U.S. patent application number 12/541330 was filed with the patent office on 2009-12-03 for system and method for the transfer of loyalty points.
This patent application is currently assigned to AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.. Invention is credited to Donna A. Antonucci, Theodore S. Voltmer.
Application Number | 20090299845 12/541330 |
Document ID | / |
Family ID | 26959902 |
Filed Date | 2009-12-03 |
United States Patent
Application |
20090299845 |
Kind Code |
A1 |
Antonucci; Donna A. ; et
al. |
December 3, 2009 |
SYSTEM AND METHOD FOR THE TRANSFER OF LOYALTY POINTS
Abstract
The present invention includes a loyalty program on a
network-wide level, wherein the program facilitates a transfer of
loyalty points from at least one consumer account associated with a
sponsoring company to at least one consumer account associated with
a host company. In one embodiment, the invention analyzes the
loyalty point balances of consumer accounts associated with a
sponsoring company, and based upon certain criteria or rules, the
system determines particular loyalty point balances which are below
a certain threshold amount or which have remained inactive for a
certain time period. After determining particular consumer accounts
which meet the criteria or rules, the system establishes a new host
account in a host system for each qualifying consumer. The system
then deducts all or any portion of the remaining loyalty point
balance in the particular consumer's sponsored account and credits
the corresponding host account with a corresponding loyalty point
balance. By transferring the consumer accounts to a host system,
the sponsoring company eliminates or reduces the loyalty point
balances from its system, thereby reducing the sponsoring company
accounting liabilities and providing new options for the consumers
to redeem the points.
Inventors: |
Antonucci; Donna A.;
(Hoboken, NJ) ; Voltmer; Theodore S.; (Caldwell,
NJ) |
Correspondence
Address: |
Snell & Wilmer L.L.P. (AMEX)
ONE ARIZONA CENTER, 400 E. VAN BUREN STREET
PHOENIX
AZ
85004-2202
US
|
Assignee: |
AMERICAN EXPRESS TRAVEL RELATED
SERVICES COMPANY, INC.
New York
NY
|
Family ID: |
26959902 |
Appl. No.: |
12/541330 |
Filed: |
August 14, 2009 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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10304251 |
Nov 26, 2002 |
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12541330 |
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09836213 |
Apr 17, 2001 |
7398225 |
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10304251 |
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60279817 |
Mar 29, 2001 |
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Current U.S.
Class: |
705/14.28 |
Current CPC
Class: |
B01J 23/8913 20130101;
G06Q 30/0209 20130101; B01J 37/0205 20130101; G06Q 30/0225
20130101; G06Q 40/12 20131203; G06Q 30/0269 20130101; G06Q 30/0217
20130101; G06Q 30/0601 20130101; G06Q 30/02 20130101; G06Q 30/0613
20130101; G06Q 30/0211 20130101; G06Q 30/0219 20130101; G06Q
30/0232 20130101; G06Q 30/0229 20130101; G06Q 30/0228 20130101;
G06Q 30/0267 20130101; B01J 23/6562 20130101; G06Q 30/0238
20130101; G06Q 20/042 20130101; G06Q 30/0233 20130101; B01J 37/0226
20130101; G06Q 30/0236 20130101; G06Q 30/0208 20130101; G06Q
30/0227 20130101; G06Q 30/0224 20130101; G07F 17/3255 20130101;
G06Q 30/0226 20130101; G06Q 30/0235 20130101; G06Q 20/208 20130101;
G06Q 30/0283 20130101 |
Class at
Publication: |
705/14.28 |
International
Class: |
G06Q 30/00 20060101
G06Q030/00 |
Claims
1. A method comprising: acquiring, by a loyalty computing device,
balance data related to loyalty point balances of sponsored
consumer loyalty accounts associated with sponsoring companies,
wherein said sponsored consumer loyalty accounts comprise at least
one of manufacturer loyalty points issued by a manufacturer,
merchant loyalty points issued by a merchant or a third set of
loyalty points; determining, by said loyalty computing device, said
sponsored consumer loyalty accounts that meet at least a portion of
qualifications for a loyalty point transfer based on rules;
deducting, by said loyalty computing device, at least a portion of
said loyalty point balances of said sponsored consumer loyalty
accounts that meet said qualifications; and, crediting, by said
loyalty computing device, a host consumer loyalty account
associated with a host company with at least a portion of said
loyalty point balances, wherein at least one of said sponsoring
companies or said host company initiated a transfer of said loyalty
points.
2. The method of claim 1, wherein said qualifications include at
least one of (i) at least one of said host consumer loyalty
accounts or said sponsored consumer loyalty accounts having loyalty
point balances below a threshold amount, (ii) at least one of said
host consumer loyalty accounts or said sponsored consumer loyalty
accounts remaining inactive for a certain time period, (iii) said
sponsored consumer loyalty account be flagged, or (iv) having said
host company, said sponsoring company or said consumer requesting a
transfer of loyalty points.
3. The method of claim 1, wherein said qualifications are at least
partially based upon at least one of: consumer name, consumer ID,
registration date, consumer transaction data, purchases which
qualify for points, time and date of points earned, amount of
points earned for each transaction, point balance history, current
point balance, time period since last points earned, or time period
since last conducting a transaction with a sponsor.
4. The method of claim 1, wherein said crediting is based on said
host consumer loyalty account meeting at least a portion of said
qualifications.
5. The method of claim 1, further comprising receiving via at least
one of a webpage or a customer service representative a request
that said sponsored consumer loyalty account be flagged such that
said sponsored consumer loyalty account have loyalty points
transferred to said host consumer loyalty point account.
6. The method of claim 1, wherein said deducting occurs on at least
one of a predetermined time period, certain date, random date or a
requested time.
7. The method of claim 1, wherein said portion of loyalty point
balances includes at least one of a set amount of points, all of
the points in one of said sponsored consumer loyalty accounts, any
subset of points in said sponsored consumer loyalty accounts, an
increasing amount of points, a decreasing amount of points, points
based upon a formula, points based upon an event or points based
upon a non-event.
8. The method of claim 1, wherein said sponsored consumer loyalty
accounts and said host consumer loyalty account are associated with
a same consumer.
9. The method of claim 1, wherein said sponsored consumer loyalty
accounts and said host consumer loyalty account are associated with
a different consumer.
10. The method of claim 1, wherein said sponsored consumer loyalty
accounts are associated with different consumers.
11. The method of claim 1, wherein said crediting comprises
crediting more than one of said host consumer loyalty point
accounts.
12. The method of claim 1, wherein said sponsoring companies
facilitate issuing of points to said sponsored consumer loyalty
accounts.
13. The method of claim 1, wherein said third set of loyalty points
is based on a consumer ID, a purchase price and a third currency to
point ratio corresponding to at least one of affiliated Service
Establishment (SE) numbers or an issuer of a transaction
account.
14. The method of claim 1, further comprising: receiving and
processing, by said loyalty computing device, a purchase
transaction, wherein said purchase transaction includes a consumer
ID, said merchant item identifier, and a purchase price;
retrieving, by said loyalty computing device, said manufacturer
item identifier corresponding to said merchant item identifier;
calculating, by said loyalty computing device, said merchant
loyalty points based on said consumer ID, said purchase price and a
first currency to point ratio corresponding to said merchant item
identifier; calculating, by said loyalty computing device, said
manufacturer loyalty points based on said consumer ID, said
purchase price and a second currency to point ratio corresponding
to said manufacturer item identifier; calculating, by said loyalty
computing device, said third set of loyalty points based on said
consumer ID, said purchase price and a third currency to point
ratio corresponding to at least one of affiliated Service
Establishment (SE) numbers or an issuer of a transaction account;
and, combining, by said loyalty computing device, said merchant
loyalty points, said manufacturer loyalty points, and said third
set of loyalty points within said sponsored consumer loyalty
account associated with said consumer ID.
15. The method of claim 14, further comprising: receiving and
storing, by said loyalty computing device, manufacturer item
identifiers, wherein said manufacturer item identifiers are
received from a manufacturer; receiving and storing, by said
loyalty computing device, retail item identifiers, wherein said
retail item identifiers are received from a merchant; and
associating and storing, by said loyalty computing device, each of
said retail item identifiers with a corresponding one of said
manufacturer item identifiers.
16. A loyalty computing device comprising: a network interface
communicating with a memory; said memory communicating with a
processor; and said processor, when executing a computer program,
is configured to perform a method comprising: acquiring, by a
loyalty computing device, balance data related to loyalty point
balances of sponsored consumer loyalty accounts associated with
sponsoring companies, wherein said sponsored consumer loyalty
accounts comprise at least one of manufacturer loyalty points
issued by a manufacturer, merchant loyalty points issued by a
merchant or a third set of loyalty points; determining, by said
loyalty computing device, said sponsored consumer loyalty accounts
that meet at least a portion of qualifications for a loyalty point
transfer based on rules; deducting, by said loyalty computing
device, at least a portion of said loyalty point balances of said
sponsored consumer loyalty accounts that meet said qualifications;
and, crediting, by said loyalty computing device, a host consumer
loyalty account associated with a host company with at least a
portion of said loyalty point balances, wherein at least one of
said sponsoring companies or said host company initiated a transfer
of said loyalty points.
17. A tangible computer-readable medium having stored thereon a
plurality of computer-executable instructions that, if executed by
a computing device, cause said computing device to perform a method
comprising: acquiring, by a loyalty computing device, balance data
related to loyalty point balances of sponsored consumer loyalty
accounts associated with sponsoring companies, wherein said
sponsored consumer loyalty accounts comprise at least one of
manufacturer loyalty points issued by a manufacturer, merchant
loyalty points issued by a merchant or a third set of loyalty
points; determining, by said loyalty computing device, said
sponsored consumer loyalty accounts that meet at least a portion of
qualifications for a loyalty point transfer based on rules;
deducting, by said loyalty computing device, at least a portion of
said loyalty point balances of said sponsored consumer loyalty
accounts that meet said qualifications; and, crediting, by said
loyalty computing device, a host consumer loyalty account
associated with a host company with at least a portion of said
loyalty point balances, wherein at least one of said sponsoring
companies or said host company initiated a transfer of said loyalty
points.
Description
CROSS REFERENCE TO RELATED APPLICATIONS
[0001] This application claims priority to, and is a continuation
of, U.S. patent application Ser. No. 10/304,251, filed Nov. 26,
2002 and entitled "System and Method for the Transfer of Loyalty
Points". The '251 application claims priority to, and is a
continuation-in-part of, U.S. Pat. No. 7,398,225, issued Jul. 8,
2008 (aka U.S. patent application Ser. No. 09/836,213, filed Apr.
17, 2001 and entitled "System and Method for Networked Loyalty
Program"). The '225 patent claims priority to, and the benefit of,
U.S. Provisional Application Ser. No. 60/279,817, filed Mar. 29,
2001 and entitled "System and Method for Networked Incentive Awards
Program". This application hereby incorporates by reference all of
these prior applications in their entireties.
FIELD OF INVENTION
[0002] The present invention relates generally to incentive and
awards redemption programs and, more specifically, to the transfer
of loyalty point balances from sponsored loyalty accounts to
loyalty point accounts of a particular host.
BACKGROUND OF THE INVENTION
[0003] Incentive award programs have been developed in a variety of
industries to promote customer loyalty. Generally, such programs
reward customers for repeat business with the same merchant or
service provider by accumulating reward points which can then be
redeemed in a plurality of ways, including exchanging the reward
points for additional goods and services that may be selected from
an approved list or a redemption catalog for example. The reward
points are usually calculated using a predetermined formula or
ratio that relates a customer's purchase volume (i.e., in terms of
money value or some other volume parameter) to a certain number of
reward points. For example, reward points may be issued on a
one-for-one basis with each dollar that a customer spends on
particular goods and services.
[0004] One well-known example of a customer incentive program is a
"frequent flyer" program which rewards airlines passengers with
"mileage points" based upon the distances that the passengers fly
with a particular airline. The mileage points may then be redeemed
for free airfare or free car rentals. Other incentive award
programs are designed to induce usage of particular financial
instruments, such as credit cards or debit cards, by accumulating
reward points or dollar value points based upon the volume of
purchases made using the particular financial instrument. These
types of programs may be designed such that customers of the
financial institution accumulate reward points which can be
redeemed for selected goods or services or, alternatively, such
that customers accumulate points which have a dollar value which
can be applied toward a credit or debit balance, depending on
whether the instrument is a credit or debit instrument, for
example.
[0005] These and other similar incentive award programs are
described in U.S. Pat. Nos. 5,774,870 and 6,009,412, issued to
Thomas W. Storey and assigned to Netcentives, Inc., both of which
are hereby incorporated by reference to the extent that they
describe an automated rewards system. For more information on
loyalty systems, transaction systems, electronic commerce systems,
and digital wallet systems, see, for example, the Shop AMEX.TM.
system as disclosed in Ser. No. 60/230,190 filed Sep. 5, 2000; the
MR as Currency.TM. and Loyalty Rewards Systems as disclosed in Ser.
No. 60/197,296 filed on Apr. 14, 2000, Ser. No. 60/200,492 filed
Apr. 28, 2000, and Ser. No. 60/201,114 filed May 2, 2000; a digital
wallet system as disclosed in U.S. Ser. No. 09/652,899 filed Aug.
31, 2000; a stored value card as disclosed in Ser. No. 09/241,188
filed on Feb. 1, 1999; a system for facilitating transactions using
secondary transaction numbers as disclosed in Ser. No. 09/800,461
filed on Mar. 7, 2001; and also in related provisional application
Ser. No. 60/187,620 filed Mar. 7, 2000, Ser. No. 60/200,625 filed
Apr. 28, 2000, and Ser. No. 60/213,323 filed May 22, 2000, all of
which are herein incorporated by reference. Other examples of
online membership reward systems are disclosed in U.S. Pat. No.
5,774,870, issued on Jun. 30, 1998, and U.S. Pat. No. 6,009,412,
issued on Dec. 29, 1999, both of which are hereby incorporated by
reference. A further example of a loyalty and reward program may be
found at the AIR MILES.RTM. Web site (www.airmiles.ca), which
describes a loyalty program offered by The Loyalty Group, a
privately held division of Alliance Data Systems of Dallas, Tex.,
and which is hereby incorporated by reference. Additional
information relating to smart card and smart card reader payment
technology is disclosed in Ser. No. 60/232,040, filed on Sep. 12,
2000, and U.S. Pat. Nos. 5,742,845; 5,898,838 and 5,905,908, owned
by Datascape; all of which are hereby incorporated by reference.
Information on point-of-sale systems and the exploitation of
point-of-sale data is disclosed in U.S. Pat. No. 5,832,457, issued
on Nov. 3, 1998 to O'Brien et al., which is hereby incorporated by
reference.
[0006] To promote loyalty to a particular company, many of the
above-described loyalty programs are sponsored by and operated by a
company such that the consumers are typically required to earn and
burn the loyalty points through the same company. As such, a
particular sponsoring company may market its own loyalty points
under a particular trademark (e.g., Membership Rewards sponsored by
American Express, DeltaMiles sponsored by Delta Airlines, Hilton
Rewards sponsored by Hilton Hotels, ePloids sponsored by Frito-Lay
and FlightFund sponsored by AmericaWest Airlines) and maintain
loyalty point accounts for each consumer, wherein the accounts
include only loyalty points associated with the sponsoring company.
Accordingly, the consumers in the sponsoring company loyalty
program typically earn loyalty points from the sponsoring company,
then the consumers spend the sponsored loyalty points on reward
items offered by the sponsoring company.
[0007] However, it is often difficult for an individual sponsoring
company to offer a sufficiently wide range of reward items to
satisfy the varied interests of its consumers. Moreover, many of
the consumers may only engage in a limited amount of business with
the particular sponsoring company and/or may only earn a limited
amount of sponsored loyalty points from the sponsoring company. As
such, a consumer's loyalty point account with the sponsoring
company may include a minimal amount of loyalty points and the
minimal point balance may be insufficient to obtain any desired
reward item. Additionally, even if a consumer obtains a sufficient
point balance with a particular sponsoring company, the consumer
may not be interested in redeeming the points for any of the
limited reward items offered by the company, the consumer may
forget or ignore the existence of the point balance and/or the
consumer may not desire to spend the time reviewing the reward
items or completing the redemption information. In these exemplary
situations, the loyalty point account may only be rarely used or
may remain inactive.
[0008] The sponsoring company often maintains hundreds or thousands
of loyalty point accounts for current and past consumers; however,
possible public relations, marketing and legal implications exist
with a sponsoring company simply canceling certain loyalty point
accounts or setting expiration dates on points. As such, the
sponsoring company usually continues to maintain the rarely used or
inactive loyalty point accounts. However, accounting and legal
guidelines typically require a sponsoring company to include all of
the loyalty point balances, including balances from the rarely used
loyalty point accounts, as liabilities on its accounting
statements. As such, a need exists for a system and method for
reducing or eliminating certain loyalty account balances and
providing certain consumers with new ways to aggregate and redeem
loyalty point balances.
[0009] Furthermore, portions of each of the above-described
programs may be used to induce customer loyalty to particular
merchants or service providers who directly provide goods or
services to the consumer. In other words, these prior art frequency
awards programs provide a means for retail businesses, financial
institutions, and others in direct contact with the customers they
service to provide incentives to their customers to encourage
repeat and/or volume business. However, these programs do not
sufficiently address the similar needs of businesses that are
further up in the distribution chain, such as manufacturers, to
promote volume purchases by customers based upon, for example,
brand loyalty independent of the retail source for the purchase.
Additionally, the prior art programs do not provide a means for
monitoring, tracking, and/or analyzing consumer and product data
across distribution channels for a particular manufacturer and/or
the variety of goods which that manufacturer places into the stream
of commerce for ultimate sale to consumers by a retailer.
[0010] Generally, before a product arrives at a retail
establishment for sale to a consumer, the product travels through a
distribution chain which originates with the manufacturer. The
manufacturer typically sells its products to a wholesaler who in
turn sells those products to various retailers. Most modern
retailers implement some form of computerization or electronic
technology in their day-to-day operations. This technology
typically consists of using point-of-sale (POS) systems for
automating checkout procedures, assisting sales personnel, and the
like. POS systems generally include one or more automated check-out
terminals which are capable of inputting or sensing and
interpreting a symbol or other indicia related to the product, such
as a Universal Product Code (UPC), generally comprising a
machine-readable bar code coupled with a human-readable UPC number,
that is printed on a label or tag which is placed on each item of
merchandise to be purchased. The manufacturer may assign and mark
each product that it sells with a UPC. Conventionally, once the
product reaches the retailer, the retailer further identifies each
product with a Stock Keeping Unit (SKU) number or code as well as
other information for identifying a specific item or style of
merchandise. The retailer's SKU number may be either an entirely
different number used to identify each product (e.g., by style) or
a modified version of the manufacturer's UPC number, derived,
perhaps, by adding a SKU number to the UPC number for example.
[0011] A POS terminal, a kiosk terminal, or a sales person's
hand-held terminal might be coupled to a store computer system,
such as a network server or some other store platform host, which
is able to recognize and process UPC and/or SKU information which
has been manually keyed-in or sensed and interpreted by a device,
such as a barcode reader, coupled to the terminal. The computer
system typically includes a database which stores information
relating to the retailer's product inventory, such as stocked
merchandise, a UPC and/or SKU number for each item of merchandise,
and various types of merchandise identification information, such
as price, inventory, style, color, size, etc., which is associated
with each UPC and/or SKU number. When a customer purchases an item
of merchandise, store personnel frequently use an automated
terminal to read the barcode markings which are attached to the
item. A computer interprets the UPC and/or SKU number comprised by
the barcode, accesses the database to determine the price for each
item, and maintains a running total of the total transaction
price.
[0012] One problem that results from the independent identification
schemes of the manufacturer and the retailers is that there is no
way for the manufacturer to track the quantity of any particular
product that each retailer sold. For example, even if a
manufacturer obtains all of the SKU numbers representing items
purchased from Retailer 1 and Retailer 2 by consumers, the
manufacturer has no means for determining which SKU number
corresponds to the manufacturer's UPC, since the UPC's and SKU
numbers of the various retailers are not tracked and matched.
[0013] In view of the foregoing, a need exists for an incentive or
loyalty program which overcomes the shortcomings of the prior art.
Thus, there is a need for a system and method which provides a
universal customer incentive program that networks various levels
of the product distribution chain, such as manufacturers,
wholesalers, and retailers, to provide incentives to consumers to
purchase products not only from a particular merchant or group of
merchants but also from particular manufacturers, regardless of the
specific merchant who sells the manufacturer's products to the
consumer. Additionally, a need exists for a system and method for
gathering data which associates particular consumer purchasing
behaviors and specific products or product criteria across a
manufacturer's distribution channels.
SUMMARY OF THE INVENTION
[0014] The present invention provides a method and system for
implementing a loyalty program on a network-wide level. In one
embodiment, the system and method facilitates a transfer of loyalty
points from at least one consumer account associated with a
sponsoring company to at least one consumer account associated with
a host company. The invention analyzes the loyalty point balances
of consumer accounts associated with a sponsoring company, and
based upon certain criteria or rules, the system determines
particular loyalty point balances which are below a certain
threshold amount or which have remained inactive for a certain time
period. After determining particular consumer accounts which meet
the criteria or rules, the system establishes a new host account in
a host system for each qualifying consumer. The system then deducts
all or any portion of the remaining loyalty point balance in the
particular consumer's sponsored account and credits the
corresponding host account with a corresponding loyalty point
balance. By transferring the consumer accounts to a host system,
the sponsoring company eliminates or reduces the loyalty point
balances from its system, thereby reducing the sponsoring company
accounting liabilities and providing new options for the consumers
to redeem the points.
[0015] More specifically, the system and method facilitates
acquiring data related to loyalty point balances of consumer
accounts associated with a sponsoring company; determining, using
the data and rules, consumer accounts which meet the rules;
establishing consumer accounts associated with the host company,
wherein the consumer accounts correspond to the consumer accounts
associated with the sponsoring company that meet the rules;
deducting a portion of the loyalty point balance of the consumer
account associated with a sponsoring company; and, crediting
loyalty point balances of the consumer account associated with the
host company. The rules may include, for example, consumer accounts
having loyalty point balances which are below a certain threshold
amount, consumer accounts which have remained inactive for a
certain time period and/or consumer accounts in which consumers,
the sponsoring company or the host company requested a transfer of
the loyalty points. The system may also credit any portion of the
loyalty points to one or more loyalty point accounts in the host
company corresponding to the same consumer or different consumer
from which the loyalty points were deducted.
BRIEF DESCRIPTION OF THE DRAWINGS
[0016] Additional aspects of the present invention will become
evident upon reviewing the non-limiting embodiments described in
the specification and the claims, in conjunction with the
accompanying figures, wherein like numerals designate like
elements, and wherein:
[0017] FIGS. 1-3 are schematic block diagrams illustrating
exemplary incentive systems in accordance with various aspects of
the present invention;
[0018] FIG. 4 is a schematic block diagram of an exemplary central
rewards mechanism in accordance with the present invention; and
[0019] FIG. 5 is a schematic block diagram of an exemplary rewards
server in accordance with the present invention.
[0020] FIG. 6 is a flowchart illustrating an exemplary process for
capturing and processing POS SKU data in accordance with the
present invention.
[0021] FIG. 7 is a flowchart illustrating an exemplary process for
associating SKU data and UPC data in accordance with the present
invention.
DETAILED DESCRIPTION
[0022] The following disclosure presents and describes various
exemplary embodiments in sufficient detail to enable those skilled
in the art to practice the invention, and it should be understood
that other embodiments may be realized without departing from the
spirit and scope of the invention. Thus, the following detailed
description is presented for purposes of illustration only, and not
of limitation, and the scope of the invention is defined solely by
the appended claims.
[0023] The present invention may be described herein in terms of
functional block components and various processing steps. It should
be appreciated that such functional blocks may be realized by any
number of hardware and/or software components configured to perform
the specified functions. For example, the present invention may
employ various integrated circuit components, e.g., memory
elements, processing elements, logic elements, look-up tables, and
the like, which may carry out a variety of functions under the
control of one or more microprocessors or other control devices.
Similarly, the software elements of the present invention may be
implemented with any programming or scripting language such as C,
C++, Java, COBOL, assembler, PERL, or the like, with the various
algorithms being implemented with any combination of data
structures, objects, processes, routines, or other programming
elements. Further, it should be noted that the present invention
may employ any number of conventional techniques for data
transmission, signaling, data processing, network control, and the
like. For a basic introduction to cryptography, please review a
text written by Bruce Schneider which is entitled "Applied
Cryptography: Protocols, Algorithms, And Source Code In C,"
published by John Wiley & Sons (second edition, 1996), which is
hereby incorporated by reference.
[0024] It should be appreciated that the particular implementations
shown and described herein are illustrative of the invention and
its best mode and are not intended to otherwise limit the scope of
the present invention in any way. Furthermore, the connecting lines
shown in the various figures contained herein are intended to
represent exemplary functional relationships and/or physical
couplings between the various elements. It should be noted that
many alternative or additional functional relationships or physical
connections may be present in a practical incentive system
implemented in accordance with the invention.
[0025] Communication between participants in the system of the
present invention is accomplished through any suitable
communication means, such as, for example, a telephone network,
public switch telephone network, intranet, Internet, extranet, WAN,
LAN, point of interaction device (e.g., point of sale device,
personal digital assistant, cellular phone, kiosk terminal,
automated teller machine (ATM), etc.), online communications,
off-line communications, wireless communications, satellite
communications, and/or the like. One skilled in the art will also
appreciate that, for security reasons, any databases, systems, or
components of the present invention may consist of any combination
of databases or components at a single location or at multiple
locations, wherein each database or system includes any of various
suitable security features, such as firewalls, access codes,
encryption, de-encryption, compression, decompression, and/or the
like.
[0026] It further will be appreciated that users may interact with
the system via any input device such as a keyboard, mouse, kiosk,
personal digital assistant, handheld computer (e.g., Palm
Pilot.RTM.), cellular phone, and/or the like. Similarly, the
invention could be used in conjunction with any type of personal
computer, network computer, workstation, minicomputer, mainframe,
or the like, running any operating system, such as any version of
Windows, Windows NT, Windows 2000, Windows 98, Windows 95, MacOS,
OS/2, BeOS, Linux, UNIX, or the like. Moreover, although the
invention may be described herein as being implemented with TCP/IP
communications protocols, it will be readily understood that the
invention could also be implemented using IPX, Appletalk, IP-6,
NetBIOS, OSI, or any number of existing or future protocols.
Moreover, the system contemplates the use, sale, or distribution of
any goods, services, or information over any network having similar
functionality described herein.
[0027] Each participant or user of the system of the present
invention, including purchasers, retailers, manufacturers, and a
third-party providers, may be equipped with a suitable computing
system to facilitate online communications and transactions with
any other participant. For example, some or all participants may
have access to a computing unit in the form of a personal computer,
although other types of computing units may be used, including
laptops, notebooks, handheld computers, set-top boxes, kiosk
terminals, and the like. Additionally, other participants may have
computing systems which may be implemented in the form of a
computer-server, a PC server, a networked set of computers, or any
other suitable implementations which are known in the art or may
hereafter be devised.
[0028] The computing systems may be connected with each other via a
data communications network as described more fully above. For
example, the network may be a public network, which is assumed to
be insecure and open to eavesdroppers. In one embodiment, the
network is embodied as the Internet. In this context, the computers
may or may not be connected to the Internet at all times. For
instance, the consumer's computer may employ a modem to
occasionally connect to the Internet, whereas the retailer
computing system, the manufacturer computing system, and the
central rewards mechanism might maintain a permanent connection to
the Internet. It is noted that the network may be implemented as
other types of networks, such as an interactive television (ITV)
network.
[0029] The retailer's computer system may also be interconnected to
a third-party provider via a second network, referred to as a
payment network. The payment network represents existing
proprietary networks that presently accommodate transactions for
credit cards, debit cards, and other types of financial instruments
or banking cards. The payment network is a closed network that is
assumed to be secure from eavesdroppers. Examples of the payment
network include the American Expres.RTM., VisaNet.RTM., and the
Veriphone.RTM. networks.
[0030] As will be appreciated by one of ordinary skill in the art,
the present invention may be embodied as a method, a data
processing system, a device for data processing, and/or a computer
program product. Accordingly, aspects of the present invention may
take the form of an entirely software embodiment, an entirely
hardware embodiment, or an embodiment combining aspects of both
software and hardware. Furthermore, the present invention may take
the form of a computer program product on a computer-readable
storage medium having computer-readable program code means embodied
in the storage medium. Any suitable computer-readable storage
medium may be utilized, including hard disks, CD-ROM, optical
storage devices, magnetic storage devices, and/or the like.
[0031] The present invention is described below with reference to
block diagrams and flowchart illustrations of methods, apparatus
(e.g., systems), and computer program products according to various
aspects of the invention. It will be understood that each
functional block of the block diagrams and the flowchart
illustrations, and combinations of functional blocks in the block
diagrams and flowchart illustrations, respectively, can be
implemented by computer program instructions. These computer
program instructions may be loaded onto a general purpose computer,
special purpose computer, or other programmable data processing
apparatus to produce a machine, such that the instructions which
execute on the computer or other programmable data processing
apparatus create means for implementing the functions specified in
the flowchart block or blocks.
[0032] These computer program instructions may also be stored in a
computer-readable memory that can direct a computer or other
programmable data processing apparatus to function in a particular
manner, such that the instructions stored in the computer-readable
memory produce an article of manufacture including instruction
means which implement the function specified in the flowchart block
or blocks. The computer program instructions may also be loaded
onto a computer or other programmable data processing apparatus to
cause a series of operational steps to be performed on the computer
or other programmable apparatus to produce a computer-implemented
process such that the instructions which execute on the computer or
other programmable apparatus provide steps for implementing the
functions specified in the flowchart block or blocks.
[0033] Accordingly, functional blocks of the block diagrams and
flowchart illustrations support combinations of means for
performing the specified functions, combinations of steps for
performing the specified functions, and program instruction means
for performing the specified functions. It will also be understood
that each functional block of the block diagrams and flowchart
illustrations, and combinations of functional blocks in the block
diagrams and flowchart illustrations, can be implemented by either
special purpose, hardware-based computer systems which perform the
specified functions or steps, or suitable combinations of special
purpose hardware and computer instructions.
[0034] As used herein, the terms "user" and "participant" shall
interchangeably refer to any person, entity, charitable
organization, machine, hardware, software, or business who accesses
and uses the system of the invention, including consumers,
retailers, manufacturers, and third-party providers. Participants
in the system may interact with one another either online or
off-line. As used herein, the term "online" refers to interactive
communications that takes place between participants who are
remotely located from one another, including communication through
any of the networks or communications means described above or the
like.
[0035] The term "manufacturer" shall include any person, entity,
charitable organization, machine, software, hardware, and/or the
like that manufactures, distributes, or originates a product or
service which may ultimately be offered to a consumer directly or
indirectly through a retailer. The term "manufacturer" may also
include any party that generates and/or provides manufacturer item
identifiers. The term "retailer" shall include any person, entity,
charitable organization, machine, software, hardware, and/or the
like that that offers a product or service to a consumer. As used
herein, the term "retailer" is used interchangeably with the term
"merchant". Moreover, in this context, a retailer or merchant may
offer or sell, either online or offline, products and/or services
made or supplied by at least one manufacturer. As used herein, the
phrases "network level" and "network-wide level" shall refer to a
system that includes more than one retailer and at least one
manufacturer.
[0036] As used herein, the terms "purchaser", "customer",
"consumer", and "end-user" may be used interchangeably with each
other, and each shall mean any person, entity, charitable
organization, or business which uses a consumer ID to participate
in the present system. A "consumer ID", as used herein, includes
any device, code, or other identifier suitably configured to allow
the consumer to interact or communicate with the system, such as,
for example, a rewards card, charge card, credit card, debit card,
prepaid card, telephone card, smart card, magnetic stripe card, bar
code card, authorization/access code, personal identification
number (PIN), Internet code, other identification code, and/or the
like. Additionally, a "consumer ID" may comprise any form of
electronic, magnetic, and/or optical device capable of transmitting
or downloading data from itself to a second device which is capable
of interacting and communicating with such forms of consumer
ID.
[0037] A consumer may register to participate in the present system
by any methods known and practiced in the art. For example, a
consumer may be enrolled automatically (e.g. if the consumer holds
an existing account with the system administrator), over the phone,
at the point of sale through a paper application or verbal
interview, through the mail, or through instant enrollment online.
Consumer enrollment data may comprise any of the following: name;
address; date of birth; social security number; email address;
gender; the names of any household members; a credit card number
for charging any fees that may be associated with participation in
the system; survey data; interests; educational level; and/or any
preferred brand names. Upon enrollment, the consumer receives a
consumer ID. The consumer ID may be associated with a household
account which specifies the consumer as a primary member and
permits the identification of supplementary members associated with
the consumer's household who may also earn reward points for the
consumer.
[0038] A "consumer profile", as used herein, shall refer to any
data used to characterize a consumer and/or the behavior of a
consumer. In the context of a commercial transaction, "a consumer
profile" shall be understood to include, for example, the time and
date of a particular purchase, the frequency of purchases, the
volume/quantity of purchases, the transaction size (price), and/or
the like. Additionally, in other transactional contexts, the term
"consumer profile" shall also be understood to include non-purchase
behaviors of a consumer, such as consumer enrollment data, visiting
a Web site, referrals of prospective participants in the system,
completion of a survey or other information gathering instrument,
and/or the like. For instance, a participating online consumer may
earn rewards points automatically through a triggering event, such
as visiting a Web site, completing an online survey, or clicking on
a banner advertisement for example. Offline, a participating
consumer may earn rewards points by completing a task or showing
their consumer ID to the cashier and triggering the cashier to
provide a "behavior" ID which may be input (e.g., by scanning a bar
code on a paper survey for example) into the POS terminal. Further,
any aspects of the consumer profile may be used in the context of
data analysis.
[0039] A "third-party provider" may comprise any additional
provider of goods and/or services to a consumer. Specifically, a
"third-party provider" includes any party other than the particular
manufacturer and retailer who is involved in a transaction with a
consumer. A third-party provider may include, for example, a
financial institution, such as a bank or an issuer of a financial
instrument (such as a credit card or a debit card). A third-party
provider may also include a provider of goods and services which
are offered as awards to consumers in exchange for a requisite
number of reward points.
[0040] Though the invention may generically be described with
reference to a series of transactions which transfer a good or
service from an originating party to an intermediary party and a
subsequent transaction which transfers the good or service from the
intermediary party to an end-user of that good or service, for
convenience and purposes of brevity and consistency, the present
disclosure generally refers to the originating party as a
manufacturer, the intermediary party as a retailer, the end-user as
a consumer, and a good or service as a product or item. However, it
will be recognized by those of ordinary skill in the art that the
retailer need not provide a product or item to a consumer in
exchange for monetary currency. While this often may be the case,
the present disclosure is not so limited and includes transactions
which may be gratuitous in nature, whereby the retailer transfers a
product or item to a consumer without the consumer providing any
currency or other value in exchange. It is further noted that
additional participants, referred to as third-party providers, may
be involved in some phases of the transaction, though these
participants are not shown. Exemplary third-party providers may
include financial institutions, such as banks, credit card
companies, card sponsoring companies, or issuers of credit who may
be under contract with financial institutions. It will be
appreciated that any number of consumers, retailers, manufacturers,
third-party providers, and the like may participate in the system
of the present invention.
[0041] As used herein, the term "UPC" and the phrase "manufacturer
item identifier" shall refer to any symbol or indicia which
provides information and, in an exemplary embodiment, shall refer
to any number, code, or identifier assigned by a manufacturer and
associated with an item, including any type of goods and/or
services, ultimately offered to a consumer or other end-user.
Colloquially, a UPC is sometimes referred to as a SKU number.
However, as used herein, the term "SKU" and the phrase "retailer
item identifier" shall refer to any symbol or indicia which
provides additional information and, in an exemplary embodiment,
shall refer to any number, code, or identifier assigned by a
retailer and associated with an item, including any type of goods
and/or services, offered to a consumer or other end-user.
[0042] "Purchase data", as used herein, comprises data relating to
the offer of any item to a consumer or other end-user. Purchase
data may include any of the following: an item purchased, an item
price, a number of items purchased, a total transaction price, a
payment vehicle, a date, a store identifier, an employee
identifier, a retailer item identifier, a loyalty identifier,
and/or the like.
[0043] "Retailer ID", as used herein, comprises any symbol,
indicia, code, number, or other identifier that may be associated
with a retailer of any type of goods and/or services offered to a
consumer or other end-user. A retailer ID may also include or be
associated with a "store ID", which designates the location of a
particular store. A "manufacturer ID" comprises any symbol,
indicia, code, number, or other identifier that may be associated
with a manufacturer of any type of goods and/or services ultimately
offered to a consumer or other end-user.
[0044] An "award" or "reward" may comprise any quantity of
products, services, coupons, gift certificates, rebates, reward
points, bonus points, credits or debits to a financial instrument,
any combination of these, and/or the like.
[0045] "Data analysis", as used herein, shall be understood to
comprise quantitative and qualitative research, statistical
modeling, regression analyses, market segmentation analyses,
econometrics, and/or the like. Such analyses may be used to predict
consumer behaviors and/or correlate consumer profiles, retailer
data, manufacturer data, and/or product or service data.
[0046] The system of the present invention associates or maps
manufacturer UPC data and retailer SKU data on a network level to
reward consumers and/or to analyze the data for a variety of
business purposes, such as market segmentation analyses and/or
analyses relating to consumer spending behaviors or patterns for
example. Rather than simply capturing transactions at a Record of
Charge (ROC) level, that is, recording consumer purchases in a
general fashion by designating purchase categories (such as
"clothing", "electronics", or "hardware" for example), the system
identifies the particular item purchased (such as "jeans",
"stereo", or "hammer" for example) as well as its corresponding
manufacturer. By matching or associating the retailer SKU and the
manufacturer's UPC, the system permits the standardization of goods
and/or services codes at the network level. This standardization
not only permits a record of both the specific item purchased and
its manufacturer, regardless of the particular retailer involved in
the transaction, but it permits the mapping of multiple consumers,
multiple goods and/or services, multiple retailers, and/or multiple
manufacturers to advantageously cross-market goods and services to
consumers.
[0047] In accordance with one aspect of the invention, the
association of UPC and SKU data by the system facilitates
implementation of an incentive or loyalty program by providing a
universal rewards currency which may be "spent" by participants who
have earned rewards and accepted by the other participants in the
multi-tiered network created by the system. The network may
comprise any number of participants, including consumers, retailers
(and any of their employees), manufacturers, third-party providers,
and the like. Each of these categories of participants may be
considered a tier in the network, and each participant within the
various tiers may design and implement an independent rewards
scheme within the context of the universal environment provided by
the system. For example, Manufacturer 1 may produce and assign a
UPC to Item X. Item X may subsequently be offered for sale by both
Retailer 1 and Retailer 2. Retailer 1 and Retailer 2 may then each
assign an independent SKU number to Item X to facilitate their own
tracking, inventory, and pricing schemes. A consumer may then
purchase Item X from both Retailer 1 and Retailer 2.
[0048] Since the system is capable of processing, associating, and
quantifying a variety of data, including consumer data, employee
data, retailer data, manufacturer data, SKU number data
corresponding to Item X, and UPC data assigned by Manufacturer 1,
for example, this data can then be used by the manufacturer, the
retailer, the system administrator, and/or a third-party provider
to provide rewards to consumers, employees, retailers, etc. For
example, a manufacturer may provide frequency-based incentives,
such as every 10th purchase of a particular item will be discounted
by 50% for example, independent of and/or in addition to any
incentives offered by the specific retailer involved in the
transaction. Additionally, the manufacturer may provide sales
incentives to the employees of retailers independent of and/or in
addition to any employee incentive programs that the retailers may
choose to implement.
[0049] Since rewards, which may be in the form of rewards points,
may be earned across the various tiers in the network, rewards may
also be used or spent across the various tiers in the network.
Thus, any rewards points that an employee, for example, may earn by
promoting a particular manufacturer's line of products, may be
"spent" by that employee on goods or services provided by any
participant in the network, not merely at the retailer who employs
that employee. Likewise, any rewards points earned by a consumer
may be spent on goods or services offered by any participant in the
network.
[0050] In accordance with another aspect of the invention, the
association of UPC and SKU data by the system facilitates data
analysis on a network level based upon several factors, including
any of the following: consumer ID, consumer profile, retailer ID,
SKU number, UPC, manufacturer ID, and/or the like. The system may
compile any of the above data across multiple participants for the
purpose of data analysis, such as analyses which may be employed in
strategic planning and marketing for example. The system of the
invention may be used to compile, analyze, and report data in a
manner which would inform any or all network participants that, for
example, a specific consumer (1) has made multiple purchases of
particular manufacturers' products; (2) has spent Q dollars over a
certain time period (3) at specific multiple retailers; and (4) of
the purchases made, R dollars went towards the purchase of Product
1, S dollars went towards the purchase of Product 2, and T dollars
went towards the purchase of Service 1. Moreover, the system may be
used to compile, analyze, and report data that enable a retailer, a
manufacturer, and/or a third-party provider to create a variety of
targeted marketing promotions, such as, for example, (1) marketing
Product 1 offered by Manufacturer 1 to consumers who purchase
Product 2 offered by Manufacturer 2; (2) marketing Product 1
offered by Manufacturer 1 and sold by Retailer X to consumers who
purchase Product 2 offered by Manufacturer 2 at Retailer Y; (3)
marketing Product 1 offered by Manufacturer 1 and sold by Retailer
X to consumers who purchase Product 2 offered by Manufacturer 2 at
Retailer Y five times a year. It will be appreciated that these are
but a few of the many possible applications for data gathered and
generated by the system of the present invention.
[0051] In accordance with a further aspect of the invention, the
system administrator may allocate rewards points to participants in
the system. In one embodiment, participating retailers and/or
manufacturers may purchase points from the system administrator and
the points are then allocated to an account associated with the
retailer and/or manufacturer. In an alternate embodiment, the
system administrator may give or donate points to participating
retailers and/or manufacturers. The system administrator maintains
an account with each of the participating retailers and
manufacturers and tracks available points balances and/or balances
owing on a rolling basis. The points purchased by the retailers
and/or manufacturers may then be earned by and issued to consumers
in a manner that is predetermined by the retailer and/or
manufacturer involved in the transaction with the consumer. For
example, Retailer 1 may purchase 10,000 points from the system
administrator and then offer consumers 1 point for every $10
dollars spent in Retailer 1's store or, perhaps, some number of
points for every fifth transaction in the store. Moreover,
Manufacturer 1, who produces the product offered by Retailer 1, may
also purchase points from the system administrator. Thus, when a
consumer purchases Manufacturer 1's product at Retailer 1,
Manufacturer 1 may issue some number of points to the consumer. The
issuance of points, either by retailers or manufacturers, may be
based upon any selected criteria, including a points-for-dollars
ratio, a defined quantity of points per item or per transaction,
some combination of these, and/or the like.
[0052] The system administrator maintains an account for each
participating consumer and apprises the consumer of the points
totals and account activity. The consumer may review the total
number of points in the account either online or off-line, such as
through a periodic statement sent by the system administrator or
through the use of a communications network, such as the Internet,
for example. Points in the consumer's account are accumulated
across the multiple retailers and/or manufacturers participating in
the system. Thus, points earned by a consumer based upon
transactions with different retailers and/or manufacturers are
combined, resulting in a rapid accrual of points. The system
administrator offers a catalog of products and services, which may
be either online or off-line, from which consumers may select
rewards in exchange for accrued points. In this manner, consumers
advantageously earn points based upon their everyday purchases of
products and services, these points are accrued across retailers
and/or manufacturers, and points redemption takes place through a
single, universal catalog of rewards.
[0053] In accordance with the present invention, FIG. 1 is a
diagram illustrating an exemplary embodiment of an incentive or
loyalty system 100. System 100 comprises a central rewards
mechanism 102; a plurality of retailer/merchant systems 104; and at
least one manufacturer 106. One skilled in the art will appreciate
that system 100 may comprise any number of retailer systems 104 and
any number of manufacturers 106.
[0054] The central rewards mechanism 102 manages the incentive or
loyalty program of the system 100. In an exemplary embodiment,
central rewards mechanism 102 receives, processes, and stores
manufacturer data, such as information regarding products and/or
services and UPC data, transmitted by manufacturers 106 who have
enrolled in the system 100. Manufacturers 106 may transmit data to
central rewards mechanism 102 in any form and by any means known in
the art, including any of the communications means described above.
The manufacturer data is stored by the central rewards mechanism
102 in database 103. Database 103 may be any type of database, such
as relational, hierarchical, object-oriented, and/or the like.
Common database products that may be used to implement database 103
include DB2 by IBM (White Plains, N.Y.), any of the database
products available from Oracle Corporation (Redwood Shores,
Calif.), Microsoft Access by Microsoft Corporation (Redmond,
Wash.), or any other database product. Database 103 may be
organized in any suitable manner, including as data tables or
lookup tables.
[0055] The central rewards mechanism 102 may receive and process
consumer ID information and purchase data from any of the retailer
systems 104. The central rewards mechanism 102 may also associate a
particular consumer ID with the purchase data and a corresponding
manufacturer item identifier. In one embodiment, the central
rewards mechanism 102 performs an analysis involving any of the
following: a consumer ID, purchase data, a points ratio, a consumer
profile, a retailer ID, and a manufacturer ID. The analysis may be
dependent upon an the association of the consumer IDs, the purchase
data, and the manufacturer item identifier. The analysis may
further comprise, for example, a calculation of rewards points
and/or other analyses for purposes of market segmentation,
determining consumer spending behavior, correlating spending
behavior and consumer demographics, and/or the like, as described
in greater detail above.
[0056] In one exemplary embodiment, the central rewards mechanism
102 stores and informs a consumer of the rewards points that have
been earned by a particular transaction as well as accumulated over
time. The number of rewards points calculated and awarded by the
central rewards mechanism 102 for a particular purchase may depend
upon a predetermined rewards ratio. The rewards ratio may be
determined by the retailer, the system administrator, the
manufacturer of the purchased item, and/or any other suitable
third-party. For example, if a participating consumer buys a
product from a retailer for $100 and if the retailer rewards ratio
is one reward point for each dollar of the purchase price (i.e.,
one-for-one), once the consumer's consumer ID is identified by the
system, the consumer is credited with a suitable number of rewards
points from the retailer, which, in this case, would be 100 points.
However, if the manufacturer also chooses to issue rewards points
for the item purchased, the manufacturer may select a points ratio
that is different from the retailer's selected ratio. In the
illustrated example, if the manufacturer's selected points ratio is
two-for-one, then the consumer will be awarded an additional 200
points from the manufacturer for this single $100 purchase. In this
manner, the system of the invention may provide "earn accelerators"
through which consumers may accumulate rewards points at
comparatively rapid rate. In other words, a single purchase may
generate rewards points for a consumer from any or all of a
retailer, a manufacturer, and/or a third-party provider, and those
rewards points may be used as rewards currency by the consumer
throughout the network established by the system of the
invention.
[0057] In an exemplary embodiment, retailer system 104 comprises a
retailer terminal 108 and a retailer processor 110 in communication
with database 111. Retailer terminal 108 comprises any device
capable of identifying a consumer ID. Exemplary devices for
identifying a consumer ID may include a conventional card reader
which recognizes a magnetic stripe or bar code associated with a
consumer ID, a biometric device, a smart card reader which
recognizes information stored on a microchip integrated with a
consumer ID, and any device capable of receiving or uploading
consumer ID data transmitted electronically, magnetically,
optically, and/or the like. In one embodiment, retailer terminal
108 and retailer processor 110 are co-located at a retail store. In
another embodiment, retail terminal 108 and retailer processor 110
are remote from each other.
[0058] In an exemplary embodiment, as illustrated in FIG. 2,
retailer terminal 108 comprises a retailer POS terminal 112, such
as a cash register for example. When a consumer ID is used at the
time an item is purchased, purchase data, including a SKU number,
is input, sensed, or otherwise recognized by terminal 108, and then
the purchase data is processed and stored by retailer processor
110. Retailer processor 110 comprises or is in communication with a
suitable database 111 or other storage device for maintaining and
storing purchase data and any other suitable retailer information.
Database 111 may be any type of database, such as any of the
database products described above for example. Database 111 may be
organized in any suitable manner, including as data tables or
lookup tables. Purchase data that is stored in database 111 is
available to the retailer's local back office system (not shown)
for inventory, accounting, tax, data analysis, and other purposes.
The captured purchase data may include the item purchased, the
item's unit price, the number of items purchased, the date, the
store location, an employee ID, and any other information related
to the purchase. In an exemplary embodiment, retailer processor 110
may also receive, process, and store manufacturer data, such as
information regarding products and/or services and UPC data, from
manufacturers 106 who have enrolled in the system 100. The
manufacturer data may be stored in any suitable form, including
data tables or lookup tables.
[0059] In accordance with the exemplary embodiments illustrated in
FIG. 3, purchase data may also be transmitted to and stored and
processed by a retailer regional processor 114 (or, alternatively,
a retailer national database (not shown)) in communication with
database 115 for the purpose of further back office and cumulative
data analysis. Database 115 may be any type of database, such as
any of the database products described in greater detail above for
example. Database 115 may be organized in any suitable manner,
including as data tables or lookup tables. In an exemplary
embodiment, retailer processor 110 optionally may be integrated
with retailer regional processor 114 (illustrated by the phantom
lines encompassing Retailer Processor 1 and retailer regional
processor 114 within the system of Retailer/Merchant #2), thereby
forming a single device. In another embodiment, retailer processor
110 and retailer regional processor 114 are separate devices which
may be either co-located with each other or remotely located from
one another. For example, in one embodiment, retailer processor 110
and regional processor 114 are co-located at a particular retail
store. In another embodiment, retailer processor 110 is located at
a particular retail store and retailer regional processor 114 is
remotely located at a regional office.
[0060] Regardless of the location of retailer regional processor
114, retailer regional processor 114 receives and processes similar
information from each of the retailer processors 110 associated
with each of the retail stores owned by the same retailer. Whether
the system 100 comprises a retailer regional processor 114 or a
retailer national processor may be a function of the number of
stores maintained by a particular retailer. That is, a larger
retailer who has numerous stores throughout the country, for
example, may choose to have a plurality of regional processors,
while a smaller retailer with a few stores scattered across the
country may be better served by a single, national processor. In
exemplary embodiments, the retailer regional processors 114 and/or
national processors communicate with a suitable database 115 or
other storage device which is configured to store and maintain
purchase data and any other suitable retailer information. In
another exemplary embodiment, retailer regional processor 114 may
receive, process, and store manufacturer data, such as information
regarding products and/or services and UPC data, from manufacturers
106 who have enrolled in the system 100. The manufacturer data may
be stored in any suitable form, including data tables or lookup
tables.
[0061] With momentary reference to FIG. 2, retailer terminal 108
may comprise a rewards terminal 116 through which a consumer may be
updated with regard to various aspects of the system. For example,
rewards terminal 116 may inform a consumer of the number of reward
points that they have accumulated from all system participants and
the types of awards that may be obtained using those reward points.
Moreover, rewards terminal 116 may suggest to the consumer various
awards for which the consumer is eligible based upon the rewards
points generated by the consumer's network-wide purchases. In this
context, network-wide purchases include any purchases of items
corresponding to retailers and/or manufacturers participating in
the system 100.
[0062] In an exemplary embodiment, rewards terminal 116 operates in
real-time. In this context, "real-time" means that reward points
are immediately, or nearly immediately, updated at the time
purchases are made and are therefore immediately redeemable by the
consumer at the a point of sale. Thus, for example, a consumer may
be informed by rewards terminal 116 at the point of sale that the
item being purchased by the consumer may be purchased using the
consumer's accumulated reward points, including points accumulated
on a network level. Points accumulated on a network level enable
consumers to accumulate points more rapidly than would be possible
if only a single retailer or group of retailers were issuing the
points. In one embodiment, rewards terminal 116 may update a
consumer's rewards points in real-time and, in response to the
consumer's particular points total, issue a coupon, a gift
certificate, and/or additional bonus points to the consumer.
[0063] In another exemplary embodiment, the system may operate in
batch mode, wherein points totals are calculated, stored, and
periodically updated for access by the retailer terminal 108,
including POS terminal 112 and/or rewards terminal 116. Thus, in
this embodiment, the consumer may be notified of available points
sometime after a purchase, or a suggestive sale may take place
after a purchase. The total point count or suggestive sale may take
into account points generated and accumulated as the result of
network-wide purchases.
[0064] In various alternate embodiments of the invention, retailer
terminal 108 may include a rewards terminal 116 but not a POS
terminal 112; a POS terminal 112 but not a rewards terminal 116; or
a POS terminal 112 in communication with a rewards terminal 116. In
alternate embodiments, where terminal 108 includes a POS terminal
112 and a rewards terminal 116, the two terminals 112 and 116 may
be variously implemented as separate terminals, integrated
terminals, or software within a device. In another embodiment,
where terminal 108 comprises a rewards terminal 116 but not a POS
terminal 112, terminal 108 may be a kiosk terminal located within a
retail store or some other remote terminal which is capable of
recognizing a consumer ID and communicating with the system 100. A
consumer may use independent rewards terminal 116 to do, for
example, any of the following: view accumulated reward points
totals; view potential awards which the consumer may obtain in
exchange for various numbers of points; select an award; redeem
rewards points for a selected award; request and/or receive a
reward points advisory statement; and/or view a directory of
participating retailers, manufacturers, and third-party
providers.
[0065] In another exemplary embodiment, system 100 further
comprises a consumer terminal 118. Consumer terminal 118 is any
remote terminal through which a consumer may access other aspects
of the system 100. Consumer terminal 118 may comprise any of the
input devices, computing units, or computing systems described
above. Further, consumer terminal 118 communicates with the system
100 through any of the communications networks described above. In
one embodiment, consumer terminal 118 permits a consumer to engage
multiple facets of the system 100 in an interactive online
communications environment. The interactive online environment made
available through consumer terminal 118 is an extension of the
network-level incentive award program and is implemented in
conjunction with other aspects of the system 100. In this context,
a consumer may uses consumer terminal 118 for a variety of
purposes. In one embodiment, consumer terminal 118 may be used to
communicate with and receive information from the central rewards
mechanism 102. For example, a consumer may use consumer terminal
118 to do any of the following: enroll in the system; receive
statements or reports regarding accumulated reward points totals;
receive bonus details; view potential awards which the consumer may
obtain in exchange for various numbers of points; select an award;
receive redemption information; view points adjustments; redeem
rewards points for a selected award; request and/or receive a
reward points advisory statement; receive information regarding
where and how points were earned and/or how points were redeemed;
receive information regarding expiration dates for points earned;
receive information relating to any applicable fees; receive
information regarding marketing promotions; and/or view a directory
of participating retailers, manufacturers, and/or third-party
providers.
[0066] In another embodiment, consumer terminal 118 may be used to
interact with and/or make purchases and generate rewards points
from participating online retailers, as illustrated by the various
phantom lines in FIG. 1. The online retailer may then communicate
with the central rewards mechanism 102 to transmit and process a
consumer ID, purchase data, etc., as described above with reference
to retailer 104 of FIG. 1. Information communicated between the
online consumer, the online retailer, and the online central
rewards mechanism may include, for example, product or service
information, prices, availability of the product or service,
shipping information, rewards points information, available awards,
information regarding points ratios and points redemption, and/or
the like. In one embodiment, consumer terminal 118 operates in
real-time, as described above with respect to rewards terminal 116.
In another embodiment, the consumer terminal 118 may operate in
batch mode, as described above. In still a further embodiment,
consumer terminal 118 operates in a manner which includes aspects
of both real-time functionality and batch mode functionality.
[0067] In accordance with a further aspect of the invention, the
system 100 may comprise a rewards server 120 in communication with
a database 121, as illustrated in FIG. 2. Database 121 may be any
type of database, such as any of the database products described
above for example. Database 121 may be organized in any suitable
manner, including as data tables or lookup tables. In an exemplary
embodiment, rewards server 120 may be any hardware and/or software
that is configured to communicate with the central rewards
mechanism 102 and either the retailer processor 110 or the retailer
regional processor 114. In alternate exemplary embodiments, rewards
server 120 may be integrated with retailer system 104; rewards
server 120 may be integrated with central rewards mechanism 102; or
rewards server 120 may be separate from both retailer system 104
and central rewards mechanism 102. In a further embodiment, the
rewards server 120 may communicate with both a retailer national
processor (not shown) and the central rewards mechanism 102.
[0068] In an exemplary embodiment, rewards server 120 receives,
processes, and stores both manufacturer data and retailer data.
Manufacturer data may include descriptions of products and/or
services and UPC data transmitted from manufacturers 106 who have
enrolled in the system 100. The manufacturer data may be stored in
any suitable form, including data tables or lookup tables. Retailer
data may include descriptions of products and/or services and SKU
data transmitted from retailers 104 who have enrolled in the system
100. The retailer data may be stored in any suitable form,
including data tables or lookup tables.
[0069] In an exemplary embodiment, the rewards server 120 performs
a plurality of functions that might otherwise be performed by the
central rewards mechanism 102. For example, since rewards
calculations require significant processing and memory resources,
performance of calculations processing by the rewards server 120 at
the regional level lessens the processing load on the central
rewards mechanism 102, thereby increasing the efficiency of the
central rewards mechanism 102. In an exemplary embodiment, each
retailer's region, which comprises a plurality of that retailer's
stores or outlets, accesses a rewards server 120 which acts as an
intermediary between the retailer regional processor 114 and the
central rewards mechanism 102. This configuration relieves the
processing, power, memory, and other requirements of the central
rewards mechanism 102. Moreover, each retailer is but one of many
retailers that may participate in the network level rewards
structure. Accordingly, a plurality of rewards servers 120 may be
in communication with the central rewards mechanism 102 as well as
each of the participating retailer regional processors 114, further
alleviating the processing burden and freeing up the resources of
the central rewards mechanism 102.
[0070] Implementations which include at least one independent
rewards server 120 are also advantageous because cost-effective
communications links may be used to facilitate communications with
the central rewards mechanism 102. Performance by the rewards
server 120 of many of the "intelligence functions" of the system
100, permits transmission of only particular forms of purchaser
information to the central rewards mechanism 102. In an exemplary
embodiment, data sent from the rewards server 120 to the central
rewards mechanism 102 may include the consumer ID and the total
number of rewards points earned by a consumer in a particular
transaction. In another exemplary embodiment, data transmitted by
the rewards server 120 to the central rewards mechanism 102 may
also include any pre-selected aspect of the consumer profile, any
pre-selected aspect of the purchase data, and/or any other
pre-selected data associated with a consumer, a retailer, a
manufacturer, and/or a third-party provider. Pre-selection of the
types of data transmitted by the rewards server 120 to the central
rewards mechanism 102 may be conducted by the system administrator,
a retailer, a manufacturer, and/or a third-party provider. Thus,
data which may be useful for purposes of data analysis but
unrelated to the rewards feature, such as the characteristics of
the particular item purchased for example, may not need to be
transmitted to the central rewards mechanism 102.
[0071] Exemplary functions performed by the rewards server 120 may
include the association of UPC and SKU data; manipulation of the
rewards criteria applicable in particular cases, which may further
depend upon the retailer, manufacturer, and/or third-party provider
involved in a specific transaction with a consumer; calculation of
rewards benefits earned by the consumer; filtration functions for
determining which data is transmitted from the rewards server 120
to the central rewards mechanism 102; and/or various types of data
analyses, as described above. In an exemplary embodiment, the
retailer system 104 houses, maintains, and updates the hardware
and/or software of the rewards server 120. In another embodiment,
rewards server 120 may be housed, maintained, and updated by the
system administrator.
[0072] In accordance with another embodiment of the present
invention, the system 100 permits an open payment system. Since the
invention generally provides that consumer participation in the
system is based upon a consumer ID, a purchaser may use any of
multiple payment vehicles (such as cash, check, charge card, credit
card, debit card, MasterCard.RTM., Visa.RTM., and/or the American
Express.RTM. Card for example) to make purchases at the various
retailers and still participate in the system. Thus, in one
embodiment, the consumer ID is independent of any particular
payment vehicle, such as a credit card for example.
[0073] However, alternate embodiments of the invention may be
implemented which associate a consumer ID with a particular payment
vehicle, such as a consumer's credit card account, charge card
account, debit card account, and/or bank account for example. In
this embodiment, the retailer conducting the transaction need only
participate in the system to the extent that the retailer provides
its SKU data to the system 100, such as to the rewards server 120.
In other words, when a consumer ID is associated with an instrument
(e.g., a credit card) from a third-party provider, the retailer
need not provide a rewards terminal or other terminal capable of
processing the consumer ID, since the third-party provider may
process the consumer ID as part of the payment transaction. Thus,
in this embodiment, rewards benefits may be earned by the consumer
on a network-wide level without the retailer's direct participation
in the rewards feature (notwithstanding the retailer's
participation in transmitting SKU data to the system). Moreover, it
will be appreciated that a single consumer ID may be associated
with multiple third-party payment vehicles, thereby allowing a
consumer to generate rewards points regardless of the particular
payment vehicle selected for a particular purchase.
[0074] With reference to FIG. 4, an exemplary central rewards
mechanism 402 includes a central processor 404 in communication
with other elements of the rewards mechanism 402 through a system
interface or bus 406. A suitable display device/input device 408,
such as a keyboard or pointing device in combination with a
monitor, may be provided for receiving data from and outputting
data to a user of the system. A memory 410 associated with the
rewards mechanism 402 includes various software modules, such as an
enrollment module 412 and an authentication module 414 for example.
The memory 410 preferably further includes an operating system 416
which enables execution by processor 404 of the various software
applications residing at enrollment module 412 and authentication
module 414. Operating system 416 may be any suitable operating
system, as described above. Preferably, a network interface 418 is
provided for suitably interfacing with other elements of the
incentive awards system, such as the elements described above with
reference to FIGS. 1-3.
[0075] Lastly, a storage device 420, such as a hard disk drive for
example, preferably contains files or records which are accessed by
the various software modules, such as enrollment module 412 and
authentication module 414. In particular, consumer data 422
comprises information received from a consumer upon registration
with the rewards mechanism 402. Consumer rewards 424 comprises data
corresponding to each consumer's rewards account. Consumer rewards
424 may include cumulative rewards points totals as well as
historical totals and rewards account activity over time. Retailer
records 426 comprises information received from the various
participating retailers. Manufacturer records 428 comprises
information received from the various participating manufacturers.
One skilled in the art will appreciate that the storage device 420
and, therefore, consumer data 422, consumer rewards 424, retailer
records 426, and manufacturer records 428 may be co-located with
the rewards mechanism 402 or may be remotely located with respect
to the rewards mechanism 402. If the storage device 420 is remotely
located with respect to the rewards mechanism 402, communication
between storage device 420 and rewards mechanism 402 may be
accomplished by any suitable communication link but is preferably
accomplished through a private intranet or extranet.
[0076] Enrollment module 412 receives information from consumers,
retailers, and/or manufacturers who wish to participate in the
system. Enrollment module 412 accesses and stores information in
storage device 420. Authentication and/or validation of the
identity and status of participants, including any of the other
system components, may be performed by the authentication module
414, which preferably has access to the records residing in storage
device 420.
[0077] With reference to FIG. 5, an exemplary rewards server 502
includes a central processor 504 in communication with other
elements of the rewards server 502 through a system interface or
bus 506. A suitable display device/input device 508, such as a
keyboard or pointing device in combination with a monitor, may be
provided for receiving data from and outputting data to a user of
the system. A memory 510 associated with the rewards server 502
includes a variety of software modules, such as an association
module 512, a rewards calculation module 514, a data analysis
module 516, and a filtering module 518 for example. The memory 510
preferably further includes an operating system 520 which enables
execution by processor 504 of the various software applications
residing at the various modules 512, 514, 516, and 518. Operating
system 520 may be any suitable operating system, as described
above. Preferably, a network interface 522 is provided for suitably
interfacing with other elements of the incentive awards system,
such as the elements described above with reference to FIGS.
1-3.
[0078] Lastly, a storage device 524, such as a database as
described above for example, preferably contains files or records
which are accessed by the various software modules 512, 514, 516,
and 518. In particular, manufacturer data 526 comprises information
received from a manufacturer, such as descriptions or other
information regarding the manufacturer's products and/or services
as well as UPC data for example. Retailer data 528 comprises
information received from a retailer, such as descriptions or other
information regarding the retailer's products and/or services as
well as SKU data for example. Consumer data 530 comprises
information pertaining to a consumer, including a consumer ID,
purchase data, a consumer profile, and/or the like. One skilled in
the art will appreciate that the storage device 524 and, therefore,
manufacturer data 526, retailer data 528, and consumer data 530 may
be co-located with the rewards server 502 or may be remotely
located with respect to the rewards server 502. If the storage
device 524 is remotely located with respect to the rewards server
502, communication between storage device 524 and rewards server
502 may be accomplished by any suitable communication link but is
preferably accomplished through a private intranet or extranet.
[0079] Referring next to FIGS. 6 and 7, the process flows depicted
in these figures are merely exemplary embodiments of the invention
and are not intended to limit the scope of the invention as
described above. It will be appreciated that the following
description makes appropriate reference not only to the steps
depicted in FIGS. 6 and 7 but also to the various system components
as described above with reference to FIGS. 1-3.
[0080] FIG. 6 is flowchart illustrating an exemplary process for
capturing and processing POS SKU data in accordance with the
present invention. The association or matching of UPC and SKU data
begins with POS data capture (step 602). When a consumer presents a
consumer ID to a retailer 104 at the time of purchasing an item
from the retailer 104, the consumer ID is processed by a rewards
terminal 116 that recognizes the consumer ID and identifies the
consumer as a participant in the system 100. Purchase data is
captured by the retailer POS terminal 112. Purchase data may
include any of the following: a SKU number; a unit price; a total
transaction price; the payment vehicle(s) used; a store ID which
identifies the particular store location if a retailer operates
more than one store; a department ID, if the store has multiple
departments; the date of the transaction; the time of the
transaction; the employee ID of the store clerk who facilitates the
transaction; a POS terminal ID to identify the particular terminal
conducting the transaction; any retailer-specific incentive program
ID; and/or the like. The retailer POS terminal 112 creates a
transaction file comprising the consumer data (including a consumer
ID) and purchase data (including a SKU number associated with each
item purchased), and the transaction file is then stored by the
retailer processor 110 in database 111 (step 604).
[0081] The various transaction files may be consolidated by the
retailer processor 110 and then forwarded to the retailer regional
processor 114 (step 606) for further back-office and cumulative
data analysis performed by retailer 104.
[0082] In an exemplary embodiment, the transaction file is
transmitted by either of the retailer processor 110 or the retailer
regional processor 114 to the rewards server 120 (step 608). The
SKU information for each item included in the transaction file is
then matched to or associated with corresponding UPC information
which identifies the related manufacturer 106. An exemplary
association process is illustrated in the flowchart of FIG. 7.
Association of SKU and UPC data may be accomplished through any
data association technique known and practiced in the art. For
example, the association may be accomplished either manually or
automatically. Automatic association techniques may include, for
example, a database search, a database merge, GREP, AGREP, SQL,
and/or the like.
[0083] In an exemplary embodiment, database 121 receives and stores
manufacturer data, including UPC data, from manufacturer 106 (step
702). Database 121 also receives and stores retailer data,
including SKU numbers, from retailer 104 (step 704). In an
exemplary implementation, database 121 stores manufacturer data in
a separate manufacturer data table for each participating
manufacturer 106. Each manufacturer data table may comprise a
plurality of fields, such as "UPC" and "product description" for
example, and a plurality of records, each of which corresponds to
an item offered by the participating manufacturer 106. In one
embodiment, database 121 stores retailer data in a separate
retailer data table for each participating retailer 104. Each
retailer data table may comprise a plurality of fields, such as
"SKU" and "product description" for example, and a plurality of
records, each record corresponding to an item offered by a
participating retailer 104.
[0084] Data from each of the manufacturer and the retailer data
tables is then associated (step 706). The association step may be
accomplished by a database merge function, for example, using a
"key field" in each of the manufacturer and retailer data tables. A
"key field" partitions the database according to the high-level
class of objects defined by the key field. For example, a "product
description" class may be designated as a key field in both the
manufacturer data table and the retailer data table, and the two
data tables may then be merged on the basis of the "product
description" data in the key field. In this embodiment, the data
corresponding to the key field in each of the merged data tables is
preferably the same. That is, the product descriptions in the
manufacturer data table matches the product descriptions in the
retailer data table. However, manufacturer and retailer data tables
having similar, though not identical, data in the key fields may
also be merged by using AGREP, for example.
[0085] The result of the data association step is the creation of a
separate data table, such as a UPC/SKU lookup table for example
(step 708). Thus, when the rewards server 120 receives the data
(e.g., consumer ID and SKU data) captured by the POS terminal (step
710), the rewards server 120 may search the UPC/SKU lookup table
for the appropriate SKU number and then match the SKU to the
corresponding UPC data (step 712). In an exemplary embodiment, the
"SKU" and "UPC" fields in the UPC/SKU data table may be linked by
an appropriate pointer. That is, when the rewards server 120
searches the UPC/SKU table and locates the particular SKU that has
been captured and transmitted by the POS terminal, the specifically
identified SKU datafield uses a pointer to direct the rewards
server 120 to the UPC datafield that corresponds to that SKU
number. In an exemplary embodiment, the UPC datafield may be linked
by one or more additional pointers to other key fields, such as a
consumer ID, a retailer ID, a manufacturer ID, and/or a third-party
ID. These additional pointers may be used as means for compiling
data which may be useful in any of the various data analyses
performed by the rewards server 120. In this manner, the
association of POS SKU numbers and UPC data may be used to create a
context in which standardized, network-wide analyses may be
conducted.
[0086] In an exemplary embodiment, the rewards server 120 utilizes
the association information to calculate the rewards points
generated by a consumer's purchase. For example, an appropriate
series of pointers leading from a SKU to a UPC to a manufacturer ID
may ultimately direct the rewards server 120 to employ a 2-for-1
manufacturer rewards ratio to award a consumer twice as many points
as the dollar amount of the consumer's total transaction price. In
another exemplary embodiment, an appropriate series of pointers may
result in the calculation of rewards points based upon multiple
rewards criteria, such as rewards criteria associated with the
manufacturer of the item as well as rewards criteria associated
with a third-party provider for example.
[0087] In a further embodiment, the rewards server 120 may use the
association of UPC and SKU number data to analyze a variety of
marketing variables across multiple manufacturers and retailers.
For example, rewards server 120 may use a series of pointers
leading from an SKU to a UPC and then to a "consumer profile" field
or table to correlate, for instance, consumer spending behaviors,
particular manufacturers, and/or specific products across multiple
retailers for example.
[0088] In alternative embodiments, association of the UPC data and
SKU number may take place at any of the rewards terminal 116, the
retailer POS terminal 112, the retailer processor 110, the retailer
regional processor 114 (or a retailer national processor), and/or
the central rewards mechanism 102.
[0089] In one embodiment, the retailer 104 may offer an incentive
or loyalty program that is independent from the program offered by
the system 100. Alternatively, the retailer 104 may use the
system's UPC data for its own internal purposes.
[0090] With momentary reference to FIG. 6, in one exemplary
embodiment, the consumer ID and the earned rewards information are
transmitted to the central rewards mechanism 102 after the rewards
server 120 has filtered out consumer data associated with the
consumer ID (step 610). In another embodiment, the central rewards
mechanism 102 may use the captured and matched UPC information to
determine rewards and/or for data analysis.
[0091] In another exemplary embodiment, the present invention
facilitates the transfer of any portion of loyalty point balances
from at least one sponsored account which includes sponsored
loyalty points to at least one host account associated with a
particular host. As used herein, a "sponsoring company" includes
any person, entity, software and/or hardware that facilitates the
issuing of points to its consumers including a company (e.g.,
hotel, airline, car rental, transaction card issuer) and/or parent
organizations, joint ventures, affiliates, subsidiaries,
co-marketers, co-sponsors, divisions and/or any related entities.
As used herein, "sponsored loyalty points" include loyalty points
associated with a sponsoring company. The sponsoring company may
operate and sponsor a loyalty program by allowing consumers to earn
loyalty points associated with the sponsoring company. The
sponsoring company also maintains one or more loyalty point
accounts for each consumer, wherein the system stores a balance of
the sponsored loyalty points earned by the particular consumer. The
loyalty point balance may be stored as a point total, a number, a
letter, a level, a code, a value and/or the like. The system for
operating the loyalty program and maintaining the loyalty point
balances may include any of the hardware and/or software discussed
herein that is suitably configured to perform the disclosed
operations. A "host" includes any person, entity, software, and/or
hardware that receives the transferred loyalty points, facilitates
the transfer of loyalty points and/or aggregates loyalty points
associated with the same consumer. The host company may be another
sponsoring company.
[0092] In one embodiment, the system and method facilitates
acquiring data related to loyalty point balances of consumer
accounts associated with a sponsoring company. The sponsoring
company may acquire its own data and conduct its own database
analysis and/or allow the host company or consumer to acquire
and/or analyze the sponsoring company accounts. The system may
acquire the data in any form suitable for analysis and the data may
include, for example, consumer name, consumer ID, registration
date, consumer transaction data, purchases which qualify for
points, time and date of points earned, amount of points earned for
each transaction, point balance history, current point balance,
time period since last points earned, time period since last
conducting a transaction with the particular sponsor and/or the
like.
[0093] The consumer, sponsoring company and/or host company may
establish certain rules or criteria for determining which sponsored
accounts should participate in the transfer of points, the portion
of points that are transferred, and which host accounts should be
credited with the transferred points. The rules may include, for
example, consumer accounts having loyalty point balances which are
below a certain threshold amount, consumer accounts which have
remained inactive for a certain time period and/or consumer
accounts in which consumers, the sponsoring company or the host
company requested a transfer of the loyalty points. For example,
the system may store a rule that flags any account associated with
the sponsoring company that includes less than 500 points.
Moreover, the system may allow a consumer to enter a webpage or
call a customer service representative to request that the
consumer's own account be flagged such that the system will
transfer (e.g., debit and credit as discussed herein) any requested
number of loyalty points to the host account associated with the
consumer. The transfer of points may occur at any predetermined
time periods, certain dates, random dates and/or only at a
requested time. The amount of points to transfer may include a set
amount of points, all of the points, any subset of points, an
increasing amount of points, a decreasing amount of points and/or
an amount of points based upon a certain formula, event or
non-event (e.g., transfer 500 points for each month the consumer
does not rent a car from a particular rental company).
[0094] The system may also credit any portion of the loyalty points
to one or more loyalty point accounts in the host company
corresponding to the same consumer or a different consumer from
which the loyalty points were deducted. For example, the consumer
may request that the loyalty points be transferred to an account at
the host associated with a family member, a friend, a charitable
organization and/or the like. In this manner, while the individual
consumer accounts include minimal amounts of points which are often
insufficient for the individual consumer to utilize for any large
reward item, the charitable organization may be able to acquire a
large amount of points from numerous consumer accounts in order to
obtain larger reward items.
[0095] After the system records the desired rules, the system
determines which consumer accounts meet the rules. The system may
then flag the particular accounts and send a list of consumer
accounts which meet the rules to the host system. In one
embodiment, the host system may then establish or activate its own
consumer accounts, wherein the consumer accounts correspond to the
consumer accounts associated with the sponsoring company that meet
the rules. In another embodiment, the host system may establish or
activate accounts associated with other people or organizations
that may receive the transferred points, such as, for example, a
United Way account. The system then assigns each account an account
number to help coordinate the transfer of loyalty points from the
sponsoring company accounts. The system then deducts all or any
portion of the loyalty point balance of the consumer account
associated with a sponsoring company and credits the corresponding
or requested loyalty point balances of the accounts associated with
the host company. In one embodiment, the system may notify the
consumer of the transfer of the points and/or provide the consumer
or the sponsoring company with the option to keep the consumer
account open or to close the consumer account with the sponsor. The
system may then eliminate, close, or flag as inactive the consumer
account associated with the sponsoring company. By transferring the
loyalty points from the consumer accounts to the accounts of a host
system, the sponsoring company eliminates or reduces the loyalty
point balances from its system, thereby reducing the sponsoring
company accounting liabilities and providing new options for the
consumers to redeem the points or aggregated points in another
loyalty program.
[0096] In the foregoing specification, the invention has been
described with reference to specific embodiments. However, it will
be appreciated that various modifications and changes can be made
without departing from the scope of the present invention as set
forth in the claims below. The specification and figures are to be
regarded in an illustrative manner, rather than a restrictive one,
and all such modifications are intended to be included within the
scope of present invention. Accordingly, the scope of the invention
should be determined by the appended claims and their legal
equivalents, rather than by the examples given above. For example,
the steps recited in any of the method or process claims may be
executed in any order and are not limited to the order presented in
the claims.
[0097] Benefits, other advantages, and solutions to problems have
been described above with regard to specific embodiments. However,
the benefits, advantages, solutions to problems, and any element(s)
that may cause any benefit, advantage, or solution to occur or
become more pronounced are not to be construed as critical,
required, or essential features or elements of any or all the
claims. As used herein, the terms "comprises", "comprising", or any
other variation thereof, are intended to cover a non-exclusive
inclusion, such that a process, method, article, or apparatus that
comprises a list of elements does not include only those elements
but may include other elements not expressly listed or inherent to
such process, method, article, or apparatus. Further, no element
described herein is required for the practice of the invention
unless expressly described as "essential" or "critical".
* * * * *