Systems and methods for transaction-based profiling of customer behavior

A system for updating a profile of a customer of a business in a batch process, said system comprising:

• one or more processors configured to prepare a transaction data file comprising transaction data for transactions performed by a customer with merchants in a predetermined time period;
• said one or more processors further configured to obtain a profile of said customer, said profile comprising a time-sensitive variable having a numerical value;
• said one or more processors further configured to periodically calculate an updated numerical value based on the numerical value of said time-sensitive variable obtained from said profile, a time function, and said transaction data;
• and
• said one or more processors further configured to assign said updated numerical value to said time-sensitive variable,
• wherein said time function comprises an exponential decay time function defined as:
• x=xe−kδ+y
• wherein x is said time-sensitive variable, k is an aging constant, δ is a time variable based on a last qualifying transaction performed by the customer, and y is an incrementing variable.

A non-transitory computer readable medium encoded with a computer program that includes computer executable instructions for updating a profile of a customer of a business in a batch process, which when executed causes a processing system to perform the steps of:

• preparing a transaction data file comprising transaction data for transactions performed by a customer with merchants in a predetermined time period;
• obtaining a profile of said customer, said profile comprising a time-sensitive variable having a numerical value;
• periodically calculating an updated numerical value based on the numerical value of said time-sensitive variable obtained from said profile, a time function, and said transaction data;
• and
• assigning using a specially programmed processor said updated numerical value to said time-sensitive variable,
• wherein said time function comprises an exponential decay time function defined as:
• x=xe−kδ+y
• wherein x is said time-sensitive variable, k is an aging constant, δ is a time variable based on a last qualifying transaction performed by the customer, and y is an incrementing variable.

A method for transaction-based profiling of a customer, the method comprising:

• preparing a transaction data file comprising transaction data for transactions performed by a customer with merchants in a predetermined time period;
• obtaining a profile of said customer, said profile comprising a time-sensitive variable having a stored value;
• periodically calculating an updated value based on the stored value of said time-sensitive variable obtained from said profile, a time function, and said transaction data;
• assigning using a specially programmed processor said updated value to said time-sensitive variable;
• using said updated value to identify at least one target customer having a predetermined characteristic;
• and
• transmitting a marketing communication to said at least one target customer, wherein the time function comprises an exponential decay function defined as:
• x=xe−kδ+y
• wherein x is said time-sensitive variable, k is an aging constant, δ is a time variable based on a last qualifying transaction performed by the customer, and y is an incrementing variable.