Method and system for evaluating customers of a financial institution using customer relationship value tags

• US 7,376,603 B1
• Filed: 08/18/1998
• Issued: 05/20/2008
• Est. Priority Date: 08/19/1997
• Status: Expired due to Fees

• Current Assignee: Citibank (South Dakota) NA (Citigroup Incorporated), Fair Isaac Corporation
• Original Assignee: Fair Isaac Corporation
• Inventors: Coggeshall, Stephen V., Mayr, Mona, Wu, Guowei, Walker, Darcy, Lin, Yinghua
• Primary Examiner(s): Thomas; Joseph
• Assistant Examiner(s): Porter; Rachel L
• Application Number:
  US09/135,654
• Time in Patent Office: 3,563 Days
• Field of Search: 705/7, 705/10, 705/35, 705/38
• US Class Current: 705/35
• 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 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

A computerized method and system for evaluating customers of a financial institution using customer relationship value tags and associated customer treatment actions includes automatically analyzing information about a customer from a database of the financial institution by a customer assessment engine using a predefined statistical model to assess the value of the customer to the financial institution. At least one customer treatment action associated with the assessed value is identified by the assessment engine, and the assessment engine marks a file associated with the customer with a mark representing the assessed value and the associated customer treatment action. The marked file is then accessed by other financial systems of the financial institution, or by customer representatives of the financial institution, and the associated customer treatment action is implemented by such systems or representatives in dealing with the customer.

Claims

1. A method of evaluating at least one customer of a financial institution, comprising:

analyzing information, about at least one customer from a database of the financial institution;

assessing a value for each product of the financial institution that the customer holds based on the analyzed information;

assessing a transaction cost of providing the product that the customer holds;

assessing a first value of the customer based at least on a difference between the assessed value and the assessed transaction cost of the product that the customer holds;

identifying at least one customer treatment action associated with at least the assessed first value of the customer;

marking a file in the database associated with the customer with a mark representing the assessed value and the associated customer treatment action;

accessing the marked file; and

implementing the associated customer treatment action, wherein assessing the value for each financial institution product that the customer holds comprises assessing a weighted average of the product over a predetermined period of time.

2. The method of claim 1, wherein the predetermined period of time includes a month in which assessing the weighted average of the product is performed.

3. A method of evaluating at least one customer of a financial institution, comprising:

analyzing information about at least one customer from a database of the financial institution;

assessing a value for each product of the financial institution that the customer holds based on the analyzed information;

assessing a transaction cost of providing the product that the customer holds;

assessing a first value of the customer based at least on a difference between the assessed value and the assessed transaction cost of the product that the customer holds;

identifying at least one customer treatment action associated with at least the assessed first value of the customer;

marking a file in the database associated with the customer with a mark representing the assessed value and the associated customer treatment action;

accessing the marked file; and

implementing the associated customer treatment action; and

assessing a second value of the customer to the financial institution based on the assessed first value;

wherein assessing the second value of the customer comprises;

categorizing the customer into one of a plurality of customer segments based on the assessed first value of the customer;

determining a first set of variables and associated first coefficients based on customer information from the database for each customer in each of the customer segments; and

determining a first product of the first set of variables and the associated first coefficients for each customer in each of the customer segments.

4. The method of claim 3, wherein assessing the second value of the customer further comprises:

determining a second set of variables and associated second coefficients based on customer information from the database for each of the customer segments; and

determining a second product of the second set of variables and the associated second coefficients for each customer in each of the customer segments.

5. The method of claim 4, wherein assessing the second value or the customer further comprises:

determining a sum of the first product for the customer and the second product for the customer.

6. A method of evaluating at least one customer of a financial institution, comprising:

analyzing information about at least one customer from a database of the financial institution to assess a first value of the customer to the financial institution;

categorizing the customer into one of a plurality of customer segments based on the assessed first value of the customer;

determining a set of variables and an associated coefficient with each of the variables based on customer information from the database for each customer in each of the customer segments;

determining a product of each of the variables and the associated coefficient for each customer in each of the customer segments;

assessing a second value of the customer to the financial institution based on a sum of the products of the variables and the associated coefficients;

identifying at least one customer treatment action associated with at least the assessed first value of the customer;

marking a file in the database associated with the customer with a mark representing the assessed value and the associated customer treatment action;

accessing the marked file; and

implementing the associated customer treatment action.

7. The method of claim 6, wherein assessing the first value of the customer comprises assessing a value of a product of the financial institution that the customer holds.

8. The method of claim 6, wherein assessing the first value of the customer comprises assessing a transaction cost of providing a product of the financial institution to the customer.

9. The method of claim 7, wherein assessing the first value of the customer further comprises:

assessing a transaction cost of providing the product that the customer holds; and

determining a difference between the assessed value and the assessed transaction cost of the product that the customer holds.

10. The method of claim 6, wherein the database includes a plurality of files each of which is associated with a customer, and the marked file is one of the plurality of files.

11. The method of claim 6, wherein the information comprises at least one of current customer information and historical customer information.

12. The method of claim 6, wherein the information comprises at least one of customer account information, customer demographic information, customer financial information, and customer transaction information.