SYSTEM AND METHOD FOR TARGETING TRANSACTION ACCOUNT PRODUCT HOLDERS TO RECEIVE UPGRADED TRANSACTION ACCOUNT PRODUCTS

• US 20120284120A1
• Filed: 06/22/2012
• Published: 11/08/2012
• Est. Priority Date: 12/29/2006
• Status: Active Grant

• Current Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Kala, Abhinav, Kim, Susana Sung-hye, Purkayastha, Subhra Shankar, Zucker, Jill
• Granted Patent: US 8,688,503 B2
• Time in Patent Office: Days
• US Class Current: 705/14.53
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0204 Market segmentation
• 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 30/0255 based on user history

Abstract

Utilization of information in a closed loop data system further augments modeling while at the same time enabling customization of offers based on spend patterns. Data mining techniques are leveraged to identify rules to determine higher response rate populations. These rules are referred to herein as “triggers,” in that the presence of particular attributes will trigger a cardholder as being more likely to respond to a particular offer. The benefit yielded by this approach is a greater acceptance rate to an offer provided by a transactional account company. To identify the triggers, records of cardmembers who already utilize a given product are analyzed to determine their spend patterns. The spend histories of customers who are eligible to use the product are analyzed according to the identified triggers. Customers whose spend patterns most closely correspond to the triggers are then targeted with offers for the given product.

Claims

1. A method comprising:

identifying, by a computer-based system for targeting marketing, a potential converter to an upgraded transaction account product based on analyzing the spend records of a plurality of transaction account holders having a pattern of spending at a potential premium merchant, wherein the pattern of spending is shared by at least a portion of transaction account holders who convert to an upgraded transaction account product; and

targeting, by the computer-based system, marketing about an upgraded transaction account product to the potential converter, in response to the identifying the potential converter, wherein the customized marketing is based at least partially on the pattern of spending.

2. The method of claim 1, further comprising grouping, by the computer-based system, the potential premium merchant into a group of potential premium merchants based on a value proposition associated with each potential premium merchant.

3. The method of claim 1, further comprising determining, by the computer-based system, that a merchant is the potential premium merchant based on the transaction account holders who convert, in response to completing a purchase at the merchant.

4. The method of claim 3, wherein the determining that a merchant is the potential premium merchant is further based on a determined take rate for the merchant.

5. The method of claim 1, wherein the transaction account holders who convert to the upgraded transaction account product have done so within an interval of three months.

6. The method of claim 1, further comprising grouping, by the computer-based system, a plurality of potential converters into an industry group.

7. The method of claim 6, wherein the industry group is at least one of:

niche retail, high-end retail, fine dining, luxury travel, and leisure.

8. The method of claim 6, further comprising identifying, by the computer-based system, an affinity of the transaction account holder for the industry group.

9. The method of claim 6, further comprising deriving, by the computer-based system, a conversion rate of transaction accounts in the industry group.

10. The method of claim 1, wherein the pattern of spending includes a trigger indicative of a change in lifestyle.

11. The method of claim 1, further comprising identifying, by the computer-based system, recent converters having the pattern of spending.

12. The method of claim 1, further comprising identifying, by the computer-based system, recent converters having the pattern of spending and with a trigger that is indicative of a change in lifestyle.

13. The method of claim 12, wherein the trigger is at least one of:

an increase in education records of charge;

an increase in spend in family-related industries;

an increase in every day spend;

an increase in spend on insurance; and

existence of purchases at a merchant who traditionally caters to a gender opposite that of the potential converter.

14. The method of claim 1, further comprising identifying, by the computer-based system, changes in the pattern of spending.

15. The method of claim 1, further comprising targeting, by the computer-based system, the potential converter with an offer to add a supplemental account to an existing account associated with a financial company.

16. 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 targeted marketing, cause the computer-based system to perform operations comprising:

identifying, by the computer-based system, a potential converter to an upgraded transaction account product based on analyzing the spend records of a plurality of transaction account holders having a pattern of spending at a potential premium merchant, wherein the pattern of spending is shared by at least a portion of transaction account holders who convert to an upgraded transaction account product; and

targeting, by the computer-based system, marketing about an upgraded transaction account product to the potential converter, in response to the identifying the potential converter, wherein the customized marketing is based at least partially on the pattern of spending.

17. The article of claim 16, further comprising grouping, by the computer-based system, the potential premium merchant into a group of potential premium merchants based on a value proposition associated with each potential premium merchant.

18. The article of claim 16, further comprising determining, by the computer-based system, that a merchant is the potential premium merchant based on the transaction account holders who convert, in response to completing a purchase at the merchant.

19. The article of claim 18, wherein the determining that a merchant is the potential premium merchant is further based on a determined take rate for the merchant.

20. A system comprising:

a tangible, non-transitory memory communicating with a processor for targeted marketing,

the tangible, non-transitory memory having instructions stored thereon that, in response to execution by the processor, cause the processor to perform operations comprising;

identifying, by the processor, a potential converter to an upgraded transaction account product based on analyzing the spend records of a plurality of transaction account holders having a pattern of spending at a potential premium merchant, wherein the pattern of spending is shared by at least a portion of transaction account holders who convert to an upgraded transaction account product; and

targeting, by the processor, marketing about an upgraded transaction account product to the potential converter, in response to the identifying the potential converter, wherein the customized marketing is based at least partially on the pattern of spending.