Cato Consulting Case Studies
Case Studies: How have our Clients Benefited?

Case Study I
Issue: Improve profitability per order for leading women’s apparel marketer, who recruited 3 million new customers per year via co-op programs.

Solution: Initiated direct mail list test program, using customer purchase history supplied by rental list as basis for modeling; modeled inside lists and reactivation programs. After one year, converted acquisition program to 100% direct mail sources and increased profit per order by 220%.

Outcome: Company’s profitability increased more than five-fold over three years and led to successful sale by owners. Over time, the company grew acquisition volume to 5 million direct mail sourced customers per year.

Case Study II
Issue: Reverse the trend of declining continuation rates for major continuity publishing business that used a mix of sources to recruit new customers.

Solution: Implemented direct mail test program to inside and outside lists to improve response and retention rates, while maintaining total new customer levels.

Outcome: Company was able to replace most of outside, non-direct mail media with more profitable new customer sources while minimizing conflicts between product lines and allocation of acquisition sources.

Case Study III
Issue: Assist start-up company marketing consumer health products to identify mailing universe for profitable customer acquisition and sustained growth.

Solution: Identified target mailing universes and negotiated with list owners for proprietary customer data to serve in modeling process. Developed models that improved response rates by 100% (at 25% of the universe) and retention rates by 35%.

Outcome: Company achieved successful start-up by identifying profitable mailing lists and by applying modeling approaches which ultimately led to profitable sale to a major competitor.