Methods and systems for auctioning of pre-selected customer lists
Methods and systems configured to use models to generate customer lists for auctioning are disclosed. The method includes the steps of prompting a user to select at least one of a plurality of customer profiles, calculating a probability for each customer that the customer will respond to a product offer, grouping customers into distinct lists based upon at least one of the selected profiles and calculated probabilities, and prompting product dealers to bid on the customer lists. The auction is a probabilistic auction and participants have access to depersonalized information on prospective customers as well as probabilities that customers will respond.
1. A method for operating a system for auctioning customer lists to dealers, the system is associated with an entity engaged in a business of providing financing, said method comprising the steps of:
prompting a user to select at least one customer characteristic for each customer included within a plurality of customers;
calculating a probability for each of the plurality of customers representing a likelihood that the corresponding customer will respond positively to a product offer, each probability is calculated based on the selected customer characteristic for the corresponding customer and using at least one of an early termination model, and propensity and timing models, wherein the early termination model identifies prepaying customers within a predetermined period of time before the prepaying customers prepay a loan, and wherein propensity and timing models identify inactive customers who have a propensity to purchase the product offer and the timing of the purchase;
calculating for each customer at least one of an expected income from the customer and the timing of purchase of the product based on the calculated probabilities;
grouping customer profiles into distinct lists based upon at least one of the selected customer characteristic and calculated probabilities;
prompting product dealers to bid on the customer lists; and
providing financing for the product dealers that successfully bid on the customer lists to the customers on the customer lists that purchase the product.
2. A method according to claim 1 wherein said step of prompting product dealers to bid further comprises the step of prompting dealers to bid on a customer-by customer basis.
3. A method according to claim 1 wherein said step of prompting product dealers to bid further comprises the step of prompting dealers to bid on clustered groups of customer profiles.
4. A method according to claim 1 wherein said step of prompting product dealers to bid further comprises the step of prompting dealers to bid based on the calculated probabilities for the customers in the list.
5. A method according to claim 1 wherein said step of grouping customer profiles further comprises the step of using a clustering analysis to group customer profiles based on the selected customer characteristic.
6. A method according to claim 1 wherein said step of grouping customer profiles further comprises the step of identifying potential customers for targeting the product.
7. A method according to claim 6 wherein said step of identifying potential customers for targeting the product further comprises the step of accessing a prospect pool database.
8. A method according to claim 1 wherein said step of calculating the probability for each of the plurality of customers that the corresponding customer will respond positively to the product offer further comprises the step of using the propensity and timing model, and a direct response model to increase customer response and conversion rates by calculating a second probability for each customer of a subset of the plurality of customers representing the likelihood that the corresponding customer will positively respond to the product offer.