What is the RACE Framework?
The RACE Planning Framework is a Model that suggests 4 Steps to follow when developing Marketing Campaigns.
The main purpose of this tool is to highlight the most important Stages in the Relationship between a Company and its Customers.
Its name is an acronym for the 4 Steps proposed:
Four Steps of the RACE Model
1. Reach: In this Stage, the Company must Approach the Customer.
- To do it successfully, the Company must target the right Customers, in the Right Way.
2. Act: In this Stage, the Company must Take Actions.
- Try different approaches, show different things, etc. And study what works best.
3. Convert: In this Stage, the Company must Obtain Profit.
- Once the Company has found what works best, it’s time to Monetize.
4. Engage: In this Stage, the Company must Build Customer Loyalty.
- Establishing a long-term Relationship with its Customers, and Tracking it.
Let’s see the first example:
RACE Framework example
Netflix is a good example of a RACE Marketing Strategy.
- So are HBO, Disney Plus, etc.
Let’s analyze How they promote their platform:
Netflix Approaches its potential Customers with a very attractive offer:
- 1 Month for free.
Then, Netflix studies what each user likes the most and shows them different Suggestions:
- Highlighting the Series, Movies or Documentaries that suit them best.
After that month, if Netflix has hit the right “key”, the user will sign up for a full account.
Netflix engages its users by developing its own original productions.
- People don’t get hooked on Netflix, People get hooked on its Series.
- Remember HBO and Game of Thrones.
No matter who you are: Netflix has a Series for you; Stranger Things, Black Mirror, Vikings, etc.
- Netflix has a Series to hook each User Profile.
As we often say, it seems that these marketing tools can only be used by large corporations.
- But that is far from true.
Now, we’ll give you some Tips on how you can develop a successful RACE Marketing Strategy:
How to develop a RACE Planning
Take your time targeting the right Customers before Approaching them.
- Don target everybody. Select Profiles and Markets carefully.
For each Action you Take, you must establish a Metric to track the results.
- Without Metrics, you wouldn’t be able to evaluate your actions.
Monetization should be as diversified as possible.
- Sometimes customers want just a piece of cake instead of a full cake.
Create a fluid communication channel to Engage with your Customers.
- Talk to your Customers about their experience and use their feedback to Improve.
Now, let’s look at some examples:
RACE Framework examples
We have chosen 3 examples of Companies that have successfully used the RACE Framework to develop their Marketing Campaigns.
Spotify - RACE Framework example
Spotify, uses the same strategy as Netflix to develop its Marketing Campaigns.
- Based on the RACE Planning Framework.
Let’s see what they do:
Spotify is free by default.
- But, there are annoying ads, limitations, etc.
By doing this, they can reach millions of users.
However, they offer 2 months free on Spotify Premium (now, we think it’s 3 months).
- Which has no Ads, removes all limitations, and adds more features .
They surely know who to target with their ads on the Internet.
- “Google Home” is also a platform where they promote Spotify Premium.
Spotify doesn’t just make money with their Premium accounts.
- All those ads are Monetized.
They have a relatively diversified Income Model.
How they engage their Users?
With one of its tools most valued by all: Their Suggestions.
- They have an algorithm that suggest you music you might like… And it works pretty good.
Kinder - RACE Framework example
What kind of terrible person you must be if you don’t like Kinder products.
- Kinder surprise is one of the most iconic products of our childhood.
- We’re not sponsored, we just love Kinder.
How they succeeded so much?
Let’s take a look at how they became such an iconic brand by looking at the RACE model:
Initially they only targeted young children.
- Kinder products have always been packaged in small portions that can be suitable for a snack.
However, if you see their Kinder Bueno Ads (for example) they usually target older customers.
- That is why they created Kinder chocolate Maxi, and many other products.
Kinder is always “innovating”; a new Ice-cream, a new Chocolate product, etc.
- They surely study which of them is more successful and in which Market Segment.
They have so many products and Special-Packs that, they can Monetize each product in many different ways.
- They can sell a Kinder Surprise in a Supermarket, or inside a special Pack with more products.
They have not only hooked young children with their little gifts.
- They have dozens of Christmas Packs (and Advent Calendars) that make their customers create a “special bond” with them.
Babybel - RACE Framework example
Babybel is to cheese what Kinder is to chocolate.
- It is small, mainly for children, and almost everybody loves it.
How can a product be so successful when everyone can cut a piece of cheese as an alternative to it?
Let’s analyze it from a RACE perspective:
Babybel reached lot of people in Supermarkets.
- At least here, where I live, there was often a Babybel Stand in the Supermarket.
There you could try their products for free.
Babybel has tried different types of cheeses and new formats.
- Depending on their success, they produce and distribute them to the corresponding Market.
They have 2 types of customers (mainly):
- Regular customers that buy frequently.
- Occasional customers: People that buy it because they tried it in a Stand, or simply have a craving.
Their Goal is to turn these Occasional Clients into Regular Customers.
- To do so, they Diversified their cheeses.
Although they have different products, their main Sales come from their little traditional cheeses.
- Kinder, as we saw before, has a much more diversified Product Mix.
To engage their customers (mainly children) they:
- Use Storytelling in their ads.
- Use characters of Movies (for Kids) on their packaging.
- Give Gifts (Toys, generally).
And, although it is not a toy, we all have played with the red wax of their cheeses.
The RACE Framework is a Model that suggests 4 Steps to follow when developing Marketing Campaigns.
Its name is an acronym for the 4 Steps proposed:
- Reach: In this Stage, the Company must Approach the Customer.
- Act: In this Stage, the Company must Take Actions.
- Convert: In this Stage, the Company must Obtain Profit.
- Engage: In this Stage, the Company must Build Customer Loyalty.
Tips on how you can develop a successful RACE Marketing Strategy:
- Take your time targeting the right Customers before Approaching them.
- For each Action you Take, you must establish a Metric to track the results.
- Monetization should be as diversified as possible.
- Create a fluid communication channel to Engage with your Customers.