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Email Marketing by the Numbers: How to Use the World’s Greatest Marketing Tool to Take Any Organization to the Next Level by Ali Sales, Chris Baggott

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McDonald and Dunbar: Three-Stage, Seven-Step Process

In their book Market Segmentation: How to Do It and How to Profit from It (London: Macmillan Publishers, 1998), McDonald and Dunbar propose a three-stage, seven-step process for developing segments. (See Figure 6.3 for a diagram.)

Figure 6.3. McDonald and Dunbar’s Process for Developing Segments

Each of these customer-centric models yields different insights into the process of segmenting and targeting customers and prospects. While there are definitely different points of emphasis, the proponents of these models agree on several critical components:

  • The first and hardest step is committing to a long-term approach that is right for your company and your customers.

  • Developing a strategy based on market conditions and actual customer information is a must.

  • Implementation is crucial. Poor implementation will derail any strategy, no matter how good it is.

  • Ongoing monitoring and adjustments need to be made to the strategy based on feedback from customers.

You are now ready to segment your database. Ready to have some fun? It’s time for us to practice what we’ve covered so far.

If you have access to a database or a CRM system, then segmentation entails running a report on the various characteristics of your constituents. This doesn’t have to be overly complicated, especially in the beginning. I like to export an excel spreadsheet from ...

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