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Reach, Engage, Activate & Nurture (REAN)


Marketer appreciates the progression of stages that turn an interested person into the active customer. The REAN model provides a theoretical framework for measuring this progression.

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Source: Smart Data Collective. (2016).


“In order to understand what the outcomes of your business efforts are you might need a common framework to be able to measure it effectively. A few years ago one such framework was created called REAN. It's an acronym that stands for: Reach Engage Activate Nurture. I've found this an extremely valuable training and planning tool for almost a decade in any business, big or small. REAN helps you to to the visual what you're measuring and why for planning purposes. All KPIs and metrics fall into at a least one of the four dimensions of Rean. By using a framework like this from the beginning you eliminate all kinds of discussions around "what engagement is," for instance, as REAN Clearly defines engagement across all business functions.” (Jackson. 2016).


Reach

“Reach: Measures the methods you use to attract traffic to your website or online presence and Measures how people find your brand, product or service” (Jackson. 2016).

Reach in customers requires playing an ad before the eyes of potential customer. This can be done both online and offline:

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These actions can be measured in terms of the impression metrics which counts the number of times that an advert was viewed. With few exceptions, an impression is counted each time an advert can be viewed by entering a person's screen on Facebook, Instagram, or the Audience Network. (Facebook Business 2016). It should be noted that this metric is a qualitative factor because many computers do not see or even notice most ads displayed because they have trained their eyes to skip over the ads in their pursuit of the content on the page.

When the goal is to increase brand awareness the focus impressions. The cost per thousand viewable impressions (vCPM) is a crude indicator of the success of playing a message in front of customers. Image ads and other multimedia formats often serve that purpose best, and these ad formats run on the Display Network. The message is placed in the ad itself, to deliver content without reviving to a website. This may apply to events (such as a television premiere) or political advertising (Google Partner Help. 2016).


Engage

“Engage helps you understand all the places That customers or prospects might interact with your brand so you can Develop a solid understanding of how to begin thinking about your assets or content strategy. By understanding what you want your customers to do, when you want them to do it and why” (Jackson. 2016).

For example, Facebook offers many metrics to analyze how advertisings perform. Key metrics for engagement are: Total clicks, Impression, click through rate, the average cost per click, the average cost per thousand impressions and total spent. With these metrics is effective to compare which advertisements motivate users to respond ad which do not. Also, these metrics are very important when have to optimize advertising campaigns for the strength of customer response. These same metrics are used by advertising platforms such as Google (Treadaway, Smith. 2010).

The goal is to generate traffic to a website, focusing on clicks would be ideal. Cost-per-click (CPC) bidding would be ideal for such campaigns. There are two cost-per-click bid strategies to consider: Maximize Clicks is an automated bid strategy. It's the simplest way to bid for clicks, as it only requires setting a daily budget. The AdWords system automatically manage bids to bring the most clicks possible within the set budget. Manual CPC bidding lets the advertiser manage maximum CPC bids. In this mode, it is possible to set different bids for each ad group in the campaign, or for individual keywords or placements. In cases where certain keywords or placements are more profitable, manual bidding is useful for allocating more of an advertising budget to those keywords or placements. A high CTR is a good indication that users find the ads helpful and relevant. CTR also contributes to a keyword's expected CTR (a component of Quality Score), which can affect costs and ad position. Note that a good CTR is relative to the advertising content and networks used. (Google Partner Help. 2016).

Google search network average click-through rate in USA auto industry was 2.14% and e-commerce that was 1.66%. Google display network click-through rate in auto industry was 0.41% and e-commerce that was 0.45% (WordStream. 2016).

Facebook advertising average click-through rate was 1.5%, and ad spending was 94% on mobile phones and 6% on the desktop computer in Southeast Asia: Cambodia, Indonesia, Laos, Malaysia, The Philippines, Singapore, Thailand, and Vietnam (Facebook marketing partners. 2016).


Activate

“Activate: is a measure of the effectiveness of visitors that have taken an action on your website, preferably one that you had a pre-defined and wanted them to take” (Jackson. 2016).

Activate activity can be measured by conversion metrics. A conversion happens when someone clicks on an ad and then takes an action that is defined as valuable to the business, such as an online purchase or a call to your business from a mobile phone (Google AdWords. 2016).

For example, Facebook Ads manager offers different conversion choices for campaign goals such as: search, add to cart, add to wishlist, initiate checkout, add payment info, purchase, lead, complete registration and other (Facebook Ads. 2016).

If the goals are to get customers to take a direct action on a website, it is useful to track and focus on conversions. Cost-per-acquisitions (CPA) bidding is one method to link marketing costs directly to outcomes (Google Partner Help. 2016).

Google search network average conversion rate (conversions/clicks) in USA auto industry was 2.27% and e-commerce that was 1.91%. Google display network conversion rate in the auto industry was 0.96% and e-commerce that was 0.45% (WordStream. 2015). Average conversion rate by Facebook in 2015 was 1.08% (Smartinsights. 2016).


Nurture

“Nurture: Measures the effectiveness of the way you actively activated encourage your visitors to come back and consume more of your website content” (Jackson. 2016).

Remarketing helps marketers to reach people who have previously visited your website or used your app. Previous visitors or users can see your ads as they browse websites that are part of the Google Display Network, or as they search for terms related to your products or services on Google (Google AdWords. 2016).

Facebook also offers remarketing strategies, that allows marketers to build own custom audience. Composed by who have entered the business website through Facebook Ads (Facebook Ads. 2016).

There are also many other different strategies for communicating with business customers:

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REAN-model Compared to RACE-model

There are little differences on REAN-model compared to RACE-model. Both models are designed to increase the effectiveness of digital marketing. These models are very flexible and should be adapted to every digital marketing plan. Each level of both models have similarities, small differences come from during the time when professional digital marketers have modified these models to fit their digital marketing campaigns. Basically, these models are the same, so that depend on reader how they want to understand explained models (Smartinsights. 2016).

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REAN model customers flow

In Figure depicts the flow or sequence of customer actions according to the REAN model. In first level of Reach measures how many customers have seen advertisements on Google and Facebook at counters A and B. The Engage level measures the number of customers who click on advertisements or organic links. This metric is the click through rate (CTR) at counters D, E, F and G. In the case of Google remarketing ads will occur whenever relevant pages are displayed. The corresponding CTR is measured at counter C. On the website the CTR will need to be adjusted by the bounce rate that determines the % of CTR responses that quickly leave the website. The remaining customers represent more serious customers who are willing to explore the website. Activate level measures how many customers register for membership for the website as seen by counter H. Counter I collect customer’s data who do not go counter H to sign up. Last Nurture level is remarketing campaign where is reminded customers to come again to the landing page at counter J.

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References:

Treadaway, C, Smith, M. (2010). Facebook Marketing - An Hour a Day. Wiley Publishing, Inc., Indianapolis, Indiana

Facebook Business. (2016). https://www.facebook.com/business/

Google AdWords. (2016). https://support.google.com/

Google Partners Help. (2016). https://support.google.com/partners

Jackson, S. (2016). Cult of Analytics - Data Analytics for Marketing. 2nd Edition. Routledge, New York, NY

Smart Data Collective. (2016). http://www.smartdatacollective.com.

Smartinsights. (2016). http://www.smartinsights.com.

Treadaway, C, Smith, M. (2010). Facebook Marketing - An Hour a Day. Wiley Publishing, Inc., Indianapolis, Indiana

WordStream. (2016). http://www.wordstream.com.

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