Marketing selection optimization process

• US 6,847,934 B1
• Filed: 04/11/2000
• Issued: 01/25/2005
• Est. Priority Date: 04/11/2000
• Status: Expired due to Term

• Current Assignee: Fair Isaac Corporation
• Original Assignee: Center for Adaptive Systems Applications (Fair Isaac Corporation)
• Inventors: Coggeshall, Stephen, Lin, Yinghua
• Primary Examiner(s): Jeanty, Romain
• Application Number:
  US09/546,949
• Time in Patent Office: 1,750 Days
• Field of Search: 705/10, 705/14, 705/35, 705/28, 705/29, 235/379, 235/380
• US Class Current: 705/7.37
• CPC Class Codes: G06Q 10/06375 Prediction of business process outcome or impact based on a proposed change
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 10/0875 Itemisation or classification of parts, supplies or services, e.g. bill of materials
• 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
• CPC Class Codes: G06Q 30/0211 Determining the effectiveness of discounts or incentives
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

A market selection optimization method comprising the steps of assigning product offers to consumers in the presence of multiple constraints, such that each consumer is assigned at least one product offer; determining a difference in expected profitabilty associated with the assigned product offer and a different product offer for each consumer; sorting the consumers according to the respective difference in expected profitabilities associated with the product offers; and reassigning the product offers to the sorted consumers in accordance with the respective difference in expected profitabilities. The result of this process is a selection of marketing offers that optimizes expected revenues.

Claims

1. A computer-implemented market selection optimization method, the method comprising:

(a) assigning product offers to consumers such that each consumer is assigned at least one product offer;

(b) determining a difference in expected profitability associated with the assigned at least one product offer and a different product offer for each consumer;

(c) sorting the consumers according to said determined difference in expected profitability for each consumer; and

(d) reassigning the product offers to the sorted consumers in accordance with said determined difference in expected profitability for each consumer.

2. The method of claim 1, wherein a total profit value is determined from the reassigned product offers associated with the sorted consumers.

3. The method of claim 1, wherein the assignment of product offers to consumers is performed randomly.

4. The method of claim 1, wherein steps (a) through (d) are executed for each possible two product offer combination.

5. The method of claim 4, wherein previously reassigned product offers associated with the sorted consumers are overwritten by new product offer values for common product offers associated with a consumer as each subsequent two product combination is processed.

6. The method of claim 5, wherein a total profit value is determined from resulting new product offer values associated with the sorted consumers after each subsequent two product combination is processed.

7. The method of claim 5, wherein the previously reassigned product offers associated with the sorted consumers have a total profit value TPx and the new product offer values associated with the sorted consumers have a total profit value TPy.

8. The method of claim 7, wherein a difference of the total profit value TPy and the total profit value TPx divided by the total profit value TPx results in a determination value, provided the determination value is greater than a specified value then the steps (a) through (d) are re-executed for each possible two product offer combination.

9. A computer-implemented market selection optimization method, the method comprising:

(a) assigning product offers to consumers such that each consumer is assigned at least one product offer from a combination of two product offers, wherein a first product offer is made to a first group of consumers and a second product offer is made to a second group of consumers resulting in an assignment pattern;

(b) determining a difference in expected profitability associated with the assigned product offers for each consumer;

(c) sorting the consumers according to said determined difference for each consumer; and

(d) reassigning the product offers to the sorted consumers in accordance with the assignment pattern.

10. The method of claim 9, wherein a total profit value is determined from the reassigned product offers associated with the sorted consumers.

11. The method of claim 9, wherein reassigning the product offers to the sorted consumers according to the assignment pattern comprises:

reassigning the first product offer to the same number of sorted consumers comprising the first group of consumers; and

reassigning the second product offer to the same number of sorted consumers comprising the second group of consumers.

12. The method of claim 9, wherein the assignment of product offers to consumers is performed randomly.

13. The method of claim 9, wherein steps (a) through (d) are executed for each possible two product offer combination.

14. The method of claim 13, wherein previously reassigned product offers associated with the sorted consumers are overwritten by new product offer values for common product offers associated with a consumer as each subsequent two product combination is processed.

15. The method of claim 14, wherein a total profit value is determined from said new product offer values as each subsequent two product combination is processed.

16. The method of claim 14, wherein the previously reassigned product offers associated with the sorted consumers have a total profit value TPx and the new product offer values associated with the sorted consumers have a total profit value TPy.

17. The method of claim 16, wherein a difference of the total profit value TPy and the total profit value TPx divided by the total profit value TPx results in a determination value, provided the determination value is greater than a specified value then the steps (a) through (d) are re-executed for each possible two product offer combination.

18. A machine readable medium containing executable instructions which, when executed in a processing system, causes the processing system, to perform the steps of a method for market selection optimization, the method comprising:

(a) assigning product offers to consumers such that each consumer is assigned at least one product offer;

(b) determining a difference in expected profitability associated with the assigned at least one product offer and a different product offer for each consumer;

(c) sorting the consumers according to said determined difference for each consumer; and

(d) reassigning the product offers to the sorted consumers in accordance with said determined difference for each consumer.

19. The medium of claim 18, wherein a total profit value is determined from the reassigned product offers associated with the sorted consumers.

20. The medium of claim 18, wherein the assignment of product offers to consumers is performed randomly.

21. The medium of claim 18, wherein steps (a) through (d) are executed for each possible two product offer combination.

22. The medium of claim 21, wherein previously reassigned product offers associated with the sorted consumers are overwritten by new product offer values for common product offers associated with a consumer as each subsequent two product combination is processed.

23. The method of claim 22, wherein a total profit value is determined from said new product offer values as each subsequent two product combination is processed.

24. The medium of claim 22, wherein the previously reassigned product offers associated with the sorted consumers have a total profit value TPx and the new product offer values associated with the sorted consumers have a total profit value TPy.

25. A machine readable medium containing executable instructions which, when executed in a processing system, causes the processing system, to perform the steps of a method for market selection optimization, the method comprising:

(a) assigning product offers to consumers such that each consumer is assigned at least one product offer;

(b) determining a difference in expected profitability associated with the assigned at least one product offer and a different product offer for each consumer;

(c) sorting the consumers according to said determined difference for each consumer; and

(d) reassigning the product offers to the sorted consumers in accordance with said determined difference for each consumer,

wherein;

steps (a) through (d) are executed for each possible two product offer combination;

previously reassigned product offers associated with the sorted consumers are overwritten by new product offer values for common product offers associated with a consumer as each subsequent two product combination is processed;

the previously reassigned product offers associated with the sorted consumers have a total profit value TPx and the new product offer values associated with the sorted consumers have a total profit value TPy; and

a difference of the total profit value TPy and the total profit value TPx divided by the total profit value TPx results in a determination value, provided the determination value is greater than a specified value, then the steps (a) through (d) are re-executed for each possible two product offer combination.

26. A machine readable medium containing executable instructions which, when executed in a processing system, causes the processing system to perform the steps of a method for market selection optimization, the method comprising:

(a) assigning product offers to consumers such that each consumer is assigned at least one product offer from a combination of two product offers, wherein a first product offer is made to a first group of consumers and a second product offer is made to a second group of consumers resulting in an assignment pattern;

(b) determining a difference in expected profitability associated with the assigned product offers for each consumer;

(c) sorting the consumers according to said determined difference for each consumer; and

(d) reassigning the product offers to the sorted consumers in accordance with the assignment pattern.

27. The medium of claim 26, wherein a total profit value is determined from the reassigned product offers associated with the sorted consumers.

28. The medium of claim 26, wherein reassigning the product offers to the sorted consumers according to the assignment pattern comprises:

reassigning the first product order to the same number of sorted consumers comprising the first group of consumers; and

reassigning the second product order to the same number of sorted consumers comprising the second group of consumers.

29. The medium of claim 26, wherein the assignment of product offers to consumers is performed randomly.

30. The medium of claim 26, wherein steps (a) through (d) are executed for each possible two product offer combination.

31. The medium of claim 30, wherein previously reassigned product offers associated with the sorted consumers are overwritten by new product offer values for common product offers associated with a consumer as each subsequent two product combination is processed.

32. The medium of claim 31, wherein a total profit value is determined from said new product offer values as each subsequent two product combination is processed.

33. The medium of claim 32, wherein a difference of the total profit value TPy and the total profit value TPx divided by the total profit value TPx results in a determination value, provided the determination value is greater than a specified value then the steps (a) through (d) are re-executed for each possible two product offer combination.

34. A machine readable medium containing executable instructions which, when executed in a processing system, causes the processing system, to perform the steps of a method for market selection optimization, the method comprising:

(a) assigning product offers to consumers such that each consumer is assigned at least one product offer from a combination of two product offers, wherein a first product offer is made to a first group of consumers and a second product offer is made to a second group of consumers resulting in an assignment pattern;

(b) determining a difference in expected profitability associated with the assigned product offers for each consumer;

(c) sorting the consumers according to said determined difference for each consumer; and

(d) reassigning the product offers to the sorted consumers in accordance with with the assignment pattern;

wherein;

steps (a) through (d) are executed for each possible two product offer combination;

previously reassigned product offers associated with the sorted consumers are overwritten by new product offer values for common product offers associated with a consumer as each subsequent two product combination is processed;

the previously reassigned product offers associated with the sorted consumers have a total profit value TPx and the new product offer values associated with the sorted consumers have a total profit value TPy; and

a difference of the total profit value TPy and the total profit value TPx divided by the total profit value TPx results in a determination value, provided the determination value is greater than a specified value then the steps (a) through (d) are re-executed for each possible two product offer combination.