News: Modeling Trifecta! David Katz Consulting Bests Leading Competitors in Head-to-Head Modeling Test in
all Three Categories

Direct Marketers are familiar with the use of statistical and data-mining models as a tool for circulation planning, but often they tend to assume that one model is pretty much the same as another. Or they select a model based on market prominence or salesmanship. Recently a large, savvy, multi-channel marketer decided to put three model vendors to the test, with conclusive results. David Katz Consulting produced more mailable names, more profitable names, and did so at a lower cost than either competitor - a true Trifecta!

Each panel was mailed, with the following results over all channels - catalog, Internet, and retail:

STORE TRADE AREA DKC Vendor 1 Vendor 2 Quantity identified and mailed 131,402 51,144 69,005 Total Sales $822,577 $79,273 $378,837 3 channel $/book $6.26 $1.55 $5.49 Estimated Profit/Book $2.56 $0.35 $2.20 Estimated Rollout Profit $1,009,167 $53,701 $455,433

NON-STORE TRADE AREA DKC Vendor 1 Vendor 2 Quantity identified and mailed 22,905 101,767 23,458 Total Sales $106,966 $143,491 $97,116 3 channel $/book $4.67 $1.41 $4.14 Estimated Profit/Book $1.81 $0.29 $1.57 Estimated Rollout Profit $124,374 $88,537 $110,487

"This result shows the value of a customized model built for a specific situation versus generic solutions," Mr. Katz said. "Each company has unique needs and there is no substitute for expert individual attention."

The company responsible for testing used their in-house RFM methods to find names definitely worth mailing, and then split the remaining marginal names into three categories. Each test panel was provided to one vendor, and each vendor was asked to identify additional names for mailing. One vendor was a major name in the industry - the company supplements its clients' in-house data with a large shared database. Another was a newcomer touting its new genetic analysis software. David Katz Consulting relies on a combination of advanced data mining and traditional statistical techniques applied with customized attention to the client business, and effective use of the client's own database.

David Katz Consulting 1.800.601.0689 info@davidkatzconsulting.com