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Home > Blog > Digital Marketing > PPC >

How to Get Started With the RACE Model?

The reach, act, convert and engage (RACE) framework is one of the critical methodologies that can help you drive astronomical returns in your digital marketing campaigns, such as Google pay-per-click ads.

race model

Why?

The model can help you track online users’ journeys before becoming your customers and brand evangelists.

Each stage of the RACE marketing model is geared towards pushing leads further down your sales funnel.

Besides, the RACE formula is aligned with the Kaizen principle. The aforementioned principle states that if you continuously optimize your funnel, your returns on investment (ROI) will grow by 3,778% (per year).

ppc-signal-optimization-tool

To implement the RACE model and drive massive returns, you need a tool that delivers timely insights into your dashboard.

Yes, a tool that saves you time by crunching raw data with unheard efficiency.

It turns out there’s an AI-driven application that can help you optimize the funnel by 1% every day (which translates to 3,778% exponential growth per year).

In this blog, you’ll learn:

  • How to implement the RACE model in your digital campaigns successfully?
  • The significance of the RACE model in digital marketing campaigns.
  • The main 4 stages of marketing based on the RACE framework.
  • We’ll address the following question: why is the RACE model important?
  • Also, we’ll recommend the best tool to optimize digital marketing campaigns for exponential returns.

How to Implement the RACE Model for Exponential Returns?

The RACE framework is a methodology you can leverage to streamline strategic planning of digital marketing campaigns, such as pay-per-click (PPC).

The RACE model stands for:

  • Reach
  • Act
  • Convert
  • Engage

In other words, it’s made up of 4 key stages, which aim at streamlining the paths taken by online users until they convert.

This provides you complete structure to help you review and prioritize when there are multiple options and few options work better than others.

As data driven approaches to market are becoming successful in digital marketing so prioritizes, improvements and executions should be evaluated with good analytics. And based on these analytics when you make your strategies it will eventually bring good results leading to exponential growth.

Who Created the RACE Marketing Model?

The reach, act, convert, and engage (RACE) model was first developed by Dave Chaffey to help digital marketers streamline their sales funnel for more success.

What does the RACE Model in Digital Marketing Stand for?

As already mentioned above RACE is an acronym for the 4 key stages of a sales funnel, namely:

  1. Reach
  2. Act
  3. Convert
  4. Engage

Let’s look at each of the steps in detail.

1. Reach

In this stage, the critical goal is to generate exposure for your brand, product, or services using online and offline media. Measure the success of your efforts by tracking the traffic generated by your pay-per-click (PPC) campaigns to your website or social media pages.

Key Performance Indicators (KPIs) to track

  • Unique visitors (to your website)
  • Value per visit
  • Followers (on social media)

Campaigns tracking is essential, especially if you don’t know the right KPI on the right stage to measure.

2. Act

The crucial goal in this stage is to generate leads for your business. Start by offering something of value to prospects to encourage trust.

The quality of the relationships you create determines your conversion rate. The mantra in this stage is quality over quantity of leads.

Key Performance Indicators (KPIs) to track

  • Leads
  • Lead conversion rate
  • Time on page/ site
  • Shares, comments, and likes

3. Convert

The goal in this stage is to turn leads into paying customers. And these could be from online transactions or offline channel purchases.

The effective method for finding what works for you is to conduct an A/B test (split test). Make minor changes to each variation of your content/campaign and collect as much data as possible to optimize your funnel for higher conversion rates.

Key Performance Indicators (KPIs) to track:

  • Online and offline sales
  • Revenue/Profit
  • Average order value

4. Engage

The major goal in this stage of the RACE model is to foster long-term relationships with your customers. Essentially, you want to turn first-time buyers into loyal customers (or subscribers) who’re advocates of your brand, products, or services.

Most brands engage their customers across social media platforms and through email campaigns as a minimum. Think of content and incentives that build customer loyalty, which will boost customer lifetimes and increase the success of your top-level goals.

However, it’s more than engagement that can influence loyalty. Consider your customers’ entire experience to create long-lasting relationships with them. To track your success in this stage, take a look at the following KPIs:

  • Repeat purchases
  • Customer retention
  • Positive mentions of your brand on external sites (e.g., review sites)

Also, consider conducting customer satisfaction surveys to get feedback on your customers’ likes and where they feel there’s room for improvement.

Key Performance Indicators (KPIs) to track

  • Repeat purchases
  • Satisfaction and loyalty
  • Advocacy

Loyalty is an important factor, especially in improving your overall targeting marketing. You can easily track the time of the day and day of the week your customers are active online.

Why is the RACE Model Important in Pay-Per-Click (PPC) Marketing?

Check out the benefits of the RACE marketing model, especially in optimizing search engine marketing (SEM) campaigns.

RACE is Practical and Action-Oriented

The framework focuses on tactics you can implement in your digital marketing campaigns, such as pay-per-click ads.

The RACE Marketing Model is Customer-Centered

The RACE formula follows the established customer lifecycle of relationship-building in a sales funnel:

  • Create awareness
  • Generate leads from new prospects
  • Convert prospects to sale
  • Foster loyalty, repeat sales, and advocacy

RACE Framework Supports Multiple Channels

The reach, act, convert, and engage (RACE) model is aligned with omni-channel management. In other words, you can rely on the model to manage both online and offline sales and marketing activities.

The RACE Formula is Aligned with Performance Improvement Process

The methodology is aligned with Kaizen practices, which are centered on continuous improvement through testing, measuring, and optimizing.

Why are Planning and Goal-Setting Important in the RACE Marketing Model?

It’s highly recommended you begin your digital marketing strategy by planning and setting goals. By setting strategic goals, you can easily develop testing, measuring, and PPC optimization techniques.

Your goals should be specific, measurable, achievable, relevant, and time-bound (SMART). The measure part is associated with data collection, cleaning, and data visualization.

One of the strategies you can use to drive astronomical results in your pay-per-click campaigns, such as Google Ads, is to leverage automation. As we said, the RACE model is centered majorly on testing, measuring, and optimizing the sales funnel for positive returns.

Keeping an eye on every change happening in your search engine marketing campaigns is daunting and time-intensive.

Without an intelligent and data-driven tool, you’ll have to spend an exhausting amount of time analyzing your data for opportunities to elevate your returns on investment (ROI) in pay-per-click (PPC) campaigns.

This is where PPC Signal comes in.

PPC Signal is a tool you can leverage to grow your PPC campaign optimization returns on investment by double figures.

Yes, you read that right.

The application uses artificial intelligence technology to automatically monitor your digital marketing campaign data for changes that influence your returns.

The changes, as mentioned above, can be categorized as:

  • Shifts
  • Trends
  • Outliers
  • Anomalies 

A shift occurs when a series of consecutive data points fall above or below the norm. On the other hand, outliers are single data points that fall way above or below the standard deviation line. Trends are the relatively long-term up and downswing movement of a particular phenomenon.

race model

How to Leverage PPC Signal to Succeed in Implementing the RACE model?

Below is a screenshot of a PPC Signal dashboard in which top alerts(signals) are shown which are affecting campaign performance.

On the left side, it has section, which provide multiple options, such as dimensional insights. The blue Explore button provides more details about a signal using charts and additional information.

You can easily bookmark a signal for later reference by clicking the Bookmark button.

race model

For instance, the dashboard above reports a decline in conversion rates. The red color denotes a risk, which should be urgently acted upon.

Besides, the cost per conversion is rising. And it’s denoted using red color to show it’s a risk.

PPC Signal can manage more Google Ads accounts. You just have to click the Accounts tab (situated on the left side of the dashboard).

To access insights at a campaign level, click the Campaigns Tab, as shown below. You can also narrow down your insights based on the following dimensions and metrics:

  • Keywords
  • Device type
  • Geolocation
  • Hour of the day (HoD)
  • Day of the week (DoW)
  • Metrics (conversion, cost per conversion, conversion rate)
  • Signal type and quality
race model

PPC Signal can also help you uncover anomalies and outliers within your pay-per-click campaigns.

The dashboard below provides an example of an anomaly detected.

race model

For instance, according to the signal above, an anomaly in the conversion and cost per conversion relationship has been detected.

In other words, conversions have dipped while cost per conversion has skyrocketed. The ideal trend is that conversion should be rising while costs decline.

If you click the blue Explore button, PPC Signal takes you to a dashboard with a chart for in-depth actionable insights.

FAQs:

What is the purpose of the RACE model?

The RACE framework is a methodology you can leverage to streamline strategic planning in your pay-per-click (PPC) campaigns.

The framework stands for:

  • Reach
  • Act
  • Convert
  • Engage

In other words, it’s made up of 4 key stages, which aim at streamlining the paths taken by online users until they convert.

What is the RACE formula?

The RACE model is a methodology you can use to streamline the journey taken by the online users until they convert.

You can leverage the framework to eliminate obstacles that stand in the way between leads and the conversion stage by:

  • Testing
  • Measuring
  • Optimizing

Wrap Up

The reach, act, convert and engage (RACE) framework is one of the critical methodologies that can help you drive astronomical returns in your pay-per-click (PPC) campaigns.

It turns out there’s a particular AI-driven tool that can help you implement the RACE model with ease. And the name of the tool is PPC Signal.

PPC Signal is an AI-driven application you can leverage to optimize your digital marketing campaigns, such as Google Ads, for optimum results. PPC Signal uses advanced algorithms and machine learning to detect opportunities and risks in your account automatically.

No matter how complex your data is, PPC Signal provides actionable observations about positive and negative changes occurring in your marketing campaigns.

Sign up for a 7-day free trial to drive the sky-high returns from your marketing budget.

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