the trends and changes during a selected
period or season.

Google Analytics can provide data about various metrics, for example, goal value or
revenue per visit. You need to use different tools for the rest of the metrics, like social
media mentions. We often work with Google Alerts, SoMoBot, YouScan, etc.

Using the framework for a long period of time, you can determine YoY indicators,
compare similar reporting periods, or contrast the situation in each channel: organic,
paid traffic, email, and social networks.