Digital Marketing Agency Pricing Guide: How Much Should You Charge?


If you’re a marketer, you’ve no doubt heard the rallying cry behind personalization.

It’s almost impossible to drown out. With more brands putting a premium on experiences, we’re seeing the dying embers of mass blast content and hello, {first name}, personalization.

Consistent one-to-one interactions that sum up to a singularly great customer experience aren’t possible without marketing segmentation and acknowledging the complexity of designing experiences.

Let’s explore why.

What is marketing segmentation?

Remember when you were in grade school and learning about the animal kingdom? You’d see animals classified into different groups such as phyla, orders, genus, and families based on their shared characteristics.

Scientists created these classifications to understand what animals have in common and how they’ve evolved.

Marketing segmentation works a lot like the animal kingdom’s organizing logic. Instead of nine classifications, marketing segmentation has four key approaches to dividing brands’ target markets into smaller, defined groups.

Experience

  • Demographic segmentation is the most basic and generalized type of segmentation that divides people into groups based on their age, gender, income, ethnicity, location, or occupation.
  • Psychographic segmentation goes a level deeper than demographic segmentation and divides people into groups based on their attitudes, interests, lifestyles, and values. Psychographic segmentation gives marketers more profound insight into their users. It can help them create content and experiences that better reflect people belonging to a specific psychographic segment.
  • Behavioral segmentation divides customers based on what they do. Segments are created based on how users interact with a company and their steps toward a purchase decision. Patterns analyzed can include brand interactions, website activity, desktop or mobile app engagement, and loyalty.
  • Geographic segmentation divides people into groups based on where they live. Climate, zip codes, country, and urban, suburban, or rural categorizations influence how marketers put consumers into segments.