Imagine if you could track your customers’ behavior and collect the data points that would show you exactly where they get stuck in their buying process? Then, you could create the perfect experience to drive them toward conversion. This is the promise of customer journey models — an omnichannel approach that empowers marketers to customize the experience for each individual consumer. The single greatest challenge facing marketers is to provide personalized and contextual experiences that will influence brand loyalty. It’s one thing to do it once, but an entirely different one to do it consistently. And yet, many brands are struggling to do this.
In 2009, McKinsey & Company proposed dramatic alternative customer journey models to the traditional purchase funnel based on empirical research. Their research was based on 20,000 interviews with businesses in the United States, Germany, and Japan.
Instead of the traditional straight-line approach of awareness, purchase, and loyalty, they advocated a loop model. Although many companies continue to use the conventional linear process in a non-linear world many years later, this has significantly changed.
The RACE Framework
We created RACE as a planning system because many people didn’t know where to start when it came to designing a strategy for their marketing.
RACE is a valuable framework for managing and improving the results of your digital marketing. Finally, to maximize the commercial value of your digital marketing investments, take a data-driven approach, use web analytics, and implement recommended best practices.
We developed four levels of engagement over the customer lifecycle because getting initial contact and establishing those are all crucial factors after the initial customer touchpoint, which can then be nurtured, is a huge issue in online marketing.
What is the ultimate way to mix these customer journey models?
Marketing leaders can use the consumer decision journey to plan, manage, and optimize their marketing activities to reach the purchase moment. By reviewing each stage of the purchase loop, marketers can identify gaps and lost sales opportunities.
Furthermore, marketers can increase conversions by implementing the RACE Framework to track and improve marketing activities at critical stages of the customer journey model.
The RACE Framework is a popular marketing structure framework for startups, SMEs, and multinational corporations. RACE is a five-step strategy that guides marketers through the process of acquiring and retaining more customers. It consists of five steps: plan, reach, act, convert, and engage. Schedule a free 1-on-1 consultation call now to discuss the RACE Framework’s challenges and potential in your marketing strategy.
Check to see if the company’s interests are in sync with those of its customers. There are opportunities wherever there are fish! It’s pointless to use Facebook if your customers don’t. One of the difficulties is that many business-to-business (B2B) organizations feel compelled to create a Facebook channel even if their customers do not use it.
Bring all aspects of the brand together. Many companies are becoming more conscious of the nature of branding and the significance of consistency in promotion and identity. One area where issues can arise is with employee messaging.
Don’t you despise it when you’ve purchased from a company several times, and there’s one offer on Facebook and another elsewhere, and they forget to notify you? Because customers quickly share errors or omissions, this element ensures consistency, a recurring theme in all digital marketing.
Find ways to keep your customers’ attention.
Retaining and “locking in” customers to ensure your company is at the top of their minds or the first to search may entail venturing outside of social spaces and running competitions or offers to collect data such as email addresses—the conversation shifts from one-to-many to one-to-one.
When distributing loyalty cards, many businesses employ the lock concept. Data can be used to show when customers buy, how much they spend (your share of the wallet), and which items they prefer, resulting in timely and relevant offers. Starbucks frequently sends requests to customers who have registered a top-up card (which became more popular with the release of the Apple Watch), and these appear to occur when there has been no visit in two weeks.
Loop: Investigate ways to increase advocacy.
It’s challenging to stay in front of customers’ minds and ensure that they think of themselves when they need that product or service, which McKinsey refers to as the loop element. However, this is why companies develop apps; it simplifies the entire purchasing and re-purchasing process. According to McKinsey, Amazon has done the most to achieve this. Amazon has a one-click purchase path app and has removed all barriers to the buyer’s path.
Four steps to putting the RACE Framework into action
1-Make a plan
Plan metrics show a company’s overall contribution to digital marketing. These are financial, market, and customer metrics derived from RACE’s essential metrics.
- Contribution to revenue and profit on the internet: The percentage of direct sales generated or influenced by online channels.
- Share of the market and online audience: In comparison to competitors, what is a brand’s online percentage of visits or conversations?
- Customer satisfaction ratings: How does the company rank compared to others, and how does the digital experience affect this, as measured, for example, by Net Promoter Score? (NPS)
Reach entails increasing traffic by driving visitors to various web presences, such as your leading site, microsites, or social media pages, by raising awareness of a brand, its products, and services on other websites and offline media.
Interact is an abbreviation for the act; it is all about encouraging interactions. In practice, it entails two powerful techniques: improving your content strategy and the digital experience of your website and mobile devices to assist prospects on the ‘path-to-purchase.’ Learning more about a company or its products, searching for a product, reading blog posts, and engaging in social media interactions are examples of ‘interactions.’ It is about convincing site visitors or prospects to take the next step, the following activities on their journey when they first arrive at your website or social network presence.
Convert is concerned with the use of communication techniques to increase sales conversion. It entails persuading your target audience to take the critical next step that converts them into paying customers, whether the payment is made through online e-commerce or offline channels. Conversion will almost always involve both online and offline channels. In the sales process, factors such as sales volume, conversion rate percentage, and cost per sale must be considered (or cost per acquisition, CPA). Online transactions that are influenced by offline transactions may be included.
Profits: These financial metrics should be compared to those of other distribution channels. This means that the following actions are required for businesses selling online: value and cost: The average order value also corresponds to the average selling price (ASP).
Engage entails a long-term commitment from the customer. It intends to build a long-term relationship with first-time buyers to foster customer loyalty and repeat purchases via communications on your website, social presence, email, and direct interactions to increase customer lifetime value.
For existing customers, Engage heavily relies on email marketing, social media communications, and website content. These are important throughout the RACE stages, but we concentrate on them in Engage for ease of use and because they are arguably the most effective customer communication techniques.
In marketing, a good strategy will be the difference between your campaign being successful or not. However, it is not uncommon to see many businesses with mediocre strategies. The main reason behind this is that they focus on the wrong areas of their business. They are so caught up in the day-to-day operations that they forget about setting goals and implementing plans to reach them. To help you avoid making this mistake, follow the tips we mentioned and craft a marketing strategy using the RACE framework today.