Matchback Defined
What is matchback?
Definition: Matchback is a tool used to allocate unknowns sales back to a direct marketing effort by keycode.
Definition: Keycode is a numeric or alphanumeric code used to represent a particular advertisement, cents-off coupon, catalog, mailing package, list, offer, test, effort, and so forth. Keycodes are an essential tool for tracking and controlling promotion response. Keys are the basis for statistical analyses that evaluate the relative profitability and effectiveness of the aforementioned promotion campaign components. www.answers.com
For example, a keycode may be used to identify several different direct-mail packages being mailed to segments of the same list: any difference in response between the groups can then be attributed to the particular package and not to the list, thereby enabling the marketer to identify the best package. As another example, a Christmas gift catalog with three different covers (A, B, and C) is sent to a house list of previous catalog buyers. The first digit of the keycode (X) identifies it as the Christmas catalog. The second digit identifies the cover, and the third digit represents the list (H). Each catalog order form would have a keycode printed on it as follows: XAH, SBH, and SCH. When the orders are entered in the fulfillment system, the keycode is also entered. Statistics can then be generated, indicating the number and average value of the purchases generated by each version of the catalog. – www.answers.com
Following is an example list for a holiday mailing which has been split into 9 segments each having it’s own keycode.
| Description | Segment | Keycode | Mail Quantity |
|---|---|---|---|
| House | 0-12 Month Buyers | XB1201 | 23,021 |
| House | 13-24 Month Buyers | XB2401 | 15,453 |
| House | 25-36 Month Buyers | XB3601 | 8,999 |
| House | 37+ Month Buyers | XB3701 | 1,577 |
| House | 0-12 Month Requestors | XR1201 | 1,577 |
| Prospect | List Rental 1 | XP01 | 5,000 |
| Prospect | List Rental 2 | XP02 | 7,500 |
| Prospect | List Rental 3 | XP03 | 5,000 |
| Prospect | List Rental 4 | XP04 | 7,500 |
Here’s how it works in a perfect world:
- Initial campaign is imprinted with keycodes.
- An order is generated in response to the marketing campaign.
- The keycode is captured during the order taking process and
- The results are analyzed and used to refine future marketing campaigns.
Unfortunately we do not live in a perfect world. In the late 1990’s, a direct marketer expected to capture keycodes on approximately 90% of the orders. Today, we see this percentage drop to as low as 10%. Matchback programs take orders without keycodes and match them against the mail file to retrieve the original keycode.
Stay tuned for more on our matchback series . . .