Method and apparatus for internet customer retention

• US 8,280,773 B2
• Filed: 03/13/2001
• Issued: 10/02/2012
• Est. Priority Date: 03/13/2000
• Status: Expired due to Fees

• Current Assignee: Intellions, Inc.
• Original Assignee: Intellions, Inc.
• Inventors: Srinivasan, Kannan, Shamos, Michael I.
• Primary Examiner(s): Retta, Yehdega
• Application Number:
  US09/804,728
• Publication Number:
  US 20020046096A1
• Time in Patent Office: 4,221 Days
• Field of Search: 705/14, 705/7
• US Class Current: 705/14.73
• 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 30/0222 During e-commerce, i.e. online transactions
• CPC Class Codes: G06Q 30/0253 During e-commerce, i.e. online transactions
• CPC Class Codes: G06Q 30/0254 based on statistics
• CPC Class Codes: G06Q 30/0269 based on user profile or attribute

Abstract

A method of dynamically optimizing customer retention for a web marketing site is provided. That method includes specifying a permissible defunct threshold, specifying a range of offers to be included in a set of promotions, determining a probability that a customer will become defunct in a predetermined period of time since the last interaction of that customer with the web site, and providing a promotion to a customer if the probability that the customer will become defunct in the predetermined period of time since the last interaction of that customer with the web site is greater than a predetermined threshold.

Claims

1. A computer implemented method of dynamically optimizing customer retention for a web marketing site, comprising:

operating a computer processor and memory for;

specifying a permissible defunct threshold representing a probability that a particular customer is not expected to return to the web marketing site, wherein the permissible defunct threshold is set according to an inter-login time of a customer at the web marketing site; and

responsive to the particular customer not interacting with the web marketing site for a period of time, determining a probability that the particular customer will become defunct based on historical data stored in a database indicating a percentage of customers that have returned to the web marketing site after having no interaction with the web marketing site for the period of time; and

determining that the particular customer has exceeded the defunct threshold;

sampling defunct customers to determine a promotion to offer the particular customer; and

propagating the promotion to the particular customer.

2. The method according to claim 1, wherein the promotion is automatically propagated to the web marketing site.

3. The method according to claim 1, wherein the promotion comprises a discount on a product that maximizes customer retention.

4. The method according to claim 1, wherein the promotion comprises a discount on a product that maximizes profit.

5. The method according to claim 1, wherein the sampling further comprises:

segmenting the defunct customers into socioeconomic groups; and

only sampling customers belonging to certain socioeconomic groups.

6. The method according to claim 1, wherein the promotion comprises a discount on a product that maximizes customer retention.

7. The method according to claim 6, wherein:

a permissible defunct threshold for customers that have previously spent more than $1000 is set lower than a permissible defunct threshold for customers that previously spent more than $50; and

the promotion is propagated to the web marketing site for offering to subsequent customers each time the promotion changes by a particular amount, as discovered via sampling, the particular amount comprising $0.25.

8. A computer implemented method of dynamically optimizing customer retention for a web marketing site, comprising:

operating a computer processor and memory for;

specifying a permissible defunct threshold representing a probability that a particular customer is not expected to return to the web marketing site, wherein the permissible defunct threshold is set lower for customers predetermined to be important customers; and

responsive to the particular customer not interacting with the web marketing site for a period of time, determining a probability that the particular customer will become defunct based on historical data stored in a database indicating a percentage of customers that have returned to the web marketing site after having no interaction with the web marketing site for the period of time; and

determining that the particular customer has exceeded the defunct threshold;

sampling defunct customers to determine a promotion to offer the particular customer; and

propagating the promotion to the particular customer.

9. The method according to claim 8, wherein the promotion is automatically propagated to the web marketing site.

10. The method according to claim 8, wherein the promotion comprises a discount on a product that maximizes customer retention.

11. The method according to claim 8, wherein the promotion comprises a discount on a product that maximizes profit.

12. The method according to claim 8, wherein the sampling further comprises:

segmenting the defunct customers into socioeconomic groups; and

only sampling customers belonging to certain socioeconomic groups.

13. The method according to claim 10, wherein:

a permissible defunct threshold for customers that have previously spent more than $1000 is set lower than a permissible defunct threshold for customers that previously spent more than $50; and

the promotion is propagated to the web marketing site for offering to subsequent customers each time the promotion changes by a particular amount, as discovered via sampling, the particular amount comprising $0.25.

14. A computer implemented method of dynamically optimizing customer retention for a web marketing site, comprising:

operating a computer processor and memory for;

specifying a permissible defunct threshold representing a probability that a particular customer is not expected to return to the web marketing site; and

responsive to the particular customer not interacting with the web marketing site for a period of time, determining a probability that the particular customer will become defunct based on historical data stored in a database indicating a percentage of customers that have returned to the web marketing site after having no interaction with the web marketing site for the period of time; and

determining that the particular customer has exceeded the defunct threshold;

sampling defunct customers to determine a promotion to offer the particular customer, wherein the sampling further comprises;

segmenting the defunct customers into socioeconomic groups; and

only sampling customers belonging to certain socioeconomic groups; and

propagating the promotion to the particular customer.

15. The method according to claim 14, wherein the promotion is automatically propagated to the web marketing site.

16. The method according to claim 14, wherein the permissible defunct threshold is set according to an inter-login time of a customer at the web marketing site.

17. The method according to claim 14, wherein the promotion comprises a discount on a product that maximizes customer retention.

18. The method according to claim 14, wherein the promotion comprises a discount on a product that maximizes profit.

19. The method according to claim 14, wherein the permissible defunct threshold is set lower for customers predetermined to be important customers.

20. The method according to claim 14, wherein the promotion comprises a discount on a product that maximizes customer retention.

21. The method according to claim 20, wherein:

a permissible defunct threshold for customers that have previously spent more than $1000 is set lower than a permissible defunct threshold for customers that previously spent more than $50; and

the promotion is propagated to the web marketing site for offering to subsequent customers each time the promotion changes by a particular amount, as discovered via sampling, the particular amount comprising $0.25.