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MRACE ® Marketing

Digital marketing is a continuously evolving and dynamic field that demands both creativity and strategic thinking from companies. Over the past decades, the frameworks of digital marketing have become crucial tools in this development. They provide a clear structure and direction, enabling companies to navigate the complex world of digital marketing and achieve measurable success.

RACE Model
Digital Insights created the RACE marketing model to offer companies a simple framework for implementing digital marketing and multichannel communication to promote inclusive growth.
MRACE Malli 2 MRACE ® Marketing
The MRACE® model is a marketing framework developed by Finland’s Digimarkkinointi, which the company has registered. The model is based on a two-stage marketing approach, which includes the strategic Market-Value-Growth dimension as well as the tactical level MRACE® dimension.

What is RACE model?

The RACE model is designed to promote interaction between companies and customers throughout the entire customer lifecycle. It is divided into four main components: Reach, Act, Convert, and Engage, which together form a strategic framework that enables companies to attract, activate, convert, and maintain customer relationships effectively.

What is MRACE®?

The MRACE® model is an innovative approach to digital marketing that expands upon the traditional RACE model. It comprises five key stages: Measurement, Reach, Activation, Conversion, and Engagement. MRACE® enhances businesses’ ability to track and optimize their marketing efforts in real-time, providing a comprehensive framework for improving customer experience and increasing brand visibility. The model encourages strategic thinking and helps businesses achieve better results through unified and consistent marketing communication.

The MRACE model and how to use it to get conversions for businesses
Reach, Act, Convert, Engage

RACE vs. MRACE

The MRACE® model builds upon the foundation of the RACE model, adding two new dimensions: Measurement and Reach. MRACE® deepens the understanding of marketing strategy by providing means to measure the effectiveness of marketing actions and expand the reach of the brand. This way, MRACE® provides companies with a more comprehensive tool for planning and implementing digital marketing strategies, while RACE focuses on managing customer relationships through its four basic phases.

Understanding the RACE model

The RACE model provides businesses with a strategic framework for managing digital marketing through four stages: Reach, Act, Convert, and Engage. The model helps visualize the customer journey from beginning to end, starting from building awareness about the brand all the way to fostering long-term customer loyalty. It emphasizes the significance of each stage in the overall strategy, requiring effective collaboration between the stages and a set of metrics to track and optimize the effectiveness of marketing actions.

What does RACE mean?

The RACE model of digital marketing is an integrated approach that helps businesses and marketers measure and optimize the effectiveness of their digital marketing strategy. RACE consists of four main stages:

  1. Reach (Tavoittavuus): This stage focuses on reaching potential customers and increasing brand awareness through digital channels. The goal is to attract visitors to the website or social media platforms.
  2. Act (Aktivointi): The activation stage aims to encourage visitors to take action, such as signing up for an email list or sharing content on social media. This stage emphasizes engaging visitors and converting them into leads.
  3. Convert (Muunnos): The conversion stage focuses on turning leads into paying customers. In this stage, marketing efforts are aimed at increasing sales, whether it’s a purchase made in an online store or ordering a service.
  4. Engage (Sitouttaminen): In the final stage, the goal is to create long-term relationships with customers. This involves improving customer satisfaction, increasing customer loyalty, and promoting positive word-of-mouth marketing.

The RACE model provides businesses with a clear framework within which they can develop and measure their digital marketing activities at each stage of the customer journey, starting from creating awareness all the way to maintaining customer relationships.

Models and conversion optimization

Conversion optimization is the process that focuses on maximizing the performance and return on investment of a website or digital marketing campaign. In this context, the RACE model emerges as a significant tool. It provides a comprehensive framework that integrates strategic planning and analysis with the best practices of conversion optimization. Through the RACE model, companies can gain a deep understanding of how different marketing actions impact customer experience and conversions. The model also provides a clear structure for measuring and evaluating the effectiveness and ROI (Return on Investment) of marketing actions. While MRACE® is derived from the original RACE model, both models promote in-depth analysis, which is crucial for creating effective marketing strategies and ensuring long-term business success.

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The role of the RACE model in conversion optimisation

The RACE model is a digital marketing compass that guides businesses not only to attract potential customers, but also to optimise conversion processes efficiently. Conversion optimisation is a strategic approach that aims to maximise the desired actions taken by website visitors, such as subscriptions, registrations or contacts. The RACE model sheds light on the path from visitor to valued customer. Here are some reasons why the RACE model is central to conversion optimisation:

  • Designing a sales funnel:
    • In both the B2B and B2C sectors, it is essential to build a sales funnel that guides customers towards a purchase decision smoothly.
    • The RACE model can be used to visualise and understand the customer journey before the purchase decision is made.
  • Management of marketing measures:
  • Optimisation of conversion rates:
    • Once you know the different stages of customer behaviour, you can make informed decisions.
    • This will help improve conversion rates and minimise the points at which customers may abandon the purchase process.
  • Monitoring customer behaviour:
    • Collecting and analysing data on customer behaviour allows us to understand what motivates customers and at what stage they may face barriers.
    • This information will help you tailor your marketing efforts and improve the experience for potential customers.

Conversion optimisation is a simple task, but the RACE model gives companies a clear framework to understand and improve their processes. When you combine this model with other powerful tools, such as search engine optimisation and website development, you have a strong set of resources to succeed in the digital environment.

What can be done with the MRACE® model?

The MRACE® model offers a dynamic and respected approach to digital marketing, helping businesses sharpen their strategies and improve their online performance. This model extends beyond mere guidance as it focuses on the strategic insight into how and when to take actions that enhance customer engagement and conversion. With MRACE® and the RACE model, companies can optimize the actions of their visitors on their websites, whether it’s making purchases or submitting inquiries. The purpose of the model is to streamline these processes and achieve more effective results online.

By utilizing the MRACE® model, companies can:

The practical implementation of utilizing the MRACE® model can appear as follows, where “Measure” is part of the MRACE® model and the other stages originate from the traditional RACE model:

  1. Measurement (Mittaaminen): For example, a digital publishing house can use the “Measure” stage of the MRACE® model to track how their various content performs on social media. You can analyze which articles garner the most clicks and shares, and use this information to guide their future content strategies.
  2. Reach (Tavoittaminen): Let’s assume a restaurant is launching a new menu. Following the RACE model, they can launch an advertising campaign on social media and Google Ads to reach potential customers who are seeking new dining experiences in their area.
  3. Activation (Aktivointi): For example, a clothing store can use email marketing and personalized ads to encourage customers who have visited their website to return to shopping, especially if they have left items in their cart but have not yet made a purchase.
  4. Conversion (Muuntaminen): Let’s imagine an online course provider wants to increase enrollments for their new course. Following the RACE model, they can optimize their website’s registration page, ensuring that the enrollment process is smooth and appealing.
  5. Engage (Sitouttaminen): For example, a technology company selling smart devices can use customer feedback and support forums to strengthen customer relationships and improve their products based on customer input.

Through these examples, the “Measure” element of the MRACE® model integrates into the traditional RACE model, providing businesses with a precise and comprehensive framework for developing and optimizing digital marketing strategies. By combining these models with other effective digital marketing tools, such as search engine optimization and website development, businesses are equipped with all the necessary resources to succeed in the competitive digital landscape.

MRACE® implementation strategies
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implementation strategies

The RACE model is a powerful tool, but its effectiveness depends on how it is integrated into the company’s strategy and operations. Practical application can be challenging, but with the right implementation strategies you can achieve significant results.

1. Defining a clear path:

  • Understanding the customer journey: before the RACE model can be applied, it is important to understand how customers move around in the digital environment.
  • Identifying critical points: RACE helps to identify the points at which customers may abandon the buying process.

2. Use of personalised communication strategies:

  • Defining your target audience: understand who you are communicating to and why.
  • Content planning: Create content that resonates with your target audience and guides them according to the RACE model.

3. Testing and optimisation:

  • Ongoing monitoring: monitor customer behaviour and make changes where necessary.
  • A/B testing: test different versions of pages or campaigns to see which works best.

4. Deepening customer integration:

  • Feedback channels: let customers give feedback and make changes based on their feedback.
  • Loyalty programmes: reward customers for long-term commitment.

Successful examples include companies that have managed to significantly increase their conversion rates using the RACE model. These companies have understood customer behaviour, tested different strategies and made the necessary changes to achieve results.

Ultimately, implementing the RACE model requires continuous learning, testing and optimisation. But with the right implementation strategies, you can see significant improvements in conversion and customer engagement.

Advanced Strategies

The RACE model provides a comprehensive framework for conversion optimisation, but it allows you to go deeper and achieve better results by using advanced strategies. One of the most effective ways to boost conversion and customer engagement is to use content marketing within the RACE framework.

A comprehensive sales funnel: the RACE model allows companies to create a comprehensive sales funnel that takes into account the different stages of customer behaviour. This is key for both B2B and B2C companies. Here are some ways content marketing can complement the RACE model:

1. Awareness raising (Awareness):

  • Targeted content: create informative and valuable content that meets the needs of your target audience and is easily shareable on social media.
  • Search engine optimisation: use keywords related to the problems and needs of potential customers so that they can easily find your content through search engines.

2. Interest (Interest):

  • Stimulating debate: Create a debate on social media and actively respond to questions and comments.
  • Provide deeper content: offer broader and deeper content, such as guides or webinars, to help customers solve their problems.

3. Desire:

  • Validate with customer stories: use customer stories and testimonials to show how your product or service can solve customers’ problems.
  • Limited offers: create tactical offers that encourage customers to make a decision.

4. Action:

  • Easy navigation: make it as easy and clear as possible to perform the desired action (e.g. purchase or contact).
  • Continuous monitoring: monitor conversion rates and make the necessary changes to optimise results.

Content marketing in the context of the RACE model is not only effective, but also enables you to build long-term customer relationships. When you provide valuable content and steer customers in the right direction at different stages, they are more likely to return and recommend you to others.

Finally, the combination of the RACE model and content marketing is a powerful strategy to help businesses increase conversion and customer loyalty in the long term. It creates loyal customers and helps build a strong brand.

RACE in International Digital Marketing

The effectiveness of the RACE model is not limited to the domestic market. It also works well for international digital marketing strategies. Practical application is the key to success, and one Finnish company is a good example of how the RACE model can be used to expand its digital presence in multiple markets and optimise its conversion process across countries and cultures.

The impact of the MRACE model on international growth
Conversion optimization

Expansion with the MRACE® Model

Let’s look at the journey of a Finnish company that decided to expand into international markets using the MRACE ® model:

1. Awareness: the company started by carrying out in-depth market research on its target countries. It looked at the types of customer segments in different countries and how they consumed digital content. This allowed it to create targeted content that met the specific needs and interests of each country.

2. Interest: the company realised that people in different cultures react differently to marketing messages. It used local expertise and partners to create content that was both engaging and culturally appropriate. This helped to generate interest in new markets.

3. Desire: The company used customer stories and testimonials that were locally relevant. It also offered tailored offers and benefits for each country. In this way, it created a desire and attracted potential customers to make decisions.

4. Action: In the action phase, the company provided clear guidelines for action, taking into account local customs and habits. The websites and purchasing processes were easy to navigate and localised. The company also offered customer support in different languages and time zones to ensure a smooth customer experience.

This Finnish company shows that applying the MRACE ® model to international markets requires precision, local knowledge and cultural sensitivity. By taking these factors into account, a company can optimise its conversion process in different countries and build a strong international presence.

Finally, the MRACE ® model knows no international borders. It is a powerful tool that can help businesses succeed in the digital world, wherever they operate. Through continuous learning, adaptation and a customer-centric approach, companies can achieve global success.

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Comparison of the RACE model and the MRACE® model in digital marketing

Digital marketing is a key element of success in business today. Companies are constantly looking for effective ways to reach their target audiences, increase sales and build brand awareness online. This objective requires strategic planning, tactical measures and effective monitoring. The RACE model and the MRACE® model are two marketing models that help organisations achieve these goals. But how do these models differ and how can they help digital marketing?

The RACE model: a traditional approach

The RACE model (Reach, Act, Convert, Engage) is one of the most well-known marketing models. It’s a traditional approach that has helped countless marketing decision-makers design and manage their own digital marketing. The model is divided into four stages:

  1. Reach: this phase focuses on reaching the target audience and raising awareness. This can include online advertising, social media campaigns and search engine marketing.
  2. Act: the Act phase aims to get visitors to react, for example by clicking on a link or downloading content. This can be done, for example, through attractive CTA buttons and engaging content.
  3. Convert: the Convert step aims to convert visitors into leads or customers. This may include, for example, filling in forms, using a shopping cart or signing up for a newsletter.
  4. Engage: the Engage phase aims to keep customers involved and build a relationship with them. This can be done, for example, through regular content marketing and customer communications.

The RACE model is a practical and tactical approach to marketing. It helps to manage multi-channel marketing and guides the target audience through the sales funnel. However, the RACE model is more than 12 years old and the digital marketing landscape has changed significantly since its development.

Foundation of the MRACE® Model

The MRACE® model is a more advanced marketing model, based on the RACE model but extending its basic principles. MRACE® stands for Measure, Reach, Act, Convert, Engage, and it provides a deeper understanding of strategic and tactical planning in digital marketing.

1. Measurement (Measure)

In the MRACE® model, measurement is key. It emphasises systematic measurement and provides a measurement framework that covers each step of the model and an examination of the whole. Only through systematic measurement can continuous improvement with the right measures be possible.

Measurement allows organisations to track the effectiveness of their marketing efforts with clear data and numbers. This allows for continuous optimisation and better decision-making on marketing budgets and resources.

2. Buyer Personas (Buyer Personas)

The MRACE® model focuses heavily on buyer personas. Buyer personas are imaginary profiles that represent the ideal customers of an organisation. The MRACE® model encourages a deep understanding of these buyer personas, their needs and their behaviour. This helps tailor marketing messages and strategies to the needs of your target audience.

3. Awareness Levels

The MRACE® model pays particular attention to the awareness levels of buyers. Awareness levels vary according to visitors’ awareness of the brand and products, and the model guides marketers to provide targeted content for each level of awareness.

This can include, for example, informative content for those who are just learning about the topic and persuasive content for those who are already aware of the brand and are considering a purchase decision.

4. Strategic and tactical perspective

The MRACE® model offers both a strategic and tactical approach to marketing. It helps to define a long-term strategy based on a deep understanding of the target audience and objectives. It also provides tactical guidance on how to implement and monitor the measures.

5. Continuous development

The MRACE® model emphasises continuous improvement based on measurement. Measurement and analytics are key elements of this model, helping organisations to continuously improve their marketing efforts. Monitoring and reacting to results are key to long-term success.

6. Market-Value-Growth (MVG) strategy

One of the distinguishing features of the MRACE® model is the integration of the Market-Value-Growth (MVG) strategy. MVG’s strategy focuses on building long-term value, increasing brand appeal and driving profitable growth. The MRACE® model helps organisations to implement this strategy effectively in digital marketing.

Summary

The RACE model and the MRACE ® model are both useful tools for planning and implementing digital marketing. The RACE model offers a practical and traditional approach, while the MRACE® model extends these basic principles in more depth and provides a more precise measurement framework, with a stronger focus on buyer personas and awareness levels. It also provides a strategic and tactical approach to marketing and emphasises continuous improvement based on measurement.

Organisations should consider the features of these two models and choose the one that best meets their needs and objectives in digital marketing. In any case, normally RACE and MRACE® are great tools for planning and implementing successful digital marketing.

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