Abstract: A method and system is disclosed for enabling the accurate determination of price points (APRs), credit limits, and other discretionary levels for each cardholder that maximize Net Present Value (NPV) for the portfolio, given constraints on quantities such as risk of default. In accordance with one embodiment, the present invention uses a Markov Decision Process (MDP) methodology to generate a simplified transition matrix representative of the potential state transitions for account holders. This model applies account level historical information on purchases, payments, profitability and delinquency risk to make these decisions. In addition, a data structure is disclosed constructed to implement a transition matrix computationally in different sizes.

Abstract: A method and system is disclosed for enabling the accurate determination of price points (APRs), credit limits, and other discretionary levels for each cardholder that maximize Net Present Value (NPV) for the portfolio, given constraints on quantities such as risk of default. In accordance with one embodiment, the present invention uses a Markov Decision Process (MDP) methodology to generate a simplified transition matrix representative of the potential state transitions for account holders. This model applies account level historical information on purchases, payments, profitability and delinquency risk to make these decisions. In addition, a data structure is disclosed constructed to implement a transition matrix computationally in different sizes.

Abstract: The present invention provides for a system and method for identifying optimal marketing offers in a mass marketing campaign. An optimal offer for a particular prospect at a particular time in the multi-wave campaign is determined. In accordance with one embodiment of the present invention, offer information is initially collected for each of the various offers tagged for potential inclusion into a. Each offer is analyzed to determine its eligibility for inclusion in a marketing campaign to a particular household or individual prospect within a household. A systematic evaluation of eligibility applies a plurality of predetermined criteria to each offer on a household level, a prospect level and an offer level. In this manner, offers failing such criteria may be easily removed from inclusion in the campaign. A net present value (NPV) and a net response rate may be calculated for each eligible offer to identify one or more optimal marketing offers.

Abstract: A method for offer management may comprise: providing a plurality of offers for targeting at a plurality of accounts based on a plurality of business rules; prioritizing the plurality of offers; grouping the accounts based on their qualification for each offer in accordance with the business rules; optimizing the business rules based on the prioritization of the offers and the grouping of the accounts, such that each offer is associated with at least a predetermined number of accounts; imposing a volume limit or weight limit for offers assigned to each account; incorporating the offers into communications associated with the plurality of accounts based on the optimized business rules and the volume limit or weight limit; and managing production of the communications based on at least one simulation, wherein the at least one simulation is performed based on data associated with the offers, business rules and the accounts.