Definition of key code

numeric or alphanumeric code used to represent a particular advertisement, cents-off coupon, catalog, mailing package, list, offer, test, effort, and so forth. Key codes 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. For example, a key code 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 key code (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 key code printed on it as follows: XAH, XBH, and XCH. When the orders are entered to the fulfillment system, the key code is also entered. Statistics can then be generated, indicating the number and average value of purchases generated by each version of the catalog.