Identifying industry segments with highest potential for new customers or new spending for current customers

Abstract

A method and system are used to identify industry segments with highest potential for new customers or new spending for current customers. This includes receiving data, segregated into each of a plurality of industries, relating to a number of small businesses, cost of goods sold for each of the small businesses, and percentage of cost of goods sold that is spent on raw materials and inventory for each of the small businesses. Capturing data, segregated into each of the plurality of industries, relating to average amount charged per current card member, percentage of the current card members charging the raw materials and the inventory, percentage of card member penetration, and total estimated charging for the current card members. Determining which of the plurality of industries or segments are available for a highest potential for new card members.

1 . A method comprising:
 generating, by a computer-based system for determining desired industry segments and to create a combined ranking, a first ranking based on a first data set relating to a group of merchants in an industry segment, a second ranking based upon a second data set relating to a group of merchant account holders in the industry segment, and a third ranking based upon a third data set that validates that a merchant in the group of merchants in the industry segment is interested in increasing charging;   determining, by the computer-based system and based upon the combined ranking, at least one of: that the industry segment is available for an increase in charging by the group of merchant account holders and a potential for new account holders in the industry segment; and   targeting for follow up communications, by the computer-based system and in response to the determining, at least one of: a merchant in the group of merchants in the industry segment and a merchant account holder in the group of merchant account holders in the industry segment.   
     
     
         2 . The method of  claim 1 , further comprising validating, by the computer-based system and based upon a third data set, that a merchant in the group of merchants in the industry segment is interested in increasing charging 
     
     
         3 . The method of  claim 1 , wherein the third data set includes data acquired through at least one of interviews with industry experts, interviews with business owners, data associated with industry reports and census data; 
     
     
         4 . The method of  claim 1 , wherein the first data set includes at least one of: a cost of goods sold associated with at least a subset of the merchants within the industry segment, a number of the merchants associated with the industry segment, and a raw materials and inventory cost of goods sold associated with at least the subset of the merchants within the industry segment. 
     
     
         5 . The method of  claim 1 , wherein the second data set includes at least one of: an average amount of spending for the merchant account holders within the industry segment, a percentage of merchant account holders actively spending on raw materials and inventory in the industry segment, a merchant account holder penetration in the industry segment, and a total estimated amount of spending for transaction accounts in the industry segment. 
     
     
         6 . The method of  claim 1 , wherein each of the data in at least one of the first data set and the second data set is weighted. 
     
     
         7 . The method of  claim 1 , further comprising repeating the method for groups of merchants and merchant account holders in a different industry segment, the method yielding a different combined ranking related to the different industry segment, the different combined ranking enabling evaluation of the different industry segment to determine at least one of: that the different industry segment is available for an increase in charging by the group of merchant account holders and a potential for new account holders in the different industry segment. 
     
     
         8 . The method of  claim 7 , further comprising comparing the combined ranking and the different combined ranking to determine which of the industry segment and the different industry segment represents a more desirable marketing opportunity. 
     
     
         9 . The method of  claim 8 , wherein the number of merchants associated with the different industry segment receives a weighting of two (2), the cost of goods sold associated with at least a subset of the merchants within the different industry segment receives a weighting of five (5), and the raw materials and inventory cost of goods sold associated with at least the subset of the merchants within the different industry segment receives a weighting of three (3). 
     
     
         10 . The method of  claim 8 , wherein the average amount of spending for the merchant account holders within the different industry segment receives a weighting of two (2), the percentage of merchant account holders actively spending on raw materials and inventory in the different industry segment receives a weighting of three (3), the merchant account holder penetration in the different industry segment receives a weighting of one (1), and the total estimated amount of spending for transaction accounts in the different industry segment receives a weighting of four (4). 
     
     
         11 . The method of  claim 1 , wherein each of the first ranking, the second ranking, the third ranking, and the combined ranking are one of: very high, high, medium, medium/low, low, and very low. 
     
     
         12 . The method of  claim 1 , wherein the number of merchants associated with the industry segment receives a weighting of two (2), the cost of goods sold associated with at least a subset of the merchants within the industry segment receives a weighting of five (5), and the raw materials and inventory cost of goods sold associated with at least the subset of the merchants within the industry segment receives a weighting of three (3). 
     
     
         13 . The method of  claim 1 , wherein the average amount of spending for the merchant account holders within the industry segment receives a weighting of two (2), the percentage of merchant account holders actively spending on raw materials and inventory in the industry segment receives a weighting of three (3), the merchant account holder penetration in the industry segment receives a weighting of one (1), and the total estimated amount of spending for transaction accounts in the industry segment receives a weighting of four (4). 
     
     
         14 . The method of  claim 1 , wherein each of the first ranking, the second ranking, the third ranking, and the combined ranking are one of: very high, high, medium, medium/low, low, and very low. 
     
     
         15 . The method of  claim 1 , wherein data acquired through interviews with industry experts and business owners is acquired through at least one of: instant messaging, emailing, telephoning, faxing, and direct mailing. 
     
     
         16 . The method of  claim 1 , wherein the industry segment is classified using a Standard Industry Classification (SIC) code. 
     
     
         17 . The method of  claim 1 , wherein the first data set is received from at least one of: Dun and Bradstreet, U.S. Census, or Almanac of Business and Industrial Financial Data. 
     
     
         18 . The method of  claim 1 , wherein the second data set comprises proprietary merchant account holder data. 
     
     
         19 . An article of manufacture including a non-transitory, tangible computer readable storage medium having instructions stored thereon that, in response to execution by a computer-based system for determining desired industry segments, cause the computer-based system to perform operations comprising:
 generating, by the computer-based system and to create a combined ranking, a first ranking based on a first data set relating to a group of merchants in an industry segment, a second ranking based upon a second data set relating to a group of merchant account holders in the industry segment, and a third ranking based upon a third data set that validates that a merchant in the group of merchants in the industry segment is interested in increasing charging;   determining, by the computer-based system and based upon the combined ranking, at least one of: that the industry segment is available for an increase in charging by the group of merchant account holders and a potential for new account holders in the industry segment; and   targeting for follow up communications, by the computer-based system and in response to the determining, at least one of: a merchant in the group of merchants in the industry segment and a merchant account holder in the group of merchant account holders in the industry segment.   
     
     
         20 . A system comprising:
 a processor for determining desired industry segments;   a tangible, non-transitory memory configured to communicate with the processor,   the tangible, non-transitory memory having instructions stored thereon that, in response to execution by the processor, cause the processor to perform operations comprising:
 generating, by the processor and to create a combined ranking, a first ranking based on a first data set relating to a group of merchants in an industry segment, a second ranking based upon a second data set relating to a group of merchant account holders in the industry segment, and a third ranking based upon a third data set that validates that a merchant in the group of merchants in the industry segment is interested in increasing charging; 
 determining, by the processor and based upon the combined ranking, at least one of: that the industry segment is available for an increase in charging by the group of merchant account holders and a potential for new account holders in the industry segment; and 
 targeting for follow up communications, by the processor and in response to the determining, at least one of: a merchant in the group of merchants in the industry segment and a merchant account holder in the group of merchant account holders in the industry segment.