U.S. patent application number 13/530900 was filed with the patent office on 2012-11-15 for identifying industry segments with highest potential for new customers or new spending for current customers.
This patent application is currently assigned to American Express Travel Related Services Company, Inc.. Invention is credited to Dan Cheung Tat Chan, Eliot R. Hamlisch.
Application Number | 20120290357 13/530900 |
Document ID | / |
Family ID | 39499396 |
Filed Date | 2012-11-15 |
United States Patent
Application |
20120290357 |
Kind Code |
A1 |
Hamlisch; Eliot R. ; et
al. |
November 15, 2012 |
IDENTIFYING INDUSTRY SEGMENTS WITH HIGHEST POTENTIAL FOR NEW
CUSTOMERS OR NEW SPENDING FOR CURRENT CUSTOMERS
Abstract
A method and system are used to identify industry segments with
highest potential for new customers or new spending for current
customers. This includes receiving data, segregated into each of a
plurality of industries, relating to a number of small businesses,
cost of goods sold for each of the small businesses, and percentage
of cost of goods sold that is spent on raw materials and inventory
for each of the small businesses. Capturing data, segregated into
each of the plurality of industries, relating to average amount
charged per current card member, percentage of the current card
members charging the raw materials and the inventory, percentage of
card member penetration, and total estimated charging for the
current card members. Determining which of the plurality of
industries or segments are available for a highest potential for
new card members.
Inventors: |
Hamlisch; Eliot R.; (New
York, NY) ; Chan; Dan Cheung Tat; (Fanwood,
NJ) |
Assignee: |
American Express Travel Related
Services Company, Inc.
New York
NY
|
Family ID: |
39499396 |
Appl. No.: |
13/530900 |
Filed: |
June 22, 2012 |
Related U.S. Patent Documents
|
|
|
|
|
|
Application
Number |
Filing Date |
Patent Number |
|
|
13092837 |
Apr 22, 2011 |
8229783 |
|
|
13530900 |
|
|
|
|
11636980 |
Dec 12, 2006 |
7953627 |
|
|
13092837 |
|
|
|
|
Current U.S.
Class: |
705/7.31 |
Current CPC
Class: |
G06Q 30/0204 20130101;
G06Q 10/06311 20130101; G06Q 30/02 20130101; G06Q 30/0202
20130101 |
Class at
Publication: |
705/7.31 |
International
Class: |
G06Q 30/02 20120101
G06Q030/02 |
Claims
1. A method comprising: generating, by a computer-based system for
determining desired industry segments and to create a combined
ranking, a first ranking based on a first data set relating to a
group of merchants in an industry segment, a second ranking based
upon a second data set relating to a group of merchant account
holders in the industry segment, and a third ranking based upon a
third data set that validates that a merchant in the group of
merchants in the industry segment is interested in increasing
charging; determining, by the computer-based system and based upon
the combined ranking, at least one of: that the industry segment is
available for an increase in charging by the group of merchant
account holders and a potential for new account holders in the
industry segment; and targeting for follow up communications, by
the computer-based system and in response to the determining, at
least one of: a merchant in the group of merchants in the industry
segment and a merchant account holder in the group of merchant
account holders in the industry segment.
2. The method of claim 1, further comprising validating, by the
computer-based system and based upon a third data set, that a
merchant in the group of merchants in the industry segment is
interested in increasing charging
3. The method of claim 1, wherein the third data set includes data
acquired through at least one of interviews with industry experts,
interviews with business owners, data associated with industry
reports and census data;
4. The method of claim 1, wherein the first data set includes at
least one of: a cost of goods sold associated with at least a
subset of the merchants within the industry segment, a number of
the merchants associated with the industry segment, and a raw
materials and inventory cost of goods sold associated with at least
the subset of the merchants within the industry segment.
5. The method of claim 1, wherein the second data set includes at
least one of: an average amount of spending for the merchant
account holders within the industry segment, a percentage of
merchant account holders actively spending on raw materials and
inventory in the industry segment, a merchant account holder
penetration in the industry segment, and a total estimated amount
of spending for transaction accounts in the industry segment.
6. The method of claim 1, wherein each of the data in at least one
of the first data set and the second data set is weighted.
7. The method of claim 1, further comprising repeating the method
for groups of merchants and merchant account holders in a different
industry segment, the method yielding a different combined ranking
related to the different industry segment, the different combined
ranking enabling evaluation of the different industry segment to
determine at least one of: that the different industry segment is
available for an increase in charging by the group of merchant
account holders and a potential for new account holders in the
different industry segment.
8. The method of claim 7, further comprising comparing the combined
ranking and the different combined ranking to determine which of
the industry segment and the different industry segment represents
a more desirable marketing opportunity.
9. The method of claim 8, wherein the number of merchants
associated with the different industry segment receives a weighting
of two (2), the cost of goods sold associated with at least a
subset of the merchants within the different industry segment
receives a weighting of five (5), and the raw materials and
inventory cost of goods sold associated with at least the subset of
the merchants within the different industry segment receives a
weighting of three (3).
10. The method of claim 8, wherein the average amount of spending
for the merchant account holders within the different industry
segment receives a weighting of two (2), the percentage of merchant
account holders actively spending on raw materials and inventory in
the different industry segment receives a weighting of three (3),
the merchant account holder penetration in the different industry
segment receives a weighting of one (1), and the total estimated
amount of spending for transaction accounts in the different
industry segment receives a weighting of four (4).
11. The method of claim 1, wherein each of the first ranking, the
second ranking, the third ranking, and the combined ranking are one
of: very high, high, medium, medium/low, low, and very low.
12. The method of claim 1, wherein the number of merchants
associated with the industry segment receives a weighting of two
(2), the cost of goods sold associated with at least a subset of
the merchants within the industry segment receives a weighting of
five (5), and the raw materials and inventory cost of goods sold
associated with at least the subset of the merchants within the
industry segment receives a weighting of three (3).
13. The method of claim 1, wherein the average amount of spending
for the merchant account holders within the industry segment
receives a weighting of two (2), the percentage of merchant account
holders actively spending on raw materials and inventory in the
industry segment receives a weighting of three (3), the merchant
account holder penetration in the industry segment receives a
weighting of one (1), and the total estimated amount of spending
for transaction accounts in the industry segment receives a
weighting of four (4).
14. The method of claim 1, wherein each of the first ranking, the
second ranking, the third ranking, and the combined ranking are one
of: very high, high, medium, medium/low, low, and very low.
15. The method of claim 1, wherein data acquired through interviews
with industry experts and business owners is acquired through at
least one of: instant messaging, emailing, telephoning, faxing, and
direct mailing.
16. The method of claim 1, wherein the industry segment is
classified using a Standard Industry Classification (SIC) code.
17. The method of claim 1, wherein the first data set is received
from at least one of: Dun and Bradstreet, U.S. Census, or Almanac
of Business and Industrial Financial Data.
18. The method of claim 1, wherein the second data set comprises
proprietary merchant account holder data.
19. An article of manufacture including a non-transitory, tangible
computer readable storage medium having instructions stored thereon
that, in response to execution by a computer-based system for
determining desired industry segments, cause the computer-based
system to perform operations comprising: generating, by the
computer-based system and to create a combined ranking, a first
ranking based on a first data set relating to a group of merchants
in an industry segment, a second ranking based upon a second data
set relating to a group of merchant account holders in the industry
segment, and a third ranking based upon a third data set that
validates that a merchant in the group of merchants in the industry
segment is interested in increasing charging; determining, by the
computer-based system and based upon the combined ranking, at least
one of: that the industry segment is available for an increase in
charging by the group of merchant account holders and a potential
for new account holders in the industry segment; and targeting for
follow up communications, by the computer-based system and in
response to the determining, at least one of: a merchant in the
group of merchants in the industry segment and a merchant account
holder in the group of merchant account holders in the industry
segment.
20. A system comprising: a processor for determining desired
industry segments; a tangible, non-transitory memory configured to
communicate with the processor, the tangible, non-transitory memory
having instructions stored thereon that, in response to execution
by the processor, cause the processor to perform operations
comprising: generating, by the processor and to create a combined
ranking, a first ranking based on a first data set relating to a
group of merchants in an industry segment, a second ranking based
upon a second data set relating to a group of merchant account
holders in the industry segment, and a third ranking based upon a
third data set that validates that a merchant in the group of
merchants in the industry segment is interested in increasing
charging; determining, by the processor and based upon the combined
ranking, at least one of: that the industry segment is available
for an increase in charging by the group of merchant account
holders and a potential for new account holders in the industry
segment; and targeting for follow up communications, by the
processor and in response to the determining, at least one of: a
merchant in the group of merchants in the industry segment and a
merchant account holder in the group of merchant account holders in
the industry segment.
Description
RELATED APPLICATIONS
[0001] This patent application is a continuation of and claims
priority to, and the benefit of, U.S. Ser. No. 13/092,837 filed on
Apr. 22, 2011 and entitled "IDENTIFYING INDUSTRY SEGMENTS WITH
HIGHEST POTENTIAL FOR NEW CUSTOMERS OR NEW SPENDING FOR CURRENT
CUSTOMERS." The '837 is a continuation of and claims priority to,
U.S. Pat. No. 7,953,627 issued on May 31, 2011 (aka U.S. Ser. No.
11/636,980 filed on Dec. 12, 2006) and entitled "IDENTIFYING
INDUSTRY SEGMENTS WITH HIGHEST POTENTIAL FOR NEW CUSTOMERS OR NEW
SPENDING FOR CURRENT CUSTOMERS." Both of which are hereby
incorporated by reference.
BACKGROUND
[0002] 1. Field of the Invention
[0003] This invention generally relates to a system, method, and
computer program product for identifying industry segments with
highest potential for new customers or new spending for current
customers.
[0004] 2. Related Art
[0005] Card issuing companies increase their revenues through
acquisition of new card members or when card members increase their
spending. Benefits from using the card, e.g., reward points and the
like, are one way card issuing companies try to entice card members
to increase their spending. However, in a slow economic market,
it's harder to use rewards as an only motivation to entice a card
member to increase their spending or gain new card members.
[0006] Currently, many card issuing companies perform only incoming
customer service functions, including receiving of communications
from card members. In some instances, data from these
communications is compiled and stored in one or more databases or
other storage systems. However, the card issuing companies cannot
effectively compile enough data to determine if a card member is
using their spending capacity and/or utilizing the benefits of
being a card member through only doing data compilation of incoming
communications. This is because with such limited data, many of the
card issuing companies lack the tools and technology to perform
adequate spend diagnostics regarding current card members. The card
issuing companies also typically lack any tools that would allow
effective and efficient management of their communications with the
card members, e.g. historical and/or individual data on each card
member. Thus, during communications with the card members, because
of the lack of specific information the card issuing companies
cannot know if they should or could entice the card members to
increase their spending or change their spending habits. Thus,
because of the lack of technology or tools, most of the card
issuing companies do not adequately and efficiently communicate
with their card members, allowing their card members to remain
ignorant of the full optimization of their transaction cards and
spend capacity.
[0007] Also, currently there are few if any methodologies to
determine best potential growth industries in which to solicit new
card members.
[0008] Given the foregoing, what is needed is a system and a method
for identifying industry segments with highest potential for new
customers or new spending for current customers.
SUMMARY
[0009] An embodiment of the present invention is directed to a
method of identifying industry segments with the highest potential
for new customers or new spending for current customers. This
includes receiving data, segregated into each of a plurality of
industries, relating to a number of small businesses, cost of goods
sold for each of the small businesses, and percentage of cost of
goods sold that is spent on raw materials and inventory. Capturing
data, segregated into each of the plurality of industries, relating
to average amount charged per current card member, percentage of
the current card members charging the raw materials and the
inventory, percentage of card member penetration, and total
estimated charging for the current card members. Determining which
of the plurality of industries or segments of the plurality of the
industries are available for a highest potential for new card
members or that are available for a greatest amount of incremental
increased charging by the current card members. Communicating with
the current card members in each of the plurality of industries or
segments and receiving data therefrom based on one or more of the
previous steps. Communicating with internal and external sources to
capture additional industry-specific charging data. Generating
ranked data sets based on the previous steps.
[0010] Another embodiment of the present invention is directed to a
system of identifying industry segments with highest potential for
new customers or new spending for current customers. The system
includes a database, a communications device, and a controller. The
database includes (a) a first set of data, segregated into each of
a plurality of industries, relating to a number of small
businesses, cost of goods sold, and percentage of cost of goods
sold that is spent on raw materials and inventory and (b) a second
set of data, segregated into each of the plurality of industries,
relating to average amount charged per current card member,
percentage of the current card members charging the raw materials
and the inventory, percentage of card member penetration, and total
estimated charging for the current card members. The communications
device is configured to (a) communicate with the current card
members in each of the plurality of industries or segments and
receive data therefrom and (b) communicate with external sources to
capture additional industry-specific charging data. The controller
is configured to, based on the data in the database and the data
captured by the communications device, (a) determine which of the
plurality of industries or segments of the plurality of the
industries are available for a highest potential for new card
members or that are available for a greatest amount of incremental
increased charging by the current card members based on the first
and second set of data and (b) generate ranked data sets.
[0011] In a further embodiment of the present invention, there is
provided a computer program product comprising a computer useable
medium having a computer program logic recorded thereon for
controlling at least one processor, the computer program logic
comprising computer program code devices that perform operations
similar to the devices and methods in the above embodiments.
[0012] Further features and advantages of the present invention as
well as the structure and operation of various embodiments of the
present invention are described in detail below with reference to
the accompanying drawings.
BRIEF DESCRIPTION OF THE DRAWINGS
[0013] The features and advantages of the present invention will
become more apparent from the detailed description set forth below
when taken in conjunction with the drawings. The left-most digit of
a reference number may identify the drawing in which the reference
number first appears. Similar reference numbers may indicate
similar elements.
[0014] FIG. 1 shows a system.
[0015] FIG. 2 is an exemplary overall method.
[0016] FIG. 3 shows details of a step in the method of FIG. 2.
[0017] FIGS. 4A-4F show exemplary quantitative outputs from an
external data analysis.
[0018] FIG. 5 shows details of another step in the method of FIG.
2.
[0019] FIGS. 6A-6H show exemplary quantitative outputs from an
internal data analysis.
[0020] FIG. 7 shows an exemplary chart including final data
rankings.
[0021] FIG. 8 shows a flowchart depicting another exemplary overall
method.
[0022] FIG. 9 is a block diagram of an exemplary computer system
for use with the system and method of this invention.
DESCRIPTION
[0023] While specific configurations and arrangements are
discussed, it should be understood that this is done for
illustrative purposes only. A person skilled in the pertinent art
will recognize that other configurations and arrangements can be
used without departing from the spirit and scope of the present
invention. It will be apparent to a person skilled in the pertinent
art that this invention can also be employed in a variety of other
applications.
[0024] This specification discloses one or more embodiments that
incorporate the features of this invention. The disclosed
embodiment(s) merely exemplify the invention. The scope of the
invention is not limited to the disclosed embodiment(s). The
invention is defined by the claims appended hereto.
[0025] The embodiment(s) described, and references in the
specification to "one embodiment", "an embodiment", "an example
embodiment", etc., indicate that the embodiment(s) described may
include a particular feature, structure, or characteristic, but
every embodiment may not necessarily include the particular
feature, structure, or characteristic. Moreover, such phrases are
not necessarily referring to the same embodiment. Further, when a
particular feature, structure, or characteristic is described in
connection with an embodiment, it is understood that it is within
the knowledge of one skilled in the art to effect such feature,
structure, or characteristic in connection with other embodiments
whether or not explicitly described.
[0026] Embodiments of the invention may be implemented in hardware,
firmware, software, or any combination thereof. Embodiments of the
invention may also be implemented as instructions stored on a
machine-readable medium, which may be read and executed by one or
more processors. A machine-readable medium may include any
mechanism for storing or transmitting information in a form
readable by a machine (e.g., a computing device). For example, a
machine-readable medium may include read only memory (ROM); random
access memory (RAM); magnetic disk storage media; optical storage
media; flash memory devices; electrical, optical, acoustical or
other forms of propagated signals (e.g., carrier waves, infrared
signals, digital signals, etc.), and others. Further, firmware,
software, routines, instructions may be described herein as
performing certain actions. However, it should be appreciated that
such descriptions are merely for convenience and that such actions
in fact result from computing devices, processors, controllers, or
other devices executing the firmware, software, routines,
instructions, etc.
[0027] The term "merchant" as used herein means any person, entity,
distributor system, software, and/or hardware that is a provider,
broker, and/or any other entity in the distribution chain of goods
or services. For example, a merchant may be a credit card issuer, a
hotel chain, an airline, a grocery store, a retail store, a travel
agency, a service provider, including, but not limited to, a
medical service provider, an online merchant, or the like.
[0028] A "transaction account" as used herein refers to an account
associated with an open account card or a closed account card
system (as described below). The transaction account may exist in a
physical or non-physical embodiment. For example, a transaction
account may be distributed in non-physical embodiments such as an
account number, frequent-flyer account, and telephone calling
account or the like. Furthermore, a physical embodiment of a
transaction account may be distributed as a financial
instrument.
[0029] "Open cards" are financial transaction cards that are
generally accepted at different merchants. Examples of open cards
include the American Express.RTM., Visa.RTM., MasterCard.RTM. and
Discover.RTM. cards, which may be used at many different retailers
and other businesses. In contrast, "closed cards" are financial
transaction cards that may be restricted to use in a particular
store, a particular chain of stores or a collection of affiliated
stores. One example of a closed card is a card that may only be
accepted at a clothing retailer, such as a Saks Fifth Avenue.RTM.
store.
[0030] The term "transaction instrument" as used herein may include
any type of open or closed charge card, credit card, debit card,
FSA card, stored value card, an RFID chip based card or token, and
the like. For convenience, a transaction instrument may be referred
to as a "card."
[0031] An "account," "account number" or "account code", as used
herein, may include any device, code, number, letter, symbol,
digital certificate, smart chip, digital signal, analog signal,
biometric or other identifier/indicia suitably configured to allow
a consumer to access, interact with or communicate with a financial
transaction system. The account number may optionally be located on
or associated with any financial transaction instrument (e.g.,
rewards, charge, credit, debit, prepaid, telephone, embossed,
smart, magnetic stripe, bar code, transponder, and radio frequency
card or payment statement).
[0032] An "issuer" or "card issuing company" issues transaction
instruments, (e.g., credit cards, charge cards, debit cards, etc.).
Examples of Issuers may be Bank of America, Citigroup, American
Express, Capital One, etc.
[0033] Persons skilled in the relevant arts will understand the
breadth of the terms used herein and that the exemplary
descriptions provided are not intended to be limiting of the
generally understood meanings attributed to the foregoing
terms.
[0034] The following embodiments describe a system and a method for
identifying industry segments with highest potential for new
customers or new spending for current customers according to
various embodiments and examples of the present invention. The
methodology is the first of its kind, allowing a charge and credit
card issuer (such as American Express) to efficiently identify
potentially profitable industry segments to pursue for acquisition
and usage and/or increased spending by current card members.
[0035] Referring now to the drawings, FIG. 1 shows a system 100.
System 100 includes a database 102, a controller 104, a
communications system 106, an output device 108, and card member
storage 114. Database 102, controller 104, output device 108, and
card member information storage 114 can be considered a computer
system 120 (shown inside the dashed lines) including one or more
personal computers, servers, and the like. These elements can be
associated with an issuer or card issuing company, i.e., they can
be remotely or locally coupled to the company's systems.
Communications system 106 and/or controller 104 are coupled to one
or more card members 110, external sources 116, and/or external
contacts 118, possibly via an optional network 112.
[0036] Output device 108 can be any device allowing for visual
output, such as a monitor, a graphical user interface, a handheld
device, a printer, or the like.
[0037] External resources 116 can be any commercial or governmental
database or any website that allows purchasing, accessing, and/or
downloading of information. This information can be related to what
industries different companies are categorized in and/or spending
habits of these industries or companies. For example, this
information can be related to their revenues, expenses (cost of
goods sold (COGS)), amount of spending on raw materials and
inventory, or the like. Example external sources can be, but are
not limited too, the U.S. Census, Dun and Bradstreet, and/or
Almanac of Business and Industrial Financial Data. Similarly,
external contacts 118 can be industry experts, small business
organizations, Lexis-Nexis, Forrester, Mintel, Dun and Bradstreet,
BizStats, and/or Almanac of Business and Industrial Financial Data,
industry reports, census data, etc.
[0038] Network 112 can be a wired or wireless telecommunications or
data network, such as a cellular network, a hard-wired or optical
telephone network, a satellite network, an Internet, Intranet, or
Extranet network, or other similar networks, as would be apparent
to a skilled artisan upon reading and understanding this
description. Additionally, or alternatively, network 112 can be a
domestic and/or international postal or courier network.
[0039] Database 102 can receive information from one or all of
external sources 116, external contacts 118, and internal sources,
e.g., card member storage 114, relating to card member and/or
merchant information. For example, database 102 can include
information from a purchased commercial database, e.g., Dun and
Bradstreet financial information. Also, database 102 can include
information relating to demographic, financial and other
information submitted during enrollment of the card members 110, or
information that has been collected from the card members 110 via
communications system 106 or at other times. Database 102 can
further include information relating to merchants that accept the
card issuing company's transaction card for transactions. Database
102 can be any one of a variety of different types of databases
operating based on a variety of underlying applications. For
example, database 102 can be a database associated with MICROSOFT
ACCESS.RTM. or the like.
[0040] Controller 104 can be one or more microprocessors or
operating systems with associated applications (software
applications), such as one or more computer systems. The functions
performed by controller 104 can be performed by hardware, software,
firmware, or a combination thereof. For example, controller 104 can
filter or process data from database 102 and/or from communications
system 106.
[0041] Communications system 106 can be one of several types of
devices, such as a computer system, a telephone, a facsimile
machine, a handheld device, a system to generate and read direct
mail, a transmitter/receiver system, or the like. In regards to
direct mail, an individualized report for each card member can be
generated and send out with their bill monthly, quarterly,
annually, or any other time period designated by a customer or the
card issuing company. Thus, communications system 106 can be any
device that allows for communications (e.g., telephone calls,
emails, instant messaging, facsimiles, direct mailings, etc.)
between controller 104 and card members 110, possibly via network
112. Communication with card members 110 can be used to compile
information regarding how card members 110 use or do not use their
cards. Communications system 106 can also be used to access
external resources 116 and external contacts 118. This can be used
to determine how these resources believe potential card members
(e.g., per industry or industry sector companies) do or will spend.
Then, based on all this information, a best opportunity for spend
growth can be determined by the card issuing company for each card
member 110 or best opportunities for potential new businesses in
various industry segments.
[0042] FIG. 2 shows a flowchart depicting a method 200. Method 200
is an overview of how to determine which existing or current card
members 110 may have the greatest incremental increase in spend
potential and/or for determining what industries, or segments of
the industries, have the best opportunity to find potential new
card members.
[0043] In step 210, external data is input into a database.
External data can be data regarding industries and industry
segments having spending profiles allowing for the best
opportunities for potential new card members. This could also be
thought of a general data gathering. External market scanning can
be done through inputting data into a model to validate spend
potential and segment alignment with design target. This can be
considered a first data set.
[0044] In step 220, internal data is input into the database.
Internal data can be data regarding current card members and
current merchants. Internal market scanning can be done through
data input into a model to evaluate potential charging opportunity
for current card member spend behavior. This can be considered a
second data set.
[0045] Thus, these first two steps may be thought of as external
and internal market scans to generate the first and second data
sets.
[0046] In step 230, results from steps 210 and 220 are validated.
For example, this can be done through communicating with internal
sources, e.g., current card members identified by the results, or
communicating with external sources, e.g. external source and
contacts, such as experts, consultants, and external reporting
companies and agencies. This can be done to actually determine
which areas or companies have favorability of charging or the
highest ability to adopt charging as a way to spend. For example,
while some industries or segments may appear to have a high
potential, the vendors may not allow discounts if the spending is
done through charging and not cash. As another example, the
expenses may just be too great for charging to be a viable option,
for example when raw materials or inventory is in the tens of
millions.
[0047] In step 240, targets for follow up communications are
determined from the data gathered in the preceding steps. For
example, output from steps 210, 220, and 230 is compiled and
analyzed to focus on specific segment opportunities to pursue.
Thus, after step 240 a card issuing company can pursue
opportunities highlighted by methodology utilizing targeted
marketing tactics.
[0048] FIG. 3 shows a flowchart depicting in detail steps occurring
during step 210. In step 311, information regarding small
businesses is input, for example a number of the small businesses.
This can be done generally for all businesses, per industry, or per
segment in different industries. An industry could be contracting
or construction, with segments being painters, carpenters,
electricians, plumbers, etc. or professionals, with segments being
doctors, dentists, lawyers, accountants, etc. In step 313,
information regarding specific or average cost of goods sold (COGS)
for the small business, either generally, per industry, or per
industry segment, is input. In step 315, information regarding a
percentage of COGS spent on raw material and inventory for the
small business, either generally, per industry, or per industry
segment, is input. This may be because the companies having the
highest amount of their expenses in this category are the most
desirable companies to pursue as new card members. In step 317,
quantitative output is generated from the data gathered in the
previous steps. In step 319, external data ranked sets are
generated. It is to be appreciated that other variables, either in
addition to or in replace of these discussed variables, could also
be used before step 317 is performed.
[0049] In one example, each of the input criteria also includes a
weighted rank compared to the other input criteria. Thus, they are
not all equal in determining what the best opportunities to pursue
are. Also, certain minimum threshold amounts for one or more of
these variables may have to be net for the company, industry, or
industry segment to be included in the ranked data.
[0050] FIGS. 4A to 4F show an exemplary quantitative output for
various industry segments generated for exemplary data from method
300 at step 317. For example, the groupings can be partially based
on or segregated by standard industry codes established by the U.S.
Census. This can be used to show what industries, segments of those
industries, and companies within those segments that have the most
desirable traits, so that they are pursued as new card members.
[0051] FIG. 5 shows a flowchart depicting in detail steps occurring
during step 220. In step 521, an average amount charged per current
card member is input. In step 522, a percentage current card
members are spending on raw materials and inventory is input. In
step 523, a percentage of penetration the card issuing company has
regarding a number of card members in a given industry or industry
segment is input. Percentage of penetration can mean the number
card members of the card issuing company in an industry divided by
the total number of companies in that industry. In step 524, a
total estimated amount charged for each company, industry or
industry segment is input. This can be used to further segregate
companies, for example a high value business may have $30,000,00 of
total spending, while a very high value business has $100,000.00 of
total spending. In step 525, a quantitative output based on the
previous steps is generated. In step 526, internal data ranked data
sets are generated. It is to be appreciated that other variables,
either in addition to or in replace of these discussed variables,
could also be used before step 525 is performed.
[0052] In one example, each of the input criteria also includes a
weighted rank compared to the other input criteria. Thus, they are
not all equal in determining what the best opportunities to pursue
are. Also, certain minimum threshold amounts for one or more of
these variables may have to be met for the company, industry, or
industry segment to be included in the ranked data.
[0053] Similar to FIGS. 4A to 4F, FIGS. 6A to 6H show an exemplary
quantitative output for various industry segments generated for
exemplary data from method 500 at step 525.
[0054] FIG. 7 shows a chart 700 including a final ranking of data
sets determined after step 230. Thus, chart 700 takes into account
ranked data sets generated from steps 319 and 526. Chart 700 shows
segments having the greatest opportunity for charge growth. For
example, each of categories external, internal, and qualitative is
assigned a symbolic, result of very high, high, medium, medium/low,
low, or very low. The symbolic results for the three categories of
each segment of each industry are averaged together to determine a
summary symbolic result. Then, these summary symbolic results are
ranked, as shown. Thus, the segments having the highest summary
symbolic results are identified as haying a highest potential.
[0055] FIG. 8 shows a flowchart depicting a method 800. Method 800
is another exemplary method to determine which existing or current
card members 110 may have the greatest incremental increase in
spend potential and/or for determining what industries, or segments
of the industries, have the best opportunity to find potential new
card members. In step 802, data is received that is segregated into
each of a plurality of industries, relating to a number of small
businesses, cost of goods sold for each of the small businesses,
and percentage of cost of goods sold that is spent on raw materials
and inventory for each of the small businesses. In step 804, data
is captured that is segregated into each of the plurality of
industries, relating to average amount charged per current card
member, percentage of the current card members charging the raw
materials and the inventory, percentage of card member penetration,
and total estimated charging for the current card members. In step
806, which of the plurality of industries or segments of the
plurality of the industries are available for a highest potential
for new card members or that are available for a greatest amount of
incremental increased charging by the current card members is
determined. In step 808, the current card members in each of the
plurality of industries or segments determined from the previous
steps are communicated with, and data relating to their feedback is
received therefrom. In step 810, internal and external sources are
communicated with to capture additional industry-specific charging
data. This can be used to validate whether for the focused on
companies, industries, or segments, both current card holders and
potential new card holders, would really be interested in
increasing their charging for certain types of expenses. For
example, data relating to industry reports and census data is
received. In step 812, ranked data sets, or final ranked data sets,
are generated based on information gathered and analyzed in the
previous steps.
[0056] Therefore, the embodiments discussed above elegantly and
effectively highlight high-potential opportunities, while at the
same time determining the behavior of purchasers making it
infinitely easier to market to specific purchasing groups,
highlighting their "pain" points, and how an issuer can help them.
The issuer is able to efficiently (both cost and time) identify and
prioritize segments in a holistic manner, accounting for internal
and external factors, as well as qualitative insights. Previously,
this process was completed in a one-off fashion, without the
ability to compare opportunities across a number of dimensions. The
above processes allow for a faster and more effective capability to
search for, identify, and prioritize spend and acquisition
opportunities in select industries and/or industry segments. This
can save the issuer both time and resources given that fewer people
will need to be devoted to the process and those who are will be
able to complete the process more quickly.
[0057] In one embodiment, the invention is directed toward one or
more computer systems capable of carrying out the functionality
described herein. An example of a computer system 900 capable of
carrying out the functions of this invention is shown in FIG.
9.
[0058] Computer system 900 includes one or more processors, such as
processor 904. Processor 904 is connected to a communication
infrastructure 906 (e.g., a communications bus, cross-over bar, or
network). Various software embodiments are described in terms of
this exemplary computer system. After reading this description, it
will become apparent to a person skilled in the relevant art(s) how
to implement the invention using other computer systems and/or
architectures.
[0059] Computer system 900 can include a display interface 902 that
forwards graphics, text, and other data from communication
infrastructure 906 (or from a frame buffer not shown) for display
on display unit 916.
[0060] Computer system 900 also includes a main memory 908,
preferably random access memory (RAM), and may also include a
secondary memory 910. Secondary memory 910 may include, for
example, a hard disk drive 912 and/or a removable storage drive
914, representing a floppy disk drive, a magnetic tape drive, an
optical disk drive, etc. Removable storage drive 914 reads from
and/or writes to a removable storage unit 918 in a well known
manner. Removable storage unit 918 represents a floppy disk,
magnetic tape, optical disk, etc., which is read by and written to
by removable storage drive 914. As will be appreciated, removable
storage unit 918 includes a computer usable storage medium having
stored therein computer software and/or data.
[0061] In alternative embodiments, secondary memory 910 may include
other similar devices for allowing computer programs or other
instructions to be loaded into computer system 900. Such devices
may include, for example, a removable storage unit 922 and an
interface 920. Examples of such may include a program cartridge and
cartridge interface (such as that found in video game devices), a
removable memory chip (such as an erasable programmable read only
memory (EPROM), or programmable read only memory (PROM)) and
associated socket, and other removable storage units 922 and
interfaces 920, which allow software and data to be transferred
from removable storage unit 922 to computer system 900.
[0062] Computer system 900 may also include a communications
interface 924. Communications interface 924 allows software and
data to be transferred between computer system 900 and external
devices. Examples of communications interface 924 may include a
modem, a network interface (such as an Ethernet card), a
communications port, a Personal Computer Memory Card International
Association (PCMCIA) slot and card, etc. Software and data
transferred via communications interface 924 are in the form of
signals 928 which may be electronic, electromagnetic, optical or
other signals capable of being received by communications interface
924. These signals 928 are provided to communications interface 924
via a communications path (e.g., channel) 926. This channel 926
carries signals 928 and may be implemented using wire or cable,
fiber optics, a telephone line, a cellular link, an radio frequency
(RF) link and other communications channels.
[0063] In this document, the terms "computer program medium" and
"computer usable medium" are used to generally refer to media such
as removable storage drive 914, a hard disk installed in hard disk
drive 912, and signals 928. These computer program products provide
software to computer system 900. The invention is directed to such
computer program products.
[0064] Computer programs (also referred to as computer control
logic) are stored in main memory 908 and/or secondary memory 910.
Computer programs may also be received via communications interface
924. Such computer programs, when executed, enable computer system
900 to perform the features of the present invention, as discussed
herein. In particular, the computer programs, when executed, enable
processor 904 to perform the features of the present invention.
Accordingly, such computer programs represent controllers of
computer system 900.
[0065] In an embodiment where the invention is implemented using
software, the software may be stored in a computer program product
and loaded into computer system 900 using removable storage drive
914, hard drive 912 or communications interface 924. The control
logic (software), when executed by processor 904, causes processor
904 to perform the functions of the invention as described
herein.
[0066] In another embodiment, the invention is implemented
primarily in hardware using, for example, hardware components such
as application specific integrated circuits (ASICs). Implementation
of the hardware state machine so as to perform the functions
described herein will be apparent to persons skilled in the
relevant art(s).
[0067] In yet another embodiment, the invention is implemented
using a combination of both hardware and software.
[0068] While various embodiments of the present invention have been
described above, it should be understood that they have been
presented by way of example, and not limitation. It will be
apparent to persons skilled in the relevant art(s) that various
changes in form and detail can be made therein without departing
from the spirit and scope of the present invention (e.g., packaging
and activation of other transaction cards and/or use of batch
activation processes). Thus, the present invention should not be
limited by any of the above described exemplary embodiments, but
should be defined only in accordance with the following claims and
their equivalents.
[0069] In addition, it should be understood that the figures
illustrated in the attachments, which highlight the functionality
and advantages of the present invention, are presented for example
purposes only. The architecture of the present invention is
sufficiently flexible and configurable, such that it may be
utilized (and navigated) in ways other than that shown in the
accompanying figures.
[0070] Further, the purpose of the following Abstract is to enable
the U.S. Patent and Trademark Office and the public generally, and
especially the scientists, engineers and practitioners in the art
who are not familiar with patent or legal terms or phraseology, to
determine quickly from a cursory inspection the nature and essence
of the technical disclosure of the application. The Abstract is not
intended to be limiting as to the scope of the present invention in
any way.
* * * * *