System and method for computing measures of retailer loyalty

• US 20040088221A1
• Filed: 06/26/2003
• Published: 05/06/2004
• Est. Priority Date: 01/30/2001
• Status: Abandoned Application

• Current Assignee: Catalina Marketing Corporation
• Original Assignee: Catalina Marketing Corporation
• Inventors: Rangel, Laura, Elmore, Joni, Katz, Gary M
• Application Number:
  US10/451,845
• Publication Number:
  US 20040088221A1
• Time in Patent Office: Days
• US Class Current: 705/14
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0211 Determining the effectiveness of discounts or incentives
• CPC Class Codes: G06Q 30/0224 based on user history
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 30/0235 constrained by time limit or expiration date
• CPC Class Codes: G06Q 30/0238 at point-of-sale [POS]

Abstract

The invention provides a system, computer program, and database for the accurate determination of customer loyalty by using a combination of shopping history data, household personal data, and demographic data (114a, 116). The invention defines a set of detailed measures of customer loyalty and computes values for those measures using unique combinations of data to provide better understanding of their customers shopping behavior (301,302, 303,304, 305.306,307), as a basis for rewarding or effectively incentivising desired behavior (416).

Claims

1. A computer implemented method comprising:

determining a first household'"'"'s actual first merchandise category spending level in a first merchandise category in at least one store of a retail chain;

determining said first household'"'"'s estimated first merchandise category total spending level in said first merchandise category;

computing at least one first household first merchandise category loyalty score for said first household as a function of at least said first household'"'"'s actual first merchandise category spending level and said first household'"'"'s estimated first merchandise category total spending level.

2. The method of claim 1 further comprising:

determining said first household'"'"'s actual second merchandise category spending level in a second merchandise category in at least one store of said retail chain;

determining said first household'"'"'s estimated second merchandise category total spending level in said second merchandise category;

computing at least one first household second merchandise category loyalty score for said first household as a function of at least said first household'"'"'s actual second merchandise category spending level and said first household'"'"'s estimated second merchandise category total spending.

3. The method of claim 1 further comprising:

determining a second household'"'"'s actual first merchandise category spending level in a first merchandise category in at least one store of a retail chain;

determining said second household'"'"'s estimated first merchandise category total spending level in said first merchandise category; and

computing at least one second household first merchandise category loyalty score for said second household as a function of at least said second household'"'"'s actual first merchandise category spending level and said second household'"'"'s estimated first merchandise category total spending level.

4. The method of claim 1 further comprising transmitting at least one first household'"'"'s first merchandise category loyalty score and identification of said first household to a manufacturer computer system.

5. The method of claim 1 further comprising depending issuing an incentive offer to a household based upon a value of said at least one first household first merchandise category loyalty score.

6. The method of claim 1 further comprising depending terms of an incentive offer to a household based upon a value of said at least one first household'"'"'s first merchandise category loyalty score.

7. The method of claim 1 further comprising depending both issuing and terms of an incentive offer to a household based upon a value of said at least one first household first merchandise category loyalty score.

8. The method of claim 1 wherein said determining said first household'"'"'s estimated first merchandise category total spending level in said first merchandise category comprises using block data.

9. The method of claim 1 wherein said at least one first household first merchandise category loyalty score defines a measure of customer loyalty to a given retailer or manufacturer.

10. The method of claim 1 further comprising transmitting shopping history data from a retailer computer system to a marketing company computer system.

11. The method of claim 1 further comprising transmitting said at least one first household first merchandise category loyalty score and identification of said first household to a retailer computer system.

12. The method of claim 1 further comprising determining, based at least in part upon a value of said at least one first household first merchandise category loyalty score, whether to transmit to a household an incentive to purchase a good or service.

13. The method of claim 12 wherein terms of said incentive depend upon a loyalty score associated with said household.

14. A computer system, comprising:

means for determining a first household'"'"'s actual first merchandise category spending level in a first merchandise category in at least one store of a retail chain;

means for determining said first household'"'"'s estimated first merchandise category total spending level in said first merchandise category;

means for computing at least one first household first merchandise category loyalty score for said first household as a function of at least said first household'"'"'s actual first merchandise category spending level and said first household'"'"'s estimated first merchandise category total spending level.

15. The system of claim 14 further comprising:

means for determining said first household'"'"'s actual second merchandise category spending level in a second merchandise category in at least one store of said retail chain;

means for determining said first household'"'"'s estimated second merchandise category total spending level in said second merchandise category;

means for computing at least one first household second merchandise category loyalty score for said first household as a function of at least said first household'"'"'s actual second merchandise category spending level and said first household'"'"'s estimated second merchandise category total spending level.

16. The system of claim 14 further comprising:

means for determining a second household'"'"'s actual first merchandise category spending level in a first merchandise category in at least one store of a retail chain;

means for determining said second household'"'"'s estimated first merchandise category total spending level in said first merchandise category; and

means for computing at least second household one first merchandise category loyalty score for said second household as a function of at least said second household'"'"'s actual first merchandise category spending level and said second household'"'"'s estimated first merchandise category total spending.

17. The system of claim 14 further comprising means for transmitting at least one first household first merchandise category loyalty score and identification of said first household to a manufacturer computer system.

18. The system of claim 14 further comprising means for depending issuing an incentive offer to a household based upon a value of said at least one first household first merchandise category loyalty score.

19. The system of claim 14 further comprising means for depending terms of an incentive offer to a household based upon a value of said at least one first household first merchandise category loyalty score.

20. The system of claim 14 further comprising means for depending both issuing and terms of an incentive offer to a household based upon a value of said at least one first household first merchandise category loyalty score.

21. The system of claim 14 wherein said means for determining said first household'"'"'s estimated first merchandise category total spending level in said first merchandise category comprises using block data.

22. The system of claim 14 wherein said at least one first household first merchandise category loyalty score defines a measure of customer loyalty to a given retailer or manufacturer.

23. The system of claim 14 further comprising means for transmitting shopping history data from a retailer computer system to a marketing company computer system.

24. The system of claim 14 further comprising means for transmitting said at least one first household first merchandise category loyalty score and identification of said first household to a retailer computer system.

25. The system of claim 14 further comprising means for determining, based at least in part upon a value of said at least one first household first merchandise category loyalty score, whether to transmit to a household an incentive to purchase a good or service.

26. The system of claim 25 wherein terms of said incentive depends upon at least one loyalty score associated with said household.

27. A computer database management system including a database storing:

actual first merchandise category spending level data and estimated first merchandise category total spending level data in association with household identifications; and

code for calculating relationships between said actual first merchandise category spending level data and said estimated first merchandise category total spending level data.

28. The system of claim 27 wherein said relationships define loyalty scores.

29. A computer program product embedded in a computer readable medium storing computer code for implementing the following instructions:

determining a first household'"'"'s actual first merchandise category spending level in a first merchandise category in at least one store of a retail chain;

determining said first household'"'"'s estimated first merchandise category total spending level in said first merchandise category; and

computing at least one first household first merchandise category loyalty score for said first household as a function of at least said first household'"'"'s actual first merchandise category spending level and said first household'"'"'s estimated first merchandise category total spending level.

30. A product of claim 29 wherein said first merchandise category loyalty score is a measure of loyalty of a household to said store with respect to purchases of products in said first merchandise category.

31. A computer implemented method, comprising:

a marketing company computer system receiving POS shopping history data for a given time period from a retailer computer system;

said marketing company computer system requesting personal data from at least one of a data company computer system and said retailer computer system for households corresponding to name and address data;

said marketing company computer system receiving personal data corresponding to said name and address data from at least one of said data company computer system and said retailer computer system;

said marketing company computer system requesting block group data that includes for block groups for households in a marketing company database from said data company computer system;

said marketing company computer system receiving block group data from said data company computer system;

said marketing company computer system identifying a set of block group data to which each household corresponds;

said marketing company computer system estimating spending for households in said marketing company database using block group data to which each household corresponds; and

said marketing company computer system computing a set of loyalty scores for households using rules stored in said marketing company database.

32. The method of claim 31 further comprising said marketing company computer system using said loyalty scores to generate at least one of targeted household purchasing incentives and general marketing/merchandising recommendations.

33. The method of claim 32 further comprising said marketing company computer system transmitting at least one of said targeted household purchasing incentives and general marketing/merchandising recommendations to at least one of a retailer, a manufacturer, and a household.

34. The method of claim 31 further comprising said marketing company computer system requesting POS shopping history data for said given time period from said retailer computer system.

35. The method of claim 32 further comprising said marketing company computer system screening said POS shopping history data and converting said POS shopping history data into a form consistent with a database associated with said marketing company computer system.

36. The method of claim 35 wherein said screening comprises ignoring records not associated with a frequent shopper card identification.

37. The method of claim 35 wherein said screening comprises compiling a list of the frequent shopper card numbers from said POS shopping data.

38. The method of claim 35 wherein said screening comprises requesting from said retailer computer system name and address data corresponding to frequent shopper card numbers in a list.

39. The method of claim 35 wherein said screening comprises aggregating POS shopping history data associated with a frequent shopper card number into (i) total monetary amount spent in a product category/time period and (ii) number of purchases in a product category/time period for actual household spending.

40. The method of claim 31 further comprising said marketing company computer system consolidating into one record records associated with multiple frequent shopper card numbers.

41. The method of claim 31 further comprising said marketing company computer system discarding records that do not meet at least one of an item quantity specification and a currency value specification for purchases in a specified time period.