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This is used when you have new columns of data that you want to add to existing entries. An example would probably say it best:

Let's say you had this existing data:

+----------+---------------+------------------+
| Vae ID | Venue Name | Venue Address |
+----------+---------------+------------------+
| 1 | Schillers | 131 Rivington St |
| 2 | The Delancey | 168 Delancey St |
+----------+---------------+------------------+

And then you wanted to go in and add in more information about these venues that you found on Yelp. Let's pretend this is the info you got from Yelp:

+---------------+-------------+----------------+
| Venue Name | User Rating | Phone Number |
+---------------+-------------+----------------+
| Schillers | 3.5 | (212) 260-4555 |
| The Delancey | 3.5 | (212) 254-9920 |
+---------------+-------------+----------------+

The export you generated from Yelp doesn't have the Vae IDs for each entry, and you don't want to go in and manually enter the Vae ID for each line in your import file. However, both the existing data set and the import file from Yelp both have a column in common: Venue Name.

So, you can import the file from Yelp, and set "Venue Name" as a match column. Then the User Ratings and Phone Numbers will be added to the existing entries with that Venue Name.

If you select multiple columns as match columns, they all have to match for an existing entry to be considered a match.

Hope that helps!