Infographic: RACE Model for customer loyalty

The RACE marketing model, composed of four stages (Reach, Act, Convert, Engage), is a real roadmap for steering your marketing strategy, since it perfectly reflects the customer journey.

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REACH

The aim of this stage is to promote your brand, product or company through various channels in order to increase your visibility and reach potential customers. Several activities are essential to successfully complete this quest: promotion on social networks, content marketing, improving SEO...

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💡 The real key lies in developing a targeted marketing campaign. This is where you convert initial interest into meaningful interactions. By offering specific content and offers that meet users' needs and expectations, you reduce bounce rates, maximize engagement and set the stage for the next stages of the conversion funnel.

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⚙️ How to optimize this stage?

For example, CPC (cost per click), allows you to optimize your advertising budget by monitoring the costs associated with clicks on your ads (the lower it is, the more you maximize your reach without blowing your budget). To find out how attractive your ads are, you can use the click-through rate (CTR) to measure how many people click on them.

Discover how impressions, CPM, monthly unique visitors and many other KPIs can help you optimize and analyze your strategy.

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ACT

It's crucial to convince customers to interact with your brand, as this is the decisive step before purchase. To do this, it's essential to ask yourself the question: “What would prevent a prospect from making a purchase? ”.

To start with, make sure your prospects clearly understand your offer and what sets you apart from your competitors. Invite them to interact with your brand. Not only strategies such as co-creation, gamification, access to an exclusive community, or customer testimonials can encourage interaction, but also they can offer a sense of exclusivity.

By combining a clear offer, interactive experiences and a sense of belonging, you strengthen your prospects' confidence and encourage them to buy.

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⚙️ How to optimize this stage?

Time spent on site is crucial: it helps you identify opportunities for improvement by giving you insights into user interest in your content. There are 2 other essential KPIs to track, which we detail in our infographic.

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CONVERT

Converting is the stage that turns your prospects into customers through decisive sales or actions (registrations, downloads, etc.).

⚠️ At this stage, your messages change from informative and useful to more specific and targeted (promotional offers, personalized recommendations...).

The conversion rate measures the effectiveness of your efforts to turn prospects into customers. If your rate is low, don't be discouraged. A few adjustments are often all that's needed. Go back to the previous step, analyze your buying journey and make minor modifications, such as A/B testing, better personalization of your offers or enriched user experiences. Adopting data-driven marketing strategies will help personalize content and increase conversions.

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How do you know if you're getting customers profitably? 🧐
Well, the customer acquisition cost (CAC) indicates how much you spend to acquire each new customer. If it's low, you're getting customers profitably. If you're not profitable, perhaps you need to analyze your basket abandonment rate. Find out in our infographic!

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ENGAGE

The ultimate goal is to build customer loyalty through ongoing engagement. This phase is essential to turn your customers into brand ambassadors and generate repeat purchases.

It was important for your prospects to have a sense of belonging in order to take action, but to build loyalty, you need to consider them. Listen to your customers and offer them personalized experiences tailored to their desires. By developing a sense of esteem, you strengthen their attachment to your brand, which not only encourages repeat purchases but also positive recommendations. Indeed, 100% transactional programs are no longer enough to engage your customers. It is therefore essential to develop experiential campaigns and include personalization within your programs and strategies.

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One of the most representative KPIs in terms of engagement and loyalty is customer lifetime value (CLV). It indicates the total value a customer will bring to your company over the entire duration of their relationship with you. A high CLV is directly linked to a high rate of customer satisfaction, especially when this satisfaction is maintained over the long term. This underlines the importance of continually adapting to your customers' changing consumption habits and preferences.

The customer retention rate and revenue from repeat purchases are essential KPIs for monitoring your customers' loyalty and adjusting your strategy accordingly. Discover the most important KPIs in our infographic.

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ℹ️ Our infographic details each stage of the RACE model, with the essential KPIs for building your loyalty strategy at each stage of the customer journey. It will also help you analyze and adjust your actions for optimal results.

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In concrete terms, what actions could be taken?

Let's imagine you run a sports brand in a saturated market, and the number of sales and customer acquisitions is running out of steam.‍ Your traditional transaction-based loyalty program is no longer effective and is becoming inaudible, and you want to revitalize your brand and build customer loyalty.

Here's how you can implement strategies to engage your audience and enrich your customer knowledge.
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‍Cohort enriches your existing tools with modern engagement and loyalty experiences like social and activity based challenges. But how? For example, suggest that your customers log on to Strava and take part in the challenge "run 15 km in 2 weeks" to unlock a "15% promotion” across your entire store. This type of experience energizes your brand by increasing interaction and reinforcing the sense of belonging through these challenges.

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Relational experiences, yes, but also personalized ones. 🧐 By using our solution you can enrich your customer knowledge and process this data via Cohorts. This allows you to go even further in personalizing. For example, by proposing a “running or cycling" challenge based on each customer's "favorite sport”, you develop a sense of esteem and recognition, thus strengthening customer loyalty.

This type of initiative not only reconnects with existing customers, but also attracts new ones, significantly boosting your brand.

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Discover Cohort's “user engagement score"

This score, created by Cohort, is a powerful tool for measuring and analyzing your customers' level of engagement at any point in the customer journey. By evaluating interactions such as site visits, purchases, participation in events or challenges, this indicator gives you a precise view of each customer's engagement.

Learn how to improve this score by rewarding loyalty beyond the transactional. With Cohort, enrich your classic loyalty solutions with modern engagement and loyalty experiences like social and activity based challenge. 📈 An explanatory use case is presented in our infographic.

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Find out more about this score in our infographic with explanations and specific use cases. Download it for free below. ⬇️