U.S. patent application number 11/099287 was filed with the patent office on 2005-08-04 for method and apparatus for generating a coupon.
Invention is credited to Alderucci, Dean, Van Luchene, Andrew S., Walker, Jay S..
Application Number | 20050171848 11/099287 |
Document ID | / |
Family ID | 34381843 |
Filed Date | 2005-08-04 |
United States Patent
Application |
20050171848 |
Kind Code |
A1 |
Walker, Jay S. ; et
al. |
August 4, 2005 |
Method and apparatus for generating a coupon
Abstract
A POS terminal generates a purchase price of a purchase, and
generates a rounded price. The rounded price may be, for example,
the lowest whole number greater than the purchase price. The POS
terminal then calculates a round-up amount (change due the
customer) as the difference between the purchase price and the
rounded price. The coupon value is set based on the round-up
amount. For example, the coupon may be redeemable for triple the
amount of change due. The POS terminal prints on the coupon an
identifier, such as a bar code, that is based on the coupon value.
The bar code allows the coupon to be read by a POS terminal when
the coupon is redeemed.
Inventors: |
Walker, Jay S.; (Ridgefield,
CT) ; Van Luchene, Andrew S.; (Norwalk, CT) ;
Alderucci, Dean; (Ridgefield, CT) |
Correspondence
Address: |
WALKER DIGITAL
FIVE HIGH RIDGE PARK
STAMFORD
CT
06905
US
|
Family ID: |
34381843 |
Appl. No.: |
11/099287 |
Filed: |
April 5, 2005 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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11099287 |
Apr 5, 2005 |
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09643668 |
Aug 18, 2000 |
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6876978 |
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09643668 |
Aug 18, 2000 |
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09076409 |
May 12, 1998 |
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6298329 |
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09076409 |
May 12, 1998 |
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08920116 |
Aug 26, 1997 |
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6119099 |
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08920116 |
Aug 26, 1997 |
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08822709 |
Mar 21, 1997 |
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6267670 |
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Current U.S.
Class: |
705/14.38 |
Current CPC
Class: |
G07G 1/0036 20130101;
G06Q 20/387 20130101; G07F 5/24 20130101; G07F 17/32 20130101; G07G
1/12 20130101; G06Q 30/06 20130101; G07C 15/005 20130101; G06Q
30/0601 20130101; G06Q 20/12 20130101; G07F 17/3248 20130101; G06Q
30/02 20130101; G07F 9/02 20130101; G07F 17/3255 20130101; G06Q
10/087 20130101; G06Q 30/0236 20130101; G06Q 30/0238 20130101; G06Q
20/00 20130101; G06Q 30/0207 20130101; G07G 5/00 20130101 |
Class at
Publication: |
705/014 |
International
Class: |
G06F 017/60 |
Claims
1. A method for determining an upsell of a purchase at a
point-of-sale terminal, comprising: generating a purchase price of
the purchase; generating a rounded price; calculating a round-up
amount, the round-up amount being a difference between the purchase
price and the rounded price; determining an upsell in dependence on
the round-up amount; and outputting a signal indicative of the
upsell.
2-59. (canceled)
Description
[0001] The present application is a continuation-in-part
application of co-pending patent application Ser. No. 08/920,116,
entitled METHOD AND SYSTEM FOR PROCESSING SUPPLEMENTARY PRODUCT
SALES AT A POINT-OF-SALE TERMINAL, filed on Aug. 26, 1997, which is
a continuation-in-part of co-pending patent application Ser. No.
08/822,709, entitled SYSTEM AND METHOD FOR PERFORMING LOTTERY
TICKET TRANSACTIONS UTILIZING POINT-OF-SALE TERMINALS, filed on
Mar. 21, 1997.
FIELD OF THE INVENTION
[0002] The present invention relates to methods and apparatus for
generating coupons.
BACKGROUND OF THE INVENTION
[0003] Point-of-sale ("POS") terminals, such as cash registers, are
used in a wide variety of businesses for performing such processes
as calculating the total price of a purchase (goods or services)
and calculating the amount of change due to a customer. In
addition, POS terminals may also be used to read and process
coupons used by a customer. Some POS terminals are further able to
print coupons for customers.
[0004] Businesses typically offer coupons to customers in an
attempt to promote many objectives. One such objective is to entice
customers to visit the business. Coupons may further entice
customers to visit the business more frequently. For example, a
coupon may have an expiration date, and so the customer must use
the coupon before that date or not at all. Businesses may also
promote certain items by offering coupons which provide a discount
only when those items are included in a purchase.
[0005] Offering higher-value coupons to customers typically allows
a business to more effectively promote their objectives, such as
customer retention. However, the redemption of higher-value coupons
typically reduces the profit gained by the business.
[0006] It would be advantageous to provide a method and apparatus
for generating coupons that allowed a business to more effectively
promote its various objectives.
SUMMARY OF THE INVENTION
[0007] It is an object of the present invention to provide a method
and apparatus for generating coupons that allowed a business to
more effectively promote its various objectives.
[0008] In accordance with the present invention, a POS terminal
generates a purchase price of a purchase, and generates a rounded
price. The rounded price may be, for example, the lowest whole
number greater than the purchase price. The POS terminal then
calculates a round-up amount (change due the customer) as the
difference between the purchase price and the rounded price. The
coupon value is set based on the round-up amount. For example, the
coupon may be redeemable for triple the amount of change due. The
POS terminal prints on the coupon an identifier, such as a bar
code, that is based on the coupon value. The bar code allows the
coupon to be read by a POS terminal when the coupon is
redeemed.
BRIEF DESCRIPTION OF THE DRAWINGS
[0009] FIG. 1 is a schematic illustration of a POS terminal
provided in accordance with the present invention.
[0010] FIG. 2 is a schematic illustration of another embodiment of
a POS terminal.
[0011] FIG. 3 is a schematic illustration of a network of POS
terminals.
[0012] FIG. 4 is a flow chart illustrating a method for determining
an amount of change due.
[0013] FIG. 5 is a schematic illustration of a rounding multiple
database of the POS terminal of FIG. 1.
[0014] FIG. 6 is a schematic illustration of another embodiment of
the rounding multiple database of the POS terminal of FIG. 1.
[0015] FIG. 7 is a flow chart illustrating a method for generating
a coupon.
[0016] FIG. 8 is a schematic illustration of a transaction database
of the POS terminal of FIG. 1.
[0017] FIG. 9 is a schematic illustration of another embodiment of
the transaction database of FIG. 8.
[0018] FIG. 10 is a flow chart illustrating another method for
generating a coupon.
[0019] FIG. 11 is a flow chart illustrating a method for generating
a coupon having a validity period.
[0020] FIG. 12 is a flow chart illustrating another method for
generating a coupon having a validity period.
[0021] FIG. 13 is a flow chart illustrating a method for generating
a coupon having a required item.
[0022] FIG. 14 is a flow chart illustrating another method for
generating a coupon having a required item.
[0023] FIG. 15 is a schematic illustration of a coupon.
[0024] FIG. 16 is a schematic illustration of a coupon database of
the POS terminal of FIG. 1.
[0025] FIG. 17 is a schematic illustration of another coupon.
[0026] FIG. 18 is a schematic illustration of a sequence of digits
printed on a coupon.
[0027] FIG. 19 is an encoding scheme database of the POS terminal
of FIG. 1.
[0028] FIG. 20 is a flow chart illustrating another method for
generating a coupon.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
[0029] As described in the above-cited parent application of the
present application, patent application Ser. No. 08/920,116,
entitled METHOD AND SYSTEM FOR PROCESSING SUPPLEMENTARY PRODUCT
SALES AT A POINT-OF-SALE TERMINAL, filed on Aug. 26, 1997, a
customer at a POS terminal may be offered an "upsell" in exchange
for an amount of change he is due. The POS terminal determines an
upsell in dependence on a purchase of the customer, and can also
determine an upsell price to be the amount of change due that
customer. Accordingly, the upsell price is based on the purchase.
For example, a customer purchasing a first item for $1.74 and
tendering $2.00 may be offered a second item in exchange for the
$0.26 change due. The upsell price, $0.26, thus depends on the
purchase price $1.74.
[0030] As also described in the above-cited parent application, one
type of upsell that may be offered for change due is a voucher
which is redeemable for a product or a discount thereon
(hereinafter a "coupon"). The coupon may have a value to a customer
which is greater than the value of the change exchanged therefor.
By providing coupons for change in accordance with the present
invention, a business can reduce the time between visits by
customers and increase customer satisfaction, thereby increasing
sales.
[0031] The description below is arranged into the following
sections: Rounding a Purchase Price, Determining a Coupon Value,
Setting a Coupon Feature, and Printing a Coupon.
Rounding a Purchase Price
[0032] Referring to FIG. 1, a POS terminal 10, which may be the IBM
4683 or IBM 4693 manufactured by International Business Machines,
comprises a processor 12, such as one or more conventional
microprocessors. The processor 12 is in communication with a data
storage device 14, such as an appropriate combination of magnetic,
optical and/or semiconductor memory. The processor 12 and the
storage device 14 may each be (i) located entirely within a single
computer or other computing device; (ii) connected to each other by
a remote communication medium, such as a serial port cable,
telephone line or radio frequency transceiver; or (iii) a
combination thereof. For example, the POS terminal 10 may comprise
one or more computers that are connected to a remote server
computer for maintaining databases.
[0033] An input device 16 comprises a keypad for transmitting input
signals, such as signals indicative of a purchase, to the processor
12. The input device may also comprise a bar code scanner for
reading bar codes, such as those printed on packaging, coupons and
receipts. The input device may further comprise a card reader, such
as those for reading credit cards and frequent shopper cards. A
printer 18 registers indicia on paper or other material, thereby
printing receipts and coupons as commanded by the processor 12. A
display device 20 is preferably a video monitor for displaying at
least alphanumeric characters to the customer and/or cashier. Many
types of input devices, printers and display devices are known to
those skilled in the art, and need not be described in detail
herein. The input device 16, printer 18 and display device 20 are
each in communication with the processor 12.
[0034] The storage device 14 stores a program 22 for controlling
the processor 12. The processor 12 performs instructions of the
program 22, and thereby operates in accordance with the present
invention, and particularly in accordance with the methods
described in detail herein. The program 22 furthermore includes
program elements that may be necessary, such as an operating system
and "device drivers" for allowing the processor 12 to interface
with computer peripheral devices, such as the input device 16, the
printer 18 and the display device 20. Appropriate device drivers
and other necessary program elements are known to those skilled in
the art, and need not be described in detail herein.
[0035] The storage device 14 also stores (i) a rounding multiple
database 23; (ii) a transaction database 26; (iii) a coupon
database 28; and (iv) an encoding scheme database 32. The databases
23, 26, 28 and 32 are described in detail below and depicted with
exemplary entries in the accompanying figures. As will be
understood by those skilled in the art, the schematic illustrations
and accompanying descriptions of the databases presented herein are
exemplary arrangements for stored representations of information. A
number of other arrangements may be employed besides the tables
shown. Similarly, the illustrated entries represent exemplary
information, but those skilled in the art will understand that the
number and content of the entries can be different from those
illustrated herein.
[0036] FIG. 2 illustrates another embodiment of the POS terminal
10, in which a control device 50 is in communication via a
communication medium 52 with a system 54 for providing an offer.
The control device 50 comprises a processor 56 in communication
with the input device 16 and the display device 20. The system 54
for providing an offer comprises a processor 58 in communication
with the storage device 14 and the printer 18. In this embodiment,
the control device 50' may be a cash register, and the system 54
may be an electronic device for printing coupons in accordance with
data received from the cash register. Other configurations of the
POS terminal 10 will be understood by those skilled in the art.
[0037] Referring to FIG. 3, a network 70 includes a server 72 in
communication with POS terminals 74, 76 and 78. The server 72
directs the operation of, stores data from, and transmits data to
the POS terminals 74, 76 and 78. The server 72 may itself be a POS
terminal, as described above, or may be another computing device
that can communicate with one or more POS terminals. Although three
POS terminals are shown in FIG. 3, any number of POS terminals may
be in communication with the server 72 without departing from the
spirit and scope of the present invention. Each of the POS
terminals 74, 76 and 78 may be located in the same store, in
different stores of a chain of stores, or in other locations. The
server 72 may perform many of the processes described below,
especially those processes that are performed for more than one POS
terminal. The server 72 may furthermore store data such as the
transaction database 26.
[0038] Referring to FIG. 4, a method 100 is performed by a POS
terminal in determining an amount of change due. A purchase price
of a purchase is generated (step 102). The step 102 of generating a
purchase price may comprise, for example, (i) pressing keys on the
input device 14 (FIG. 1a) which each correspond to a product; (ii)
pressing numeric keys on the input device 14 which correspond to
the digits of the purchase price; (iii) reading a bar code that
indicates a price of one or more items included in a purchase; or
(iv) receiving digital signals indicative of a purchase price from
a remote computing device.
[0039] The POS terminal then generates a "rounded" price (step
104), and calculates a round-up amount (step 106) equal to the
difference between the purchase price and the rounded price. The
rounded price may be generated in many ways, as described in more
detail below.
[0040] The rounded price may be based on the purchase price. For
example, the rounded price may be the smallest whole number dollar
amount that is greater than the purchase price, the smallest
multiple of five dollars amount that is greater than the purchase
price, or the amount of money tendered by the customer to pay for
the purchase price, which may or may not be a whole number amount
of dollars. When the rounded price is a whole number, the customer
can easily tender bills and in turn receive, at his discretion,
either (i) no change, or (ii) change which consists solely of
bills, not coins. When the rounded price is a multiple of
large-denomination coins, such as nickels, dimes, quarters or half
dollars, the customer can receive change that consists solely of
coins the customer desires, such as quarters.
[0041] In another embodiment, the POS terminal determines a
rounding multiple that corresponds to the purchase price. The
purchase price is then rounded in accordance with the rounding
multiple to generate the rounded price. For example, referring to
FIG. 5, the rounding multiple database 23 of FIG. 1 includes
entries 122, 124, 126 and 128, each defining a rounding multiple
for a range of purchase prices. Each entry (also called a "record")
includes a range of purchase prices 130 and a rounding multiple
132.
[0042] The rounding multiple database 23 may be used to determine a
rounding multiple and thus a rounded price. For example, if a
purchase price is $8.27, the entry 124 (which indicates a range of
purchase prices that includes $8.27) corresponds to that purchase
price. The entry 124 also indicates a rounding multiple $5, and
thus the rounding multiple $5 corresponds to the purchase price
$8.27. The purchase price $8.27 is rounded in accordance with the
rounding multiple $5, thereby generating a rounded price of $10.
Accordingly, the round-up amount is $1.73 ($10-$8.27=$1.73).
[0043] The rounded price may also be based on items included in the
purchase. In one embodiment, generating the rounded price comprises
determining whether a predetermined item is included in the
purchase. Typically, the predetermined item is selected to be a
high-value good, so that inclusion of the predetermined item
indicates a willingness to pay a higher rounded price. The rounded
price could then be set greater if the predetermined item was
included.
[0044] For example, the POS terminal may determine whether the
purchase includes a swordfish steak. If so, the rounded price is
set greater than it would otherwise be set. Thus, the rounded price
is set to a first value (e.g. $15) if the purchase does not include
a predetermined item, and is set to a second (greater) value (e.g.
$20) otherwise. The first value and the second value are based on
the purchase price. For example, the first value may be the
purchase price rounded to a first rounding multiple (e.g. $5), and
the second value may be the purchase price rounded to a second
(higher) rounding multiple (e.g. $10). In such an embodiment, the
rounding multiple could be determined based on whether the purchase
includes a predetermined item.
[0045] Referring to FIG. 6, another embodiment 138 of the rounding
multiple database includes an entry 140 defining rounding multiples
to use based on whether a predetermined item is included or is not
included in the purchase. The entry 140 includes (i) an indication
142 of the item; (ii) a rounding multiple 144 to use if the item is
included; and (iii) a rounding multiple 146 to use if the item is
not included. For example, if the purchase price is $26.83, and the
purchase includes a swordfish steak, then the rounding multiple $10
is used. The purchase price is rounded in accordance with the
rounding multiple to generate a rounded price $30. Conversely, if
the purchase does not include a swordfish steak, then the rounding
multiple $1 is used, and the purchase price would be rounded to
generate a rounded price $27.
[0046] Similarly, generating the rounded price can comprise
determining whether a premium item is included in the purchase. A
premium item is an item that indicates a willingness to pay a
higher rounded price. A premium item may be any of a set of
predetermined items, such as high-margin items. Alternatively,
premium items may be goods which are determined to have a high
margin or a high price compared with available substitutes. As
described above, the rounded price, or a rounding multiple, can be
based on inclusion of such premium items in the purchase.
[0047] In certain situations, rounding a purchase price in
accordance with different rounding multiples will yield the same
rounded price. For example, rounding the purchase price $29.03 to
the nearest $1 or to the nearest $10 will yield the same rounded
price ($30). In such a situation, it may be desirable to increase
the rounded price when the rounding multiple $10 is used, so that
the resulting rounded price is assured to be greater than when the
rounding multiple is $1. For example, referring to Table 1 below,
an "increase" may be applied to guarantee that the rounded price is
greater when the rounding multiple is greater.
1TABLE 1 First Rounding Example Purchase Price Rounding Multiple
Increase Rounded Price $29.03 $1 $0 $30 $29.03 $10 $2 $32
[0048] The increase may be established so that the round-up amount
is within a predetermined range. For example, if a business desires
to exchange a predetermined item in exchange for at least $0.85,
the increase may be established at $1.00 so that a round-up amount
is always greater than $0.85. The rounded price may be generated in
other ways that are based on the price of the predetermined item
thereby allowing the predetermined item to be exchanged for change
due.
[0049] In still another embodiment, the rounded price may be
generated based on the highest-priced item in the purchase. The
maximum price of all the prices would indicate a willingness to pay
a higher rounded price. For example, referring to Table 2 below, a
rounding multiple may be determined from the highest price item.
The purchase price is then rounded in accordance with the rounding
multiple to generate a rounded price, as described above.
2TABLE 2 Second Rounding Example Highest Priced Item Rounding
Multiple <$5 $1 $5-$9.99 $2 $10-$14.99 $5 $15 or more $10
[0050] Once the round-up amount is determined, an upsell to offer
in exchange for the round-up amount is determined as well. The
upsell is offered to the customer, and, if accepted, the upsell is
exchanged for the change due. If the offer is accepted, an
indication of such acceptance can be stored for later use. For
example, based on historic acceptances of particular offers,
different upsells may be offered.
Determining a Coupon Value
[0051] Referring to FIG. 7, a method 160 is performed by a POS
terminal in generating a coupon. As described above, the POS
terminal generates a purchase price and a rounded price (steps 162
and 164), and in turn calculates a round-up amount (step 166). The
POS terminal then sets a coupon value based on the round-up amount
(step 168). Next, the POS terminal prints on the coupon an
identifier that is based on the coupon value (step 170), as is
discussed in further detail below.
[0052] The coupon value can be expressed as a (typically reduced)
price for an item or the purchase, or a reduction in the price of
an item or the purchase. The reduction may be expressed in many
ways, such as a percentage discount or a fixed amount that is to be
subtracted from the price.
[0053] The coupon value is typically based on the round-up amount,
and may in particular be based on a predetermined multiple of the
round-up amount. For example, the coupon value may be set to three
times the round-up amount. In such an embodiment, a customer can be
offered a coupon worth $0.99 for his $0.33 change due.
[0054] The POS terminal may furthermore set the coupon value based
on the round-up amount and a condition. Several conditions may be
used, and selection of desirable conditions will typically be
dictated by various business goals.
[0055] One condition is whether the customer uses a coupon in
paying for the current purchase. In such an embodiment, the POS
terminal provides a greater-value coupon to customers that are less
likely to redeem coupons (i.e. customers that do not redeem a
coupon in the current transaction). Customers that are less likely
to redeem coupons will typically require a greater value coupon in
exchange for their change due. Accordingly, the POS terminal
determines whether the purchase includes coupon redemption. For
example, coupons may be scanned by a bar code scanner and thus read
by the POS terminal to indicate coupon redemption. Alternatively,
various buttons on the input device 16 (FIG. 1) may be actuated to
indicate coupon redemption.
[0056] If the purchase includes coupon redemption, the coupon value
is set to a first value. If the purchase does not include coupon
redemption, the coupon value is set to a second value greater than
the first value. Both the first value and the second value are
based on the round-up amount. For example, a customer that redeems
a coupon in his purchase may be provided with a coupon worth twice
his change, while a customer that does not redeem a coupon in his
purchase may be provided with a coupon worth triple his change.
[0057] Another condition is previous coupon redemption by the
customer. As described above, the POS terminal provides a
greater-value coupon to customers that are less likely to redeem
coupons (i.e. customers that historically have not redeemed coupons
much or at all). In such an embodiment, the POS terminal receives a
customer identifier, such as a frequent shopper number, that
uniquely identifies the customer. Based on the customer identifier,
the customer's historical coupon redemption is measured. The
historical coupon redemption may be, for example, the number of
coupons redeemed or the ratio of coupons redeemed to number of
purchases.
[0058] Referring to FIG. 8, the transaction database 26 (FIG. 1)
includes entries 200, 202, 204 and 206, each defining transactions
(purchases) made by a customer. Each entry includes (i) a customer
identifier 208 that uniquely identifies a customer; (ii) a number
of purchases 210 that the customer has made; (iii) a number of
coupons redeemed 212; and (iv) an average number of coupons
redeemed per purchase 214, which is the ratio of the number of
coupons redeemed 212 to the number of purchases 210. As desired,
further information may be stored for each entry, such as items
purchased in each transaction and dates of transactions.
[0059] When a customer initiates a transaction using a frequent
shopper card, the POS terminal receives the customer identifier
from a card reader or similar device. The POS terminal may then
update the corresponding entry of the transaction database 26, for
example, by increasing the number of purchases and number of
coupons redeemed accordingly. When generating a coupon, the POS
terminal likewise determines the coupon redemption that is based on
the customer identifier, and sets the coupon value based on the
coupon redemption. The coupon redemption may be explicitly stored
in the transaction database 26, or may be calculated from data
stored therein.
[0060] Referring to Table 3, there is shown an exemplary set of
coupon values for various ranges of coupon redemption. Such
information on coupon values may be stored in the storage device 14
(FIG. 1). In this embodiment, coupon redemption is expressed as the
average number of coupons redeemed per purchase.
3TABLE 3 Coupon Value Based on Coupon Redemption Coupon Redemption
Coupon Value 0-0.25 Quadruple the Change Due 0.26-0.5 Triple the
Change Due 0.51-1.0 Double the Change Due >1.0 Change Due
[0061] For example, referring again to FIG. 8, the entry 204
defines an average number of coupons redeemed per purchase of 0.36.
Table 3 in turn indicates that a coupon redemption of 0.36
corresponds to coupon value that is triple the change due.
Accordingly, in this situation the amount of change due is
multiplied by three to generate the coupon value. To many
customers, such a "triple-change" coupon is more attractive than
simply receiving the change due. Such customers are more likely to
accept an offer for the coupon.
[0062] In addition, it can be further advantageous to provide a
greater coupon value to customers periodically. For example, the
coupon value of the coupon offered to the customer may be increased
on every tenth transaction, or on every tenth coupon redeemed.
Accordingly, in some embodiments the coupon value is increased if
the number of transactions or number of coupons redeemed
corresponds to a multiple of a predetermined number (e.g. a
multiple of ten).
[0063] Another condition is the payment type used in paying for the
current purchase. The POS terminal can determine a payment type and
set the coupon value based on the payment type. The payment type
may be, for example, a credit card, a debit card, currency (coins
and bills) or a check. The POS terminal can determine the payment
type by actuation of keys provided in the input device 16 (FIG. 1)
or from various devices such as card readers.
[0064] It is particularly advantageous to provide a greater-value
coupon to customers that use a payment type other than currency
(e.g. credit card or check). Such customers are able to pay exact
amounts and thus do not have to receive any change. Accordingly,
customers that use a payment type other than currency should be
provided with more of an advantage to pay a rounded amount and
accept a coupon in return for change due. The POS terminal can
determine whether the payment type is currency and, if so, set the
coupon value to a first (lower) value. Otherwise, the coupon value
is set to a second (higher) value.
[0065] Another condition is whether the customer uses a frequent
shopper card in the current transaction. It is particularly
advantageous to provide a greater-value coupon to customers that
use a frequent shopper card, since customers then have an incentive
to register for the frequent shopper program. The business in turn
benefits since the transactions of registered customers can be
readily tracked. The POS terminal can determine whether a frequent
shopper card is used by actuation of keys provided in the input
device 16 (FIG. 1) or from various devices such as card readers.
Use of a frequent shopper card causes the POS terminal to receive a
frequent shopper identifier (e.g. a frequent shopper number). If a
frequent shopper identifier is received, the coupon value is set to
a higher value. Otherwise, the coupon value is set to a lower
value.
[0066] Another condition is the acceptance rate of offers for
upsells. It is particularly advantageous to provide a greater-value
coupon to customers that have historically not accepted the offer
for a coupon in exchange for their spare change. Such customers
typically require an enhanced incentive to accept such offers. The
POS terminal can receive a customer identifier from various devices
such as card readers that read frequent shopper cards. The POS
terminal then determines an acceptance rate based on the customer
identifier, and sets the coupon value based on the acceptance
rate.
[0067] For example, referring to FIG. 9, another embodiment 230 of
the transaction database 26 (FIG. 1) includes entries 232, 234 and
236, each defining acceptances by a customer. Each entry includes
(i) a customer identifier 238 that uniquely identifies a customer;
(ii) a number of purchases 240 that the customer has made; (iii) a
number of accepted upsell offers 242; and (iv) an acceptance rate
244. As desired, further information may be stored for each
entry.
[0068] When a customer initiates a transaction using a frequent
shopper card, the POS terminal receives the customer identifier
from a card reader or similar device. The POS terminal may then
update the corresponding entry of the transaction database, for
example, by increasing the number of purchases and number of
accepted upsell offers accordingly. When generating a coupon, the
POS terminal likewise determines the historical acceptance rate
that is based on the customer identifier, and sets the coupon value
based on that acceptance rate. The acceptance rate may be
explicitly stored in the transaction database, or may be calculated
from data stored therein.
[0069] Referring to Table 4, there is shown an exemplary set of
coupon values for various ranges of acceptance rates. In this
embodiment, acceptance rate is expressed as the average number of
acceptances per purchase.
4TABLE 4 Coupon Value Based On Acceptance Rate Acceptance Rate
Coupon Value 0-0.25 Triple the Change Due 0.26-0.5 Double the
Change Due 0.51-1.0 Change Due
[0070] For example, referring again to FIG. 9, the entry 232
defines an acceptance rate of 0.43 for a customer identified by
"1234567". Table 4 in turn indicates that the acceptance rate of
0.43 corresponds to coupon value that is double the change due.
Accordingly, in this situation the amount of change due to customer
"1234567" is multiplied by two to generate the coupon value. To
many customers, such a "double-change" coupon is more attractive
than simply receiving the change due.
Setting a Coupon Feature
[0071] As described above, the POS terminal prints on the coupon an
identifier that is based on the coupon value. In other embodiments,
the identifier can be based on both the coupon value and a coupon
feature. Such an embodiment allows more than just the value of the
coupon to be set by the POS terminal. Accordingly, coupons can be
better customized to promote business objectives.
[0072] Referring to FIG. 10, a method 250 is performed by a POS
terminal in generating a coupon. As described above, the POS
terminal generates a purchase price and a rounded price (steps 252
and 254), and in turn calculates a round-up amount (step 256). The
POS terminal then sets a coupon value based on the round-up amount
(step 258), and sets a coupon feature based on a condition (step
260). The POS terminal then prints on the coupon an identifier
based on the coupon value and the coupon feature (step 262).
[0073] A coupon feature is an aspect of the coupon that may assume
one of a plurality of values. In the present invention, the POS
terminal can set the coupon feature in accordance with various
goals. Two types of coupon features that are discussed in detail
herein are a validity period and a required item. Other coupon
features will be understood by those skilled in the art.
[0074] A validity period of a coupon is a period during which the
coupon may be redeemed. For example, the validity period may be
defined by an expiration date, which defines the end of the
validity period. A validity period may be predetermined times of
the day, such as from 1:30 PM to 4:00 PM every weekday until Jan.
30, 1999.
[0075] In one embodiment, the validity period depends on the time
since the last transaction of the customer. In such an embodiment,
the POS terminal may set the validity period in order to prompt
customers to return to the store sooner than they otherwise would
have.
[0076] Referring to FIG. 11, a method 280 is performed by a POS
terminal in generating a coupon having a validity period. The POS
terminal determines a time of a previous transaction (step 282).
For example, if the customer uses a frequent shopper card in the
current transaction, the POS terminal may determine the date that
the same frequent shopper identifier (customer identifier) was last
used in a transaction. The POS terminal can then determine the time
interval since the previous transaction (step 284), for example, by
calculating the number of days between the previous transaction and
the current transaction. Then, the validity period of the coupon
may be set based on the time interval since the previous
transaction (step 286). For example, the validity period may be set
to be shorter than the time interval since the previous transaction
(e.g. one day shorter than that time interval).
[0077] In another embodiment, the validity period depends on the
current time. In such an embodiment, the POS terminal may also set
the validity period to prompt customers to return to the store
sooner than they otherwise would have.
[0078] Referring to FIG. 12, another method 300 is performed by a
POS terminal in generating a coupon having a validity period. The
POS terminal determines a current time (step 302). The current time
may be expressed, for example, as the date, the day of the week, a
time of day, or whether it is a weekday or weekend. The POS
terminal then determines an interval that corresponds to the
current time (step 304). For example, if the current time is
expressed as "weekend" (as opposed to "weekday"), then the
corresponding interval may be the following weekend.
[0079] Once the interval is determined, the validity period of the
coupon is set to exclude the interval. For example, if the interval
is the range from Saturday, Dec. 18, 1999 to Sunday, Dec. 19, 1999,
a validity period that excludes that interval is the date range
from Monday, Dec. 20, 1999 to Friday, Dec. 24, 1999. As another
example, if the current time is 12:30 PM, then a corresponding
interval is the range from 11:30 AM to 1:30 PM. A validity period
that excludes this interval is "any weekday after 1:30".
[0080] A required item of a coupon is a coupon feature that
indicates an item that must be purchased in order to redeem the
coupon. For example, if a coupon is for "30% discount on a can of
Acme corn", the required item is Acme corn, and the coupon value is
a 30% reduction in the price of Acme corn.
[0081] In one embodiment, the required item is based on the
historical coupon redemption of the customer. Customers that do not
redeem many coupons are typically less likely to accept an offer
for a coupon. Accordingly, such customers should be offered
higher-value coupons than those customers that have greater coupon
redemption. Thus, customers that have greater coupon redemption are
offered a (relatively) lower-value coupon, such as a coupon for
higher priced items, for higher margin items or for items the
customer does not often purchase.
[0082] Referring to FIG. 13, a method 320 is performed by a POS
terminal in generating a coupon having a required item. The POS
terminal receives a customer identifier (step 322), such as a
frequent shopper identifier that is read from a frequent shopper
card. The POS terminal in turn determines the coupon redemption
based on the customer identifier (step 324). Determining coupon
redemption has been described above with reference to FIG. 8 and
Table 3. The required item of the coupon is set based on the coupon
redemption (step 326).
[0083] The step 326 can comprise setting the required item to be a
predetermined item if the coupon redemption is greater than a
predetermined threshold. For example, if a customer redeems coupons
on every transaction (e.g., coupon redemption >0.9), it can be
desirable to offer him a coupon for a high margin item, or some
other predetermined item.
[0084] Referring to FIG. 14, another method 340 is performed by a
POS terminal in generating a coupon having a required item. The POS
terminal receives a customer identifier (step 342), such as a
frequent shopper identifier that is read from a frequent shopper
card. The POS terminal then determines the coupon redemption based
on the customer identifier (step 344). Determining coupon
redemption has been described above with reference to FIG. 8 and
Table 3. The POS terminal also determines an "infrequent item"
based on the customer identifier (step 346). An infrequent item is
an item the customer has not previously purchased much or at all.
As described above, the items previously purchased by a customer
may be stored in the transaction database 26 (FIG. 1), and so
infrequent items may be determined from the transaction database
26. An infrequent item may furthermore be an item the customer is
unlikely to desire, as determined by past purchases of the
customer. For example, if a customer's purchases have never
included any pet food or pet supplies, it is unlikely that customer
will desire an item such as a box of cat food.
[0085] If the coupon redemption is greater than a predetermined
threshold (step 348), then the required item of the coupon is set
to be the infrequent item (step 350). The predetermined threshold
may be established to discriminate between customers that are
likely to redeem coupons and those that are not.
Printing a Coupon
[0086] Once the coupon value and any appropriate coupon parameters
are set, the POS terminal prints on a coupon an identifier that is
based on the coupon value (and coupon parameters, if any). In one
embodiment, the identifier comprises a bar code that may be read by
bar code scanners in a known manner. The bar code may be of the
one-dimensional or two-dimensional type, as will be apparent to
those skilled in the art.
[0087] As is known in the art, a bar code codifies information,
typically a sequence of digits. Accordingly, a bar code can
represent one or more values, especially numeric values. In one
embodiment of the present invention, the bar code indicates a
record that stores a coupon value or a coupon feature. In other
embodiments, the bar code itself encodes information such as a
coupon value or a coupon feature.
[0088] Referring to FIG. 15, a coupon 370 includes a bar code 372,
text 374 describing the coupon value (5% discount on the purchase
price), and text 376 describing the validity period. The bar code
372 represents a sequence of digits, and the sequence is described
by text 378. The sequence of digits in the illustrated example is
"105789231", which in this embodiment indicates a record that
stores coupon information.
[0089] Referring to FIG. 16, the coupon database 28 (FIG. 1)
includes entries 390, 392 and 394, each defining a coupon. Each
entry includes (i) a coupon identifier 396 that uniquely identifies
the coupon, and that corresponds to a bar code printed on the
coupon; (ii) a coupon value 398; (iii) a validity period 400; and
(iv) a required item 402. As described above, a coupon may or may
not include a validity period and a required item. For example, the
entry 392 indicates neither a validity period nor a required
item.
[0090] Each entry of the coupon database 28 may correspond to a
single physical coupon. Alternatively, each entry may correspond to
many identical physical coupons. For example, the entry 394 may
correspond to one hundred coupons that each may be redeemed for a
$0.50 package of Acme tortellini. Each of these coupons would have
a bar code that indicated the entry 394, and it can be desirable to
also store an indication of the coupons redeemed.
[0091] In the above-described embodiment, the bar code printed on
the coupon merely indicates where coupon information is stored. The
bar code serves to identify information stored in an entry, so that
the corresponding entry is determinable from the bar code. In other
embodiments, the bar code encodes coupon information.
[0092] Referring to FIG. 17, a coupon 410 includes a bar code 412,
text 414 describing the coupon value (5% discount on the purchase
price), and text 416 describing the validity period. The bar code
412 represents a sequence of digits, and the sequence is described
by text 418. The sequence of digits in the illustrated example is
"881000599", and in this embodiment the sequence encodes coupon
information. Thus, the coupon information is directly stored on the
coupon, which can be more efficient in certain situations. For
example, if the coupon itself stores required information, the
coupon may be read by any machine that is able to interpret the
encoding scheme used in creating the bar code. Thus, stores would
not need to be in communication with a central database that stores
the coupon information, and consequently a large variety of
unrelated businesses would be able to read and redeem the
coupon.
[0093] Referring to FIG. 18, the sequence of digits "881000599"
printed on the coupon 410 (FIG. 17) is illustrated in further
detail and indicated by reference numeral 440. The sequence of
digits 440 can represent one or more values, and the representation
described by FIG. 18 is but one example. A portion 442 of the
sequence of digits 440 indicates the encoding scheme, which is
described in more detail below. A portion 444 of the sequence of
digits 440 indicates the percentage discount that is to be applied
to the purchase price. Thus, the portion 444 defines the coupon
value. A portion 446 comprises unused digits in the indicated
encoding scheme.
[0094] Referring to FIG. 19, the encoding scheme database 32
includes entries 462, 464 and 466. Each entry defines how different
information is indicated by the different digits of the bar code.
Each entry includes (i) an encoding scheme identifier 468 that
uniquely identifies the encoding scheme; and (ii) a description 470
of the corresponding encoding scheme. In the illustrated
embodiment, the encoding scheme identifier is the first three
digits of the bar code. For example, referring again to FIG. 19,
the portion 442 indicates an encoding scheme "881". As shown by the
entry 464, in the encoding scheme "881" the fourth through seventh
digits (the portion 444 of FIG. 18) indicate a percentage discount
applied to the purchase price. The entry 464 also shows that in the
encoding scheme "881" the digits after the seventh digit are
ignored, and so contain no further coupon information.
[0095] Alternatively, the identifier that is printed on the coupon
may comprise text, rather than a bar code. For example, the coupon
may include text that describes the coupon value and/or coupon
features. A cashier operating the POS terminal could read the text,
and in turn actuate appropriate keys of the POS terminal to
indicate the coupon value.
[0096] As described above, upon acceptance by the customer, the
coupon is printed and exchanged for change due (round-up amount).
It can be desirable to print an indication of the change due on the
coupon. Such an indication would permit the coupon to be readily
returned for the round-up amount, which is the amount the customer
originally "paid" for the coupon. For example, a customer may
reconsider his acceptance and wish to have his change instead of
the coupon. If the coupon includes an indication of the round-up
amount, there is little ambiguity about what the customer paid for
the coupon.
[0097] Referring to FIG. 20, a method 490 is performed by a POS
terminal in generating a coupon. The POS terminal generates a
purchase price and a rounded price (steps 492 and 494) and
calculates a round-up amount therefrom (step 496). If the customer
accepts the offer, the POS terminal prints on the coupon an
indication of the round-up amount (step 498), and the coupon is
exchanged for the round-up amount (step 500).
[0098] If the customer reconsiders, he can later return the coupon.
The indication of the round-up amount that is printed on the coupon
is received by the POS terminal (step 502). For example, the
indication of the round-up amount may be encoded in the bar code,
determinable from the bar code, or printed separately on the
coupon. The bar code or other printing could be scanned by the POS
terminal or entered via the input device 16. Once the POS terminal
receives the indication and therefrom determines the round-up
amount due to the customer, the round-up amount is exchanged for
the coupon (step 504).
[0099] When the coupon is exchanged for the round-up amount, and
vice-versa, the POS terminal may maintain an audit trail regarding
the number of coupons that should have been received, and the
amount of money that should have been received. Such an audit trail
is useful in deterring and detecting fraud. Various auditing
procedures will be understood by those skilled in the art.
[0100] It can be further desirable to encrypt the indication of the
round-up amount to reduce the threat of counterfeit coupons. For
example, if the indication of the round-up amount is merely text
such as "$0.45", the coupon could be easily duplicated repeatedly.
However, if the round-up amount is encrypted, counterfeiting
becomes more difficult. Many encryption and decryption techniques
are well known, and described in the text "Applied Cryptography,
Protocols, Algorithms, and Source Code in C", Second Edition, by
Bruce Schneier.
[0101] Also, if each coupon includes at least one unique
identifier, thereby allowing redemption of each coupon to be
tracked, then redemption of any counterfeit coupons may be more
easily detected and reduced. In addition, if valid identifiers
cannot be readily determined from other valid identifiers, fraud is
further deterred.
[0102] When coupons are redeemed, it can be advantageous to store
an indication of such redemption. If the coupon is redeemed, an
indication of such redemption can be stored for later use. For
example, based on historic redemption of particular coupons,
different coupons may be offered.
[0103] Although the present invention has been described with
respect to a preferred embodiment thereof, those skilled in the art
will note that various substitutions may be made to those
embodiments described herein without departing from the spirit and
scope of the present invention. For example, many conditions may be
used besides those conditions described in detail herein.
* * * * *