CN1264479A - Method and system for compiling demographic data - Google Patents

Abstract

A computer-implemented method and system for compiling demographic data is provided. This includes maintaining a database in a computer having a memory, the database containing demographic data about existing and/or prospective customers and data on interactions between customers and merchants; updating the database with data about new interactions between customers and merchants; retrieving demographic data about existing and/or prospective customers from the database; and generating a report on the demographic data about existing and/or prospective customers.

Description

Method and system for compiling demographic data

The present invention relates to a method and system for compiling demographic data.

Merchants generally find themselves in the difficult position of knowing little or nothing about the characteristics of their customers. Their advertising and promotions are at best aimed at the hunch that existing and prospective customers will buy something from them. Merchants don't know the demographics of their customers, such as geographic location, occupational status, household size, and more. They also don't know which other merchants their customers buy from, and these merchants don't know how to target individual customers.

The same problem may also arise in other forms of interaction between merchants and customers, including, for example, call centers, help inquiry services, and other similar businesses.

Typically, only large merchants collect this type of information, either through their own customer databases or through market research.

Methods and systems for building a database for sales purposes are known in the art as follows:

One form of the system is described in US Patent No. 5,636,346. A method for building a database or modeled profile of an advertiser's customer information is described. The database includes users' names and addresses and is compiled from actual closed-circuit system and telephone company billing records. This database is then allowed to be used by the data processing company or their customers for comparison with their own customer database. Generate target user tables from users who are not yet in the modeled profile of the customer database, and then target these users directly.

Another system is described in US Patent No. 5,305,196. A method for building a database is presented for use in a retail store sales program where customers' checks are scanned to detect account identifiers. The unique identifier is then compared to a database of customer identifiers maintained by the store. The database can also be updated with other identification criteria if desired. The retail store can obtain a list of prospective customers in the predetermined area through conventional sources. The prospective customers table is compared to the existing customers table, and customers that appear in both tables are removed from the prospective customers table. Advertising material can then be sent directly to those customers left on the prospect list.

In the prior art described above, merchants are provided with a little more customers than in the customer list that can be sold directly. This is particularly advantageous for providing merchants with characteristics and other information about existing and prospective customers.

It is an object of the present invention to provide an improved method and system for compiling customer demographic data.

Thus, in one aspect, the invention can be said to comprise a computer-implemented method for compiling demographic data comprising the steps of: maintaining in a computer with memory a database containing information on existing and/or expected Demographic data about customers and interactions between customers and merchants; updating the database with data about new interactions between customers and merchants; retrieving demographic data about existing and/or prospective customers from the database; and generating Reports on existing and/or prospective customer demographics.

In another aspect, the present invention can be said to comprise a system for compiling demographic data comprising a computer having memory storing a database containing demographic data about existing and/or prospective customers as well as customer and Interaction between merchants; means for updating a database with data about new interactions between customers and merchants; means for retrieving demographic data about existing and/or prospective customers from the database; and generating information about existing and/or prospective customers Or report generating means for reports of demographic data of prospective customers.

A preferred embodiment of the method and system will now be described with reference to the accompanying drawings, in which:

Fig. 1 provides the block diagram of the system of the present invention;

Figure 2 presents a block diagram of the system in a commercial transaction between a customer and a merchant;

Figure 3 represents a block diagram of the system in communication between a customer and a merchant;

Fig. 4 provides the database scheme of the present invention;

Figure 5 illustrates a typical database record;

Figure 6 represents the typical characteristics of a group of customers;

Figure 7 shows a typical client analysis done by a country;

Figure 8 gives further characteristics of a typical set of customers;

Figure 9 illustrates an area density map;

Figure 10 shows a typical customer value map;

Figure 11 shows merchants that share their customers with a typical merchant;

Figure 12 illustrates a repeating customer table.

In a preferred form of the invention, as shown in Figure 1, the system 2 includes a computer 3 having a data processor and memory, operating under the control of application software. Computer 2 is in contact with at least one storage database 4 . The database 4 may include an interaction database 6 and a customer demographic database 8 . It should be understood that the interaction database 6 and the population statistics database 8 can be realized as independent databases, or can be realized as one database. For simplicity, the invention will be described in connection with the database 4 . The customer demographic database 8 may store data about existing and/or prospective customers. It should be understood that references to customers in the specification and claims may additionally include prospective customers.

Demographic characteristics of customers used in the specification and claims may include geographic location, professional expertise, household size, age, gender, marital status, race, educational and occupational status. In addition, included within the scope of demographic characteristics may also be psychodynamic indicators or psychographic characteristics, and where the customer is a business unit, demographic data may include the number of employees and industry codes of the firm.

The database 4 may be stored in the memory of the computer 3 . Alternatively, the database 4 may also be stored externally on one or more separate servers and accessed by dedicated and dial-up telecommunication means, using e-mail, Electronic Data Interchange (EDI) and/or communicating via an Internet site, or Stored on CD-ROMS, floppy disks, tape drives, or other storage media. In addition, the database 4 can also be accessed using terminal emulation or telecommunication network tools.

The data in the database 4 may be provided by a bank, financial institution, telecommunications or Internet service provider, or some other third party, such as an entity running a loyalty program.

As shown in Figure 1, a customer 12 and a merchant 16 interact. Typically a merchant 16 operates from a commercial base or store from which customers purchase goods or services. Additionally, merchants 16 may also operate from strategically placed machines, such as vending machines, parking meters, washing machines, and transportation ticket machines. Merchant 16 may also operate a mail order catalog service, direct sell goods or services, or sell through a network of hierarchical structures of wholesalers and retailers. Merchants 16 can also operate from a website or other electronic medium, which is becoming more and more common.

Alternatively, merchant 16 may also operate a help desk, call center, or other business in which customers may interact with merchant 16 by telephone, fax, email, web browsing, or other form of communication. It should be understood that the nature of the business of merchant 16 encompasses a wide range of commercial activities.

Customer 12 may be a person who purchases goods or services from customer 16 . If merchant 16 operates a help desk or paging center, customer 12 may be a user of such service. Clients 12 may be business or residential entities.

It should be understood that the interaction between the customer 12 and the merchant 16 can be initiated by the customer 12 as well as by the merchant 16 . As a customer 12 interacts with a merchant 16, interaction data 18 is generated which may be stored in an interaction database 6, as further described below.

The invention will first be described with reference to Figure 2, where the interactions include retail transactions. For safety and convenience, it is becoming more and more common for customers 12 to use non-cash payment methods. An example is a credit card where a salesperson either magnetically reads or stamps the card, calls a processing center through a dial-up modem, obtains approval and confirms the cardholder's signature to prevent counterfeiting.

Alternatively, the customer 12 may provide the credit card account number and expiration date to the merchant 16 that is not located in one location. Alternatives to cash include checks, electronic funds transfer (EFT-POS) cards, prepaid cards, credit, debit or charge cards, and integrated circuit or smart cards.

If a non-cash payment method is used, certain information about the customer needs to be transmitted from the customer 12 to the merchant 16. For example, customer information should include details of the customer's financial account to be loaned out. The merchant 16 sends the payment to the merchant's own financial institution 24 or another financial institution. Also transmitted to the financial institution 24 is transaction information including at least the merchant's identifier, the customer's identifier, the amount of the transaction, and the date and time of the transaction.

Transactions between customer 12 and merchant 16 generate interaction data 18A. Interaction data 18A includes a merchant identifier. This merchant identifier may include the merchant's 16 bank account number, or some other identifier. It should be appreciated that interaction data 18A may include further information about the merchant, such as a geographic location. This information may be provided by the merchant 16 or the financial institution 24 and may be stored with the interaction data 18A or in the database 4 .

Interaction data 18A also includes a customer identifier. This customer identifier may contain the customer's 16 bank account number or some other identifier. Additionally, interaction data 18A may also include demographic data about the customer such as geographic location, occupational status, household size, and the like. Additionally, psychodynamic or psychographic data may also be included, for example. If the customer is a business, the interaction data 18A may include the number of employees and the industry code of the business. Information about the customer may be provided by the customer 12 , the merchant 16 , the financial institution 24 and may be stored with the interaction data 18A or in the database 4 .

Interaction data 18A may also include, for example, a monetary value of the interaction, a good/service identifier, and/or a date and time of the interaction.

As shown in FIG. 3 , the interaction may take the form of communication between the customer 12 and the merchant 16 . Merchants 16 may operate help desks, paging centers, and certain other businesses where customers 12 and merchants 16 interact. If the customer 12 interacts with the merchant 16 by telephone or fax, the identities of both the customer 12 and the merchant 16 are known to the telecommunications service provider (telco) 20 used for the communication. The customer identifier and the merchant identifier may be generated or at least known to, and may be provided by, the person providing the telecommunications service 20 . Additionally, the customer identifier and merchant identifier may also be provided by the merchant 16 or the customer 12 . The merchant and customer identifiers may be the telephone/fax numbers of the merchant 16 and customer 12, respectively, or some other identifier.

As discussed above in connection with FIG. 2, further information about the merchant 16 and customer 12 may also be included. For example, interaction data 18B may include geographic information for merchant 16, demographic, psychokinetic or psychographic data for customer 12, and if customer 12 is a business, details of number of employees and industry codes.

As discussed above in connection with FIG. 2, interaction data 18B may also include, for example, a monetary value of the interaction (if any), a good/service identifier (if available), and/or a date and time of the interaction. Interaction data 18B may also include the duration of the communication.

Customer 12 may also interact with merchant 16 electronically. For example, customer 12 may send a message to merchant 16 via email. Alternatively, merchant 16 may operate a website that customer 12 may use a web browser to access. In this case, the Internet service provider (ISP) 20 providing the communication service is able to know the identity of the customer 12 and the merchant 16 .

The customer identifier and the merchant identifier can be generated or at least known to the ISP 20 and can be provided by the ISP 20. Additionally, the customer identifier and merchant identifier may also be provided by the merchant 16 or the customer 12 . The merchant identifier and customer identifier may be the Internet addresses of the merchant 16 and customer 12, respectively, or may be some other identifier.

As noted above, interaction data 18B may include further information about merchant 16 and customer 12 .

The merchant 16 may operate a loyalty program whereby selected customers 12 are distinguished from other customers. Those customers who are members of the loyalty program are typically generated with identification cards. Interaction data 18, 18A or 18B may include the fact that customer 12 is a member of the loyalty program.

The invention will now be described in the context of retail transactions. It should be understood that the scope of the present invention is not limited to retail transactions, but includes other forms of interaction as described above in connection with FIGS. 1-3 .

The computer 3 may have in its database 4 information on specific merchants, such as those in a general industry. Such information may include the name and address of the merchant 16, as well as the nature of the merchant's business. The information held by the computer 3 about a certain merchant 16 is indicated in FIG. 4 as merchant data 22 . Merchant data 22 may, though not necessarily, be indexed by merchant identifier 24 to facilitate processing.

The computer 3 also has information about those individuals who may utilize the merchant 16 . For example, computer 3 may have records of an individual's income, age, gender, marital status, race, education, phone number, address, and occupation. A residence can be defined by class, or it can be an arbitrarily defined geographic area, grid block, geocode, or census area unit. Each individual may be a customer 12 of a merchant 16 . This information is represented as customer data 26 in FIG. 4 . Customer data 26 may be indexed by customer identifier 28 .

When a customer 12 interacts with a merchant 16 , the interaction data is stored as transaction data 30 . An example is given in Figure 4.

There can only be one merchant per transaction, and each merchant can have multiple transactions. Therefore, the relationship of transaction data 30 to merchant data 22 is many-to-one. Also, each transaction can only have one customer, while a person customer can have multiple transactions. Thus, the relationship of transaction data 30 to customer data 26 is also many-to-one.

Computer 3 has access to all information contained in merchant data 22 , customer data 26 and transaction data 30 . From these data reports can be generated for a particular merchant 16 providing that merchant 16 with detailed information about its customers 12 . For example, the per capita annual income of citizens can be estimated. It is also possible to identify the customers 12 of the merchant 16 based on the accumulated transaction data 30 and thereby estimate the average income of the customers 12 of a particular merchant 16 . Some such information is very valuable to businessman 16, because just know where to work hard later on. Other demographic characteristics of its customers 12 may also be provided to the merchant 16 as described above.

In some circumstances several other parties may each transmit certain data to the computer 3 so that the merchant 16 may obtain further information about its customer 12 .

Based on the characteristics of the customer 12, the merchant 16 may be provided with segmented data of the customer. For example, merchants 16 may be provided with a percentage of customers within a certain income range to help develop marketing strategies.

Details of customers 12 that a particular merchant 16 shares with other merchants may also be provided. Transaction data 30 includes a merchant identifier and a customer identifier. From this information, the proportion and characteristics of customers 12 that a particular merchant 16 shares with competing merchants can be determined. Merchants 16 can then know their market share and know the type of customers that focus their campaigns on. The merchant 16 may also be provided with customer 12 information that it shares with merchants in other marketplaces. For example, this allows a convenience food retailer to evaluate the merits of co-advertising with a gas station if these merchants share a significant percentage of customers.

Transaction data 30 may also include temporal data, eg, the date and time of the transaction. Accordingly, dates and times when different types of customers are likely to purchase goods or services from merchant 16 can be identified.

In a preferred form of the invention, the computer 3 includes a storage database of customer addresses, including residential addresses, zip codes and telephone numbers. From this information, a customer type density map based on the geographic location, zip code, and/or phone number of customers 12 may be generated for merchant 16 . The scope of these density maps can be local, regional, national or global.

Although not strictly required, in a further preferred form of the invention, computer 3 includes a database storing transaction volumes of transactions between merchant 16 and customer 12, as shown in FIG. From this information, the characteristics of the customers, or the most valuable customers, from which a merchant can derive the greatest benefit can be determined.

Where appropriate, the transaction details may also include the product's identification code. This allows determining the quantity and characteristics of the products purchased by the customer 12 . For example, a merchant 16 that does not sell a particular product may be interested in knowing that a competitor is selling large quantities of that product. If the merchant 16 offers a similar product for sale, customers are likely to purchase this product from the merchant 16 rather than from its competitors.

Product identifiers are also useful for evaluating coupon response. Typically, coupons are issued to existing customers or distributed to a specific geographic area. Coupons typically provide discounts on subsequent purchases or attach free goods or services. Using the product identification code, it is possible to determine the characteristics of those customers who offer coupons and those who do not.

In addition to the above information, specific information about a company or industry can also be obtained. From this information in the computer 3, the characteristics of the customers 12 of a merchant 16 in one group and another group can be compared. This information should be of great value to a merchant 16 who is introducing a product into a new market, because he needs to know how well the product has been accepted in other countries.

As noted above, transaction data 30 may include temporal data. Reports can be generated periodically, and changes over time in the merchant's customer base can be identified and reported. This use of temporal data is useful for assessing the success of general promotional activities, such as markdowns on goods or services.

Reports to merchant 16 may be provided in writing, verbally/visually, or electronically, such as email or encrypted web access. In a preferred embodiment of the present invention, merchant 16 can select the information it requires about its customer base.

In a preferred form of the invention, demographic data 32 is generated from information held by computer 3 . However, other data sources may also be utilized, such as demographic survey data, customer databases, demographic information maintained by other parties, other customer transactions, product descriptions, and merchant databases.

System 2 can be tailored to meet confidentiality and privacy requirements, eg merchant reports can omit details of individual customers. Additionally, details of individual merchants may also be omitted for commercial confidentiality.

As shown in Figure 5, a customer has purchased from the fictitious company Flowers R Us. Proper records have been formed in merchant data 22 , customer data 26 and transaction data 30 . A customer with unique identifier CUST1 living in Roseneath, Wellington, New Zealand has purchased NZ$35 worth of flowers from Flowers R Us, a merchant with unique identifier MERC1. From many such transactions, detailed and commercially valuable reports can be generated for the merchant 16 .

Figure 5 gives an example of a report that can be generated for the merchant 16, illustrating the general characteristics of Flower R Us' customers. For example, these customers will likely qualify and not lose their jobs. The computer 3 can get features like these from the database 4 or other sources, so it can be determined that the customers of Flowers R Us have these features.

As shown in Figure 6, the majority of Flowers R Us' customers, 87.2%, live in New Zealand. This allows the merchant 16 to know where to advertise. The nature of this business means that a smaller proportion of customers live in other countries, although this is not necessarily the case for other types of business, for example in the travel registration and reservation industry.

Figure 7 gives further examples of customer characteristics. For simplicity, customers are categorized as one of 14 customer types, such as "educated" or "single." From this information from computer 3 it can be estimated that 8.25% of New Zealanders are of the "educated" type and 5.51% of the "single" type. From the geographical data about its customers, it can be determined that 11.53% of the population living in the same area as the merchant 16 are of the "educated" type and 7.91% of the "single" type. According to the transaction data, it can be calculated that 14.63% of Flowers R Us customers are "educated" type. Alternatively, you can estimate the ratio of Flowers R Us "educated" customers to "educated" type customers who live in the same area. For example, 14.63% of Flowers R Us customers are of the "educated" type, compared to 11.53% of "educated" types who live in the same area. The ratio is 126.89%.

The present invention allows the generation of detailed geographic density maps, as shown in FIG. 9 . In the example given, all customers of the merchant 16 have been identified. The computer 3 has geographic data about these customers, and this data can be provided in the form of a density map. This map shows the areas in which Flowers RUs' customers live and will provide focus for area advertisements.

Figure 10 shows the customer value map generated by the present invention. As the graph shows, 17% of Flowers RUs represent 48% of the merchant’s transactions. From this information, the value of the 17% of customers can also be calculated based on the value of the transaction.

As shown in Figure 11, Flowers R Us can be provided with the proportion of customers 12 that it shares with other merchants. For example, 35.9% of Flowers R Us customers are also customers of Peter's Petrol Limited. Businessman 16 may consider advertising jointly with Peter's Petrol Limited, so as to reduce the cost of advertising, because this large customer base shared by these two businesses can be obtained through this advertisement. It can also provide Flowers R Us with the percentage of customers it shares with competitors.

Figure 12 illustrates a further report showing repeat purchase information by customers. Among FlowersR Us customers, 34% buy goods or services from the merchant once, 26% buy twice, and so on. This information may also be combined with information about the product and other information.

According to the invention, a method and system for compiling demographic data is provided. The methods used allow a financial institution, third party or merchant to easily compile demographic data, allowing merchants to better understand their existing customers and attract prospective customers.

Claims (13)

1. computer implemented method that is used for compiling demographic data may further comprise the steps:

In having the computing machine of storer, safeguard database about interactive information between the client's of existing and/or expection consensus data and client and the businessman;

Upgrade this database with the new mutual data between relevant client and the businessman;

From this database retrieval relevant existing and/client's that expects consensus data; And

Consensus data to the relevant client who has now and/or expect produces a report.

2. further be included in the step in the geographic position of safeguarding existing and/or expection client in the database according to the computer implemented method of claim 1.

3. as the computer implemented method of claim 1 or 2, wherein comprise business transaction alternately between businessman and the client, and interaction data further comprises trading value.

4. according to any one computer implemented method in the claim 1 to 3, wherein interaction data further comprises product/service identifiers sign indicating number.

5. the computer implemented method according to aforementioned arbitrary claim further is included in the step of safeguarding the demographic census data in the database.

6. according to the computer implemented method of aforementioned arbitrary claim, wherein interaction data further comprises time data, and this method comprises that further retrieval time data are so that identification and show the step of the variation among the consensus data.

7. the computing machine of operating according to any one method in the claim 1 to 6.

8. the system of a compiling demographic data, this system comprises:

Computing machine with storer, store data storehouse in the storer comprises the consensus data about existing and/or expection client, and the interaction data between client and the businessman;

Upgrade the device of this database with the new mutual data between relevant client and the businessman;

Be used for from the retrieval of this database relevant existing and/client's that expects consensus data's device; And

Report preparing apparatus generates the report about existing and/or expection client's consensus data.

9. system according to Claim 8, wherein Cun Chu database further comprises geographic position existing and/or the expection client.

10. according to Claim 8 or 9 system, wherein comprise business transaction alternately between businessman and the client, and interaction data further comprises trading value.

11. according to the system of claim 10, wherein interaction data further comprises product/service identifiers sign indicating number.

12. any one system in 11 according to Claim 8, wherein stored data base comprises the demographic census data.

13. any one system in 12 according to Claim 8, wherein interaction data further comprises time data, and report preparing apparatus is used for discerning and showing consensus data's variation.

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