Lead Distribution Engine Margin Scoring for Profitability

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Solution Overview

Problem

The lead distribution industry faces complexity due to business interrelationships and contractual agreements, limiting the ability to maximize profitability in lead sales, as suppliers and intermediaries have varying capacities and preferences for purchasing leads.

Innovation Solution

A lead distribution engine that calculates a margin score for each potential destination by comparing revenue and cost scores, prioritizing destinations to maximize profit while adhering to contractual and business requirements, and efficiently routes leads to preferred intermediaries and suppliers.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If leads are distributed based on simple criteria like geographical closeness or gross revenue, then the distribution process is simple and fast, but the ability to identify optimal purchasers conforming to contractual agreements and business requirements is limited

Engineering Contradiction:

Improvelead distribution speedVSAvoidability to conform to contractual agreements

Core Design Contradiction:

ProductivityVSAdaptability or versatility

Solution Approach 1:

The system changes the parameters for lead distribution from simple criteria (geographical closeness, gross revenue) to a comprehensive scoring system that includes multiple factors such as contract compliance, business requirements, lead quality, and destination preferences. This allows the system to maintain speed while achieving complex distribution objectives through weighted parameter evaluation.

Inventive Principle:

Principle #35Parameter changes

Solution Approach 2:

The scoring engine acts as an intermediary between the lead distribution system and the complex contractual requirements. It translates multiple contractual agreements and business requirements into a standardized scoring mechanism that can efficiently evaluate and rank potential destinations, resolving the contradiction between simplicity and adaptability.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Productivity

If the lead distribution system considers multiple business interrelationships and contractual agreements, then the profitability and compliance are maximized, but the system complexity increases

Engineering Contradiction:

ImproveprofitabilityVSAvoidsystem complexity

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The system segments the complex lead distribution problem into separate scoring components: a revenue score component, a cost score component, and a margin score component. Each component evaluates specific aspects of profitability and compliance independently, then combines them through a standardized calculation, reducing overall system complexity while maintaining comprehensive evaluation capabilities.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The system replaces complex manual evaluation of contractual agreements and business interrelationships with an automated scoring engine that uses mathematical calculations. This substitution of mechanical evaluation processes with computational algorithms simplifies the system architecture while maximizing profitability through objective, repeatable scoring.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Measurement precision

If the lead distribution engine calculates margin scores for all potential destinations, then the optimal purchaser is identified, but the processing time and computational resources increase

Engineering Contradiction:

Improveaccuracy of purchaser identificationVSAvoidprocessing time

Core Design Contradiction:

Measurement precisionVSLoss of time

Solution Approach 1:

The system applies partial action by calculating margin scores for destinations based on their relevance to the lead characteristics and contractual requirements, rather than uniformly evaluating all possible destinations. This selective scoring approach maintains high accuracy for identifying optimal purchasers while reducing processing time by focusing computational resources on the most promising candidates.

Inventive Principle:

Principle #16Partial or excessive action

Data Source

PatentUS8326676B2Systems and methods relating to a lead distribution engine that uses margin scores

Publication Date: 2012.12.04 AUTOWEB INC

AI summary

Lead distribution systems and methods distribute consumer business leads received from lead sources for routing to one or more destinations that will use the lead and/or will forward the lead to another destination. The system identifies a set of most profitable destinations for each lead based on a margin score, while complying with business rules associated with the lead source and destinations. Each lead source is associated with at least one cost score, reflective of a monetary cost for the lead and of other business considerations associated with the lead source. Candidate destinations are each associated with a revenue score, reflective of an amount to be paid for a lead and of other business considerations associated with the destination. A margin score for each destination is calculated based on the cost and revenue scores, and the lead is distributed, based at least in part on the calculated margin scores.