Measuring the Incremental Value of Catalog Mailings

By comparing how the group receiving the catalog does vs. the holdout panel, you can see the effect the catalog has on sales. For the holdout test, withhold mailing the catalog so that the two groups receive all the other marketing messages. After running a holdout test, the response rates and dollars per catalog are compared in your matchback processing. For example, if the holdout group yields $1.00 in sales during the life of the catalog's order history and the group receiving the catalog yields $2.50 in sales, then the incremental lift is $1.50. With all other variables held constant, the incremental lift represents the sales that your catalog mailing added to the overall marketing mix.