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Thanks for your reply Marcel. Although I was able to implement your suggestions, the result was the same in that both groups of customers are given the same delivery label and delivery code.

 

In the target data I can see customers are being assigned different segment codes depending on which segment they are in and a segment code is being pulled into the delivery label and delivery code. However, it is the same delivery label and delivery code for all customers.

 

I'm happy to try other suggestions but could it ultimately be that this isn't possible to achieve because Adobe Campaign will only ever assign a single delivery label and delivery code to a delivery?