The Drill Down

A woodworking catalog used modeling to reduce the number of pieces mailed by 13 percent and increase net profits by more than 45 percent. Moreover, rather than use a single, previous mailing to predict a single, future one, the company combined the results of three previous mailings to predict a single, future mailing. This resulted in even higher response rates, and of course, profits. The model accurately had predicted a 47 percent response rate from the combination model’s top segment.