Method and apparatus for identifying cross-selling opportunities based on profitability analysis

• US 20030088491A1
• Filed: 11/07/2001
• Published: 05/08/2003
• Est. Priority Date: 11/07/2001
• Status: Abandoned Application

• Current Assignee: International Business Machines Corporation
• Original Assignee: International Business Machines Corporation
• Inventors: Liu, Shiping, Yap, Jenny
• Application Number:
  US10/008,731
• Publication Number:
  US 20030088491A1
• Time in Patent Office: Days
• US Class Current: 705/36
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• 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
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A method and apparatus for identifying cross-selling opportunities based on profitability analysis in addition to association analysis are provided. With the apparatus and method, product holding and service information is extracted for each customer of an enterprise. The product or service profits are then calculated and categorized into profit levels. These profit levels are then embedded into the product/service information and is formatted for data mining. Data mining is then performed on the embedded and formatted data. The data mining results in an association analysis generating association rules. The association rules that result in a net profit for the enterprise as determined from the embedded profit levels, are identified. These association rules are then used to identify the customers to which cross-selling of the products/services in the association rule may be offered.

Claims

1. A method, in a computing device, for identifying cross-selling opportunities, comprising:

processing data to identify associations of products or services for potential cross-selling; and

processing the identified associations to identify a subset of the associations based on profitability analysis such that the subset of associations determined, from the profitability analysis, to generate a profit when cross-sold.

2. The method of claim 1, wherein processing data to identify associations of products or services for potential cross-selling includes generating one or more association rules using one or more knowledge processing techniques.

3. The method of claim 2, wherein the one or more processing techniques include association analysis.

4. The method of claim 1, further comprising:

calculating profitability for at least two of the products or services.

5. The method of claim 4, further comprising:

identifying profit level categories based on business logic; and

associating the at least two products or services with one or more of the profit level categories.

6. The method of claim 5, wherein the subset of associations are associations which have products or services that are associated with profitable profit level categories.

7. The method of claim 5, wherein the subset of associations are associations which have products or services that are associated with profit level categories that meet acceptable criteria.

8. The method of claim 1, further comprising:

identifying one or more customers for marketing cross-selling opportunities based on the subset of associations.

9. The method of claim 1, further comprising:

generating one or more marketing strategies based on the subset of associations.

10. The method of claim 1, wherein the association rules include a correspondence between two or more products or services, a measure of profitability, a measure of support, a measure of confidence, and a measure of lift.

11. An apparatus for identifying cross-selling opportunities, comprising:

means for processing data to identify associations of products or services for potential cross-selling; and

means for processing the identified associations to identify a subset of the associations based on profitability analysis such that the subset of associations determined, from the profitability analysis, to generate a profit when cross-sold.

12. The apparatus of claim 11, wherein the means for processing data to identify associations of products or services for potential cross-selling includes means for generating one or more association rules using one or more knowledge processing techniques.

13. The apparatus of claim 12, wherein the one or more processing techniques include association analysis.

14. The apparatus of claim 11, further comprising:

means for calculating profitability for at least two of the products or services.

15. The apparatus of claim 14, further comprising:

means for identifying profit level categories based on business logic; and

means for associating the at least two products or services with one or more of the profit level categories.

16. The apparatus of claim 15, wherein the subset of associations are associations which have products or services that are associated with profitable profit level categories.

17. The apparatus of claim 15, wherein the subset of associations are associations which have products or services that are associated with profit level categories that meet acceptable criteria.

18. The apparatus of claim 11, further comprising:

means for identifying one or more customers for marketing cross-selling opportunities based on the subset of associations.

19. The apparatus of claim 11, further comprising:

means for generating one or more marketing strategies based on the subset of associations.

20. The apparatus of claim 11, wherein the association rules include a correspondence between two or more products or services, a measure of profitability, a measure of support, a measure of confidence, and a measure of lift.

21. A computer program product in a computer readable medium for identifying cross-selling opportunities, comprising:

first instructions for processing data to identify associations of products or services for potential cross-selling; and

second instructions for processing the identified associations to identify a subset of the associations based on profitability analysis such that the subset of associations determined, from the profitability analysis, to generate a profit when cross-sold.

22. The computer program product of claim 21, wherein the first instructions for processing data to identify associations of products or services for potential cross-selling include instructions for generating one or more association rules using one or more knowledge processing techniques.

23. The computer program product of claim 22, wherein the one or more processing techniques include association analysis.

24. The computer program product of claim 21, further comprising:

third instructions for calculating profitability for at least two of the products or services.

25. The computer program product of claim 24, further comprising:

fourth instructions for identifying profit level categories based on business logic; and

fifth instructions for associating the at least two products or services with one or more of the profit level categories.

26. The computer program product of claim 25, wherein the subset of associations are associations which have products or services that are associated with profitable profit level categories.

27. The computer program product of claim 25, wherein the subset of associations are associations which have products or services that are associated with profit level categories that meet acceptable criteria.

28. The computer program product of claim 21, further comprising:

third instructions for identifying one or more customers for marketing cross-selling opportunities based on the subset of associations.

29. The computer program product of claim 21, further comprising:

third instructions for generating one or more marketing strategies based on the subset of associations.

30. The computer program product of claim 21, wherein the association rules include a correspondence between two or more products or services, a measure of profitability, a measure of support, a measure of confidence, and a measure of lift.