U.S. patent application number 14/055081 was filed with the patent office on 2014-09-18 for method and apparatus for administering a reward program.
This patent application is currently assigned to GROUPON, INC.. The applicant listed for this patent is GROUPON, INC.. Invention is credited to Dean Alderucci, James A. Jorasch, Andrew S. Van Luchene, Jay S. Walker.
Application Number | 20140278856 14/055081 |
Document ID | / |
Family ID | 25505242 |
Filed Date | 2014-09-18 |
United States Patent
Application |
20140278856 |
Kind Code |
A1 |
Walker; Jay S. ; et
al. |
September 18, 2014 |
METHOD AND APPARATUS FOR ADMINISTERING A REWARD PROGRAM
Abstract
In accordance with the present invention, a central controller
stores a series of registrations, each of which corresponds to a
purchaser of a product. The central controller calculates a
measurement of product success, such as the number of products sold
or the market share of the product. The central controller
determines if the measurement is within a predetermined range. For
example, the central controller may determine if the number of
products sold exceeds a predetermined threshold. A selected set of
registrations which are "early-adopter" registrations are selected.
The set of registrations thereby defines a set of early-adopter
purchasers. For example, the central controller may select a set of
registrations having ordinal positions within a predetermined range
of positions, such as the first hundred registrations. Thus, one
hundred early-adopter purchasers are defined. If the measurement of
product success is within the predetermined range, a reward, such
as a refund or a free product, is provided to each early-adopter
purchaser. For example, if sales of the product exceed 1,000,000
units, a reward is provided to each early-adopter purchaser.
Inventors: |
Walker; Jay S.; (Ridgefield,
CT) ; Van Luchene; Andrew S.; (Norwalk, CT) ;
Jorasch; James A.; (Stamford, CT) ; Alderucci;
Dean; (Ridgefield, CT) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
GROUPON, INC. |
CHICAGO |
IL |
US |
|
|
Assignee: |
GROUPON, INC.
CHICAGO
IL
|
Family ID: |
25505242 |
Appl. No.: |
14/055081 |
Filed: |
October 16, 2013 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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13616662 |
Sep 14, 2012 |
8566155 |
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14055081 |
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11946435 |
Nov 28, 2007 |
8280769 |
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13616662 |
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09441978 |
Nov 17, 1999 |
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11946435 |
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08961964 |
Oct 31, 1997 |
6049778 |
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09441978 |
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Current U.S.
Class: |
705/14.13 |
Current CPC
Class: |
G06Q 30/0236 20130101;
G06Q 30/0204 20130101; G06Q 30/0212 20130101; G06Q 30/02 20130101;
G06Q 30/0239 20130101; G06Q 30/0211 20130101 |
Class at
Publication: |
705/14.13 |
International
Class: |
G06Q 30/02 20060101
G06Q030/02 |
Claims
1-20. (canceled)
21. A method for facilitating the introduction of new products to
market, the method comprising: receiving a plurality of
early-adopter registrations, wherein the early-adopter
registrations comprise registrations occurring early in the life
cycle of a product; determining, by a processor, a measurement of
success associated with the early-adopter registrations;
determining, by the processor, whether the measurement of success
satisfies a predetermined threshold; and upon determining that the
measure of success satisfies the predetermined threshold,
facilitating provision of a reward to a user associated with at
least one of the early-adopter registrations.
22. The method of claim 21, further comprising receiving payment
associated with the one or more early-adopter registrations.
23. The method of claim 21, wherein the reward comprises a product,
a prize, a gift certificate, or establishment or adjustment of an
account balance.
24. The method of claim 21, wherein the predetermined threshold
comprises at least a predetermined price, revenue, or profit.
25. The method of claim 21, further comprising associating the
early-adopter registrations with at least one group of a set of
groups.
26. The method of claim 25, further comprising: transmitting a
group membership message indicating the at least one group
associated with each early-adopter registration.
27. The method of claim 25, wherein at least one of the set of
groups has a maximum number of associated users.
28. The method of claim 25, wherein the reward provided to the user
is based on the group associated with the at least one
early-adopter registration associated with the user.
29. The method of claim 25, further comprising providing a reward
to an additional user associated with at least one of the one or
more early-adopter registrations.
30. The method of claim 21, wherein facilitating provision of the
reward to the user comprises providing the reward to the user.
31. The method of claim 21, wherein facilitating provision of the
reward to the user comprises facilitating provision of the reward
by a manufacturer, credit card account issuer, or other party.
32. A method for facilitating the introduction of new products to
market, the method comprising: receiving a plurality of product
registrations, wherein the plurality of product registrations
comprise early-adopter registrations; determining, by a processor,
a measurement of success associated with the product registrations;
determining, by the processor, whether the measurement of success
satisfies a predetermined threshold; and upon determining that the
measure of success satisfies the predetermined threshold,
facilitating provision of a reward to a user associated with at
least one of the early-adopter registrations.
33. The method of claim 32, further comprising: determining the
early-adopter registrations from the plurality of product
registrations based on an ordinal position associated with each of
the plurality of product registrations.
34. The method of claim 32, further comprising: transmitting a
message to users associated with the plurality of product
registrations indicating an early-adopter registration status.
35. The method of claim 32, further comprising: determining the
early-adopter registrations from the plurality of product
registrations by randomly selecting a subset of the product
registrations.
36. The method of claim 32, further comprising: determining the
early-adopter registrations from the plurality of product
registrations based on geographic areas associated with each of the
plurality of product registrations.
37. The method of claim 36, wherein the geographic areas associated
with each of the plurality of product registrations comprise states
or metropolitan areas.
38. The method of claim 32, further comprising: determining the
early-adopter registrations from the plurality of product
registrations based on dates of payment associated with each of the
plurality of product registrations.
39. The method of claim 32, further comprising: transmitting at
least one status update message to users associated with the
plurality of product registrations indicating predetermined
threshold status information.
40. The method of claim 39, wherein the status update message
further indicates an amount of payment necessary to reach the
predetermined threshold.
41. The method of claim 39, further comprising: transmitting at
least one additional status update message to users associated with
the plurality of product registrations indicating predetermined
threshold status information, wherein the at least one status
update message and the at least one additional status update
message are transmitted at periodic intervals.
42. The method of claim 32, further comprising receiving payments
associated with the plurality of product registrations.
43. The method of claim 32, wherein the reward comprises a product,
a prize, a gift certificate, or establishment or adjustment of an
account balance.
44. The method of claim 32, wherein the predetermined level of
product success comprises at least a predetermined price, revenue,
or profit.
45. The method of claim 32, wherein facilitating provision of the
reward to the user comprises providing the reward to the user.
46. The method of claim 32, wherein facilitating provision of the
reward to the user comprises facilitating provision of the reward
by a manufacturer, credit card account issuer, or other party.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] The present application is a continuation of U.S. patent
application Ser. No. 09/441,978, which is a continuation of U.S.
patent application Ser. No. 08/961,964, now U.S. Pat. No.
6,049,778, which are assigned to the assignee of the present
invention and are incorporated by reference in their entirety
herein.
FIELD OF THE INVENTION
[0002] The present invention relates to systems for administering
reward programs.
BACKGROUND OF THE INVENTION
[0003] Many businesses experience pressures to rapidly bring
newly-introduced goods and services ("new products") to market.
With heightened domestic and global competition, companies that do
not obtain market share quickly lose out to those companies that
do. Consequently, the life cycles (period from product introduction
to discontinuation) of many products are relatively brief, and many
businesses strive to recover product development costs in just a
few years.
[0004] It is particularly important to develop market share rapidly
upon the introduction of a new product. Otherwise, the product may
fail to ever gain consumer acceptance. Unfortunately, consumers are
often slow to purchase new products, especially those containing
new technology. It is particularly difficult, for example, to sell
new computer, electronic and other "high-tech" products. This slow
adoption causes some new products to suffer from a
"chicken-and-egg" problem, in which low sales of a product decrease
the chance that the product will ever gain consumer acceptance.
Poor demand for digital video disk (DVD) players, for example, has
decreased the ability and motivation of businesses to provide DVDs.
The low availability of DVDs in turn discouraged consumers from
buying DVD players. It has thus become difficult for either the
disks or the players to overcome consumer reluctance and gain
market share.
[0005] In many cases, widespread sales and acceptance of products
is essential to the effective use and enjoyment of the product.
Consequently, many consumers refrain from purchasing products until
it has been shown that a significant number of other consumers have
purchased those products. For example, early in the life cycle of
facsimile ("fax") machines, there were few fax machines with which
to communicate. Accordingly, their usefulness was limited, and the
fax machine did not become highly useful or desirable until a
significant number of consumers had likewise purchased a fax
machine.
[0006] In addition to the above-described difficulties in marketing
new products, such new products are often expensive, particularly
in comparison to established product technologies. Many consumers
are thus reluctant to purchase new products because the product
price may decrease significantly with market acceptance. Such
initially high prices are typically necessary for manufacturers to
recover product development costs. In addition, prices typically
decrease upon reaching greater production volumes, which yield
economies of scale. Consequently, it is not uncommon for the price
paid during the introduction of a product to be two to five times
greater than the price paid thereafter. For example, a typical
cellular telephone cost approximately $10,000 when first introduced
in the early 1980's. After fifteen years, the cost of a typical
cellular telephone has decreased to approximately $100 to $200.
Many consumers thus prefer to wait for product prices to decrease,
and consequently new products often suffer from poor sales. In sum,
businesses are often driven by opposing pressures: the need to sell
at low prices to stimulate new product sales, and the need to sell
at high prices to recover product development costs in a short
amount of time.
[0007] To stimulate sales, particularly sales of new products, many
businesses offer various promotions as an incentive to purchase the
products. For example, a business may offer the product at a
substantial discount, or the product may be accompanied by a gift.
Unfortunately, such promotions incur costs, even if they are
unsuccessful in increasing sales. Accordingly, businesses are often
reluctant to invest significant resources in high-value promotions,
since such investment may incur costs but yield little or no
benefit.
[0008] One system for attempting to quickly grow market share of
products is known in the art as a multi-level marketing ("MLM")
scheme. In MLM, a salesperson establishes himself at a higher level
in a "pyramid" than salespeople to whom he sells. Typically, a
salesperson acquires salespeople below him by "recruiting" or
otherwise convincing others to sell the product. The salesperson is
paid commissions for sales that are consummated by lower-level
salespeople. Sales people at the highest levels are paid the
highest commissions, since they have many levels below them
generating sales and hence commissions. Salespeople at the lowest
levels are paid the lowest commissions, if any. Due to the tiered
commission structure, MLM schemes have the inherent disadvantage of
inflating product costs. Furthermore, multi-level marketing
requires each person in the pyramid to be a salesperson, which is
annoying to many people and thus discourages most people from
participating in MLM schemes. In other words, each person in an MLM
pyramid cannot be passive, but must invest a significant amount of
time and energy in being an active salesperson. Accordingly,
typical purchasers are neither willing nor capable of participating
in MLM schemes.
[0009] It would be advantageous to provide a method and apparatus
that facilitates the introduction and sale of new products. Such a
method and apparatus would ideally overcome the drawbacks of known
systems for promoting the sale of new products.
SUMMARY OF THE INVENTION
[0010] It is an object of the present invention to provide a method
and apparatus for administering a reward program.
[0011] In accordance with the present invention, a central
controller stores a series of registrations, each of which
corresponds to a purchaser of a product. The central controller
calculates a measurement of product success, such as the number of
products sold. The central controller evaluates product success by
determining whether the measurement is within a predetermined
range. For example, the central controller may determine whether
the number of products sold exceeds a predetermined threshold, or
whether the price of the product has decreased to a predetermined
amount.
[0012] Upon attaining a predetermined level of product success, a
selected set of "early-adopter" purchasers (purchasers who buy a
product early in the product's life cycle) are rewarded. Thus,
consumers are provided with an incentive to (i) buy a product
earlier than they otherwise might have; or (ii) buy a product they
might not have otherwise bought. A set of registrations which are
early-adopter registrations are selected, thereby defining a set of
early-adopter purchasers. In selecting early-adopter registrations,
the central controller may select a set of registrations having
ordinal positions within a predetermined range of positions, such
as the first hundred registrations. Alternatively, the central
controller may select a set of registrations having dates before a
predetermined date, such as all registrations for products
purchased within the first month of a product's introduction.
[0013] If the measurement of product success is within the
predetermined range, a reward is provided to each early-adopter
purchaser. A number of different types of rewards may be provided,
such as a refund or a free product. For example, each early-adopter
purchaser may be refunded his purchase price if sales of the
product exceed 1,000,000 units, or each early-adopter purchaser
could receive a $20 dividend with every 1,000,000 units sold.
BRIEF DESCRIPTION OF THE DRAWINGS
[0014] FIG. 1 is a schematic illustration of an apparatus for
administering a reward program in accordance with the present
invention.
[0015] FIG. 2 is a schematic illustration of a central controller
of the apparatus of FIG. 1.
[0016] FIG. 3 is a schematic illustration of a registration
database of the central controller of FIG. 2.
[0017] FIG. 4 is a schematic illustration of a record of a product
success database of the central controller of FIG. 2.
[0018] FIG. 5 is a schematic illustration of a record of an early
adopter database of the central controller of FIG. 2.
[0019] FIG. 6 is a schematic illustration of a record of a reward
database of the central controller of FIG. 2.
[0020] FIG. 7 is a schematic illustration of exemplary records of
the records of FIGS. 4, 5 and 6.
[0021] FIG. 8 is a schematic illustration of an account database of
the central controller of FIG. 2.
[0022] FIG. 9 is a flowchart illustrating a method for
administering a reward program.
[0023] FIGS. 10A and 10B are a flowchart illustrating another
embodiment of the method of FIG. 9.
[0024] FIG. 11 is a schematic illustration of a package database of
the central controller of FIG. 2.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
[0025] The present invention allows a manufacturer, distributor or
other seller to reward purchasers (e.g., individuals, families, or
companies) of a product if and when the product attains a
predetermined measure of "success". In particular, early-adopter
purchasers (purchasers who buy a product early in the product's
life cycle) are rewarded, thereby providing consumers with an
incentive to (i) buy a product earlier than they otherwise might
have; or (ii) buy a product they might not have otherwise bought.
Accordingly, the present invention can enable sellers to sell
products earlier, and even increase sales of products.
[0026] In accordance with the present invention, early-adopter
purchasers are rewarded only after the product has attained a
predetermined measure of "success." The reward reduces or
eliminates consumer reluctance to purchase the product, since any
perceived risk is mitigated by the reward. By contrast,
conventional product promotions, which offer rewards regardless of
product success, incur the costs of the rewards even if the product
is not successful. Accordingly, the present invention is
particularly beneficial in the sale of new products, such as new
electronic devices, car models, software, magazine subscriptions,
airline routes, books, video tapes, lottery games, telephone plans,
leasing systems, prescription drugs and products sold by new stores
or companies.
[0027] The methods and apparatus of the present invention can
permit a seller to recover the investment costs of new products
earlier in the product life cycle. In addition, the seller may make
profits more quickly than if early-adopter purchasers were not
identified and rewarded. Profits accruing from a product as well as
market share should increase as total sales of the product
increase, thereby funding the rewards provided to early-adopter
purchasers.
[0028] Similarly, purchasers may be able to recover the typically
large cost of purchasing a new product by receiving rewards for
early purchases of the product. Certain purchasers may even recover
more than the purchase price of the product. Such rewards provide
the purchasers with incentives to buy the product early in the life
cycle of the product. Furthermore, purchasers that view the
purchased product favorably have even more incentive to tell
others, and thereby promote the product. Early-adopter purchasers
thus may function as both salespeople and investors in the company
selling the product, yet those purchasers need not actually exert
the effort in selling the product themselves, such as participants
in MLM.
[0029] The description that follows is arranged into the following
sections: Registering Products, Measuring Product Success,
Rewarding Early-Adopter Purchasers and Exemplary Embodiments.
Registering Products
[0030] Purchasers of a product may be identified by corresponding
registrations for the product. A registration is an entry which
specifies registration information, such as one or more of (i) the
product purchased; (ii) a serial number or other unit identifier
for specifying the particular unit of the product which was
purchased; (iii) the name of the purchaser; (iv) the address of the
purchaser; (v) the location where the product was purchased; (vi)
the price paid for the product; and (vii) the date of purchase.
[0031] Referring to FIG. 1, an apparatus 10 for administering a
reward program includes a central controller 12 in communication
with data input devices 14 and 16. Each of the data input devices
14 and 16 collects registration information directly or indirectly
from purchasers (not shown), and transmits the registration
information to the central controller 12. The registration
information transmitted to the central controller 12 may be
encrypted for security. The central controller 12 in turn generates
and stores corresponding registrations based on the registration
information. The purchasers thereby become "registered purchasers"
of the product. The central controller 12 may be operated by
several types of entities, such as a product manufacturer, a credit
issuer, a credit card clearinghouse or a third party that
administers reward programs for various manufacturers.
[0032] The data input devices 14 and 16 are computers, network
terminals or other devices for transmitting the registration
information to the central controller. Although two data input
devices are shown in FIG. 1, any number of data input devices may
be in communication with the central controller 12. Registration
information may be collected via data input devices 14 and 16 in a
number of ways. For example, many products are accompanied by a
registration card, upon which the purchaser prints the required
registration information. The registration card is then submitted,
and may also be accompanied by a receipt or other proof of purchase
of the product. Typically, a data entry operator receives and reads
the submitted card, and types the registration information into one
of the data input devices 14 and 16, which may be a computer
connected to the central controller 12 via a communication network.
In another embodiment, the purchaser may speak with an operator
using a telephone, and the operator types the registration
information into one of the data input devices 14 and 16.
Alternatively, one of the data input devices 14 and 16 is a
telephone connected to a voice-response unit (VRU). A purchaser may
enter appropriate registration information via the VRU by pressing
telephone buttons in response to VRU prompts.
[0033] In summary, there exist many ways in which registration
information may be submitted to the central controller 12.
Registration information may be collected at the time of purchase,
and subsequently submitted from the point of purchase. For example,
a purchaser may buy a television at an appliance store. An
appliance store employee collects registration information from the
purchaser, and in turn enters the registration information via one
of the data input devices 14 and 16, which may be a computer in the
appliance store. The computer transmits the registration
information to the central controller 12. Alternatively, the
purchaser may enter registration information via one of the data
input devices 14 and 16, which may be a kiosk located in the store.
The kiosk in turn transmits the registration information to the
central controller 12. In such embodiments, a store identifier
specifying the location of the purchase may also be included as
registration information that is transmitted to the central
controller 12.
[0034] In another embodiment, one of the data input devices 14 and
16 is a point-of-sale ("POS") terminal, such as a cash register
with a credit card reader. After recording a purchase, the card
reader transmits a purchase price, product code and credit card
account number to the central controller 12, which is operated by
the credit card issuer or a credit card clearinghouse.
[0035] In still another embodiment, at least one of the data input
devices 14 and 16 is a personal computer on a communication
network, such as the Internet. The personal computer (i) initiates
an order from a purchaser, (ii) collects registration information
along with the order, and (iii) submits the order and registration
information to the central controller 12. Ideally, the purchaser
would not have to submit additional information with the order, but
instead the registration information would be completely available
from or determined by the order. For example, an order may include
registration information, such as the product, the purchaser's name
and delivery address. Additional registration information, such as
a serial number of the unit bought, the price paid for the unit,
and the date of purchase, could be automatically determined by the
central controller 12, even though it may not be explicitly
specified in the order submitted by the purchaser. For example, the
serial number of the unit bought and price paid could be determined
by the central controller 12 from inventory information, and the
date of purchase could be determined with reference to a timer
signal. Many other methods for collecting and organizing
registration information will be apparent to those skilled in the
art.
[0036] Referring to FIG. 2, the central controller 12 comprises a
processor 20, such as one or more conventional microprocessors,
which is connected to a data storage device 22, such as a RAM,
floppy disk, hard disk or combination thereof. The processor 20 is
in communication with each of the data input devices 14 and 16. The
processor 20 and the storage device 22 may each be (i) located
entirely within a single computer or other computing device; (ii)
connected to each other by a remote communication link, such as a
serial port cable, telephone line or radio frequency transceiver;
or (iii) a combination thereof. For example, the central controller
12 may comprise one or more computers which are connected to a
remote server computer for maintaining databases.
[0037] The storage device 22 stores (i) a program 24 for
controlling the processor 20; (ii) a registration database 26;
(iii) a product success database 27; (iv) a reward database 28; and
(v) an early adopter database 30. The program 24 drives the
processor 20 to operate in accordance with the present invention,
and particularly in accordance with the methods described in detail
herein. The program 24 also includes program elements that may be
necessary, such as "device drivers" for interfacing with computer
peripheral devices. Appropriate device drivers and other necessary
program elements are known to those skilled in the art, and need
not be described in detail herein. Each of the databases 26, 27, 28
and 30 is described in detail below and depicted with exemplary
entries in the accompanying figures. As will be understood by those
skilled in the art, the schematic illustrations and accompanying
descriptions of the databases presented herein are exemplary
arrangements for stored representations of information. A number of
other arrangements may be employed besides the tables shown.
Similarly, the illustrated entries represent exemplary information,
but those skilled in the art will understand that the number and
content of the entries can be different from those illustrated
herein.
[0038] Referring to FIG. 3, the registration database 26 stores
entries 40, 42, 44 and 46 which each define a registration. Each of
the entries 40, 42, 44 and 46 includes registration information,
such as (i) a product identifier 48 for specifying the product that
was purchased; (ii) a unit identifier 50 for specifying a
particular unit of the product that was purchased; (iii) a name 52
of a purchaser; (iv) an address 54 of the purchaser; (v) a store
identifier 56 for specifying a store, if any, where the product was
purchased; (vi) a purchase price 58 of the product; and (vii) a
purchase date 59 of the product.
[0039] As described above, registration information typically
includes a unit identifier. The unit identifier specifies the
particular unit of the product that was purchased, and thus may be
a unique unit code, such as a serial number. Alternatively, the
unit identifier may be a unique transaction code generated upon
each sale of the product, and printed on a receipt upon completion
of the sale.
[0040] Unit identifiers should ideally be chosen to prevent fraud.
Unscrupulous individuals may attempt to become registered
purchasers without having purchased the product. For example, an
individual may create copies of registration cards and submit those
cards in an attempt to gain the benefit of several registrations.
If a number of submitted cards include the same unit identifier,
the fraud is easily detected since each unit identifier must be
unique. However, if each submitted card contains different but
valid unit identifiers, fraud may be more difficult to detect.
Accordingly, if valid unit identifiers may be easily ascertained
from other unit identifiers, unscrupulous individuals may attempt
to submit registration information containing those valid
identifiers, though they have not purchased the units corresponding
to those identifiers. For example, if all numbers in a range from
10,000 to 11,000 are valid unit identifiers, then a purchased unit
having a unit identifier "10,000" permits an individual to guess
that the unit identifier "10,001" is valid as well. Such an
individual could possibly submit two registration cards, even if he
has not purchased two units of the product.
[0041] It is thus desirable that valid unit identifiers are not,
for example, sequential numbers. Instead, unit identifiers may be
randomly generated numbers or alphanumeric characters. In addition,
unit identifiers may be combinations of two or more identifiers.
For example, unit identifiers may be combinations of (i) serial
numbers; (ii) credit card numbers; (iii) unique transaction codes;
and/or (iv) store identifiers specifying a location of a purchase.
Such combinations make it more difficult to fraudulently become a
registered purchaser. Further, unit identifiers may be encrypted
such that information (e.g., serial number or store identifier) may
be determined therefrom, but such information could not be easily
modified without resulting in an invalid unit identifier. Such
encryption also impedes attempts to ascertain valid unit
identifiers from other unit identifiers. Many encryption techniques
are well known, and described in "Applied Cryptography, Protocols,
Algorithms, and Source Code in C", by Bruce Schneier.
[0042] Unscrupulous individuals may attempt to remain registered
purchasers even after returning a purchased product. However, if
each unit is uniquely identified and a corresponding registration
may be determined from a returned unit, the central controller 12
(FIG. 1) can delete the associated registration after the unit is
returned. For example, if the returned unit has a serial number, a
registration that includes the serial number may be identified and
deleted. Alternatively, each unit of the product may have a
"scratch-off" coating or label that reveals a unit identifier when
scratched. Each unit is thus uniquely identified by the label's
unit identifier. When a unit of a product is being returned, the
label is examined to determine if the unit identifier is revealed.
If the unit identifier were unrevealed, it would be known that
there exists no corresponding registration for the unit. In another
embodiment, unique transaction codes may be printed on receipts.
Each transaction code may thereby serve as the unit identifier, and
may be compared with registrations when a product is returned with
the receipt.
[0043] In known systems for registering products, not all
purchasers submit their corresponding registration information.
However, since in the present invention early-adopter purchasers
are identified and rewarded only after submitting registration
information, the present invention would typically increase the
number of purchasers that submit such registration information.
Registration information is particularly valuable, and can permit
companies to track sales and to target promotions and advertising
more effectively.
Measuring Product Success
[0044] The central controller 12 (FIG. 1), which stores
registrations, calculates a measurement of product success, and
provides a reward to each early-adopter purchaser if the
measurement is within a predetermined range. Typically, the
measurement of product success is the quantity of sales, and a
reward is provided if the number of sales exceeds a predetermined
number. However, in other embodiments the measurement of product
success may be, for example, product market share, product price,
product revenue or product profit. For example, the measurement of
product success may be the product price, and a reward is provided
if the product price has fallen below a predetermined price.
Further, the measurement of product success may be calculated in
absolute terms (e.g., profit made during the fiscal year) or
relatively (e.g., 10,000 more units sold than a competitor
sold).
[0045] Referring to FIG. 4, a record 60 of the product success
database 27 (FIG. 2) defines product success parameters for a
product identified by a product identifier 62. The product success
database 27 (FIG. 2) typically includes a plurality of records such
as the record 60, each defining product success parameters for a
different product. The record 60 includes entries 64, 66 and 68
which each specify (i) a quantity of sales 70; and (ii) a reward
identifier 72 indicating a reward schedule, described in detail
below. Each of the entries 64, 66 and 68 thereby specifies rewards
to be provided upon attaining the corresponding quantity of sales.
It will be understood by those skilled in the art that any number
of entries may be used.
[0046] It may be desirable to divide product success into "tiers",
in which each tier corresponds to different ranges of the
measurement of product success. For example, 100,000 sales may
indicate the lower threshold of a first tier of product success,
1,000,000 sales may indicate the lower threshold of a second tier
of product success, and 2,000,000 or more sales may indicate a
third tier of product success. Accordingly, each predetermined
range corresponds to a tier, and thus each tier corresponds to an
entry of the record 60. If the measurement of product success falls
within one of the predetermined ranges (the quantity of sales 70),
a reward (specified by the reward identifier 72) is provided to
each early-adopter purchaser. As described below, the reward
provided for each tier may be the same (e.g., ten dollars for every
100,000 sales) or may be different (e.g., ten dollars upon reaching
100,000 sales, and fifty dollars upon reaching 1,000,000
sales).
Rewarding Early-Adopter Purchasers
[0047] Generally, an early-adopter purchaser is a purchaser who
buys a product early in the life cycle of the product. Whether a
purchaser is considered an early-adopter purchaser may be
determined from the corresponding registration of that purchaser. A
set of registrations which are early-adopter registrations are
selected, thereby defining a set of early-adopter purchasers.
[0048] In one embodiment, the registrations are arranged in a
series, and each registration of the series has an ordinal
position. Thus, each registration defines a number of prior
registrations and a number of successive registrations. The ordinal
position of each registration indicates the order in which
corresponding registration information was received, or
alternatively the order in which the corresponding product was
purchased. For example, the registration information of the first
received registration card is used in generating the first
registration in a series of registrations. Early-adopter
registrations may be defined as a set of registrations having
ordinal positions within a predetermined range of positions. For
example, all registrations from the first registration to the
one-thousandth registration may be considered early-adopter
registrations.
[0049] In another embodiment, each registration has a corresponding
date indicating the date on which corresponding registration
information was received, or the purchase date on which the product
was purchased. Early-adopter registrations may be defined as a set
of registrations having dates before a predetermined date. For
example, all registrations having dates before Jan. 4, 1999 may be
considered early-adopter registrations. Alternatively,
early-adopter registrations may be defined as a set of
registrations having dates within a predetermined range of dates,
such as all registrations having dates between Jan. 1, 1999 and
Jan. 31, 1999. It may be advantageous to have a range of dates that
starts after the introduction of a product, instead of at the
introduction of the product. For example, a manufacturer may desire
to wait for the product production to reach a certain level.
[0050] In still other embodiments, the set of early-adopter
registrations may be defined as a random selection of
registrations, or alternatively a random selection of registrations
that meet certain criteria. For example, of all registrations
having dates before Jan. 4, 1999, half are randomly selected to be
considered early-adopter registrations. As another example, of all
registrations from the first registration to the one-thousandth
registration, one hundred are randomly selected to be considered
early-adopter registrations.
[0051] Referring to FIG. 5, a record 80 of the early adopter
database 30 (FIG. 2) defines criteria for determining whether a
registration is an early-adopter registration, and consequently,
whether a purchaser is an early-adopter purchaser. The record 80 is
for a product identified by a product identifier 82. The early
adopter database 30 (FIG. 2) typically includes a plurality of
records such as the record 80, each defining criteria for
determining whether a registration for a product is an
early-adopter registration. The record 80 includes entries 84, 86
and 88 which each specify (i) a registration ordinal position 90;
and (ii) an early adopter identifier 92. Each of the entries 84, 86
and 88 includes criteria to determine whether a registration is an
early-adopter registration, based on the ordinal position of the
registration. It will be understood by those skilled in the art
that various other criteria may be used instead of the ordinal
positions of registrations. For example, as described above, the
date of the purchase may be used to determine whether a
registration is an early-adopter registration.
[0052] Further, early-adopter registrations may be divided into
groups. For example, if the first one thousand registrations
received are defined to be early-adopter registrations, a first
group may be defined as the first one hundred registrations
received, and a second group may be the nine hundred
subsequently-received registrations. The entry 84 defines a first
group (the first 100 registrations) having an early adopter
identifier "A", while the entry 86 defines a second group (the next
900 registrations) having an early adopter identifier "B". The
entry 88 specifies no early adopter identifier, and therefore
indicates that registrations having ordinal positions greater than
1000 are not considered early adopter registrations. It will be
understood by those skilled in the art that any number of entries
may be used, and thus, that any number of groups of early-adopter
registrations may be established. Further, there may be one or more
records, and thus one or more products, for which every
registration is defined to be an early-adopter registration. Thus,
there may be one or more products for which every purchaser is
provided with a reward.
[0053] Early-adopter registrations may also be divided into groups
based on other criteria, such as the geographic areas of the
corresponding purchasers. For example, each group may correspond to
early-adopter purchasers in a state or metropolitan area.
[0054] The separation of early adopter registrations into groups is
especially advantageous in providing a different reward to each
group of early-adopter purchasers. For example, the first one
hundred purchasers of a product may receive a larger reward than
the next nine hundred purchasers. Determining and providing rewards
are described in detail below.
[0055] It may also be desirable to inform purchasers whether they
are early-adopter purchasers. A purchaser may be thus informed
after his corresponding registration is generated. For example, if
the purchaser submits an order for a product via the Internet, he
may receive a message "You are registration number 963" and/or "You
are an early-adopter, and will receive a reward after 1,000,000
units are sold". It may also be desirable to inform a purchaser as
to the total number of sales. For example, at periodic intervals,
registered purchasers may receive an electronic-mail message, such
as the message "As of today, there are 12,073 sales." If
early-adopter registrations are divided into groups, the purchaser
may be informed of the group to which he belongs. For example, he
may receive a message "You are one of the first 100
purchasers".
[0056] Referring to FIG. 6, a record 100 of the reward database 28
(FIG. 2) defines rewards to provide early-adopter purchasers, based
on product success. The record 100 corresponds to a product
identified by a product identifier 102. The reward database 28
(FIG. 2) typically includes a plurality of records such as the
record 100, each defining rewards to provide early-adopter
purchasers of a different product. The record 100 includes entries
104, 106, 108, 110, 112 and 114 which each specify (i) a reward
identifier 116 corresponding to the reward identifier 72 (FIG. 4)
of the product success database 27 (FIG. 2); (ii) an early adopter
identifier 118 corresponding to the early adopter identifier 92
(FIG. 5) of the early adopter database 30 (FIG. 2); and (iii) a
reward 120. Each of the entries 104, 106, 108, 110, 112 and 114
defines a reward to provide to a particular group of early-adopter
purchasers for a particular reward schedule defined by the reward
identifier. For example, the entries 104 and 106 indicate that the
reward identifier "R1" defines that $10 is to be provided to
early-adopter purchasers of group "A" and $5 is to be provided to
early-adopter purchasers of group "B".
[0057] Referring to FIG. 7, an exemplary quantity of sales 130
determines a reward provided to an early-adopter purchaser of the
product identified by product identifier "1111". As shown in FIG.
7, the exemplary quantity of sales is 1,500,000 sales. Thus,
according to the entry 66 of the record 60, the reward schedule
specified by the reward identifier "R2" is to be effective.
[0058] The ordinal position 132 of an exemplary registration (not
shown) under consideration is shown to be "88". Thus, according to
the entry 84 of the record 80, the purchaser corresponding to the
exemplary registration is an early-adopter purchaser, and
corresponds to a group "A" of early-adopter purchasers. Turning to
the entry 108 of the record 100, the reward identifier "R2" and the
early adopter identifier "A" together indicate that the purchaser
corresponding to the exemplary registration is provided a free
ticket, such as a ticket to a sporting event.
[0059] A number of different types of rewards are within the scope
and spirit of the present invention. For example, rewards may be
money, such as a fixed amount or a discount on another product, and
may further be an amount of money based on the purchase price. Such
an amount may be a refund of the purchase price or a portion
thereof, or an amount of money based on the difference between the
corresponding purchase price and a current product price. The
reward may be an additional unit of the product, another product
altogether, or a gift certificate for a product. The reward may
also be an access code for permitting access to a network. For
example, a code provided to early-adopter purchasers may permit
access to a site on the World Wide Web where free software may be
obtained. In addition, the reward may be an increased prize on a
winning lottery entry, or an increased chance of winning with a
lottery entry. The reward may also be a warranty for a product or
an extension thereof.
[0060] In addition, the reward to a purchaser may comprise the
establishment and/or adjusting of an account balance. Each reward
provided to the purchaser increases the account balance. The
account balance may be redeemed ("cashed out") for funds or
products having a corresponding value.
[0061] Referring to FIG. 8, an account database 140 stores entries
142, 144, 146 and 148 which each define an account for a registered
purchaser. The account database 140 is typically stored in the
storage device 22 (FIG. 2) of the central controller (FIG. 2). Each
of the entries 142, 144, 146 and 148 specifies (i) an account
identifier 150 for uniquely specifying each account; (ii) an
account balance 152; (iii) a name 154 of the purchaser; and (iv) an
address 156 of the purchaser.
[0062] Many methods of increasing the account balances may be used.
In one embodiment, each successive amount added to the balance
increases upon reaching each successive tier of product success.
Thus, successive rewards increase the balance by successively
larger amounts. For example, an opening account balance may
increase from $0 to $10, then to $25 and then to $50 upon reaching
three respective tiers of product success. Thus, it is more
valuable for the purchaser to wait before cashing out the account.
Accordingly, the manufacturer, credit card account issuer or other
party which pays purchasers when accounts are cashed out benefits
by not paying until relatively high product success is
achieved.
[0063] The purchaser may determine when his corresponding account
balance is cashed out, and initiate such cashing out, for example,
via an Internet site or a voice response unit (VRU) over a
telephone. In addition, the central controller may determine when
purchasers are cashed out, and typically makes such determinations
based on predetermined criteria. For example, if each tier of
product success doubles the account balance of each early-adopter
purchaser, the central controller may cash out account balances
before the balances grow too large.
[0064] When account balances are cashed out, the purchasers may be
provided with the corresponding payments using one or more methods
by which rewards may be provided. For example, rewards may be (i)
credited to a credit card account or other financial account; (ii)
mailed to early-adopter purchasers, typically in the form of a
check or product; or (iii) sent to stores or other predetermined
locations until picked up by the early-adopter purchasers, who are
notified thereof.
[0065] Referring now to FIG. 9, a method 200 for administering a
reward program is performed by the central controller 12 (FIG. 1).
The central controller 12 receives registration information (step
202) and generates in dependence thereon corresponding
registrations (step 204). Each registration is stored (step 206).
The central controller calculates a measurement of product success
(step 208), typically at periodic intervals. If the measurement of
product success is within a predetermined range (step 210), then
early adopters are selected (step 212) and provided with rewards
(step 214). It will be understood by those skilled in the art that
the above-described method illustrates one, but not necessarily the
only, sequence of steps. For example, in some embodiments the step
212 of selecting early adopters may be performed as registrations
are generated.
[0066] FIGS. 10A and 10B illustrates a method 250 that is another
embodiment of the method 200 of FIG. 9 and like steps are indicated
by like figure numerals. The method 250 further includes steps for
providing rewards to groups of early-adopter purchasers upon
attaining a number of tiers of product success. The central
controller 12 (FIG. 1) determines if the measurement of product
success is within a first range (step 220) or within a second range
(step 222). If the measurement is within the first range, then a
first reward schedule is set (step 224). If the measurement is
within the second range, then a second reward schedule is set (step
226). Such ranges and corresponding reward schedules are determined
from the entries of the product success database 27 (FIG. 2). The
central controller 12 (FIG. 1) selects a first group and a second
group of early-adopter purchasers (steps 228 and 230 respectively).
Each of the first and second groups of early-adopter purchasers are
in turn provided with a reward in accordance with the set reward
schedule (steps 232 and 234 respectively).
[0067] In the embodiments of the present invention described above,
rewards are provided to selected purchasers of a product. In
further embodiments, the reward, if any, depends on whether the
purchaser has become a registered purchaser of two or more products
(a "package" of products). For example, there may be two products
that are deemed "related", such as a television and a videocassette
recorder (VCR). A consumer who becomes a registered purchaser of
both products may be provided with an increased reward when one or
both products attain a predetermined level of product success. For
example, registered purchasers of the television may receive a
reward of $10, and registered purchasers of the VCR may receive a
reward of $10 upon respective product success, but registered
purchasers of both the television and the VCR may receive a reward
of $30. Thus, a customer is provided with an additional incentive
($10 more than the sum of the two individual rewards) to become
registered purchasers of both related products instead of one.
Similarly, a consumer who purchases a predetermined number of units
of a product may become an early-adopter purchaser of that product.
For example, becoming a registered purchaser of multiple units of a
VCR may entitle a purchaser to an increased reward when the VCR
attains a predetermined level of product success.
[0068] Such an embodiment is particularly useful in promoting
products of a like nature, such as a set of electronic devices or a
set of software products. It is also highly beneficial to consumers
that purchase many products from a package. For example, one
package might comprise ten different software products, and
purchasers are provided with increased rewards if they become
registered purchasers of three or more products in the package.
Such increased rewards might be (i) an additional amount of money;
(ii) doubling the reward provided in association with each
purchased product, or (iii) providing a discount on any other
product in the package.
[0069] In further embodiments, a purchaser may only become an
early-adopter purchaser if he has become a registered purchaser for
two or more products in a package. For example, if a purchaser buys
a television, he may not be considered an early adopter until he
has also bought and registered a VCR, at which point he is an
early-adopter purchaser of both the television and VCR. In other
words, in the instant embodiment there must be two or more
registrations for products from a package in order for either
registration to be considered early-adopter registrations. Thus,
purchasers are provided with an incentive to buy more than a single
product, and purchasers thereby become eligible to receive rewards
as early-adopter purchasers.
[0070] Referring to FIG. 11, a package database 300 stores entries
302, 304 and 306, each defining a package of products. The package
database 300 is typically stored in the storage device 22 (FIG. 2)
of the central controller (FIG. 2). Each of the entries 302, 304
and 306 specifies (i) a package identifier 308 for uniquely
identifying each package; (ii) product identifiers 310 which
specify products included in the package; (iii) one or more package
conditions 312, such as the number of products in the package which
a purchaser must register in order to be eligible for the increased
reward; and (iv) an increased reward 314. For example, the entry
304 illustrates that if a purchaser becomes a registered purchaser
for any three of the products identified by "2000", "1809", "3254"
and "1744", then the rewards he receives upon product success are
doubled.
Exemplary Embodiments
[0071] The following are several examples which illustrate various
applications of the present invention. These examples do not
constitute a definition of all possible embodiments, and those
skilled in the art will understand that the present invention is
applicable to many other embodiments. Further, although the
following examples are briefly described for clarity, those skilled
in the art will understand how to make any changes, if necessary,
to the above-described apparatus and methods to accommodate these
and other embodiments and applications.
Ticket Example:
[0072] Purchasers pay for tickets, such as tickets for a particular
sporting event or airline flight. Purchasers may pay for the
tickets with a credit card account or by other means. If all
tickets (e.g., for the event or flight) are sold, each purchaser
receives a rebate off of the ticket purchase price. Those
purchasers that paid with a credit card account are automatically
credited a predetermined portion of the ticket purchase price,
while the remaining purchasers are mailed rebate checks.
Electronics Example:
[0073] The first 20,000 purchasers who submit registration cards
for a new digital recorder are considered early-adopter purchasers.
When 1,000,000 digital recorders are sold, the early-adopter
purchasers are mailed checks for the difference between the
purchase price and the current price of the digital recorder.
Computer Example:
[0074] Purchasers who buy a particular computer within the first
month after its release are provided an access code once the
computer is installed at 1,000 locations. The access code permits
the purchasers to access a site on the World Wide Web where they
may download free software upgrades for the computer.
[0075] Software Example:
[0076] The first 100 purchasers of a graphic design program from a
new ("startup") company are provided with registration codes and a
telephone number. When a purchaser calls the telephone number, he
is prompted to provide the corresponding registration code.
Providing the code registers the purchaser, who receives a rebate
check for the purchase price each time 25,000 additional copies of
the graphic design program are sold.
Camera Example:
[0077] Purchasers who pay for a particular digital camera with a
certain type of credit card (e.g. an American Express credit card)
are considered early-adopter purchasers. Once 500,000 digital
cameras are sold, each of the early-adopter purchasers is provided
with twenty free rolls of film.
Internet Example:
[0078] The first 10,000 purchasers that buy airline tickets through
an Internet site are considered early-adopter purchasers. If over
1,000,000 tickets are sold through the site, each of the
early-adopter purchasers receives his next airline ticket free of
charge through that site.
Magazine Example:
[0079] A publisher of a new magazine provides each subscriber that
subscribes within the first month with a free two-year subscription
renewal once the magazine is sold to 60,000 subscribers.
Lottery Ticket Example:
[0080] Purchasers that buy a lottery ticket when the top jackpot is
less than $1,000,000 are considered early-adopter purchasers. If
the jackpot exceeds $10,000,000 when lottery winners are selected,
early-adopter purchasers with winning lottery tickets receive twice
the prize ("payout") that they would have normally.
Competitor Sales Example:
[0081] Every purchaser of a first video game from Company X
receives a second video game for free if sales of Company X are
greater than sales of Company Y during the Christmas season.
New Store Example
[0082] The first one thousand customers of a new outlet store who
spend over $200 receive a $100 gift certificate once sales of that
outlet reach $1,000,000.
New Credit Card Example
[0083] The first five hundred customers that are approved for a
newly-offered credit card receive a portion of the aggregate
monthly balance of all holders of that credit card.
[0084] Although the present invention has been described with
respect to a preferred embodiment thereof, those skilled in the art
will understand that various substitutions may be made to those
embodiments described herein without departing from the spirit and
scope of the present invention. For example, a great number of
types of rewards and methods of delivering those rewards will be
apparent to those skilled in the art.
* * * * *