Estimating the spend capacity of consumer households

• US 8,204,774 B2
• Filed: 12/15/2006
• Issued: 06/19/2012
• Est. Priority Date: 10/29/2004
• 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: Chwast, Jeffrey A., Haggerty, Kathleen, Wang, Jing J., Xu, Di W., Yuan, Chao M.
• Primary Examiner(s): FLEISCHER, MARK A
• Application Number:
  US11/611,699
• Publication Number:
  US 20070100719A1
• Time in Patent Office: 2,013 Days
• Field of Search: 705/7.29, 705/35
• US Class Current: 705/7.29
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 30/0201 Market modelling; Market analysis; Collecting market data
• 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 30/0224 based on user history
• CPC Class Codes: G06Q 30/0234 Rebates after completed purchase
• CPC Class Codes: G06Q 30/0236 Incentive or reward received by requiring registration or ID from user
• CPC Class Codes: G06Q 30/0251 Targeted advertisements
• CPC Class Codes: G06Q 30/0269 based on user profile or attribute
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

The spend capacity of a consumer typically increases as the number of consumers in the household increases, since the consumer can draw on the spending power of other consumers in the household. The size of wallet of the household is thus a better indicator of the consumer'"'"'s spend capacity than an individual size of wallet. All consumers in a given household can be aggregated based on, for example, their address of record. Duplicate tradelines within each household are removed from consideration in a size of wallet estimate. A spend capacity is then estimated for each tradeline using calculations derived from a consumer behavior model. The spend capacities for all tradelines in the household are combined to determine a household size of wallet. Each consumer in the household is then tagged with the household size of wallet, rather than their individual size of wallet.

Claims

1. A method of estimating a size of wallet of a consumer, comprising:

associating by a computer-based system for the estimating of the size of the wallet of the consumer comprising a processor and a tangible, non-transitory memory, a plurality of tradelines with a household of the consumer;

removing, by the computer-based system, duplicate tradelines in the plurality of tradelines from association with the household such that only unique tradelines are associated with the household;

identifying, by the computer-based system, a balance transfer associated with at least one unique tradeline;

estimating, by the computer-based system, an amount of the identified balance transfer associated with the unique tradeline;

estimating, by the computer-based system, a spend capacity for each unique tradeline, wherein the estimating comprises offsetting, by the computer-based system, the amount of identified balance transfers; and

calculating, by the computer-based system, a household size of wallet based on the estimated spend capacities.

2. The method of claim 1, wherein the calculating step comprises summing the spend capacities for each tradeline.

3. The method of claim 1, further comprising associating the household size of wallet with the consumer.

4. The method of claim 1, wherein the history of each tradeline includes at least one of account balance and transaction information.

5. The method of claim 1, further comprising targeting the consumer with a new product offer based on the household size of wallet.

6. The method of claim 1, further comprising targeting the consumer with a spend incentive for an existing product based on the household size of wallet.

7. A system, comprising;

a non-transitory memory communicating with a processor for estimating the size of wallet of a consumer;

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

associating, by the processor, a plurality of tradelines with a household of the consumer;

removing, by the processor, duplicate tradelines in the plurality of tradelines from association with the household such that only unique tradelines are associated with the household;

indentifying, by the processor, a balance transfer associated with at least one unique tradeline;

estimating, by the processor, an amount of the identified balance transfer associated with the unique tradeline;

estimating, by the processor, a spend capacity for each unique tradeline, wherein the estimating comprises offsetting, by the processor, the amount of identified balance transfers; and

calculating, by the processor, a household size of wallet based on the estimated spend capacities.

8. The system of claim 7, further comprising calculating a household size of wallet comprising summing the spend capacities for each tradeline.

9. The system of claim 7, further comprising associating the household size of wallet with the consumer.

10. The system of claim 7, wherein the history of each tradeline includes at least one of account balance and transaction information.

11. The system of claim 7, further comprising-targeting the consumer with a product offer based on the household size of wallet.

12. The system of claim 7, further comprising targeting the consumer with a spend incentive for an existing product based on the household size of wallet.

13. A non-transitory computer readable medium bearing instructions, when executed by a processor for estimating a size of wallet of a consumer, cause said processor to perform operations comprising:

associating, by the processor, a plurality of tradelines with a household of the consumer;

removing, by the processor, duplicate tradelines in the plurality of tradelines from association with the household such that only unique tradelines are associated with the household;

identifying, by the processor, a balance transfer associated with at least one unique tradeline;

estimating, by the processor, an amount of the identified balance transfer associated with the unique tradeline;

estimating, by the processor, a spend capacity for each unique tradeline, wherein the estimating comprises offsetting, by the processor, the amount of identified balance transfers; and

calculating, by the processor, a household size of wallet based on the estimated spend capacities.

14. The computer readable medium of claim 13, further comprising summing the spend capacities for each tradeline.

15. The computer readable medium of claim 13, wherein the history of each tradeline includes at least one of account balance and transaction information.

16. The computer readable medium of claim 13, further comprising:

associating the household size of wallet with the consumer.

17. The computer readable medium of claim 13, further comprising:

targeting the consumer with a new product offer based on the household size of wallet.