Customizing Credit Card Features via Segmentation
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Solution Overview
Problem
Current systems for managing enhancement features on financial presentation devices are inefficient, as they do not allow for customization based on individual customer preferences, leading to customer dissatisfaction and reduced profitability due to universal feature provision and reluctance to switch card types.
Innovation Solution
A system and method for managing enhancement features on an individual financial presentation device basis, using an accounts database and feature management module to customize features for each cardholder, allowing for personalized enhancements and the ability to switch card types without changing the card number.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If enhancement features are provided universally to all cardholders of a specific card type, then all cardholders receive the same set of features regardless of their preferences, but this leads to operating inefficiency and reduced profitability due to providing features that many cardholders are not using
Solution Approach 1:
The patent segments the enhancement features from the card type definition. Instead of defining card types with fixed feature sets, the system separates the card type (identified by BIN) from the enhancement features, allowing individual customization of features for each cardholder while maintaining the same card type identification. This enables precise targeting of features to individual customers rather than universal provision to all cardholders of a type.
Solution Approach 2:
The patent applies local quality by allowing different cardholders to have different enhancement feature sets based on their individual preferences and spending patterns, rather than applying a uniform feature set to all cardholders of a particular card type. The system customizes the feature portfolio for each customer locally, matching features to individual needs and behaviors.
2Adaptability or versatility
If cardholders are required to switch to a new card type to access desired enhancement features, then they can obtain the features they want, but this requires changing the card number which involves significant time and effort and reduces cardholder satisfaction
Solution Approach 1:
The patent extracts the enhancement features from the card type definition and attaches them directly to individual cardholder accounts. This allows cardholders to access desired enhancement features without changing their card number or card type, as the features are independently assigned to their existing card account rather than being bundled with a specific card type.
Solution Approach 2:
The patent introduces dynamic assignment of enhancement features that can be modified without changing the underlying card type or card number. The system allows flexible addition, removal, or modification of enhancement features for individual cardholders while maintaining the same card identification, enabling dynamic customization without operational disruption.
3Loss of energy
If card issuers provide a limited set of basic enhancement features to low-end card types, then costs are reduced, but this leads to customer dissatisfaction and lost revenue as certain cardholders want features that are not associated with their card type
Solution Approach 1:
The patent enables issuers to pre-configure enhancement feature packages for different customer segments or spending patterns, and then automatically assign appropriate features to cardholders based on their behavior. This preliminary setup allows the system to efficiently match features to customers without manual intervention, optimizing both cost and customer satisfaction.
Solution Approach 2:
The patent implements feedback mechanisms that track cardholder spending patterns and usage behavior, using this information to dynamically adjust and optimize enhancement feature assignments. The system learns from customer behavior and automatically refines feature allocation to maximize profitability while ensuring each cardholder receives features relevant to their needs.
Data Source
AI summary
A system for managing enhancement features assigned to financial presentation devices such as credit cards. The system includes an accounts database and a feature management module. The accounts database stores account holder data containing assigned enhancement features for associated credit cards. The feature management module is capable of updating and managing the assigned features of an individual credit card independently of other cards so as to provide enhancement features that can be customized for each individual cardholder.