U.S. patent application number 14/468604 was filed with the patent office on 2015-03-05 for method and apparatus for managing subscriptions.
The applicant listed for this patent is Inventor Holdings, LLC. Invention is credited to Magdalena M. Fincham, Geoffrey M. Gelman, Andrew P. Golden, James A. Jorasch, Michiko Kobayashi, Russell P. Sammon, Adam Stevenson, Andrew S. Van Luchene, Jay S. Walker.
Application Number | 20150066767 14/468604 |
Document ID | / |
Family ID | 38290383 |
Filed Date | 2015-03-05 |
United States Patent
Application |
20150066767 |
Kind Code |
A1 |
Walker; Jay S. ; et
al. |
March 5, 2015 |
METHOD AND APPARATUS FOR MANAGING SUBSCRIPTIONS
Abstract
A subscription system allows a customer to establish a
subscription to a product with one or more retailers (e.g., by
establishing the subscription through a controller or central
system). In one embodiment, a subscription may be established after
receiving information that identifies a product. Terms of a
subscription for the product are established, such as a frequency
and a duration of the subscription.
Inventors: |
Walker; Jay S.; (Ridgefield,
CT) ; Fincham; Magdalena M.; (Ridgefield, CT)
; Jorasch; James A.; (New York, NY) ; Van Luchene;
Andrew S.; (Santa Fe, NM) ; Kobayashi; Michiko;
(Stamford, CT) ; Gelman; Geoffrey M.; (Brooklyn,
NY) ; Sammon; Russell P.; (San Francisco, CA)
; Golden; Andrew P.; (Jamaica Plain, MA) ;
Stevenson; Adam; (Solana Beach, CA) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
Inventor Holdings, LLC |
Stamford |
CT |
US |
|
|
Family ID: |
38290383 |
Appl. No.: |
14/468604 |
Filed: |
August 26, 2014 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
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13646145 |
Oct 5, 2012 |
8818869 |
|
|
14468604 |
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|
13400406 |
Feb 20, 2012 |
8285591 |
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|
13646145 |
|
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|
|
12611365 |
Nov 3, 2009 |
8121899 |
|
|
13400406 |
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|
11768594 |
Jun 26, 2007 |
7613631 |
|
|
12611365 |
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|
09538805 |
Mar 30, 2000 |
7251617 |
|
|
11768594 |
|
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|
09221457 |
Dec 28, 1998 |
6415262 |
|
|
09538805 |
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60165366 |
Nov 12, 1999 |
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Current U.S.
Class: |
705/44 |
Current CPC
Class: |
G06Q 30/0231 20130101;
G06Q 30/0284 20130101; G06Q 30/0236 20130101; G06Q 30/0224
20130101; G06Q 20/20 20130101; G06Q 30/018 20130101; G06Q 20/085
20130101; G06Q 30/02 20130101; G06Q 30/0207 20130101; G06Q 20/40
20130101; G06Q 30/0226 20130101; G06Q 20/202 20130101; G06Q 20/22
20130101; G06Q 30/0238 20130101; G06Q 30/0601 20130101 |
Class at
Publication: |
705/44 |
International
Class: |
G06Q 20/40 20060101
G06Q020/40 |
Claims
1. A web server comprising: a processor; and a storage device in
communication with the processor, the storage device storing
instructions configured such that when executed by the processor
the instructions direct the processor to: prompt a customer to
provide information that identifies a product selected by the
customer; receive from the customer, via a web site, information
that identifies the product selected by the customer; establish a
subscription of the customer for the product, wherein terms of the
subscription include: a first subscription price of the product, a
first frequency of the subscription that indicates a first period
of time, wherein the customer is required to purchase a unit of the
product in the first period of time, wherein the first subscription
price is less than a retail price of a unit of the product;
authorize purchase by the customer of a unit of the product at the
first subscription price; track a fulfillment of the subscription;
determine that the customer did not comply with the first frequency
that indicates the first period of time; determine a modified
subscription of the customer for the product, in which terms of the
modified subscription include: a second subscription price of the
product, a second frequency of the subscription that indicates a
second period of time, wherein the customer is required to purchase
a unit of the product in the second period of time; authorize
purchase by the customer of a unit of the product at the second
subscription price; and track a fulfillment of the modified
subscription.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This application is a continuation of U.S. patent
application Ser. No. 13/646,145 on Oct. 5, 2012, entitled METHOD
AND APPARATUS FOR MANAGING SUBSCRIPTIONS, which is a continuation
of U.S. patent application Ser. No. 13/400,406 filed Feb. 20, 2012
and issued as U.S. Pat. No. 8,285,591 on Oct. 9, 2012, which is
continuation of U.S. patent application Ser. No. 12/611,365 filed
Nov. 3, 2009 and issued as U.S. Pat. No. 8,121,899 on Feb. 21,
2012, which is a continuation of U.S. patent application Ser. No.
11/768,594 filed Jun. 26, 2007 and issued as U.S. Pat. No.
7,613,631 on Nov. 3, 2009.
[0002] U.S. patent application Ser. No. 11/768,594 is a divisional
of U.S. patent application Ser. No. 09/538,805 filed Mar. 30, 2000
and issued as U.S. Pat. No. 7,251,617 on Jul. 31, 2007, which
claims the benefit of priority of U.S. Provisional Application No.
60/165,366 filed Nov. 12, 1999, entitled SUBSCRIPTION
GROCERIES.
[0003] U.S. patent application Ser. No. 09/538,805 is a
continuation-in-part of U.S. patent application Ser. No. 09/221,457
filed Dec. 28, 1998 and issued as U.S. Pat. No. 6,415,262 on Jul.
2, 2002, entitled METHOD AND APPARATUS FOR DETERMINING A
SUBSCRIPTION TO A PRODUCT IN A RETAIL ENVIRONMENT.
[0004] Each of the above-referenced applications are incorporated
by reference in their entirety.
[0005] This application is related to the following U.S. patent
applications:
[0006] U.S. patent application Ser. No. 10/642,894 filed Aug. 18,
2003 and now abandoned entitled METHOD AND APPARATUS FOR
IDENTIFYING POTENTIAL BUYERS;
[0007] U.S. patent application Ser. No. 10/124,809 filed Apr. 17,
2002 and now abandoned entitled METHOD AND APPARATUS FOR
FACILITATING PURCHASE AGREEMENTS WITH A RETAILER;
[0008] U.S. patent application Ser. No. 09/540,709 filed Mar. 31,
2000 and now abandoned entitled SYSTEM TO ESTABLISH A
CUSTOMER-SPECIFIED PRICE OF A PRODUCT AND TO MANAGE REDEMPTION OF
THE PRODUCT AT THE ESTABLISHED PRICE;
[0009] U.S. patent application Ser. No. 09/349,860 filed Jul. 8,
1999 and now abandoned entitled METHOD AND APPARATUS FOR
IDENTIFYING POTENTIAL BUYERS;
[0010] U.S. patent application Ser. No. 09/340,953 filed Jun. 28,
1999 and now abandoned entitled SYSTEM AND METHOD FOR ESTABLISHING
AND MANAGING SUBSCRIPTION PURCHASE AGREEMENTS INCLUDING COMMITMENTS
TO PURCHASE GOODS OVER TIME AT AGREED UPON PRICES; and
[0011] U.S. patent application Ser. No. 08/889,589 filed Jul. 8,
1997 and issued as U.S. Pat. No. 5,970,470 on Oct. 19, 1999,
entitled SYSTEM AND METHOD FOR ESTABLISHING AND MANAGING
SUBSCRIPTION PURCHASE AGREEMENTS INCLUDING COMMITMENTS TO PURCHASE
GOODS OVER TIME AT AGREED UPON PRICES, the entirety of which is
incorporated by reference herein for all purposes.
FIELD OF THE INVENTION
[0012] The present invention relates to sales methods and
apparatus. More particularly, embodiments of the present invention
relate to subscription sales techniques.
BACKGROUND OF THE INVENTION
[0013] Retail competition is intense. Single-store merchants
compete with chain-stores. Chain-stores compete with bulk
purchasing or warehouse clubs. And, more recently, brick-and-mortar
retailers compete with Internet retailers. Chain-stores, bulk
purchasing clubs, warehouse clubs, and Internet retailers
(generally referred to herein as "discounters") generally attempt
to increase their revenues by attracting a greater volume of
customers and increasing sales. Competition for customers has had a
dramatic impact on traditional retailers. For example, while the
grocery industry has enjoyed an increasing market size, the market
share of conventional supermarkets and groceries has dwindled below
their once-controlling interest. In large part, this drop in market
share has been caused by competition from discounters such as bulk
purchasing clubs.
[0014] Retail discounters have identified and are exploiting a
lucrative portion of the retail market--customers who are willing
to make bulk purchases in exchange for discount prices. Such bulk
sales have cut directly into the volume of conventional
retailers.
[0015] With market share steadily eroding, it has become necessary
for conventional retailers to attempt to stem the loss of customers
to discount retailers. Due to the fundamental differences in their
businesses, however, it is difficult for a conventional retailer to
compete with a discount retailer. Further, it is becoming
increasingly difficult for discount retailers to compete with each
other.
[0016] Discount retailers represent a very specialized portion of
the retail market. Discount retailers generally locate their
facilities in less expensive areas--often occupying warehouse type
facilities--while still attracting customers looking for a good
deal. They are able to stock a very limited number of types of
products because their customers are willing to sacrifice choice
for price. As a result, discount retailers are able to sell larger
quantities of product per transaction, thereby realizing lower
per-sale costs.
[0017] Customers generally accept that discount retailers will not
offer all of the amenities often provided by conventional
retailers. For example, discounters typically do not provide
check-cashing services, or bag items at checkout. Further, many
discounters operate as "clubs" and enroll customers, as "members"
of the club. Customers often are required to pay a membership fee
for the right to belong to the "club." Such fees help offset what
are traditionally thin margins.
[0018] In contrast, conventional retailers typically locate their
facilities in areas convenient for their customers, thus often
realizing higher real estate costs. They must stock a much larger
number of products to attract customers, and they have relatively
higher transaction costs due to the typically large quantity of
small items per purchase. To compete in their core business,
conventional retailers are expected to provide significant customer
amenities, without the imposition of any type of service or
membership fee.
[0019] In addition, conventional retailers typically do not have
the physical infrastructure necessary to compete in a traditional
bulk selling environment. Because they are located in more
expensive facilities, they often have less floor and shelf space,
with all available space being used by the large number of products
they stock.
[0020] In one attempt to compete with discounters, many retailers
have implemented frequent shopper programs. In a typical frequent
shopper program, a customer is provided with an identification card
that is presented at each visit. Records are typically kept of
customer purchases, and various discounts and benefits are
typically provided to the customer in return for registration and
subsequent use of the card.
[0021] Frequent shopper programs, however, suffer from relatively
limited acceptance by customers. These programs are typically not
able to provide prices that are competitive with bulk purchasing
programs. Often, discounts are only provided on a few items.
Overall, frequent shopper programs do not provide a realistic
alternative to customers interested in bulk purchasing. In fact, no
systems or methods are known to applicants which permit
conventional retailers to compete effectively against
discounters.
[0022] One method which has been proposed by the assignee of the
present invention to allow conventional retailers to compete with
discounters is to allow customers to purchase subscriptions to
products sold at conventional retailers. This is described in U.S.
Pat. No. 5,970,470 entitled SYSTEM AND METHOD FOR ESTABLISHING AND
MANAGING SUBSCRIPTION PURCHASE AGREEMENTS INCLUDING COMMITMENTS TO
PURCHASE GOODS OVER TIME AT AGREED UPON PRICES, issued to the
assignee of the present invention on Oct. 19, 1999, and which is
incorporated herein by reference for all purposes.
[0023] It would be further desirable to provide a system which
allows a customer to establish a subscription to products which are
sold at more than one retailer. Preferably, subscriptions to a
number of products offered by a number of retailers may be
organized by a single entity, providing a customer with a greater
sense of control and ability to select and customize subscriptions
to a large number of products. It would also be desirable to
provide a system which allows retailers to offer subscriptions to a
large pool of customers who would otherwise never have heard of the
retailer or who would not have known about the subscriptions
offered by the retailer. It would be advantageous to provide a
method and apparatus that overcame the drawbacks of the prior
art.
SUMMARY OF THE INVENTION
[0024] Embodiments of the present invention provide a system and
method for managing subscriptions to products. Embodiments of the
present invention alleviate problems inherent in the prior art and
promote commerce.
[0025] According to embodiments of the present invention, a
customer may establish a subscription to a product with any of a
number of retailers by establishing the subscription through a
centralized system. In one embodiment, a subscription is
established by first receiving information identifying a customer
and a product. At least one retailer that offers the product is
then identified, and terms of a subscription for the product are
established. The established subscription is identified by a
redemption identifier that is communicated to the customer. The
customer is then able to redeem subscription products at the
retailer by identifying the subscription using the redemption
identifier.
[0026] Embodiments of the present invention further include a
system and method for tracking fulfillment of the subscription.
Tracking fulfillment may be performed by the centralized system, by
the retailer, by the customer, and/or a combination of different
parties.
[0027] Embodiments of the present invention also include a system
and method for facilitating monetary settlement between
parties.
[0028] With these and other advantages and features of the
invention that will become hereinafter apparent, the nature of the
invention may be more clearly understood by reference to the
following detailed description of the invention, the appended
claims and to the several drawings attached herein.
BRIEF DESCRIPTION OF THE DRAWINGS
[0029] FIG. 1 is a block diagram of a system consistent with the
present invention;
[0030] FIG. 2 is a block diagram of one embodiment of the
controller depicted in FIG. 1;
[0031] FIG. 3 is a table illustrating an exemplary data structure
of a product database for use in the present invention;
[0032] FIG. 4 is a table illustrating an exemplary data structure
of a customer database for use in the present invention;
[0033] FIG. 5 is a table illustrating an exemplary data structure
of an available subscription database for use in the present
invention;
[0034] FIG. 6A and FIG. 6B are a table illustrating an exemplary
data structure of an active subscription database for use in the
present invention;
[0035] FIG. 7 is a table illustrating an exemplary data structure
of a settlement database for use in the present invention;
[0036] FIG. 8 is a table illustrating an exemplary data structure
of a subsidy database for use in the present invention;
[0037] FIG. 9 is a table illustrating an exemplary data structure
of a penalty database for use in the present invention;
[0038] FIG. 10 is a table illustrating an exemplary data structure
of a modification database for use in the present invention;
[0039] FIG. 11 is a flow diagram illustrating an exemplary
subscription process according to an embodiment of the present
invention;
[0040] FIG. 12 is a flow diagram illustrating an exemplary process
for establishing a subscription according to an embodiment of the
present invention;
[0041] FIG. 13 is a flow diagram illustrating an exemplary process
for the fulfillment of a subscription according to an embodiment of
the present invention; and
[0042] FIG. 14 is a flow diagram illustrating an exemplary process
for performing settlement according to an embodiment of the present
invention.
DETAILED DESCRIPTION OF THE INVENTION
[0043] Applicants have recognized that a need exists for a system
and method that allows customers to establish subscriptions to
products that may be redeemed at a number of different retailers.
In addition, Applicants have recognized that a need exists for an
ability to track the fulfillment and perform settlement functions
to manage those subscriptions. Customers, retailers, and product
manufacturers all benefit from embodiments of the present invention
which allow customers to establish subscriptions to products from a
wide variety of retailers.
[0044] For example, retailers benefit through an ability to reach a
larger pool of potential customers and by accessing information
about each customer's buying behavior and information about other
subscriptions held by each customer. Retailers will reap further
benefits from an ability to better predict product demand. Both
traditional retailers and discounters benefit from this ability to
offer subscriptions to customers. Manufacturers benefit from an
ability to directly offer discounts and other incentives to
customers and through an ability to mold customer behavior and
establish long-term customer loyalty. Customers benefit through
increased cost savings and an ability to customize subscriptions to
the customers' particular needs. Embodiments of the present
invention also give customers the ability to shop for and negotiate
subscriptions which best meet their needs for multiple types of
products at a single location across different types of retailers
(e.g., hardware stores, clothing stores, supermarkets, etc.).
[0045] For consistency and simplicity of reference throughout the
specification, Applicants will use the following terms throughout
the specification. "Retailer" is used to refer to any vendor of
items, goods, or services. "Product" is used to refer to any item,
good, or service. Other terms will be introduced throughout the
specification. Further, a number of price terms will be used. The
term "retail price" will be used to refer to a price per unit of a
product which is established, e.g., by a manufacturer or retailer.
The retail price generally refers to the price a customer would
typically pay for the product before any discounts or without use
of embodiments of the present invention. The term "subscription
price" is generally used herein to refer to the price established,
using techniques of the present invention, per unit of a product in
a subscription. The subscription price may be preestablished (e.g.,
established in the available subscription database 500 of FIG. 5)
or it may be established through negotiation or otherwise specified
by the customer (e.g., established in the active subscription
database 600 of FIG. 6A and FIG. 6B). The term "total subscription
price" is used to refer to the sum total of the subscription prices
paid during the term of a subscription. Finally, the term
"settlement price" is used to refer to the amount which one party
(e.g., a manufacturer, retailer, or an entity operating a
controller 200 of FIG. 1) agrees to pay to another party (e.g., a
manufacturer, retailer, or an entity operating the controller 200
of FIG. 1) in consideration for processing a subscription according
to the present invention. These terms will be discussed in further
detail below.
System
[0046] Referring now to FIG. 1, an apparatus 100 according to an
embodiment of the present invention includes a controller 200 that
is in communication with one or more customer devices 110, 120 and
130; and with one or more retailer devices 140, 150 and 160. The
controller 200 may communicate with the customer devices 110, 120
and 130 and the retailer devices 140, 150 and 160 directly or via a
network such as the Internet. Each of the customer devices 110, 120
and 130, and the retailer devices 140, 150 and 160 may comprise
computers, such as those based on the INTEL.RTM. Pentium.RTM.
processor, that are adapted to communicate with the controller 200.
Any or all of the customer devices 110, 120 and 130 and the
retailer devices 140, 150 and 160 may be, e.g., conventional
personal computers, kiosks, portable types of computers, such as a
laptop computer, a palm-top computer, a hand-held computer, a
telephone, a cellular telephone, or a Personal Digital Assistant
(PDA). Further, any or all of the retailer devices 140, 150, and
160 may be point of sale terminals or other devices operating at
retailer points of sale. Any number of customer devices and
retailer devices may be in communication with the controller
200.
[0047] The controller 200 may be operated by or on behalf of a
service provider or other entity offering the service of providing
and managing subscriptions. The controller 200 may also be operated
by or on behalf of an entity such as a financial institution,
financial authorization network or other entity that receives and
processes financial transactions from multiple retailers. Further,
the controller 200 may be operated by or on behalf of one or more
product manufacturers and/or retailers. The term "controller 200"
will be used herein to conveniently refer to both the device (e.g.,
the device depicted in FIG. 2) as well as the operation of the
controller 200 by an entity or entities (e.g., a service provider
or other party).
[0048] Communication between the customer devices 110, 120 and 130,
and the retailer devices 140, 150, and 160 and the controller 200
may be direct or indirect, such as over the Internet through a Web
site maintained by the controller 200 on a remote server or over an
on-line data network including commercial on-line service
providers, bulletin board systems and the like. In yet other
embodiments, the devices may communicate with the controller 200
over radio frequency (RF), cable television (TV), satellite links
and the like.
[0049] Those skilled in the art will understand that devices in
communication with each other need not be continually transmitting
to each other. On the contrary, such devices need only transmit to
each other as necessary, and may actually refrain from exchanging
data most of the time. For example, a device in communication with
another device via the Internet may not transmit data to the other
device for weeks at a time.
[0050] The controller 200 may function as, or in conjunction with,
a "Web server" that generates Web pages (documents on the Web that
typically include an HTML file and associated graphics and script
files) that may be accessed via the Web and allows communication
with the controller 200 in a manner known in the art.
Devices
[0051] FIG. 2 illustrates an embodiment of the controller 200. The
controller 200 may be implemented as a system controller, a
dedicated hardware circuit, an appropriately programmed general
purpose computer, or any other equivalent electronic, mechanical or
electro-mechanical device.
[0052] The controller 200 comprises a processor 210, such as one or
more Intel.RTM. Pentium.RTM. processors. The processor 210 is in
communication with a communication port 220 through which the
processor communicates with other devices. The processor 210 is
also in communication with a storage device 230. The storage device
230 comprises an appropriate combination of magnetic, optical
and/or semiconductor memory, and may include, for example, Random
Access Memory (RAM), Read-Only Memory (ROM), a compact disc and/or
a hard disk. The processor 210 and the storage device 230 may each
be, for example: (i) located entirely within a single computer or
other computing device; or (ii) connected to each other by a remote
communication medium, such as a serial port cable, telephone line
or radio frequency transceiver. In one embodiment, the controller
200 may comprise one or more computers that are connected to a
remote server computer for maintaining databases.
[0053] The storage device 230 stores a program 240 for controlling
the processor 210. The processor 210 performs instructions of the
program 240, and thereby operates in accordance with the present
invention, and particularly in accordance with the methods
described in detail herein. The program 240 may be stored in a
compressed, uncompiled and/or encrypted format. The program 240
furthermore includes program elements that may be necessary, such
as an operating system, a database management system and "device
drivers" for allowing the processor 210 to interface with computer
peripheral devices. Appropriate program elements are known to those
skilled in the art, and need not be described in detail herein.
[0054] According to an embodiment of the present invention, the
instructions of the program 240 may be read into a main memory from
another computer-readable medium, such from a ROM to RAM. Execution
of sequences of the instructions in program 240 causes processor
210 to perform the process steps described herein. In other
embodiments, hard-wired circuitry may be used in place of, or in
combination with, software instructions for implementation of the
processes of the present invention. Thus, embodiments of the
present invention are not limited to any specific combination of
hardware and software.
[0055] In the embodiment depicted in FIG. 2, the storage device 230
also stores (i) a product database 300, (ii) a customer database
400, (iii) an available subscription database 500, (iv) an active
subscription database 600, (v) a settlement database 700, (vi) a
subsidy database 800, (vii) a penalty database 900, and (viii) a
modification database 1000. The databases 300-1000 are described in
more detail below and are depicted with exemplary entries in the
accompanying figures. As will be described in more detail below,
some or all of the information contained in the databases 300-1000
may be stored in storage devices associated with the customer
devices 110, 120 and 130 and/or the retail devices 140, 150, and
160.
Databases
[0056] Reference will now be made to FIGS. 3-10 which include
tabular representations of the databases 300-1000, respectively.
Each of the tabular representations of databases include a number
of example records or entries, each of which includes one or more
fields. Each of the depicted fields has a field name. In referring
to the tabular representations, reference to specific fields will
be made using the field name and the corresponding field element
number. Those skilled in the art will recognize that any number of
records or fields may be provided.
[0057] 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 those suggested by the tables shown. Similarly,
the illustrated entries of the databases represent exemplary
information only; those skilled in the art will understand that the
number and content of the entries can be different from those
illustrated herein.
[0058] Product Database
[0059] Reference is now made to FIG. 3, which is a tabular
representation of the product database 300. Each example record or
entry of the product database 300 defines a specific product for
which a subscription is available. This database may be established
by the controller 200, by retailers, and/or by manufacturers. In
general, the product database 300 contains information used to
identify and describe products for which subscriptions are
available or for which subscriptions may be established using
embodiments of the present invention. The term "product" is used
herein to generically refer to goods, products, services or other
items that
are purchased or consumed.
[0060] The tabular representation of the product database 300
includes a number of fields which specify (i) a product identifier
302, (ii) a product description 304, and (iii) a retail price 306.
For each entry of the product database 300, the product identifier
302 may be established by the controller 200 or may be
automatically assigned by the controller 200 as new products or
sets of products are identified as available for subscriptions. The
product identifier 302 may be a product name or any code or
identifier (such as a Universal Product Code, or "UPC") suitable
for uniquely identifying a product, a type of product, or a set of
products. The product description 304 may be any information used
to describe the product or set of products identified by the
product identifier 302, and the retail price 306 may be any
information used to specify a retail price for that product or set
of products identified by the product identifier 302.
[0061] Customer Database
[0062] FIG. 4 is a tabular representation of the customer database
400 which includes a number of example records or entries each
defining a specific customer who is currently participating (or has
participated) in the subscription system. In one embodiment, the
customer database 400 is established and maintained by the
controller 200. Information stored in the customer database 400 is
used to identify and track information about customers who are
establishing or who have established subscriptions using
embodiments of the present invention. In one embodiment, this
information is provided by a customer when a customer first
establishes a subscription.
[0063] The tabular representation of the customer database 400
includes a number of fields for each record or entry, specifying
(i) a customer identifier 402, (ii) customer data 404, (iii) a
payment identifier 406, (iv) a set of contact information 408, (v)
an active subscription identifier 410, and (vi) a subsidy(s)
412.
[0064] For each entry of the customer database 400, the customer
identifier 402 is used to uniquely identify a particular customer,
and may be any code or identifier associated with the customer or
generated by the controller 200 that identifies the customer. For
example, the customer identifier may be the customer's name, a
credit card or other payment account number, a social security
number, a drivers license number, a telephone number, a frequent
shopper card number, biometric information associated with the
customer, or any other code or identifier which may be used to
uniquely identify the customer. The payment identifier 406 is used
to identify a payment account which the customer provides for use
in paying amounts or receiving credits associated with
subscriptions. For example, in one embodiment, the customer may pay
the controller 200 (or an entity operating the controller 200) for
a subscription using the payment account identified by the payment
identifier 406. In other embodiments, this information is used to
pay a retailer and/or a product manufacturer. Further, in some
embodiments, the payment account identified by the payment
identifier 406 is charged for penalties levied against the
customer. In some embodiments, the payment identifier 406 is used
to make payments to the customer, e.g., where the customer has
earned a refund or credit.
[0065] For each entry of the customer database 400, the customer
data 404 may be, e.g., a customer name or any other information
used to identify a particular customer. Customer contact
information is specified in contact information 408, and may
include, for example, a customer address, telephone number, and/or
electronic address.
[0066] For each entry of the customer database 400, the active
subscription identifier 410 is used to identify any subscription(s)
entered into by the customer identified by the associated customer
identifier 402. The subsidy(s) 412 is used to identify any
subsidy(s) associated with the customer identified by the
associated customer identifier 402. In some embodiments, as will be
discussed further below, customers may receive subsidy amounts in
conjunction with certain subscriptions. These subsidy amounts may
be provided based on a number of different criteria or will be
discussed below.
[0067] Available Subscription Database
[0068] FIG. 5 is a tabular representation of the available
subscription database 500 which includes a number of example
records or entries each defining the terms and details of a
subscription which is available. In one embodiment, the data for
the available subscription database 500 is generated by retailers
who offer subscriptions to products. For example, a retailer may
choose to define specific terms of an available subscription and
submit those terms to controller 200 for inclusion in the available
subscription database 500. This allows the controller 200 to search
for an available subscription that may meet a customer's needs. As
will be discussed in more detail below, in some embodiments, new
subscriptions may be created based on available subscriptions or
they may be created based on information provided by the customer,
retailers, and manufacturers or other parties.
[0069] The tabular representation of the database 500 also defines
a number of fields for each record, specifying (i) a retailer 502,
(ii) an available subscription identifier 504, (iii) a product
identifier 506, (iv) a subscription price 508, (v) a frequency 510,
(vi) a duration 512, (vii) a penalty 514, (viii) a modification
516, and (ix) a deposit amount 518.
[0070] For each entry of the available subscription database 500,
the retailer 502 is data identifying a particular retailer offering
a particular subscription. The retailer 502 may be data identifying
a retail chain or it may be data specifying a particular store or
group of stores. Further, the retailer 502 may be data identifying
a manufacturer or other entity which allows customers to purchase
subscription products according to the present invention. The data
specified by the available subscription identifier 504 identifies a
particular subscription offered by the retailer 502. The available
subscription identifier 504 may be a unique number or code assigned
to the subscription by the controller 200 or it may be an
identifier selected or generated by the retailer.
[0071] The product identifier 506 identifies a particular product
offered in a subscription identified by the available subscription
identifier 504. The product identifier 506 may be the same as, or
related to, product identifier 302 of FIG. 3. The product
identifier 506 may identify a single, specific product, a product
category, or a group of products. An example of a product category
is "CEREAL," or "SOFT DRINKS." Products in the "SOFT DRINK"
category may include specific brands of soft drinks. A group of
products may be any group of more than one product. A group of
products may be formed from unrelated products.
[0072] For each entry of the available subscription database 500,
the subscription price 508 identifies a specific price or price
range for each subscription product in a subscription identified by
the available subscription identifier 504. The subscription price
508 may be identified, for example, by a set dollar amount, a range
of prices, and/or a percentage of a price such as the retail price
of the product identified by corresponding product identifier 506.
Retailers may use any of a number of ways to define the
subscription price 508 for an available subscription. For example,
in one embodiment, the subscription price 508 is a fixed price per
unit of the subscription product identified by the product
identifier 506. Further, the retailer may establish a subscription
price 508 that varies during the term of a subscription. For
example, the subscription price may decrease progressively per unit
of product purchased during the term of a subscription. The
subscription price 508 may be the lowest retail price on the
subscription product that occurs during the term of the
subscription. Further still, the subscription price 508 may be an
initial retail price that is "locked in" for a customer so that the
price doesn't change despite fluctuations in the retail price of
the product.
[0073] Embodiments of the present invention also permit a retailer
to define available subscriptions in a manner that allows a
customer to pay a different price per unit of a subscription. Other
pricing arrangements are also possible using techniques of the
present invention. Some of these arrangements will be described in
more detail below in conjunction with the description of the active
subscription database 600.
[0074] For each entry of the available subscription database 500, a
frequency 510 identifies the frequency of an available subscription
identified by the available subscription identifier 504. For
example, a retailer may require that, for a certain subscription,
individual products be purchased on a weekly or monthly basis. The
duration 512 identifies a duration of the subscription identified
by the available subscription identifier 504. Information regarding
penalty(s) that are associated with a particular subscription is
specified by the penalty(s) 514. In the depicted embodiment, the
penalty(s) associated with a subscription are defined by reference
to penalty terms which are defined in the penalty database 900
(described further in conjunction with FIG. 9). A modification 516
is also shown in the tabular representation of the available
subscription database 500. The modification 516 contains
information about whether, and in what circumstances, modifications
to the terms of a subscription may be made. The deposit amount 518
identifies whether a deposit amount must be paid by a customer
signing up for the subscription, and if so, the value of the
required deposit amount for a particular subscription identified by
the available subscription identifier 504.
[0075] Active Subscription Database
[0076] Referring now to FIGS. 6A and 6B, a tabular representation
of the active subscription database 600 is shown which includes a
number of example records or entries each defining an active
subscription which has been established. The active subscription
database 600 is established and maintained by controller 200 using
data provided by retailers, manufacturers and customers. The data
for each record in the active subscription database 600 defines an
active subscription that has been established for a particular
customer. The active subscription includes information identifying
the customer as well as terms and conditions of the active
subscription. The terms and conditions of an active subscription
may be established by the controller 200, the retailer, the
manufacturer, the customer, or any combination of the parties when
a customer establishes a subscription. Certain fields of the active
subscriptions database 600 may be directly derived from the
available subscription database 500, e.g., where the terms of an
available subscription meet the needs of a particular customer.
[0077] The tabular representation of the active subscription
database 600 defines fields for each of the entries or records,
specifying (i) a redemption identifier 602, (ii) a customer
identifier 604, (iii) a subscription product 606, (iv) a
subscription price 608, (v) a frequency 610, (vi) a retailer 612,
(vii) a start date 614, (viii) an end date 616, (ix) a date of last
redemption 618, (x) a quantity remaining 620, (xi) a penalty 622,
and (xii) a status 624.
[0078] For each entry of the active subscription database 600, the
data specified by the redemption identifier 602 is used to access
or identify the details of a particular subscription established by
the system for a particular customer. The redemption identifier 602
may be a unique number or code generated by the controller 200 or
another entity to uniquely identify a particular subscription as
associated with a particular customer. In some embodiments, the
redemption identifier 602 is formed from information which
identifies terms of a particular subscription. For example, the
redemption identifier 602 may include a retailer identifier, a
product identifier, a subscription price, and a unique number
identifying a particular subscription. The redemption identifier
602 may be, for example, a sixteen digit number that includes a
four digit retailer identifier, a four digit product identifier, a
four digit subscription price, and a four digit number identifying
a particular subscription. A customer uses this redemption
identifier 602 to identify the active subscription established for
the customer.
[0079] The subscription may be associated with a particular
customer identified by customer identifier 604. In other
embodiments, a customer may remain anonymous. The customer
identifier 604 may be the same as, or related to, the customer
identifier 402 of FIG. 4.
[0080] Data specified by the subscription product 606 identifies
the particular product which is the subject of the subscription
identified by the redemption identifier 602. The subscription
product may be identified by a number or code such as the product
identifier 302 of FIG. 3. The subscription product 606 may specify
varying levels of product details. For example, a product may be
identified by brand and size, or product code, or it may simply be
specified by product category or group. In some embodiments, the
subscription product 606 may initially be non-brand specific, but
become brand-specific once the customer activates the subscription
by redeeming a first subscription product of a particular brand.
Further, in some embodiments, customers may establish subscriptions
to any product sold by a retailer (i.e., the subscription product
606 is broadly defined as any product sold by the retailer). In
other embodiments, the subscription product 606 is a group of
products. Where the subscription product 606 is a group of products
or any product at a retailer, the retailer may be allowed to choose
specific products from the group each week to move slow
inventory.
[0081] In yet another embodiment, the subscription product 606 may
be undefined. Instead, the customer may simply establish a
subscription to all products at a retailer and commit to spend at
least a certain amount (the subscription price 608) at the retailer
on a regular basis (the frequency 610). In other embodiments, the
subscription product 606 may be defined based on the occurrence or
non-occurrence of other conditions. For example, the customer may
subscribe to a fruit of the week at a retailer, and the retailer
may be able to select the fruit (e.g., based on availability,
etc.).
[0082] Data specified by the subscription price 608 is also
included for each subscription and may be, for example, the price,
per unit of the subscription product, agreed-upon between the
controller 200 and the customer as discussed below. The
subscription price 608 may be the same as the subscription price
508 of the available subscription database 500 (FIG. 5). In some
embodiments, the subscription price is negotiated or otherwise
defined by agreement with the customer. The subscription price 608
may be defined in a number of ways. For example, the subscription
price 608 may be: a fixed dollar amount less than the retail price,
a percentage of the retail price, an amount that decreases with
each redemption, an amount that increases with each redemption, an
amount equal to the lowest retail price of the product during the
term of the subscription, an amount that decreases as time passes,
etc.
[0083] Further, the subscription price 608 may be defined in a
manner that allows a customer to pay a different price per unit of
a subscription. For example, a customer may pay a different price
per gallon of milk in a milk subscription, so long as the total
amount paid for the subscription equals an agreed-to amount. For
example, the active subscription database 600 may define a total
subscription price (not shown) for a subscription. If the total
subscription price for a milk subscription is $50.00 for twenty
five gallons of milk, the system may allow the customer to pay
$1.00 per gallon for the first twenty gallons and $6.00 per gallon
for the final five gallons (or any other combination which equals
the total price of $50.00). Alternatively, or in addition, the
subscription price 608 may be established as a variable price. For
example, the subscription price 608 that is established for a
particular subscription may be defined as "20% LESS THAN THE RETAIL
PRICE". This value may vary as the retail price fluctuates.
[0084] The subscription price 608 (as well as other subscription
terms) may depend on other factors as well. For example, the
subscription price 608 may vary based on factors such as the
frequency and duration of the subscription (e.g., the price may be
lower for a subscription redeemed frequently and for a long period
of time), the quantity of the subscription product, etc. The
subscription price 608 may also depend on other subscriptions which
have been established for a particular customer. For example, the
loyalty of a customer who has established many subscriptions with a
particular retailer may be rewarded by giving that customer a
further reduced subscription price 608. As another example, a
customer who establishes multiple active subscriptions with the
same retailer may receive a discount or other benefit. A customer
may also receive a reduced subscription price 608 (or other
favorable terms) if the customer establishes subscriptions at
cooperating retailers or manufacturers. Those skilled in the art
will recognize that other pricing schemes may be used according to
embodiments of the present invention.
[0085] The frequency 610 includes data specifying a frequency term
associated with the subscription identified by the redemption
identifier 602. The frequency is a term established between the
controller 200, the customer, and/or the retailer that specifies
the frequency with which a customer must redeem subscription
products to stay in compliance with the terms of the subscription.
The frequency 610 may be dictated by frequency terms specified by
the retailer in the available subscription database 500. Data
specified by the retailer 612 identifies one or more retailers at
which the subscription may be redeemed by the customer. The
retailer 612 may be established at the time of purchasing the
subscription or it may be established at a later time (e.g., it may
be established when the customer first redeems the
subscription).
[0086] A start date and an end date of the subscription are
specified by data in fields 614 and 616, respectively. These dates
are used to specify the beginning and expiration of the
subscription and may be used, for example, to track whether the
subscription is valid. The subscription start date 614 may be any
of a number of dates, including the date the subscription is
established, the date the customer first redeems a subscription
product, and/or the date that a condition is fulfilled (e.g., the
birth of a child, the date that the outside temperature exceeds
80.degree. F., the date that baseball season starts, etc.). The
subscription end date 616 may also be any of a number of dates,
including: a date at the end of an agreed-upon subscription term,
and a date that an agreed-upon event occurs (e.g., a child's
birthday, the date that the outside temperature first falls below
32.degree. F., the date that the baseball season ends, etc.). In
some embodiments, a subscription may have an indefinite end date
616 and/or an unspecified start date 614.
[0087] A date of last redemption 618 is used, for example, to track
whether the customer is redeeming subscription products with the
requisite frequency (i.e., according to the frequency specified in
field 610). Data specified by the quantity remaining 620 tracks the
quantity of subscription products that remain unredeemed as of the
date of last redemption 618.
[0088] Data specified by the penalty 622 identifies whether one or
more penalties have been assessed to the particular subscription
identified by the redemption identifier 602. In the depicted
embodiment, the penalty 622 is defined by reference to the penalty
database 900. As will be discussed further below, a penalty may be
assessed if a customer violates one or more terms of the
subscription. Data specified by the status 624 may be used to
indicate a status of the subscription identified by the redemption
identifier 602. For example, a particular subscription may be
tagged as being "INVALID" once the end date 616 has passed or after
the quantity remaining 620 is equal to zero.
[0089] Other data may also be specified in the active subscription
database 600. For example, data regarding a required payment type
may also be specified for a given active subscription. In some
embodiments, an active subscription may be financial account
specific and require that the customer use the specified amount
(e.g., identified by a specified credit or debit card) each time
the customer makes a subscription purchase. In some embodiments,
customers are encouraged to establish multiple subscriptions using
the same financial account. The issuer of the financial account may
subsidize subscriptions that require payment using a specified
financial account (e.g., a credit card issued by a particular
financial institution).
[0090] The active subscription database 600 may also specify
specific dates or times on which the customer must redeem
subscription products. This allows a retailer to directly influence
customer traffic flow.
[0091] In some embodiments, terms of a subscription may be changed
based on the settlement term (discussed further below). For
example, the controller 200 may lower a subscription price 608 if
the controller 200 will receive a high settlement price for the
subscription.
[0092] Settlement Database
[0093] Reference is now made to FIG. 7, which is a tabular
representation of the settlement database 700 which includes a
number of example records or entries each defining terms and
procedures used to settle amounts owed between parties (e.g.,
between the controller 200, retailers, and/or manufacturers). In
some embodiments, the settlement database 700 may be maintained and
controlled by the controller 200, although the database 700 may be
maintained and/or controlled by other entities as well. For
example, settlement may be performed by a payment network or other
entity that operates to move funds and data between parties. The
settlement database 700 contains data and information used to
facilitate settlement of funds owed between parties in the
subscription system of the present invention. Settlement may occur
between, for example, the controller 200, manufacturers, and
retailers. The settlement database 700 is referenced when
settlement is performed.
[0094] The tabular representation of the settlement database 700
defines fields for each of the entries or records, which specify
(i) a settled party 702, (ii) a settlement price 704, (iii) a
settlement schedule 706, and (iv) a commission fee paid to central
system 708.
[0095] For each entry of the settlement database 700, the data
specified by the settled party 702 specifies a party with which the
controller 200 has established a settlement relationship. The
settled party 702 is, for example, a participating retailer or
manufacturer. The data specified by the settlement price 704
identifies the price term by which the controller 200 agrees to
reimburse the settled party 702. For example, in embodiments where
the customer pays the subscription price to the controller 200, the
controller 200 may later settle with a retailer by paying the
retailer an agreed upon settlement price for the subscription
(e.g., the retail price minus a commission fee). In embodiments
where the customer pays the subscription price directly to a
retailer, the controller 200 may settle with the retailer by paying
the retailer the settlement price (e.g., the difference between the
retail price and the subscription price or some other agreed-to
amount). In some embodiments, the retailer may agree to pay the
controller 200 a commission fee 708 for each subscription or an
amount each time a subscription product is redeemed.
[0096] The settlement database 700 may specify terms under which
the controller 200 settles with other parties as well. For example,
the controller 200 may pay, or receive payment from, a product
manufacturer (e.g., the manufacturer may agree to pay the
controller 200 a commission fee 708 for each subscription including
one of the manufacturer's products) and/or a financial institution
(e.g., the financial institution may agree to pay the controller
200 a set fee for each subscription which requires the use of a
credit card issued by the financial institution).
[0097] The settlement database 700 may further specify terms by
which the controller 200 facilitates settlement between other
parties. For example, the controller 200 may facilitate settlement
between retailers, manufacturers and other parties, such as
financial institutions. In some embodiments, a manufacturer may pay
a retailer an agreed-to amount for supporting or providing
manufacturer-specific subscriptions. In other embodiments, a credit
card issuing bank may pay the retailer or manufacturer an
agreed-upon commission fee 708 for supporting subscriptions using
the issuing bank's cards or for providing other promotional
support.
[0098] In some embodiments, the settlement price 704 may depend on
the terms of a particular subscription. For example, the settlement
price 704 may be higher for subscriptions having longer durations
or larger amounts of subscription products. In other embodiments,
the settlement price 704 may include funds collected from penalties
imposed on customers. As will become apparent upon reading this
disclosure, other settlement terms and procedures may also be
established.
[0099] For each entry of the settlement database 700, the data
specified by the settlement schedule 706 identifies the timing of
settlement between the central system and the settled party 702. A
wide variety of settlement schedule terms may be specified, e.g.,
at redemption, on an established periodic basis, at the end of the
subscription, etc. The data specified by the commission fee 708
identifies a fee (if any) to be paid to the central system and
agreed to by the settled party 702. A wide variety of fee
arrangements may be used in embodiments of the present invention.
For example, in one embodiment, the settlement terms may depend on
a particular customer (e.g., a manufacturer may pay a larger fee
for a customer who frequently purchases subscriptions to the
manufacturer's products).
[0100] Subsidy Database
[0101] Referring now to FIG. 8, a tabular representation of the
subsidy database 800 is shown, which includes a number of example
records or entries each defining a subsidy and details of the
subsidy which may be offered to a customer. In some embodiments of
the present invention, the subsidy database 800 is maintained and
controlled by the controller 200, although the subsidy database 800
may be maintained and/or controlled by other parties as well. The
subsidy database 800 includes data and information used to define
different subsidy offers which may be presented to customers who
establish subscriptions using the present invention. Subsidies can
be targeted to specific customers or customers who meet certain
criteria. For example, larger subsidy amounts may be presented to
customers who have established many subscriptions in the past. The
subsidy database 800 may also include data and information used to
define different subsidy offers which are valid for specific
products. Data for the subsidy database 800 may be provided from
different parties offering subsidies. According to certain
embodiments of the present invention, the subsidy database 800 is
referenced when a customer establishes a subscription to a product
for which a subsidy is offered.
[0102] The tabular representation of the subsidy database 800
defines fields for each of the entries or records and specifies (i)
a subsidy identifier 802, (ii) a subsidy provider 804, (iii) an
obligation 806, and (iv) a subsidy amount 808.
[0103] For each entry of the subsidy database 800, the data
specified by the subsidy identifier 802 identifies a particular
subsidy. The subsidy identifier 802 may be, e.g., a unique number
or code used to uniquely identify a particular subsidy. Data
specified by the subsidy provider 804 is used to identify the
provider of the subsidy identified by the subsidy identifier 802.
Data specified by the obligation 806 identifies one or more
obligations that must be met by a customer for the customer to
qualify for the subsidy in the amount specified by the subsidy
amount 808.
[0104] Penalty Database
[0105] FIG. 9 is a tabular representation of the penalty database
900 which includes a number of example records or entries each
defining a particular penalty which may be levied against certain
customers who fail to comply with term(s) of a subscription.
According to certain embodiments of the present invention, the
penalty database 900 is maintained and controlled by the controller
200, although other entities may also maintain and/or control the
database 900 as well. The penalty database 900 contains data and
information defining different penalties and conditions under which
those penalties may be imposed on a customer. These penalties and
conditions may be established by the controller 200, a retailer, a
manufacturer or a combination of those entities.
[0106] The tabular representation of the penalty database 900
defines fields for each of the entries or records. The fields
specify (i) a penalty code 902, (ii) a penalty description 904, and
(iii) a penalty condition(s) 906. For each entry of the database
900, the data specified by the penalty code 902 includes
information identifying a particular penalty that may be levied
against a customer. For example, a customer may incur a penalty for
violating one or more terms of a subscription, such as a failure to
comply with terms specifying (i) the subscription product 606, (ii)
the subscription price 608, (iii) the frequency 610, (iv) the
retailer 612, (v) the start date 614, or (vi) the end date 616.
Further, in certain embodiments, a customer may incur a penalty for
failing to use an agreed-upon payment card.
[0107] A description of the penalty associated with the penalty
code 902 is specified in the penalty description 904, and
condition(s) associated with the penalty are set forth in
condition(s) 906. The penalty may be any of a number of types of
penalties, such as (i) the loss of some benefit the customer would
have otherwise been entitled to if the subscription were fully
complied with (e.g., a low subscription price), (ii) the loss of
benefits related to a subscription (e.g., frequent shopper club
benefits), (iii) termination of the subscription, (iv) increasing
the subscription price, or (v) a financial penalty levied against
the customer (e.g., charging a predefined fine amount to a
customer). Further, the penalty may be a reduction or change in
terms of the subscription. For example, if the subscription price
is one that decreases progressively per unit of product purchased,
the penalty may involve (i) resetting the subscription price to be
equal to the retail price of the subscription product, (ii) causing
the subscription price to remain at a set price without decreasing
for a period, or (iii) increasing the subscription price by an
amount.
[0108] In some embodiments, financial penalties are levied against
a customer by charging an amount to the customer's payment account
(identified by the payment identifier 406 stored in the customer
database 400 of FIG. 4). In other embodiments, financial penalties
are levied by keeping some or all of the deposit amount 518 (FIG.
5) paid by the customer. The penalty amount can be determined in
any of a number of different ways, e.g., by penalizing the customer
an amount equal to the amount of discounts the customer received
with respect to a given subscription. The penalty amount can be
calculated in other ways as well. For example, the penalty amount
may be calculated based on (i) the subscription price, (ii) the
retail price of the subscription product at the end of the
subscription, (iii) the average, lowest, or highest retail price of
the subscription product during the subscription, and (iv) a price
agreed-upon by the customer and the controller 200.
[0109] In some embodiments, the penalty associated with the penalty
code 902 may involve withholding an amount from the customer until
the customer fulfills the terms of the subscription. The amount
withheld may be obtained from the customer upfront (e.g, the
deposit amount 518 of FIG. 5) or may be collected during the course
of the subscription. At the end of the subscription period, if no
penalty is assessed, the customer will receive the total amount
withheld. If the customer violates one or more terms of the
subscription agreement, the amount may be kept by the controller
200 and/or retailer.
[0110] In some embodiments, the customer is given the opportunity
to cure a violation before being penalized. For example, in some
embodiments, a customer who misses a redemption may be given an
extension of time during which to fulfill the conditions of the
subscription.
[0111] In some embodiments, the penalty database 900 may also
include a penalty code 902, penalty description 904, and penalty
condition(s) 906 which apply to a retailer. For example, the
penalty conditions 906 may specify that the retailer will be
penalized for hindering or preventing a customer from fulfilling
his subscription (e.g., if the retailer runs out of the product).
The retailer may be required to offer the customer a further
discount on the product, or provide the customer with a coupon or
rain check. Further, the customer may be allowed to redeem the
subscription product at a different retailer or to exchange it for
a different product. This ensures that customers are not penalized
for stocking or supply problems of the retailer.
[0112] Those skilled in the art will recognize that other penalty
arrangements may be used in embodiments of the present
invention.
[0113] Modification Database
[0114] FIG. 10 is a tabular representation of the modification
database 1400 which includes a number of example records or entries
each defining the terms associated with a particular modification
request which may be received concerning subscriptions established
using the present invention. In one embodiment, the database 1000
includes a number of different types of modifications which may be
permitted for different subscriptions. In generating an active
subscription, one or more of the types of modifications may be
specified as available for the active subscription. The listing of
types of modifications in database 1000 may not be exhaustive.
Customers and retailers may agree to different modification terms
when establishing active subscriptions.
[0115] Each record or entry of the modification database 1000
includes a number of fields which specify (i) a modification
request 1002, (ii) a modification rule 1004, and (iii) a
modification penalty 1006. For each entry of the database 1000, the
data specified by the modification request 1002 identifies a
particular type of modification request that may be made by, e.g.,
a customer or retailer participating in the system. For example, a
customer having a subscription may request that the duration of an
established subscription be extended or shortened (i.e., a request
to enter "EXTEND DURATION," or "SHORTEN DURATION"). A wide variety
of types of modifications may be included in the modification
request 1002 of the database 1000. Each modification request 1002
may have an associated modification rule 1004 (e.g., conditions on
the frequency or timing of a particular request) and an associated
modification penalty 1006 (e.g., a fee to be charged for the
modification, etc.).
[0116] In some embodiments, customers may be allowed to request a
"TRANSFER" of the subscription to another customer. For example, an
existing customer who currently has a one-year subscription to
bananas may decide after four months that he no longer wishes to
maintain the subscription. If the modification database 1000
indicates that a "TRANSFER" is an acceptable modification, the
customer may find another individual to transfer the subscription
to. In some embodiments, a subscription exchange or other forum may
be established by the controller 200 to facilitate the
identification of such transferees. In some embodiments, the
"TRANSFER" may simply entail transferring the terms of the
subscription to the new customer. In other embodiments, the
transfer may require the transfer of funds such as an initial
deposit (or portion of the deposit) to the new customer. In some
embodiments, a "TRANSFER" may be used to replicate the terms of an
active subscription for one or more new customers.
[0117] In other embodiments, customers may be allowed to request a
"ROLLOVER" of the subscription to a new subscription product. For
example, if a customer establishes a one-year subscription to
"HAMBURGER" and thereafter decides to become a vegetarian, the
customer may be allowed to modify the subscription by changing it
into a subscription to "SOY BURGERS,". In some embodiments, the
customer may be required to pay a modification penalty 1006 for
this modification.
[0118] In other embodiments, customers or the retailer may be
allowed to "TERMINATE" a subscription. For example, a customer may
be allowed to prematurely end a subscription due to changed
circumstances. Again, this may require the payment of a
modification penalty 1006 for the termination. Similarly, a
retailer may be permitted to "TERMINATE" a subscription due to
changed circumstances such as the unavailability of the
subscription product. The retailer may be subject to a modification
penalty 1006 or be required to refund some or all of the customer's
money or provide an acceptable substitute.
Process Description
[0119] Process Overview
[0120] A process of the present invention will now be described to
illustrate how subscriptions may be established and redeemed and
how parties may settle funds among one another. Referring to FIG.
11, a flow chart 1100 represents a process according to an
embodiment of the present invention that may be performed by the
controller 200 in conjunction with a customer device 110 and a
retailer device 140 (FIG. 1). The particular arrangement of
elements in the flow chart of FIG. 11, as well as the other flow
charts discussed herein, is not meant to imply a fixed order to the
steps; rather, embodiments of the present invention can be
practiced in any order that is practicable.
[0121] According to an embodiment of the present invention, the
subscription management process 1100 begins with the establishment
of a subscription and arranging for fulfillment of the subscription
(at 1200). A customer, or group of customers, establishes a
subscription by communicating with the controller 200 and by
selecting and negotiating terms of a subscription for a product or
set of products. In some embodiments, customers may select
subscriptions to products based on retailer, manufacturer, product,
and/or product category. Terms of a subscription may be set by the
retailer or manufacturer, or some or all of the terms may be
negotiated by the customer. Once a subscription is established, the
system operates to arrange for fulfillment. This can be performed
in a number of ways. For example, the controller 200 may forward
details regarding a particular subscription to a retailer so the
retailer has those details before the customer arrives to redeem
the subscription. As an alternative example, the controller 200
does not communicate subscription information to retailers;
instead, the customer may be given subscription identifying
information which the customer presents to the retailer at the time
of purchasing a subscription product. The retailer then contacts
the controller 200 for authorization of the purchase transaction.
Other techniques for arranging fulfillment will become apparent
upon reading this disclosure. A further discussion of the
establishment of a subscription and arranging for fulfillment is
provided in conjunction with FIG. 12.
[0122] Once a subscription has been established, processing
continues to a fulfillment process 1300. As will be discussed in
further detail below in conjunction with FIG. 13, the fulfillment
process 1300 may be performed in a number of different ways. For
example, in a controller-based embodiment, the controller 200
performs the function of tracking and authorizing subscription
fulfillment by receiving an authorization inquiry from
participating retailers for each subscription redemption request.
In a retailer-based embodiment, the retailer device 140 performs
some or all of the function of tracking fulfillment by tracking
individual transactions involving subscriptions redeemed at that
retailer. Further, in a customer-based embodiment, the customer
device 110 performs some or all of the function of tracking
fulfillment by tracking individual redemption transactions of a
particular customer.
[0123] The subscription process 1100 also includes a settlement
process 1400. Settlement 1400 will be described in more detail
below in connection with FIG. 14, and may take several forms and
involve several different parties. For example, the controller 200
may agree with retailers and manufacturers to reimburse the
retailers and manufacturers for fees and costs associated with
participating subscriptions. Settlement 1400 between parties may be
performed on a periodic or otherwise agreed-to basis.
[0124] The result is a system which allows customers to purchase
subscriptions to products from a large number of retailers.
Embodiments of the present invention provide an efficient and
centralized system for the establishment, fulfillment, and
settlement of subscriptions among multiple customers and
retailers.
[0125] Subscription and Arranging Fulfillment Process
[0126] One embodiment of a process 1200 for establishing a
subscription and arranging fulfillment is described by referring
now to FIG. 12. The process 1200 typically begins with the receipt,
by the controller 200, of a request to establish a subscription at
1202. The request may be generated by a prospective customer
operating a customer device 110 in communication with the
controller 200. Alternatively, a customer may communicate with the
controller 200 via a point of sale device (such as the retailer
device 140) located at a retailer location.
[0127] Upon receipt of the request to establish a subscription, a
determination is made whether the customer is a new customer (at
1204). If so, processing proceeds to 1206 where customer
information is received. This information may be received by the
controller 200 in a variety of manners. For example, in an Internet
Web-based environment, the customer may be prompted to provide
information, and information may be received by the controller 200,
using electronic forms or other well-known techniques. As another
example, the customer may establish a subscription using a
telephone and interact with the controller 200 via an interactive
voice response unit (IVRU). Further, the customer may establish a
subscription using traditional mail or electronic mail.
[0128] The controller 200, upon receipt of the customer
information, will generate or assign a customer identifier at 1208.
This customer identifier and the customer information are stored at
1210. As an example, illustrated by reference to the customer
database 400 of FIG. 4, the customer information received at 1206
includes the customer data 404 (e.g., the customer's name), the
payment identifier 406 (e.g., a credit card number), and the
contact information 408 (e.g., the customer's address). The
customer identifier 402, as depicted in the first record of the
customer database 400, may be the same as the payment identifier
406. Alternatively, or in addition, the customer identifier 402 may
be a unique number, code or other indicia generated by the
controller 200 for each customer.
[0129] If, at 1204, a determination is made that the customer is an
existing customer, the customer may simply provide an existing
customer identifier 402 (at 1212). The controller 200 then
retrieves customer data (at 1214). In some embodiments, such as
Internet-based embodiments where the customer uses a Web "browser"
to interact with the controller 200, the customer identifier 402
may be stored in the customer's browser as a "cookie" so that the
customer may be automatically identified to the controller. In some
embodiments, customers who are repeat customers are rewarded. For
example, customers may be rewarded with more beneficial
subscription terms based on the number of subscriptions the
customer has with (i) the controller 200, (ii) each retailer, or
(iii) each manufacturer. Further customers may be rewarded for
their use of a particular credit card or financial account.
[0130] Once the customer has been identified to the controller 200,
processing proceeds to 1216 where the system functions to determine
subscription terms. This may occur in a number of ways. For
example, a customer may contact controller 200 and browse through a
menu or selection of available subscriptions. The customer may also
request a specific product and construct a new subscription for
that product. The customer may also specify one or more desired
term(s) of the subscription, such as a desired price, a desired
brand, a desired quantity, etc. Further, the customer may specify
certain terms and specify an acceptable range for other terms. In
some embodiments, the customer may weight desired terms. For
example, the customer may indicate that a desired subscription
price is the most important term and that the specific retailer is
less important. Further, the customer may submit offers for
multiple subscriptions and indicate that being able to pick up all
of the subscription items at a single retailer is the most
important criteria.
[0131] The customer may specify or establish ranges for all of the
terms or may allow the controller 200 to supply certain terms. The
controller 200 may then create or select an appropriate
subscription based on the customer's request. In some embodiments,
the controller 200 may perform a screening process to ensure the
customer's request meets minimum subscription requirements
established by the controller 200, retailers, and
manufacturers.
[0132] As an example illustrated by reference to the product
database 300 of FIG. 3 and the available subscription database 500
of FIG. 5, the customer may request a subscription to SOFT-brand
toilet paper, in 4-roll packages (identified in the product
database 300 as having a product identifier 302 of "P1111"). This
product identifier 302 is used to determine whether any
subscriptions are available to that particular product. Reference
to the available subscriptions database 500 shows that several
retailers offer subscriptions to product "P1111"--"JOE'S STORE"
(under the available subscription identifier 504 "SR1111") and
"SAM'S STORE" (under the available subscription identifier 504
"AP1111"). In establishing a request for the subscription, the
customer may be presented with several choices. For example, the
customer may be presented with a list of penalties from which to
choose. The customer's selection of penalties and other terms may
have a direct impact on the subscription price or other
subscription terms (for example, a customer who is willing to
accept severe penalties may receive a lower subscription price
because that customer is less likely to breach the subscription
agreement).
[0133] In one embodiment, the respective terms of these available
subscriptions are retrieved and presented to the customer without
modification by the controller 200 (e.g., they are determined by
the retailer and/or manufacturer). The customer is then given the
opportunity to determine whether the terms are acceptable at 1218.
In other embodiments, the terms of the available subscriptions may
be modified by the controller 200 before they are presented to the
customer. For example, referring to available subscription "SR1111"
of FIG. 5, the controller 200 may modify the subscription price 508
and offer the subscription to the customer at a price of "$1.25"
(per unit of the subscription). This modification complies with the
retailer's requirement that the subscription price be greater than
or equal to "$0.99" per unit. The controller 200 may further modify
the available subscription by specifying that the frequency be
"WEEKLY" for one year. This subscription, as modified by the
controller 200, may then be presented to the customer for
approval.
[0134] In some embodiments, the controller 200 forwards a
customer's request on to one or more retailers, manufacturers, or
other entities for their review and acceptance. These parties may
generate a counter-offer to a customer's request which may be
presented to the customer by the controller 200. Customer's may
enjoy better subscription terms as a result of competition between
multiple parties.
[0135] In some embodiments, the controller 200 and/or the retailer
or manufacturer (via the controller 200) may offer the customer a
lower subscription price if the customer agrees to modify other
terms of the subscription. For example, a retailer may offer a
lower subscription price to a customer who agrees to increase the
subscription frequency 610, the penalty 622, or the duration of the
subscription. Further, a customer may be presented with a subsidy
offer which may reduce the price of the subscription or modify
other terms of the subscription. The subsidy may be a subsidy
defined in, e.g., subsidy database 800 (FIG. 8).
[0136] Alternatively, or in addition, the customer may be given the
opportunity to dictate or modify some or all of the terms of the
subscription. For example, the customer may specifically request a
one year subscription, on a weekly basis, to SOFT-brand toilet
paper for a per-unit price of "$1.50". The controller 200, using
this information, determines that at least two available
subscriptions satisfy the customer's request: "JOE'S STORE's"
available subscription number "SR1111" and "SAM'S STORE's"
available subscription number "AP1111." Once the controller 200 and
the customer have arrived at an agreement regarding the terms and
conditions of the new subscription, processing continues to 1222
where the subscription is established. In one embodiment, described
by referring to FIG. 6A, the subscription is established by
assigning a redemption identifier 602 to a new entry in the active
subscription database 600. The terms and conditions of the
agreed-upon subscription are associated with the redemption
identifier 602. As an example, referring to the first depicted
record of the active subscription database 600, a redemption
identifier 602 of "R5555" is used to refer to a subscription
established for customer identifier "234-678-9011" (Ms. Bethany
Jones identified in the customer database 400) which requires
Bethany to purchase. SOFT-brand toilet paper (product identifier
"P1111") each week for a year at "SAM'S STORE." In return, Bethany
receives the subscription price of $1.50 per unit of the
subscription. In this example, no penalty 622 will be imposed if
Bethany fails to comply with the terms of the subscription.
[0137] In some embodiments, establishment of a subscription 1222
may leave one or more terms of the subscription open. For example,
in one embodiment, a subscription may be established without final
selection of a specific retailer at which the subscription may be
redeemed (e.g., the retailer 612 of FIG. 6A may be left blank at
the end of the process of establishing a subscription). In this
embodiment, the final selection of the retailer may be completed
when the customer redeems the first product of a subscription at a
participating retailer. As an example, a customer may establish a
subscription that has an undefined retailer 612. The customer may
be presented with a list of retailers at which the subscription
will be accepted. The customer may then finalize the establishment
of the subscription by redeeming the first product of the
subscription at a participating retailer (that is, a retailer that
was on the list provided to the customer and which honors
subscriptions established by the controller 200). This allows a
customer to select a favorite or most convenient retailer for the
subscription.
[0138] In some embodiments of the present invention, establishment
of a subscription 1222 may require that the customer pay a total
subscription price (e.g., the subscription price multiplied by the
number of products in the subscription) to the controller 200 at
the time of establishing the subscription, or each time the
customer redeems a subscription product. In other embodiments, the
customer pays the retailer each time the customer redeems a
subscription product. Further, the retailer and/or the customer may
agree to pay a fee to the controller 200 for establishing the
subscription.
[0139] Once the subscription is established, a redemption
identifier is communicated to the customer at 1224. This may be
performed in any of a number of ways. For example, the redemption
identifier may be communicated via an IVRU, over the Internet, via
mail, etc. In embodiments where privacy and security are desired,
the redemption identifier may be encrypted or otherwise encoded in
a manner which prevents unauthorized parties from receiving or
using the redemption identifier.
[0140] In some embodiments, subscription information is also
communicated to retailer(s) at 1226. For example, the details of a
particular subscription may be forwarded to the retailer or
retailers at which the subscription will be honored. In other
embodiments, the particular retailer(s) are not identified until
later in the process and no subscription information can be
forwarded. In still other embodiments, no information need be
communicated to the retailer until a retailer contacts the
controller 200 to authorize a subscription transaction.
[0141] Fulfillment Process
[0142] A process 1300 for arranging for the fulfillment of the
subscription is described by referring now to FIG. 13. The
fulfillment process 1300 begins at 1302 where a subscription is
identified. A subscription may be identified, for example, when a
customer presents a product for purchase at, e.g., a retail point
of sale. For example, the customer may indicate that the product is
part of a subscription by entering the redemption identifier 602
into retailer device 140. Further, the retailer device 140 may
automatically determine that the product is part of a subscription,
for example, by reading a frequent shopper card presented by the
customer. The frequent shopper card may store information that
allows the retrieval or identification of the redemption identifier
602. As a further example, a subscription may be identified by
forwarding customer information and product information to the
controller 200 for authorization of a transaction. Any of these
techniques may be used to identify a subscription at 1302.
[0143] In one embodiment, once the redemption identifier 602 has
been presented to the retailer device 140, the redemption
identifier 602 is used to retrieve information about the
subscription at 1304. The information retrieved can include
information from active subscription database 600 (FIG. 2). In some
embodiments, the information is retrieved from the customer (e.g.,
from a frequent shopper card, smart card, or PDA carried by the
customer), from the retailer (e.g., from information stored at the
retailer device regarding the active subscriptions offered by a
particular retailer), and/or from the controller 200.
[0144] At 1306 a check is made to determine whether the
subscription identified by the redemption identifier 602 is still
valid. For example, this determination may be made based on
retrieving the end date 616 (FIG. 6B) and comparing it with the
current date to determine if the subscription has expired.
Alternatively, or in addition, the check can involve retrieving
information regarding the quantity remaining 620 (FIG. 6B) and
determining whether the subscription has any units of products
remaining for redemption. If the subscription is no longer valid,
processing may terminate. Alternatively, the customer may be given
the option to renew or reestablish the subscription, e.g., by
following the procedure for establishing a subscription set forth
above and described in conjunction with FIG. 12.
[0145] If the check at 1306 ascertains that the subscription is
valid, processing continues to 1308 where a determination is made
whether the subscription has been properly presented. For example,
this may include ascertaining that the product being purchased by
the customer is the subscription product 606 (FIG. 6A). Further,
the identity of the retailer can be compared with the stored
information about the retailer 612 (FIG. 6A). Other checks may also
compare the start date 614 (has the start date arrived yet?), and
the frequency 610 and the date of last redemption 618 (is the
customer redeeming with the appropriate frequency?). These checks
may be conducted locally if the retailer stores information about
the subscription. Alternatively, or in addition, the checks may
require that contact with the controller 200 or some other third
party (such as a credit card network) be established. For example,
an authorization request may be communicated from the retailer
device 140 to the controller 200 transmitting information about the
requested transaction. The controller 200 can then perform the
checks to determine if the subscription is valid (at 1306) and if
the subscription is properly presented (at 1308) and respond with
an authorization or a denial of the transaction. In another
embodiment, the checks at 1306 and 1308 may be performed by
querying a customer device such as a smart card or frequent shopper
card which stores or is associated with information about the
subscription.
[0146] If the checks show that the customer is not redeeming the
subscription properly (that is, the customer is in violation of one
or more terms and conditions of the subscription as defined in
active subscription database 600), a determination is made at 1310
whether a penalty should be assessed. As an example, if the check
at 1308 reveals that the customer is not complying with the
frequency term of the subscription (as defined by field 610 of FIG.
6A) and the penalty code (as defined by field 622 of FIG. 6B and
fields 902-906 of FIG. 9) indicates that a penalty is to be applied
for violations of the frequency term, the transaction may be
completed, but only after a penalty has been applied. In this
example, the penalty is "RAISE SUBSCRIPTION PRICE $0.05" (as
defined by the penalty description 904 associated with the penalty
code "X3"). After assessing the penalty, processing continues to
1312 where the transaction is completed. In some embodiments, the
transaction will not be able to be completed, even with a penalty
and processing terminates.
[0147] In one embodiment, a customer may be given the opportunity
to modify the terms of his subscription. Whether a customer may be
given the opportunity to modify the subscription may be set forth,
e.g., in modification database 1000 (FIG. 10).
[0148] If the checks show that the customer is redeeming the
subscription properly (as defined by the terms and conditions of
the subscription), processing continues to 1310 where the
transaction is completed (i.e., the customer pays the subscription
price 608 (FIG. 6A) and receives the subscription product 606). In
some embodiments, where the customer paid the subscription price in
advance (e.g., during establishment of the subscription), the
customer may not need to pay any amount for the subscription
product at 1310.
[0149] The transaction may be completed at 1310 in a number of
ways. For example, in some embodiments, the retailer may perform a
price override at a POS terminal to override the retail price for a
product and to reflect the subscription price. The price override
may also be performed by providing a discount in the amount of the
difference between the retail price and the subscription price.
This price override may be authorized locally, or it may be
authorized by controller 200 or by a third party such as a credit
card processor or payment network. In some embodiments, the
transaction is completed at 1310 with the customer paying the full
retail price for the product and later receiving a credit back for
the difference between the retail price and the subscription price.
Those skilled in the art, upon reading this disclosure, will
recognize that other methods and approaches for completing the
transaction may also be used.
[0150] Processing continues to 1312 where the subscription is
updated to reflect the transaction. For example, information in the
active subscription database 600 (FIG. 6A and FIG. 6B) is updated
to reduce the quantity remaining 620 and to revise the date of last
redemption 618. This updating may be performed locally by the
retailer device 140 (FIG. 1) or it may involve transmitting update
information to the controller 200, to the customer device 110, or
to a customer transaction card or smart card (not shown).
[0151] In some embodiments, the fulfillment process 1300 does not
involve communication between a retailer and controller 200 for
each subscription transaction. Instead, retailers may communicate
information about subscriptions to the controller 200 on a periodic
basis. For example, a retailer may submit subscription information
to the controller 200 on a nightly basis. Further, in certain
embodiments, the retailer may only submit information to the
controller 200 after a customer has completed a subscription.
[0152] In other embodiments, the fulfillment process 1300 requires
that the customer (rather than the retailer) interact with the
controller 200. For example, a retailer may give a customer a code
or confirmation number indicating that the customer has properly
redeemed a subscription product or has successfully completed a
subscription. The customer may then communicate this code or
confirmation number to the controller 200 to inform the controller
200 of the status of the fulfillment. Those skilled in the art,
upon reading this disclosure, will recognize that other fulfillment
techniques may also be performed.
[0153] Settlement Process
[0154] FIG. 14 depicts a process for settlement 1400. According to
embodiments of the present invention, the settlement process 1400
may occur at different times and in different manners. For example,
in one embodiment, the settlement process 1400 occurs one time for
each subscription at either the beginning or the end of the
subscription. In other embodiments, the settlement process 1400 is
performed a number of times during the term of a subscription. For
example, a retailer may be paid (or may pay) a fee for each
subscription product redeemed.
[0155] The terms of settlement are established at 1402. The terms
may be established when a retailer or manufacturer first
establishes a relationship with the controller 200 or otherwise
offering services according to embodiments of the present
invention. Settlement terms which may be established are shown in
the settlement database 700 (FIG. 7), and may include terms
identifying the settled party 702, the settlement price 704, the
settlement schedule 706 and the commission fee (if any) 708. Other
terms needed to define a settlement relationship may also be
established. For example, payment terms may be included if a
retailer has specific requirements regarding the form of settlement
payments.
[0156] Once the settlement terms for a particular party (e.g.,
retailer or manufacturer) are established, processing continues to
1404 where a determination is made whether the settlement terms
have been fulfilled. This may involve, for example, retrieving
information about all active subscriptions (e.g., from active
subscription database 600 of FIG. 6A and FIG. 6B) relating to a
particular retailer or manufacturer and determining whether the
status of any active subscriptions requires settlement with a
particular retailer or manufacturer. This determination of whether
terms have been fulfilled may be performed on a periodic basis
(e.g., nightly) or may be performed whenever records of the active
subscription database 600 are updated.
[0157] If a determination is made that settlement terms with a
particular party have been fulfilled, processing continues to 1406
where the settlement price defined in the settlement database 700
(FIG. 7) is paid. This process continues as long as the party
continues to be a participant in the system of the present
invention. Settlement between other parties may also be facilitated
by embodiments of the present invention. For example, settlement
between the controller 200 and a manufacturer may be performed
where the manufacturer has provided a subsidy for a subscription.
As a further example, settlement between a retailer or the
controller 200 and a credit card issuer may also be performed.
Additional Embodiments
[0158] The following are several examples that illustrate
additional embodiments 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.
[0159] According to one embodiment of the present invention, a
customer may choose to prepay for the entire subscription. If the
customer fails to comply with any of the terms and conditions of
the subscription, he may be penalized by withholding one or more
subscription products, by losing all or a portion of the prepaid
amount, etc. In other embodiments, the customer may choose to pay
for the entire subscription in a lump sum during the term of the
subscription (e.g., after the first product has been redeemed), or
at the end of the subscription.
[0160] According to another embodiment, retailers may remind
customers who have failed to redeem subscription products. For
example, a retailer may identify a customer during a check-out
transaction (e.g., via the customer frequent shopper card) and
check to see the status of any subscriptions held by the customer.
If the customer has one or more subscriptions with the retailer
which are delinquent (e.g., one or more subscription products has
not been redeemed). The retailer may remind the customer that he
needs to redeem the items. This reminder may be presented in a
number of ways. For example, a terminal may prompt the cashier to
remind the customer or a reminder may be printed on the customer's
receipt. In other embodiments, customers may be presented with
other types of reminders to redeem subscription products (e.g.,
e-mail or regular mail reminders may be sent).
[0161] According to another embodiment of the present invention,
customers who refer new customers to the controller 200 may receive
a benefit such as more favorable subscription terms. For example,
the controller 200 may track whether a new customer who establishes
a subscription was referred by an existing customer. If the new
customer is a referral, the existing customer may receive a benefit
such as a dollar credit toward the existing customer's next
subscription. Those skilled in the art will recognize that other
benefits and incentives may also be provided to encourage existing
customers to generate referrals.
[0162] According to another embodiment of the present invention,
upon establishing a subscription, the customer may receive a number
of vouchers or coupons for each product in the subscription. The
vouchers or coupons may be encoded with information regarding the
product, the redemption identifier, and the subscription price. In
some embodiments, the customer can pre-pay for the vouchers or
coupons. In other embodiments, the voucher or coupon is used to
notify the retailer of the subscription price that is to be
extended to the customer. In some embodiments each voucher or
coupon has a specific date or range of dates for which it is valid.
In this manner, the coupons can regulate the frequency requirement
of the subscription (e.g., for a four week subscription which is to
be redeemed weekly, four coupons dated a week apart can be
issued).
[0163] In another embodiment, the customer may be a group of
individuals who have agreed among themselves to jointly establish a
subscription (e.g., to qualify for a larger discount in return for
the commitment to purchase a greater quantity of items). As a
further embodiment, rather than establish a single group
subscription, individuals may be able to link different
subscriptions to jointly qualify for greater savings. The members
of a group need not know each other or shop at the same retailer.
Each member of the group may have separate redemption identifiers
that are linked at controller 200, or they may each share the same
redemption identifier. Each of the members of the group may keep
track of the status of subscriptions through, e.g., a Web site, a
kiosk, or through printed status updates on receipts. In one
embodiment, the failure of one member of the group to properly
redeem subscription items affects the level of benefits that all
members of the group receive. Peer pressure from the group should
encourage other members to properly redeem items.
[0164] A number of additional ways of establishing a subscription
may be used. For example, the customer may operate a portable
customer device 110 (such as a PDA) and may receive offers for
subscriptions, e.g., while shopping at retail stores. Further,
subscription offers may be printed on product packaging as, e.g., a
scannable product code. A customer may initiate the process for
establishing a subscription by presenting the product to a cashier
and choosing to accept a subscription to the product. In one
embodiment, the initial product (the product scanned at the
cashier) is the first product of the subscription. Alternatively,
or in addition, the subscription can be established by phoning in a
code printed on product packaging.
[0165] In other embodiments, a customer may be given the chance to
donate some or all of the benefits associated with a subscription
to a third party, such as a charity. For example, a customer may
choose to donate his savings from the subscription (e.g., the
difference between the subscription price and the retail price) to
a charity. Further, the terms of a subscription may be defined such
that the retailer will donate products or discounts on products to
a charity for each subscription established or for each
subscription product redeemed. In another embodiment, the customer
may choose to pay a higher subscription price per subscription
product and to have the extra amount paid credited to a charity or
to another customer's subscription.
[0166] In other embodiments, a customer may be given the
opportunity to change terms of the subscription. For example, a
customer may be able to transfer a subscription to another
customer. A customer may also be able to sell the subscription back
to the controller 200 or the retailer by paying an agreed-upon fee.
A customer may also be given the opportunity to, e.g., access a Web
site and modify terms of an existing subscription.
[0167] Although the present invention has been described with
respect to a preferred embodiment thereof, those skilled in the art
will note that various substitutions may be made to those
embodiments described herein without departing from the spirit and
scope of the present invention.
* * * * *