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KUT773
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I took that Kaplan diagnostic program a couple years ago and I think I scored around a 450. I remember doing a lot of guessing on it.

Anyways, following a moderate study plan, I took the test two months later and scored a 640. A month after that, without much change in my study habits, I scored a 690. Then I took a year off, studied really really hard for 9 weeks (20-30hrs/week), and scored a 760.

So yes, a much higher score is possible with a strong study plan. However, I would definitely recommend supplementing Kaplan with some additional study material. Maybe purchase a few of the Manhattan GMAT books, or sign up with Knewton on demand. I didn't think that Kaplan covered the more difficult topics with nearly enough depth.
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I wanted to post update #1 to my original post.

Tonight I took Kaplan CAT#2 after 3 weeks of very hard studying (30 hours/week) and scored a 540...an 140 point improvement!

My goal is to keep doing what I'm doing and try to continue to improve. So far I've been using soley Kaplan study resources so far, including their online class, which meets once per week for 9 total weeks.
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I have found the MGMAT Guides to be a very useful refresher in GMAT Math. I have yet to start on the verbal guides, but heard they are fantastic.

You might look into purchasing these guides to get to your target score.
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Great job on the score increase! Don't know what your score breakdown was, but as others have stated, a boost in verbal score can dramatically increase your total score, so be sure to devote time to both sections.
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