Digital marketing is nowadays has become an integral part of marketing efforts for any company, and particularly essential for modern start-ups. As the business environment and market conditions are changing due to technological advances and newly available tools, the marketing dynamics are evolving and new trends are emerging in marketing, customer relationship management and customer service fields. Customer Relation Management (CRM) has faced significant changes in consumer behavior and media usage, customer expectations, needs and requirements. The shift of power to customers requires adequate response and actions from the companies. The overall digital marketing communication methods should above all work efficiently to capture, engage and retain customers, and create added value for them. In this connection, RACE model of digital marketing is analysed in this study. Further, the short-term strategic objectives are also identified using the RACE model. The proposed study is based on the secondary data and exploratory research methodology is used to understand RACE model for effective digital marketing. The RACE framework provides a simple approach that can be used across different levels within a digital marketing plan. It can help define objectives, strategy and tactics as well enable an organization to properly set suitable KPI’s at each stage too.