METHOD FOR CONSTRUCTING AN UPDATEABLE DATABASE OF SUBJECT BEHAVIOR PATTERNS

A method is provided for maintaining compact descriptions of the behavior of customers in a database of information relating to customer transactions. Of all possible variables that might be used to characterize customer transactions, a limited number are selected on the basis of discriminating power to define customer profiles. Customers are classified according to distinguishing features of their profiles. A new customer can be initially assigned to a particular class based on data characterizing his first few transactions.