IDENTIFYING INDUSTRY SEGMENTS WITH HIGHEST POTENTIAL FOR NEW CUSTOMERS OR NEW SPENDING FOR CURRENT CUSTOMERS

• US 20110202386A1
• Filed: 04/22/2011
• Published: 08/18/2011
• Est. Priority Date: 12/12/2006
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Chan, Dan Cheung Tat, Hamlisch, Eliot R.
• Granted Patent: US 8,229,783 B2
• Time in Patent Office: Days
• US Class Current: 705/7.31
• CPC Class Codes: G06Q 10/06311 Scheduling, planning or task assignment for a person or group
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0202 Market predictions or forecasting for commercial activities
• CPC Class Codes: G06Q 30/0204 Market segmentation

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 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. Receiving data relating to industry reports and census data. Generating ranked data sets based on the previous steps.

Claims

1. A method comprising:

generating, by a computer-based system for determining desired industry segments, a first ranking of an industry segment based upon a first data set, wherein the first data set relates to a group of merchants in an industry segment, and 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, and wherein each of the data in the first data set is weighted;

generating, by the computer-based system, a second ranking of the industry segment based upon a second data set, wherein the second data set relates to a group of merchant account holders in the industry segment, and 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, and wherein each of the data in the second data set is weighted;

generating, by the computer-based system, a third ranking of the industry segment based upon a third data set, wherein the third data set relates to the group of merchants in the industry segment, 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;

combining, by the computer-based system, the first ranking, the second ranking, and the third ranking to generate a combined ranking; and

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.

2. 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.

3. The method of claim 2, 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.

4. The method of claim 3, 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).

5. The method of claim 3, 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).

6. 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.

7. 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).

8. 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).

9. 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.

10. 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.

11. The method of claim 1, wherein the industry segment is classified using a Standard Industry Classification (SIC) code.

12. 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.

13. The method of claim 1, wherein the second data set comprises proprietary merchant account holder data.

14. The method of claim 1, wherein data associated with industry reports comprise data from at least one of:

Lexis-Nexis, Forrester, Mintel, Dun and Bradstreet, BizStats, Almanac of Businesses and Industrial Financial Data, and census data.

15. An article of manufacture including a non-transitory, tangible computer readable 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, a first ranking of an industry segment based upon a first data set, wherein the first data set relates to a group of merchants in an industry segment, and 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, and wherein each of the data in the first data set is weighted;

generating, by the computer-based system, a second ranking of the industry segment based upon a second data set, wherein the second data set relates to a group of merchant account holders in the industry segment, and 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, and wherein each of the data in the second data set is weighted;

generating, by the computer-based system, a third ranking of the industry segment based upon a third data set, wherein the third data set relates to the group of merchants in the industry segment, 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;

combining, by the computer-based system, the first ranking, the second ranking, and the third ranking to generate a combined ranking; and

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.

16. A system comprising:

a tangible, non-transitory memory communicating with a processor for determining desired industry segments,

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, a first ranking of an industry segment based upon a first data set, wherein the first data set relates to a group of merchants in an industry segment, and 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, and wherein each of the data in the first data set is weighted;

generating, by the processor, a second ranking of the industry segment based upon a second data set, wherein the second data set relates to a group of merchant account holders in the industry segment, and 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, and wherein each of the data in the second data set is weighted;

generating, by the processor, a third ranking of the industry segment based upon a third data set, wherein the third data set relates to the group of merchants in the industry segment, 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;

combining, by the processor, the first ranking, the second ranking, and the third ranking to generate a combined ranking; and

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.

17. The system of claim 16, further comprising repeating the operations for groups of merchants and merchant account holders in a different industry segment, the operations 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.

18. The system of claim 17, 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.

19. The system of claim 18, 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).

20. The system of claim 18, 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).