Merchant benchmarking tool

• US 8,781,881 B2
• Filed: 08/14/2008
• Issued: 07/15/2014
• Est. Priority Date: 08/14/2007
• Status: Active Grant

• Current Assignee: Visa USA, Inc. (Visa, Inc.)
• Original Assignee: Visa USA, Inc. (Visa, Inc.)
• Inventors: Olives, Jeffrey Rolland, DeWitt, Jay Allen, Moser, Dennis Norman, Salters, James C., DiGioacchino, Laura, Epelman, Alex
• Primary Examiner(s): Sterrett, Jonathan G
• Application Number:
  US12/191,796
• Publication Number:
  US 20090048884A1
• Time in Patent Office: 2,161 Days
• Field of Search: 705/7.36, 705/7.38
• US Class Current: 705/7.38
• CPC Class Codes: G06Q 10/0639 Performance analysis of employees; Performance analysis of enterprise or organisation operations
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0201 Market modelling; Market analysis; Collecting market data
• CPC Class Codes: G06Q 30/0204 Market segmentation
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A benchmarking tool generates reports for delivery to a merchant illustrating a performance of the merchant as compared to the performance of the merchant'"'"'s peers. The performance is illustrated through metrics that algorithmically combine data on transactions of consumers with the merchant or its peers, respectively. The metrics may be further subdivided into consumer groups such as new consumers, consumers that have shopped within the merchant in the past, consumers that no longer shop within the merchant, or consumers that use a commercial account to pay for purchases. The reports may be rendered in a graphical display for use by the merchant.

Claims

1. A computer implemented method comprising:

processing via a transaction processor handler a first transaction on an account issued to a first consumer by a first issuer, for a first merchant, the first merchant submitting the first transaction to a first acquirer, the first acquirer submitting the first transaction to the transaction processor handler;

processing via the transaction processor handler a second transaction on an account issued to a second consumer by a second issuer, for a second merchant, wherein the second merchant is identified as a peer merchant in a similar line of business as the first merchant, the second merchant submitting the second transaction to a second acquirer, the second acquirer submitting the second transaction to the transaction processor handler;

requesting, via the transaction processor handler, payment for the first transaction, wherein requesting includes requesting from the first issuer of the corresponding account for the first transaction payment for the first transaction and additionally includes a first customer identifier code different from an account identifier;

requesting, via the transaction processor handler, payment for the second transaction, wherein requesting includes requesting from the second issuer of the corresponding account for the second transaction payment for the second transaction and additionally includes a second customer identifier code different from an account identifier;

accumulating data from a plurality of first and second transactions;

processing the accumulated data to assign a particular one of a plurality of distinct designations to each of a plurality of customer accounts, wherein a first of the distinct designations is a new customer designation and a second of the distinct designations is a lost to competitor designation;

calculating from the accumulated data, via a computer;

a percentage change in transaction data for new customer accounts and lost to competitor accounts of the first merchant, wherein the first merchant is in a category of peer merchants; and

a percentage change in transaction data for new customer accounts and lost to competitor accounts of the peer merchants; and

generating a report including;

the percentage change in transaction data for the new customer accounts and the lost to competitor accounts of the first merchant; and

the percentage change in transaction data for the new customer accounts and the lost to competitor accounts of the peer merchants; and

processing the accumulated data to generate;

purchase frequency and purchase recency metrics for accounts of the first merchant and the peer merchants having an existing customer designation;

customer count growth and attracting competitor customers metrics for accounts of the first merchant and the peer merchants having the new customer designation;

lost customers metrics for accounts of the first merchant and the peer merchants having a lost customer designation; and

customers lost to competitors metrics for accounts of the first merchant and the peer merchants having the lost to competitor customer designation.

2. The computer implemented method as defined in claim 1, further comprising:

repeating the calculating for a series of sequential pairs of adjacent time periods; and

generating a report for each said pair of adjacent periods including;

the percentage change for the first merchant; and

the percentage change for the peer merchants, whereby the report for each said pair of adjacent periods identifies growth in cashless sales of the first merchant compared to growth in cashless sales by the peer merchants.

3. The computer implemented method as defined in claim 1, wherein:

there is a difference between;

the percentage change for the first merchant; and

the percentage change for the peer merchants; and

the value of the difference is rendered in the report in an intensity corresponding to the value thereof.

4. The computer implemented method as defined in claim 1, further comprising:

calculating from the accumulated data a number of transactions on each of the plurality of customer accounts for;

the first merchant and the percentage change thereof for a current time period and a past time period; and

the peer merchants and the percentage change thereof for the current time period and the past time period; and

generating a report including;

the percentage change in the number of transactions for the first merchant within the current time period as compared with the past time period; and

the percentage change in the number of transactions for the peer merchants within the current time period as compared with the past time period.

5. The computer implemented method as defined in claim 1, further comprising using a merchant identifier to determine the category, wherein the category is unique to the corresponding merchant within a payment processing system.

6. The computer implemented method as defined in claim 1, wherein the percentage change for the first merchant, the peer merchants, or both, is at least one of:

a percentage change in a total funds transferred for a current time period as compared with a past time period;

a percentage change in an average of funds transferred for the current time period as compared with the past time period;

a percentage change in a number of times an account was charged for the current time period as compared with the past time period;

a percentage change in a number of times corresponding accounts having a particular account designation were charged for the current time period as compared with the past time period; and

combinations thereof.

7. The computer implemented method as defined in claim 1, further comprising calculating from the accumulated data:

a total funds transferred for the first merchant for a current time period; and

a total funds transferred for the peer merchants for the current time period, wherein the report further shows;

the total funds transferred for the first merchant; and

the total funds transferred for the peer merchants.

8. The computer implemented method as defined in claim 7, further comprising:

repeating each said calculating of total funds for a series of sequential of adjacent time periods; and

generating a report for each of said adjacent periods including;

the total funds transferred for the first merchant; and

the total funds transferred for the peer merchants, whereby the report for each said adjacent periods identifies growth in cashless sales by the first merchant compared to growth in cashless sales of the peer merchants.

9. The computer implemented method as defined in claim 1, further comprising:

calculating from the accumulated data, via a computer;

a frequency of use of each of the accounts used in the transactions with each of the merchants.

10. The computer implemented method as defined in claim 1, further comprising:

calculating from the accumulated data, via a computer;

a percentage difference in overall sales between the first merchant and the peer merchants,

wherein the percentage difference is calculated by comparing overall sales for at least two pairs of adjacent time periods.

11. An apparatus, comprising:

a memory; and

a processor disposed in communication with said memory, and configured to issue a plurality of processing instructions stored in the memory, wherein the processor issues instructions to;

process via a transaction processor handler a first transaction on an account issued to a first consumer by a first issuer, for a first merchant, the first merchant submitting the first transaction to a first acquirer, the first acquirer submitting the first transaction to the transaction processor handler;

process via the transaction processor handler a second transaction on an account issued to a second consumer by a second issuer, for a second merchant, wherein the second merchant is identified as a peer merchant in a similar line of business as the first merchant, the second merchant submitting the second transaction to a second acquirer, the second acquirer submitting the second transaction to the transaction processor handler;

request, via the transaction processor handler, payment for the first transaction, wherein requesting includes requesting from the first issuer of the corresponding account for the first transaction payment for the first transaction and additionally includes a first customer identifier code different from an account identifier;

request, via the transaction processor handler, payment for the second transaction, wherein requesting includes requesting from the second issuer of the corresponding account for the second transaction payment for the second transaction and additionally includes a second customer identifier code different from an account identifier;

accumulate data from a plurality of first and second transactions;

process the accumulated data to assign a particular one of a plurality of distinct designations to each of a plurality of customer accounts, wherein a first of the distinct designations is a new customer designation and a second of the distinct designations is a lost to competitor designation;

calculate from the accumulated data, via the processor;

a percentage change in transaction data for new customer accounts and lost to competitor accounts of the first merchant, wherein the first merchant is in a category of peer merchants; and

a percentage change in transaction data for new customer accounts and lost to competitor accounts of the peer merchants;

generate a report including;

the percentage change in transaction data for the new customer accounts and the lost to competitor accounts of the first merchant; and

the percentage change in transaction data for the new customer accounts and the lost to competitor accounts of the peer merchants; and

process the accumulated data to generate;

purchase frequency and purchase recency metrics for accounts of the first merchant and the peer merchants having an existing customer designation;

customer count growth and attracting competitor customers metrics for accounts of the first merchant and the peer merchants having the new customer designation;

lost customers metrics for accounts of the first merchant and the peer merchants having a lost customer designation; and

customers lost to competitors metrics for accounts of the first merchant and the peer merchants having the lost to competitor customer designation.

12. The apparatus as defined in claim 11, wherein the processor further issues instructions to:

repeat the calculating for a series of sequential pairs of adjacent time periods; and

generate a report for each said pair of adjacent periods including;

the percentage change for the first merchant; and

the percentage change for the peer merchants, whereby the report for each said pair of adjacent periods identifies growth in cashless sales of the first merchant compared to the growth in cashless sales of the peer merchants.

13. The apparatus as defined in claim 11, wherein the processor further issues instructions to:

generate from the accumulated data;

a total of funds transferred for the first merchant for a current time period as compared with a past time period; and

a total of funds transferred for the peer merchants for the current time period as compared with the past time period.

14. The apparatus as defined in claim 11, wherein the processor further issues instructions to:

calculate, from the accumulated data, for each of the plurality of accounts for a current time period and a past time period, the number of transactions on each of the accounts for;

the first merchant and the percentage change thereof for the current time period and the past time period; and

the peer merchants and the percentage change thereof for the current time period and the past time period, wherein the report further includes;

the percentage change for the first merchant within the current time period as compared with the past time period; and

the percentage change for the peer merchants within the current time period as compared with the past time period.

15. The apparatus as defined in claim 11, wherein the each said account is issued by the corresponding said issuer as a type selected from the group consisting of:

a prepaid account;

a credit account;

a debit account;

a corporate account;

a non-corporate account;

a Flexible Savings Account;

a Health Savings Account;

a small business account; and

a government account.

16. A computer implemented method comprising:

processing via a transaction processor handler a first transaction on an account issued to a first consumer by a first issuer, for a first merchant, the first merchant submitting the first transaction to a first acquirer, the first acquirer submitting the first transaction to the transaction processor handler;

processing via the transaction processor handler a second transaction on an account issued to a second consumer by a second issuer, for a second merchant, wherein the second merchant is identified as a peer merchant in a similar line of business as the first merchant, the second merchant submitting the second transaction to a second acquirer, the second acquirer submitting the second transaction to the transaction processor handler;

requesting, via the transaction processor handler, payment for the first transaction, wherein requesting including requesting from the first issuer of the corresponding account for the first transaction payment for the first transaction;

requesting, via the transaction processor handler, payment for the second transaction, wherein requesting includes requesting from the second issuer of the corresponding account for the second transaction payment for the second transaction;

accumulating data from a plurality of first and second transactions;

processing the accumulated data to assign a particular one of a plurality of distinct designations to each of a plurality of customer accounts, wherein a first of the distinct designations is a new customer designation and a second of the distinct designations is a lost to competitor designation;

calculating from the accumulated data, via a computer;

a frequency of use of each of the accounts used in transactions with the first merchant and a plurality of merchants that are peers to the first merchant;

a percentage difference in overall sales between the first merchant and the peer merchants, wherein the difference is calculated by comparing overall sales for at least two pairs of adjacent time periods;

a percentage change in transaction data for new customer accounts and lost to competitor accounts of the first merchant; and

a percentage change in transactions of transaction data for new customer accounts and lost to competitor accounts of the peer merchants;

generating a report including;

the frequency of use;

the percentage difference in overall sales;

the percentage change in transaction data for the new customer accounts and the lost to competitor accounts of the first merchant; and

the percentage change in transaction data for the new customer accounts and the lost to competitor accounts of the peer merchants; and

processing the accumulated data to generate;

purchase frequency and purchase recency metrics for accounts of the first merchant and the peer merchants having an existing customer designation;

customer count growth and attracting competitor customers metrics for accounts of the first merchant and the peer merchants having the new customer designation;

lost customers metrics for accounts of the first merchant and the peer merchants having a lost customer designation; and

customers lost to competitors metrics for accounts of the first merchant and the peer merchants having the lost to competitor customer designation.