U.S. patent application number 14/720344 was filed with the patent office on 2016-01-14 for restaurant yield management portal.
The applicant listed for this patent is III HOLDINGS 1, LLC. Invention is credited to Rebecca Fogg, Jack Funda, Aileen Kheraj, Peter William Niessen, Sheraz Shere.
Application Number | 20160012387 14/720344 |
Document ID | / |
Family ID | 39544200 |
Filed Date | 2016-01-14 |
United States Patent
Application |
20160012387 |
Kind Code |
A1 |
Niessen; Peter William ; et
al. |
January 14, 2016 |
RESTAURANT YIELD MANAGEMENT PORTAL
Abstract
A system and method to optimize the yield of a restaurant having
perishable inventory is described. Through a card company, a
restaurant can market incentives to make reservations during an
off-peak time to enrolled card members. Offer marketing is based on
stated customer preferences, and conducted via, for example, a
website, email, or text message. Reservations are made, for
example, via a centralized booking service. The incentive is
fulfilled to the card member in a coupon-less manner. The card
company receives a commission from the participating restaurant for
every such sale.
Inventors: |
Niessen; Peter William; (New
York, NY) ; Kheraj; Aileen; (Jersey City, NJ)
; Funda; Jack; (Summit, NJ) ; Shere; Sheraz;
(Brooklyn, NY) ; Fogg; Rebecca; (Brooklyn,
NY) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
III HOLDINGS 1, LLC |
Wilmington |
DE |
US |
|
|
Family ID: |
39544200 |
Appl. No.: |
14/720344 |
Filed: |
May 22, 2015 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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13670180 |
Nov 6, 2012 |
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14720344 |
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11644018 |
Dec 22, 2006 |
8326705 |
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13670180 |
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Current U.S.
Class: |
705/14.4 |
Current CPC
Class: |
G06Q 30/0241 20130101;
G06Q 50/12 20130101; G06Q 10/087 20130101; G06Q 10/02 20130101 |
International
Class: |
G06Q 10/08 20060101
G06Q010/08; G06Q 30/02 20060101 G06Q030/02; G06Q 50/12 20060101
G06Q050/12 |
Claims
1-23. (canceled)
24. A method, comprising: receiving, at a computer system,
inventory data corresponding to a merchant, wherein the inventory
data includes information indicating availability of inventory of
the merchant at a plurality of different time periods; identifying,
by the computer system, a particular time period of the plurality
of different time periods in which the merchant has a higher level
of available inventory than one or more other time periods, wherein
the identifying is based on the inventory data; applying, by the
computer system, a ranking algorithm to a plurality of inventory
items of the merchant available in the particular time period to
determine a ranked list comprising a plurality of potential offers
for a specific consumer to purchase ones of the available inventory
items, wherein the determining is based on preference data for the
specific consumer; the computer system formatting the ranked list
into an electronic communication format corresponding to a push
communications protocol; and the computer system causing the
formatted ranked list to be electronically transmitted to the
specific consumer via the push communications protocol.
25. The method of claim 24, wherein the push communications
protocol is a text message protocol, and wherein causing the
formatted ranked list to be electronically transmitted comprises
causing a text message addressed to a phone number associated with
the specific consumer to be sent.
26. The method of claim 25, wherein the push communications
protocol is a short messaging service (SMS) protocol, and wherein
the text message is transmitted to a mobile phone device associated
with the specific consumer.
27. The method of claim 24, further comprising the computer system
receiving customer data indicative of a plurality of inventory
purchasing preferences of a plurality of consumers; and the
computer system extracting the preference data for the specific
consumer from the received customer data.
28. The method of claim 27, wherein the preference data includes at
least one of a preferred cuisine type, a preferred time of
reservation, or a preferred minimum restaurant rating.
29. The method of claim 24, further comprising the computer system
causing a targeted marketing message to be sent to the specific
consumer via the push communications protocol, wherein the targeted
marketing message includes the formatted ranked list and includes
at least one of a date a potential offer may be redeemed, a time a
potential offer may be redeemed, a location at which a potential
offer may be redeemed, or a group reservation size for a potential
offer.
30. The method of claim 24, wherein identifying the particular time
period comprises analyzing the inventory data relative to a total
seating capacity of the merchant.
31. The method of claim 24, wherein the merchant corresponds to at
least one of a manufacturer, an airline company, a retailer, a
theatre, a hotel, or a restaurant; and wherein applying the ranking
algorithm comprises use of consumer data that includes at least one
of authentication information, customer name, customer email
address, customer account number, one or more preferred customer
cuisines, a geographical location, or a minimum party size
associated with the consumer.
32. The method of claim 24, further comprising the computer system
receiving inventory data corresponding to a plurality of different
merchants, and wherein the determined ranked list comprises at
least first and second offers from different merchants.
33. The method of claim 24, wherein the formatted ranked list is
electronically transmitted to the specific consumer along with
information indicating an amount of a discount for at least one of
the plurality of potential offers.
34. The method of claim 24, wherein the preference data includes
one or more absolute preferences and one or more non-absolute
preferences.
35. A computer system, comprising: a processor; a non-transitory
storage medium having stored thereon instructions that are
executable by the processor to cause the computer system to perform
operations comprising: receiving inventory data corresponding to a
plurality of merchants, wherein the inventory data includes
information indicating availability of inventory of different ones
of the plurality of merchants at a plurality of different time
periods; identifying at least first and second time periods of the
plurality of different time periods in which at least first and
second merchants have higher levels of available inventory than one
or more other time periods, wherein the identifying is based on the
inventory data; applying a ranking algorithm to a plurality of
inventory items of the first and second merchant available in at
least one of the first and second time periods to determine a
ranked list comprising a plurality of potential offers for a
specific consumer to purchase ones of the available inventory
items, wherein the determining is based on preference data for the
specific consumer; formatting the ranked list into an electronic
communication format corresponding to a push communications
protocol; and causing the formatted ranked list to be
electronically transmitted to the specific consumer via the push
communications protocol.
36. The computer system of claim 35, wherein causing the formatted
ranked list to be electronically transmitted is based on
electronically received permission data from the specific consumer
consenting to receive communications via the push communications
protocol.
37. The computer system of claim 35, wherein determining the ranked
list is based on a current time period in which applying the
ranking algorithm occurs.
38. The computer system of claim 35, wherein the operations further
comprise selecting the specific consumer, prior to applying the
ranking algorithm, from a plurality of consumers based on one or
more preferences of the specific consumer indicated in the
preference data.
39. An article of manufacture comprising a non-transitory computer
readable medium having stored thereon instructions that are
executable by a computer system to cause the computer system to
perform operations comprising: receiving inventory data
corresponding to a merchant, wherein the inventory data includes
information indicating availability of inventory of the merchant at
a plurality of different time periods; identifying a particular
time period of the plurality of different time periods in which the
merchant has a higher level of available inventory than one or more
other time periods, wherein the identifying is based on the
inventory data; applying a ranking algorithm to a plurality of
inventory items of the merchant available in the particular time
period to determine a ranked list comprising a plurality of
potential offers for a specific consumer to purchase ones of the
available inventory items, wherein the determining is based on
preference data for the specific consumer; formatting the ranked
list into an electronic communication format corresponding to a
push communications protocol; and causing the formatted ranked list
to be electronically transmitted to the specific consumer via the
push communications protocol.
40. The article of manufacture of claim 39, wherein the operations
further comprise causing the formatted ranked list to be
electronically transmitted within a particular time period
specified by the merchant.
41. The article of manufacture of claim 39, wherein the push
communications protocol is a text message protocol for mobile phone
devices.
42. The article of manufacture of claim 39, wherein the applying
the ranking algorithm includes using transaction data for one or
more previous transactions by the specific consumer to determine
the ranked list.
43. The article of manufacture of claim 39, wherein identifying the
particular time period comprises analyzing the inventory data
relative to a total seating capacity of the merchant.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This application is a continuation of, claims priority to
and the benefit of, U.S. Ser. No. 11/644,018 filed on Dec. 22, 2006
and entitled "Restaurant Yield Management Portal," which is hereby
incorporated by reference in its entirety.
BACKGROUND OF THE INVENTION
[0002] 1. Field of the Invention
[0003] The present invention relates to targeted consumer marketing
for optimizing the yield of perishable inventory.
[0004] 2. Background Art
[0005] Many industries, such as restaurants, hotels, and theatres
have fixed capacity and uneven demand patterns. In the periods
where the demand is below the capacity, the merchant has excess
inventory that perishes quickly. The perishable inventory may
include unused tables at a restaurant, unoccupied rooms at a hotel,
or empty seats at a theatre. If not utilized, this inventory will
produce zero returns. Merchants in the past have tried to solve
this problem by offering broad-based discounts to spur demand
during low-demand periods. For example, some retail merchants have
off-season discount sales. As another example, some airline
providers sells unsold seats at a discount over the Internet. This
broad-based approach, however, results in a low success rate,
because the ratio of number of offers to number of acceptances is
high. Further, notification of these broad-based discounts is
usually only available to existing customers of a merchant or
individuals geographically located near the merchant.
[0006] Several reservation platforms exist, such as OpenTable.com,
run by Open Table, Inc. of San Francisco, Calif.;
RewardsNetwork.com, run by Rewards Network, Inc. of Chicago, Ill.;
and DinnerBroker.com, run by DinnerBroker, Inc. of San Francisco,
Calif.
[0007] OpenTable.com is a supplier of reservation, table management
and guest management software for restaurants. The OpenTable.com
reservation system receives, on a daily basis, information about
available inventory from merchants. A merchant connects with the
OpenTable.com reservation platform and provides details of open and
booked tables throughout the day. An associated electronic
reservation book is used by the restaurant to continually manage
all its reservations, not only reservations made online. Because
this electronic reservation book is connected to the OpenTable.com
reservation platform, a database of inventory that is being
marketed by the reservation platform is dynamically updated. This
is referred to herein as dynamic inventory. Therefore, when the
electronic reservation book changes at a particular location,
OpenTable.com servers quickly obtain that information and provide
it to their customers. OpenTable.com has a loyalty program to
incent users, where a user receives a certain number of rewards
points for a given reservation. The rewards points can later be
redeemed, for example, for gift certificates valid at various
restaurants. However, OpenTable.corn does not actively market the
inventory to its users based on any user preferences. Instead, a
user is limited to searching for a restaurant by oneself
[0008] RewardsNetwork.com focuses on the couponless fulfillment of
incentives using cash and rewards points. Over the telephone,
merchants allocate a specific set of tables to RewardsNetwork.com,
and this allocation does not change on a daily or weekly basis.
That is, their availability is not dynamic, and merchants cannot
respond to short term fluctuations in inventory that cannot be
predicted ahead of time. RewardsNetwork.com can provide couponless
fulfillment of its discounts through a credit on a member's credit
card statement, after the user pays full price at the time of
purchase. Alternatively, the value of the discount can be converted
into rewards points and deposited into a specified rewards account
(airline or otherwise) associated with the user. Like
OpenTable.com, RewardsNetwork.com does not actively market the
inventory to its users based on any user preferences.
[0009] DinnerBroker.com has a website on which offers are presented
to users. Merchants can make available different offers for
different times of day on different days of the week. The slate of
offers changes periodically, such as once a day or once a week. A
user contacts the restaurant to make a reservation, and then prints
out a coupon to be redeemed at the point of sale. The incentive is
a cash incentive, because it provides a discount at a point of
sale. DinnerBroker.com does not actively market the inventory to
its users based on any user preferences.
[0010] In addition to the lack of marketing of inventory to
customers based on customer preferences, these systems also do not
provide, in a single integrated environment, any couponless
financial incentive, dynamic inventory offers and loyalty points to
customers willing to consume goods at low periods of demand, which
for the case of restaurants would be the off-peak hours. They also
do not send out offers based on consumer differentiation on the
basis of how active a consumer is in using the system. What is
needed is a system that sends out offers to targeted consumers
based on consumer preferences.
BRIEF SUMMARY OF THE INVENTION
[0011] Customer preferences may be solicited to gather explicit
cardmember preferences, and/or mining of consumer data, merchant
data, and transaction data can be used to determine implicit CM
preferences. This data may be collected using a network of
merchants and customers, such as the closed loop network run by
American Express Corp. of New York, N.Y. Customer demand can be
predicted at the micro-segment level to establish pricing that
maximizes the return on fixed investment for the merchant. The
demand patterns of a merchant can also be analyzed to determine
periods of excess inventory of the merchant. For low-demand periods
and/or low-demand locations, selected cardholders may be offered
discounts to particular merchants.
[0012] According to one embodiment of the present invention,
perishable inventory is targeted to potential customers for sale
during off-peak hours. Customers availing the promotional offers
are credited for discounts directly via a statement credit, thereby
resulting in a couponless system of rebate. Therefore, the
couponless system manifests itself as a financial incentive to the
customers. Since customers shop like a regular customer who is not
availing any such discounts, it avoids the hassle of presenting
coupons to the merchant who is providing these discounts. Through a
card membership program, an associated card company can charge the
merchant on a commission basis for every such sale incurred.
[0013] According to further embodiments of the invention, the
marketing of discounts is customized based on cardholder shopping
patterns, cardholder preferences, and/or demographics. Instead of
offering broad-based discounts to everyone via direct or outbound
marketing, this system and method enables merchants to instead
reach consumers who, via their own search methods or their
preferences, indicate potential interest. Using pricing as a lever,
the cardholders with specific explicitly stated or implicitly
revealed preferences are targeted to shift demand from peak periods
or locations to non-peak periods or locations, and to increase the
non-peak demand by location as well as time period. Merchants can
thereby target offers to potential customers with the highest
potential interest in their restaurants, helping them to generate
incremental business at lower cost relative to broad-based
promotions. Cardholders also benefit, as they have the option of
buying goods and/or services that fit their preferences at a
discounted price. Cardholders can also sign up as new members to
avail benefits offered by various embodiments of the invention.
Alternatively, card holders can also, at any point of time, opt out
of any service offered by various embodiments of the invention.
[0014] Further embodiments, features, and advantages of the present
invention, as well as the structure and operation of the various
embodiments of the present invention, are described in detail below
with reference to the accompanying drawings.
BRIEF DESCRIPTION OF THE DRAWINGS/FIGURES
[0015] The accompanying drawings, which are incorporated herein and
form a part of the specification, illustrate the present invention
and, together with the description, further serve to explain the
principles of the invention and to enable a person skilled in the
pertinent art to make and use the invention.
[0016] FIG. 1 is an illustration of example data sources for data
mining,
[0017] FIG. 2 is an illustration of a sample record of charge that
may be used to obtain customer, merchant, and/or transaction
data.
[0018] FIG. 3 is a flowchart illustrating an example method by
which customers may be targeted according to an embodiment of the
present invention.
[0019] FIGS. 4A-4D are charts illustrating demand for example
individual restaurants on a per-day basis.
[0020] FIGS. 5A-5C are charts illustrating demand for restaurants
across example geographic areas on a per-day basis.
[0021] FIGS. 6A-6C are charts illustrating demand for restaurants
across example neighborhoods on a per-day basis.
[0022] FIGS. 7A-7B are charts illustrating demand by an example
customer on a per-day and per-hour basis, respectively,
[0023] FIGS. 7C-7D are charts illustrating demand by another
example customer on a per-day and per-hour basis, respectively.
[0024] FIG. 8 is a flowchart of a method for processing data
according to an example concentric circles algorithm.
[0025] FIG. 9 is an illustration of an example result from the
method of FIG. 8.
[0026] FIG. 10 is a flowchart of a method for further processing
data according to an example concentric circles algorithm.
[0027] FIG. 11 is a flowchart of a method for targeting
customers.
[0028] FIG. 12 is a block diagram of an exemplary computer system
useful for implementing the present invention.
[0029] FIG. 13 is a general flowchart showing various processes
involved in an exemplary restaurant yield management portal.
[0030] FIG. 14 illustrates further details of the restaurant yield
management portal, according to an embodiment of the invention,
[0031] FIG. 15 illustrates yet another embodiment of the restaurant
yield management portal.
[0032] FIG. 16 illustrates a process flow for uploading inventory
to an exemplary restaurant yield management portal, according to an
embodiment of the present invention.
[0033] FIG. 17 illustrates a process flow for making reservations,
according to an embodiment of the present invention.
[0034] FIG. 18 shows an exemplary transaction for a restaurant
yield management portal, according to yet another embodiment of the
invention.
[0035] FIG. 19 shows an example of an output file created as a
result of various processes described in the restaurant yield
management portal, according to an embodiment of the invention.
[0036] FIG. 20A shows an example of a newsletter, according to an
embodiment of the invention.
[0037] FIG. 20B shows an example of a "Flash" alert, according to
an embodiment of the invention.
[0038] FIG. 21 shows an exemplary method of matching
preferences.
[0039] The present invention will be described with reference to
the accompanying drawings. The drawing in which an element first
appears is typically indicated by the leftmost digit(s) in the
corresponding reference number.
DETAILED DESCRIPTION OF THE INVENTION
I Overview
[0040] While specific configurations and arrangements are
discussed, it should be understood that this is done for
illustrative purposes only. A person skilled in the pertinent art
will recognize that other configurations and arrangements can be
used without departing from the spirit and scope of the present
invention. It will be apparent to a person skilled in the pertinent
art that this invention can also be employed in a variety of other
applications.
[0041] The terms "consumer," "customer," "participant,"
"cardmember," "cardholder" and/or the plural form of these terms
are used interchangeably throughout herein to refer to those
persons or entities capable of accessing, using, be affected by
and/or benefiting from the present invention.
[0042] Furthermore, the terms "business," "service provider," or
"merchant" may be used interchangeably with each other and shall
mean any person, entity, distributor system, software and/or
hardware that is a provider, broker and/or any other entity in the
distribution chain of goods or services. For example, a merchant
may be a grocery store, a retail store, a travel agency, a service
provider, an on-line merchant or the like.
[0043] 1. Transaction Accounts and Instrument
[0044] A "transaction account" as used herein refers to an account
associated with an open account or a closed account system (as
described below). The transaction account may exist in a physical
or non-physical embodiment. For example, a transaction account may
be distributed in non-physical embodiments such as an account
number, frequent-flyer account, telephone calling account or the
like. Furthermore, a physical embodiment of a transaction account
may be distributed as a financial instrument.
[0045] A financial transaction instrument may be traditional
plastic transaction cards, titanium-containing, or other
metal-containing, transaction cards, clear and/or translucent
transaction cards, foldable or otherwise unconventionally-sized
transaction cards, radio-frequency enabled transaction cards, or
other types of transaction cards, such as credit, charge, debit,
pre-paid or stored-value cards, or any other like financial
transaction instrument. A financial transaction instrument may also
have electronic functionality provided by a network of electronic
circuitry that is printed or otherwise incorporated onto or within
the transaction instrument (and typically referred to as a "smart
card"), or can be a fob having a transponder and/or an MD
reader.
[0046] 2. Open Versus Closed Cards
[0047] "Open cards" are financial transaction cards that are
generally accepted at different merchants. Examples of open cards
include the American Express.RTM., Visa.RTM., MasterCard.RTM. and
Discover.RTM. cards, which may be used at many different retailers
and other businesses. In contrast, "closed cards" are financial
transaction cards that may be restricted to use in a particular
store, a particular chain of stores or a collection of affiliated
stores. One example of a closed card is a pre-paid gift card that
may only be purchased at, and only be accepted at, a clothing
retailer, such as The Gap.RTM. store.
[0048] 3. Stored Value Cards
[0049] Stored value cards are forms of transaction instruments
associated with transaction accounts, wherein the stored value
cards provide cash equivalent value that may be used within an
existing payment/transaction infrastructure. Stored value cards are
frequently referred to as gift, pre-paid or cash cards, in that
money is deposited in an account associated with the card before
use of the card is allowed. For example, if a customer deposits ten
dollars of value into the account associated with the stored value
card, the card may only he used for payments up to ten dollars.
[0050] 4. Use of Transaction Accounts
[0051] With regard to use of a transaction account, users may
communicate with merchants in person (e.g., at the box office),
telephonically, or electronically (e.g., from a user computer via
the Internet). During the interaction, the merchant may offer goods
and/or services to the user. The merchant may also offer the user
the option of paying for the goods and/or services using any number
of available transaction accounts. Furthermore, the transaction
accounts may be used by the merchant as a form of identification of
the user. The merchant may have a computing unit implemented in the
form of a computer-server, although other implementations are
possible.
[0052] In general, transaction accounts may be used for
transactions between the user and merchant through any suitable
communication means, such as, for example, a telephone network,
intranet, the global, public Internet, a point of interaction
device (e.g., a point of sale (POS) device, personal digital
assistant (PDA), mobile telephone, kiosk, etc.), online
communications, off-line communications, wireless communications,
and/or the like.
[0053] 5. Account and Merchant Numbers
[0054] An "account," "account number" or "account code", as used
herein, may include any device, code, number, letter, symbol,
digital certificate, smart chip, digital signal, analog signal,
biometric or other identifier/indicia suitably configured to allow
a consumer to access, interact with or communicate with a financial
transaction system. The account number may optionally be located on
or associated with any financial transaction instrument (e.g.,
rewards, charge, credit, debit, prepaid, telephone, embossed,
smart, magnetic stripe, bar code, transponder or radio frequency
card).
[0055] The account number may be distributed and stored in any form
of plastic, electronic, magnetic, radio frequency (RF), wireless,
audio and/or optical device capable of transmitting or downloading
data from itself to a second device. A customer account number may
be, for example, a sixteen-digit credit card number. Each credit
card issuer has its own numbering system, such as the fifteen-digit
numbering system used by American Express Company of New York, N.Y.
Each issuer's credit card numbers comply with that company's
standardized format such that an issuer using a sixteen-digit
format will generally use four spaced sets of numbers in the form
of: [0056] N.sub.1N.sub.2N.sub.3N.sub.4
N.sub.5N.sub.6N.sub.7N.sub.8 N.sub.9N.sub.10N.sub.11N.sub.12
N.sub.13N.sub.14N.sub.15N.sub.16
[0057] The first five to seven digits are reserved for processing
purposes and identify the issuing institution, card type, etc. In
this example, the last (sixteenth) digit is typically used as a
checksum for the sixteen-digit number. The intermediary
eight-to-ten digits are used to uniquely identify the customer,
card holder or cardmember.
[0058] A merchant account number may be, for example, any number or
alpha-numeric characters that identifies a particular merchant for
purposes of card acceptance, account reconciliation, reporting and
the like.
[0059] 6. RFID and Transmission of Magnetic Stripe Data
[0060] It should be noted that the transfer of information in
accordance with the present invention, may be done in a format
recognizable by a merchant system or account issuer. In that
regard, by way of example, the information may be transmitted from
an RFID device to an RFID reader, or from the RFID reader to the
merchant system in magnetic stripe or multi-track magnetic stripe
format.
[0061] Because of the proliferation of devices using magnetic
stripe format, the standards for coding information in magnetic
stripe format were standardized by the International Organization
for Standardization in ISO/IEC 7811-n (characteristics for
identification cards) which are incorporated herein by reference.
The ISO/IEC 7811 standards specify the conditions for conformance,
physical characteristics for the card (warpage and surface
distortions) and the magnetic stripe area (location, height and
surface profile, roughness, adhesion, wear and resistance to
chemicals), the signal amplitude performance characteristics of the
magnetic stripe, the encoding specification including technique
(MFM), angle of recording, bit density, flux transition spacing
variation and signal amplitude, the data structure including track
format, use of error correction techniques, user data capacity for
ID-1, ID-2 and ID-3 size cards, and decoding techniques, and the
location of encoded tracks.
[0062] Typically, magnetic stripe information is formatted in three
tracks. Certain industry information must be maintained on certain
portion of the tracks, while other portions of the tracks may have
open data fields. The contents of each track and the formatting of
the information provided to each track is controlled by the ISO/IEC
7811 standard. For example, the information must typically be
encoded in binary. Track 1 is usually encoded with user information
(i.e., name) in alphanumeric format. Track 2 is typically comprised
of discretionary and nondiscretionary data fields. In one example,
the nondiscretionary field may comprise 19 characters and the
discretionary field may comprise 13 characters. Track 3 is
typically reserved for financial transactions and includes
enciphered versions of the user's personal identification number,
country code, current units amount authorized per cycle, subsidiary
accounts, and restrictions.
[0063] As such, where information is provided in accordance with
the present invention, it may be provided in magnetic stripe track
format. For example, the counter values, authentication tags and
encrypted identifiers, described herein, may be forwarded encoded
in all or a portion of a data stream representing data encoded in,
for example, track 2 or track 3 format.
II. Targeted Marketing
[0064] As shown in FIG. 1, several sources may be leveraged to
gather information about consumers, merchants and the transactions
between them. With a network 102, such as the closed loop network
run by American Express Corp, of New York, N.Y., it is possible to
gather merchant data 104, customer data 106, and transaction data
108 of transactions by a merchant and/or customer based on records
from the network owner. In a closed loop network, merchant data 104
is known because of the relationship between the network owner,
such as American Express, and many merchants. Cardholder data 106
is known because of the relationship between the network owner and
many cardholders. When a cardholder enters into a transaction with
a merchant, such as by swiping a transaction instrument through a
card reader, information about that purchase is added to
transaction data 108. Merchant data 104, customer data 106, and
transaction data 108 need not be obtained from a closed loop
network, but may be obtained from alternate sources, such as from
corporate records, from information received directly from
customers and merchants, or through purchase of the information
from external sources. Customer relationship management ("CRM")
data 110 and external data 112 may also be used to determine
information about customers and merchants. External data 112 may
include data provided by independent merchant rating services, such
as, for example, the ratings provided by Zagat Survey, LLC, of New
York, N.Y.
[0065] Merchant data includes, for example and without limitation,
the location of the merchant, the merchant's industry, and the
amount of inventory moved by the merchant at various days, times,
and locations. Customer data includes, for example and without
limitation, the types of services and products the customer uses,
the merchants the customers usually purchase from, as well as spend
habits and spend capacity of the customers.
[0066] When a customer interacts with a merchant in a transaction,
transaction data is produced. Simple retail purchases may result in
basic transaction information, as shown in FIG. 2. FIG. 2 is an
illustration of a sample receipt 202, showing the type of
information that may be obtained from the simple retail purchase.
Merchant name and location information 204, day of transaction 206,
time of transaction 208, amount of transaction 210, and customer
name 212 can all be obtained from a record of charge such as
receipt 202. If the transaction is more detailed, enhanced
information can also be obtained. For example, if a customer books
a flight with an airline, city pairs and dates of departure and/or
return may be obtained in addition to the basic transaction
information. Most of the consumer transaction data comes from data
collected when the customer's transaction account is used, such as,
for example, when the customer uses a credit card. However, a
reasonable assumption can be made that consumers paying by cash or
check exhibit similar purchasing patterns as consumers paying by,
for example, a credit card.
[0067] All this merchant, consumer, and transaction data may be
stored in a database, referred to herein as a data warehouse.
Extensive data mining can be performed on the information in the
data warehouse to match potential customers with merchants. FIG. 3
is a flowchart illustrating the method in which data is taken from
the data warehouse and processed to produce a set of targeted
customers for particular merchants. As shown in FIG, 3, data
warehouse 302 stores merchant data 104, consumer data 106, and
transaction data 108. Data warehouse 302 may exist, for example, on
a computer usable medium.
[0068] Much of the collected data in data warehouse 302 is not
useful for targeting analysis. Useful data is thus taken out of
data warehouse 302 and transformed so that it is easy to analyze.
This data is stored in a database specific to the application,
referred to herein as a data mart. Much like a data warehouse is a
collection of a wide variety of information relating to a wide
variety of applications, a data mart is a smaller collection of
data specific to a particular application. For example, if it is
useful to identify customers who would be most likely to respond to
a discount offered by a particular merchant at a low-demand period
of the merchant, the data may be stored in an inventory turnover
data mart 304 that contains information relevant to inventory
turnover. Data mart 304 may be stored, for example, on a computer
usable medium. In data mart 304, the merchant data, consumer data,
and transaction data are reorganized for the specific purpose of
the analysis.
[0069] Merchant information may be extracted from data mart 304. To
the extent that merchant information is combined with related
transaction information, merchant data and transaction data are
segmented. The segmentation may be based, for example and without
limitation, on time, industry, location, complementary merchants,
and/or competing merchants to identify inventory turnover
opportunities using a merchant demand pattern identification
prioritization and validation algorithm.
[0070] An inventory turnover opportunity exists when a merchant has
low demand, also referred to as excess inventory. Excess inventory
occurs when the merchant has more of its product than is wanted by
its consumers. Excess inventory may include extra units of a
product if the merchant is a manufacturer or retailer. Excess
inventory may also include empty tables at a restaurant, empty
seats on an airplane, or empty rooms in a hotel. Some merchants
have very little excess inventory, and thus may not need to target
customers for discounted business. In some cases, it may be desired
to target existing customers to shift demand from peak periods and
locations to non-peak period and locations, such as when the demand
for a good or service is greater than the inventory at a particular
time or location, in other cases, it may be desired to target
potential customers to add to the non-peak demand for a location or
time period. Although restaurants will be used as an example
herein, one of skill in the pertinent art(s) will recognize that
the process applies in a similar manner to any merchant of goods
and services, such as and without limitation, a manufacturer, an
airline company, a retailer, an entertainment company such as a
theatre or cineplex, and a hotel company.
[0071] In the restaurant example, certain high-end restaurants may
be in such high demand that they do not suffer from a lack of
reservations during specific times. FIG. 4A is a chart showing the
demand for an example high-demand Restaurant #1. As shown, the
demand for Restaurant #1 is fairly even, and there are no real
periods of low demand. Other merchants may have periods of low
demand and could benefit by offering discounts to customers willing
to purchase their products or services during those low demand
periods. These merchants may be identified using a merchant demand
pattern algorithm. Such an algorithm analyzes the merchant data to
determine, for example, the dates and times that the merchant posts
the most and/or least revenue. The algorithm may also compare
similar establishments with a similar customer base and/or similar
locations to identify demand patterns.
[0072] Following the restaurant example, other restaurants may
experience low demand periods on certain days of the week. FIGS. 4B
and 4C are charts showing the demand per day for sample Restaurant
#2 and sample Restaurant #3, respectively. As shown, Restaurant #2
and Restaurant #3 experience high demand in the middle of the week.
However, Restaurant #2 experiences periods of low demand on
Saturdays and Sundays. Similarly, Restaurant #3 experiences periods
of low demand on Saturdays and Mondays, as it is closed on Sundays.
Restaurant #2 and Restaurant #3 are thus identified as merchants
having an opportunity to benefit from an inventory turnover program
on weekends. FIG. 4D is a chart showing demand per day of another
sample Restaurant #4, which has high demand on the weekends, but
low demand on weekdays. Restaurant #4 is thus identified as a
merchant having an opportunity to benefit from inventory turnover
assistance on weekdays.
[0073] Low-demand periods may also vary by geography. For example,
as shown in FIG. 5A, restaurants in the New York City metro area
may generally experience a low-demand period on Mondays. When the
geographical location is narrowed down to Brooklyn, restaurants may
generally experience a low-demand period during weekdays, as shown
in FIG. 5B. When the geographical location is narrowed down to
Manhattan, restaurants may generally experience a low-demand period
during Sundays and Mondays, as shown in FIG. 5C.
[0074] The geographic locations can be further narrowed down and
analyzed by neighborhoods. For example, as shown in FIG. 6A,
restaurants on the Upper East Side of New York City experience
low-demand periods, and thus excess capacity, on Mondays. As shown
in FIG. 6B, restaurants in the financial district of New York City
may generally experience low-demand periods on weekends. As shown
in FIG. 6C, restaurants in the Central Park West neighborhood of
New York City may generally experience low-demand periods on
weekdays.
[0075] Low-demand periods may also vary by time of day or month of
year. Following the restaurant example, although some restaurants
may be very busy in a time slot between 8:00 pm and 11:00 pm, the
restaurants may have available seating during the time slot between
6:00 pm and 8:00 pm. In another example, some retailers experience
a low-demand period following holidays. In yet another example,
merchants in the entertainment industry (such as a theatre) may
experience low demand on non-Friday weekdays. In still another
example, a manufacturer, such as an electronics company, may
experience lower demand at all times because a competitor has taken
over part of the market.
[0076] As mentioned above, merchants that have periods of low
demand (excess inventory) are identified based on the merchant
information from network 102 and other sources such as CRM data 110
and external data 112 that are stored in data mart 304. Once such
merchants are identified, the merchants may be contacted with the
information about their demand patterns. Alternatively, merchants
may request that an inventory turnover analysis be performed for
them. If the merchant accepts inclusion in the inventory turnover
program, that merchant's point-of-sale ("POS") data may be
integrated into data mart 304. POS data is useful because it
contains information that may not be found in other types of data
in data mart 304. For example, although transaction data may be
obtained through purchase records or records of charge of the
cardholder, those records do not include a record of the specific
items purchased by the cardholder. Specific information may be
kept, however, in the POS data records kept internally by the
merchant. For example, a transaction card provider may know from
records of charge that a cardholder purchased music at a music
store, but the music store POS records will show that the card
holder actually purchased classical music at the music store.
Adding this POS data to data mart 304 results in a more powerful
and more accurate targeting of customers most likely and willing to
respond to an offer by the merchant. POS data from the merchant can
also be used to validate and segment the opportunity of the
merchant to benefit from the inventory turnover program. If the
merchant is willing to forego some of the profits made through
discounts that would bring in additional customers in exchange for
having more customers at low-demand times, customers whose needs
and preferences match those of the merchant can be targeted for
marketing.
[0077] Consumer data from data mart 304 is therefore analyzed to
determine which cardholders are most likely to take advantage of a
discount offer by the merchant at a particular time or location.
Such information can be gleaned from spending patterns of the
cardholder. For example, if a cardholder typically makes retail
purchases on a certain day of the week, that cardholder may be
likely to take advantage of a discount offered at a retail store on
the same day of the week. As shown in FIGS. 7A and 7B, a Customer A
may make most of his purchases related to the industry of the
interested merchant on Saturdays at 8:00 p.m. This information can
be determined by reviewing the purchase history of Customer A. In
contrast, as shown in FIGS. 7C and 7D, a Customer B may also make
most of his purchases related to the industry of the interested
merchant on Saturday, but around 5:00 p.m. If the interested
merchant has excess capacity in the early evenings on Saturdays,
such consumer data will indicate that Customer B would be most
likely to accept an offer for discounted purchases from the
merchant in the early evenings on Saturdays.
[0078] Cardholders may also be analyzed based on data from
competing merchants and/or complementary merchants. Competing
merchants are those who are in direct competition with a given
merchant and whose products and/or services typically replace those
of the given merchant. Complementary merchants are those whose
products and/or services are typically sold to similar consumer
groups and enhance, but do not replace, products and/or services
provided by the given merchant. For example, if a merchant
experiencing a low-demand period is a hotel in a particular city,
data regarding customers who may need overnight accommodations in
that city may be obtained from an airline company offering flights
to that city. Similarly, if the merchant experiencing a low-demand
period is a restaurant, data regarding customers who may accept
discounted meal offers may be obtained from a hotel near the
restaurant.
[0079] In this manner, data from data mart 304 is processed to
identify customers most likely to accept an offer from a particular
merchant during that merchant's low-demand period. One type of
algorithm that may be used is a concentric circles algorithm. A
concentric circles algorithm primarily uses the consumer
transaction information available from a record of charge from
swiping a card for making payments. Any other form of transaction
information identifiable with the individual customer that captures
consumer identification, merchant identification, and/or details of
the transaction including time, date, amount, location, and/or
detailed or aggregated information about the goods or services
bought and sold through that transaction may also be used. This
algorithm may also use demographic information about the merchant
and the consumer. The demographic information may be obtained from
internal sources as well as data vendors' who maintain and supply
detailed personal databases of large numbers of consumers across
the world.
[0080] The POS data from the merchant gives further
merchant-specific details of the transaction. For example, a
retailer may have additional details related to a single
transaction such as the list of retail goods and the quantities as
well as unit prices of each of the retail goods purchased by a
consumer during a single transaction. This data may be proprietary
or owned by the merchant, and may or may not be available to the
algorithm. However, the algorithm may be designed to use this data
whenever available.
[0081] The algorithm considers the most probable set of customers
who may be targeted for increasing the inventory turnover for a
particular merchant or class of merchants. Hence, it uses a list
that begins with existing high spending/highly profitable consumers
of the merchant and progressively includes more consumers depending
on the merchant desire for increased demand or depth of inventory.
FIG. 8 is a flowchart of a method 800 for processing data according
to an exemplary concentric circles algorithm. In step 802, a subset
of all the transactions for the given merchant and/or location
going back as far as possible (for example, a period of 12 months
if available, but preferably 3-5 years if system resources
available are adequate to handle the processing load) is
identified. This identifies a subperiod, such as days, months,
seasons, etc.
[0082] In step 804, transaction information is summarized per
consumer to include the sum of the amount spent, number of
transactions and profitability (if available) by each subperiod.
The sub-period size will increase with the money value of the
average transaction.
[0083] In step 806, consumer demographic, personal, financial, and
summarized transaction history information is added for each
consumer in the list.
[0084] In step 808, physical distance (e.g., as a crow flies, or
using surface transportation) from the customer to the merchant is
added to the algorithm, using cartographic information and/or
electronic information wherever available.
[0085] In step 810, the customer list is sorted by, for example,
latest sub-period first, with money spent, number of transactions,
profitability (when available), transactions during low demand,
transactions during high demand, and physical distance from the
merchant (when available) as primary factors. This sorted list is
the main or core circle of consumers to which targeted offers for
the merchant may be made with a higher probability of success. If
the analysis is performed by, for example, a transaction card
provider, the sorted list may identify the customers most likely to
take advantage of a joint offer between the merchant and the
transaction card provider. These core consumers are illustrated by
core concentric circle 902 in FIG. 9.
[0086] In step 812, within core circle 902, additional concentric
circles are defined. Each concentric circle corresponds to each
partition of consumers sorted by amount spent in the latest
sub-periods with the merchant.
[0087] In step 814, each of the groups defined in step 812 are
further sorted and ranked based on the volume of transactions
within low and high demand periods as well as physical distance
from the merchant. The groups thus formed have the inner circles
populated by consumers with higher probability of responding to a
targeted offer to transact with the merchant during
low-demand/low-turnover periods. Group 904 in the innermost circle
corresponds to the customers most likely to respond to a discount
offer by the merchant.
[0088] Referring to FIG. 10, an additional method 1000 may be used
to target customers for forming outer circles around core circle
902. In step 1002, customers in the customer list that were not
included in core circle 902 are selected based on the following
example characteristics: transactions (e.g., amount per transaction
or number of transactions) with competing merchants in the vicinity
and in the direct marketing area ("DMA"), transactions with other
competing merchants, transactions with merchants in the same
specific industry category (may not be directly competing
merchants), and transactions with merchants in complementary
industries.
[0089] In step 1004, a similar mechanism to method 800 is used to
rank and sort these consumers by the above characteristics,
starting with amount and number of transactions with competing
merchants in the latest sub-periods, in the same industry category
and in the complementary industry categories.
[0090] In step 1006, each of the groups is subdivided by physical
distance from the merchant, low/high demand period transactions,
and/or demographic information, which is used more specifically
while grouping within consumers having activity in the
complementary industry category in the latest sub-periods. The
consumers which do not belong to any of these circles from
outermost circle 906, and represent the customers least likely to
respond to the merchant offer to use the low demand/low turnover
period.
[0091] Additional factors may be included in the concentric circle
formations. For example, response rates from any previous offers
may be included. In this example, the algorithm may use scores from
econometric models which score all consumers based on responses
from earlier targeted offers as a ranking variable. The algorithm
may also allow flexibility in choosing the most important factor
deciding the innermost concentric circles.
[0092] Similar results to the concentric circles algorithm may be
achieved using a simple weighted scoring mechanism where the
amount, number of transactions, period of transactions,
profitability, and physical distance from the merchant are given
weights, and a score is calculated for each of the consumers in the
consumer list. When this weighted scoring method is used, only the
score is used for sorting and ranking the consumers. However, it is
found that many merchants prefer the concentric circles grouping
because it is more simple and intuitive to understand without
involving mathematics. Additionally, the concentric circles model
assists visual thinking and allows direct interaction with actual
consumer information such as amount spent or physical distance
rather than a derived score. The scoring method is more useful
while working with merchants having multilocation or chain
operations with a large number of locations, who require a more
computer intensive mechanism than a visual and intuitive
mechanism.
[0093] Using the consumer groups identified by the consumer
algorithm, the merchant can determine which consumer groups should
be targeted. In a practical example of the concentric circles
algorithm, a classical music store merchant may need to target
customers for weekday morning low-demand periods. In this example,
24 million cardmembers are included in network 102. Out of those 24
million, only 12 million are actively spending each month. Within
that group, only 6 million buy music. Within that group, only 2
million purchase classical music. Within that group, there is a
subset of 500,000 who make multiple classical music purchases in a
month. Of that group, only 5,000 cardmembers shop in the same area
as the classical music store. Of that group, only 500 cardmembers
regularly shop on weekday mornings. Thus, using the concentric
circles algorithm, those 500 people most likely to buy classical
music in the area on weekday mornings can be specifically targeted
by the merchant without wasting marketing efforts on those not
likely to buy classical music in the area on weekday mornings.
[0094] Once the cardmembers most likely to accept an offer by the
merchant have been identified, they are targeted with the discount
offer from the merchant. The cardmembers' information can be
analyzed to determine appropriate channels for communicating the
merchant's offer to the targeted cardmembers. The channel may be
based on individual cardmember preferences, and may include, for
example and without limitation, direct mail, email, and telephone
calls.
[0095] Since the discount offer is targeted to the cardmembers most
likely to accept the offer, a higher rate of acceptance is achieved
as compared to broad-based techniques. Once offers have been
accepted, information about the cardmembers who accept the offer
and their transaction data can be added to data mart 304 to further
enhance the targeting process.
[0096] FIG. 11 is a flowchart of another example method for
targeting customers. In step 1102, transaction data, merchant
demographic data, and external ratings data are analyzed to
classify merchants. Merchants may be classified, for example, by
capacity utilization patterns. Merchants have different levels of
capacity utilization, which may be based on location, time of day,
day of the week, or seasons. In another example, merchants may be
classified by the merchant's response to low demand. This is also
referred to as price elasticity and takes into consideration that
some merchants reduce prices during low-demand periods while others
tend to maintain prices to protect the brand image. Merchants may
also be classified based on how they are rated by independent
critics, geography, and/or the markets served by the merchant.
[0097] In step 1104, transaction data is combined with customer
demographic data and, for example, airline data to classify the
customers. Customers may be classified by demand patterns, since
customers may have preferences to shop during specific time slots,
on certain days of the week, or during a particular season.
Customers may also be frequent shoppers or non-frequent shoppers.
Customers may also be classified by their distance from the
merchant, and coordinates of the customer and merchant can be used
to calculate the distance. Customers may be classified based on
their travel intent. Airline data, for example, may be used to
identify which customers are traveling where and when. Customers
may be classified based on lifestyle, such as whether they prefer
upscale or economy merchants, their age, or how many children they
have. Additionally or alternatively, customers may be classified
based on their incentive preferences, such as whether the customer
responds to discount incentives or experience incentives.
[0098] In step 1106, customers are matched with merchants based on
their preferences, geography, travel intent, and/or demand/capacity
patterns.
[0099] In step 1108, a size of spending model is applied to
determine how much spend potential the customer has. Customers
having the lowest spend potential are eliminated from the inventory
turnover targeting program. An example spending model that may be
used in conjunction with the present invention is discussed in U.S.
patent application Ser. No. 10/978,298, filed Oct. 29, 2004, and
titled "Method and Apparatus for Estimating the Spend Capacity of
Consumers," which is incorporated by reference herein in its
entirety.
[0100] In step 1110, a spend contact model is applied to determine
customers whose spend declines in response to solicitation. These
customers are also eliminated from the inventory turnover targeting
program.
[0101] In step 1112, merchants and customers are grouped based on
complementary demand/capacity patterns, customer lifestyle,
merchant ratings/characteristics, and/or geographic proximity
(e.g., the customer is either living or will be traveling to a
location close to the merchant during the promotion period). Based
on the incentive preferences of the customer, multiple levels of
incentive may be tested using test and learn methodology. The
merchant-specific test is then fielded.
[0102] In step 1114, based on the test results, the most successful
combinations are selected that meet financial hurdles for both the
merchant and a financial company controlling the closed loop
network. The final discount offer program is based on these
combinations to enhance return on investment for the merchant and
provide discounted price and/or a preferred experience to the
consumer.
[0103] This type of customer targeting offers a powerful marketing
tool that can be used in many permutations. For instance, the
method can be altered to include data from complementary merchants.
In an example complementary merchant scenario, most customers book
airline flights several weeks in advance. The airline flight
information can be used to determine a particular area that the
customer may be visiting. Based on other transaction data related
to the customer's transaction account, it may be determined that
the customer likes to eat at a particular type of restaurant. The
customer can then be targeted by a restaurant of the preferred type
at the location to which the customer is flying who may be
experiencing a low-demand period at the time of the customer's
visit.
[0104] Customer targeting need not be restricted to complementary
industry targeting. If there is high demand for a particular
product or service produced by one company, and low demand for a
product or service of similar quality in a similar location by a
second company, customers may be offered a discount for purchases
made from the second company. The customers benefit, because they
are given the option of purchasing a similar item from an
alternative company that the customers may not have been aware of.
The second company also benefits because, even with the discount,
the second company reduces its excess inventory.
[0105] Recommendations may also be made based primarily on consumer
transaction information. A customer may make a purchase from a
particular merchant. Data mart 304 may then be searched to
determine other customers who also made a purchase from the same
merchant. Once these additional customers are identified, their
transaction data can be analyzed to determine a set of merchants
most often used by those additional customers. The original
customer may then be targeted by the set of merchants. For example,
if a customer makes a purchase at a particular restaurant, other
customers who made purchases at the same restaurant are identified.
The most popular restaurants in the same location that the original
customer might enjoy can be ranked based on the additional customer
transaction information. The original customer can then be targeted
with offers from those additional restaurants.
III. Restaurant Yield Management Portal
[0106] Further applications to the system described above can be in
the area of food and hospitality industry. Specifically, the system
described can be used to improve the yield of a restaurant or a
hotel that wishes to get rid of its immediately perishable
inventory, e.g., tables in the case of a restaurant and rooms in
the case of a hotel. According to one embodiment of the present
invention, described below is an exemplary restaurant yield
management portal with the aim to generate incremental business for
a restaurant or a hotel. It is to be noted that although this
portal is being described in terms of a restaurant, it can also be
applicable to any other business entity that has a need to get rid
of its perishable inventory items. The case of a restaurant is used
as an example only, and not as a limitation.
1. INTRODUCTION
[0107] A fundamental problem for any business dealing with
perishable inventory has been to maximize, in a substantially short
period of time, the sales associated with such perishable
inventory. Past methods to deal with this problem include
untargeted discounting and special customer perks. However, none of
the past methods have tried to solve the problem in a discrete
manner, so as not to affect the consumption and purchase experience
for the customer exercising the offer. It is also important that
any method or system attempting to solve this problem does so in as
non-disruptive a way as possible, such as through reservations and
couponless discounting. That is, the system or method in use should
let the customers and merchants interact and conduct business as
usual. Additionally, a method or system should make available
simple, self-service targeted marketing methods and provide access
to "push" channels such as, for example and without limitation,
email and text messaging channels. Further, the system or method
should allow dynamic submission of inventory by a Service
Establishment (SE).
[0108] The restaurant yield management portal is a system and a
method to enable merchants to generate incremental inventory sales.
Merchants will provide the details of an inventory that is "at
risk" to a transaction card company to be marketed to its
cardmembers at a discounted price via the web, email, Short
Messaging Service (SMS), a telephone call or any other form of
communication known to persons having skill in the art. If the
cardmember ("CM") decides to avail the offer of a discount, the CM
makes a reservation with the card company, dines at the restaurant,
and pays for the meal using a card associated with the card
company. The discount is then automatically applied, after a sale,
to the CM's account via a statement of credit.
[0109] Similar to the methods described with respect to targeted
marketing of products, CM preferences are collected upon enrollment
to match available offers with the most relevant program enrollees
(as will be described below with respect to FIG. 21). Periodic
communications are then sent to these program enrollees containing
offers that match their preferences.
[0110] It is common practice for businesses wishing to clear their
inventory to send generalized coupons for various products by mail
or emails. Those coupons can then be redeemed by the consumer by
physically taking the coupon to the stores and getting a rebate.
This process adds additional steps on the part of the merchant like
printing and mailing the coupons, and tracking and accounting for
coupon usage after the sale. It also does not take into account
user preferences. Most importantly, this system will fail if the
merchant wants to clear the inventory in a time frame that is
substantially close to current time, say within 24 hours.
[0111] The current invention seeks to minimize such losses
occurring due to un-used perishable inventory that could not have
otherwise been sold in a very short duration of time. It should be
noted that although this invention is useful for short-term sale of
perishable inventory, it is equally applicable to sale of regular
and long-term non-perishable inventory too.
[0112] Thus, a real time targeted marketing method through various
channels based on customer defined preferences is provided. The
system provides for couponless fulfillment of offers, at the same
time letting customers and merchants conduct business as usual. The
merchants can sell "at-risk" inventory both far in advance and at
the last minute and the customers benefit from savings on
products/services and also get to know new merchants which they
otherwise would not have encountered. Merchants can also track and
understand how well a particular sales strategy is working for
them.
2. ACRONYMS USED IN DRAWINGS AND SPECIFICATION
[0113] BAU--Business As Usual [0114] CAP--Collection or group of
Service Establishments (Merchants) under common ownership [0115]
CM--Card Member [0116] FINCAP--Financial Capture System [0117]
IVR--Interactive Voice Response [0118] MTC--Merchant Teleservicing
Channel [0119] GUI--Graphical User Interface [0120] OMS--Online
Merchant Services [0121] UID--User ID [0122] PW--Password [0123]
ROC--Record of Charge [0124] SE--Service Establishment (Merchant)
[0125] SMS--Short Messaging Services (text messaging) [0126]
SSO--Single Sign on [0127] WAP--Wireless Application Protocol
[0128] RSS--Really Simple Syndication (an online publishing
technology)
3. CONCEPT OVERVIEW
[0129] FIG. 13 illustrates an overview of an example restaurant
yield management portal by means of a flowchart 1300. Flowchart
1300 shows the interaction between three participating entities--a
merchant 1302, a card company 1304 and a CM 1306. Communication
between merchant 1302 and CM 1306 occurs via card company 1304 by
means of, for example and without limitation, a website, an email,
a text message, RSS (an XML-based format for content distribution),
WAP, etc., as is also shown in flowchart 1300.
[0130] In step 1308 of flowchart 1300, merchant 1302 identifies
periods of low demand based on the merchant information from
network 102 of FIG. 1 and creates deals to entice card members to a
sale at different times more than once.
[0131] In step 1310, card company 1304 markets the submitted
inventory to CM 1306 (or to many such CMs like CM 1306) based upon
a matching of submitted preferences of enrollees and/or in-program
transactional history with the offer inventory from merchant 1302.
The marketing may be "pull marketing," in which CM 1306 can
voluntarily review (or pull out) available inventory uploaded on
card company 1304's website by merchant 1302. Alternatively, the
marketing may be "push marketing," in which card company 1304 can
send (or push out) targeted communication to any relevant CM 1306
based on preferences or in-program transaction history. An example
method 2100 of matching preferences is further illustrated in FIG.
21.
[0132] Method 2100 begins with step 2102, in which CM preferences
are determined. CM preferences may include basic preferences, which
include the minimum information required to promote relevant offers
and fulfill couponless offers. Basic preferences may include, for
example and without limitation, authentication information (e.g.,
user name and password), the CM's name, the CM's email address, the
CM's credit card number, the CM's preferred cuisines and geography,
and the minimum party size for the CM.
[0133] CM preferences may also include push marketing preferences,
which identify the manner in which the customer wishes to receive
information about the offer. Push marketing preferences may differ
depending on whether the channel is a periodic newsletter (e.g.,
digest) summarizing offers that meet the CM-defined search criteria
or whether the channel is a "Flash" alert triggered by specific
inventory upload and sent out immediately prior to the event. A
"Flash" alert generally refers to an offer created instantaneously
in very recent time and is pushed out mainly via a text message.
Periodic newsletter preferences may include, for example and
without limitation, the minimum number of days of advance notice
required by the CM, the minimum quality rating (e.g., Zagat rating
or Gayot rating), preferred geographies and cuisines, and the
frequency with which the CM wishes to be contacted with the
periodic newsletter. "Flash" alert preferences may include, for
example and without limitation, preferred contact channels, the
CM's contact details, available times for the CM, preferred target
restaurants, and preferred target meals. All this information may
be saved in a CM preferences database 2103.
[0134] Additionally, in-program transaction history of the CM may
be analyzed to determine CM preferences.
[0135] In step 2104, a merchant 1302, such as a restaurant, submits
inventory details to the reservations portal. The details may be
submitted, for example, via a password-protected website or a
toll-free telephone number with various options. Such a submission
typically occurs on a regular basis once merchant 1302 is enrolled
for participation with the reservation portal.
[0136] When merchant 1302 is first enrolled, merchant 1302 submits
merchant profile information that can be used for preference
matching and financial settlement. The information specific to
merchant 1302 may include, for example and without limitation,
restaurant authentication information, the merchant's name, the
merchant's SE number, the merchant's address, contact information
for the merchant, the address of the merchant's website, hours of
operation of the merchant, a descriptive profile of the merchant,
the merchant's geography, and the merchant's cuisine and type of
dining. This information may be stored in a SE profile database
2105. The SE profile database may also include third party
information, such as a rating and/or review of the merchant, the
merchant's price point, or a map of the merchant's location.
[0137] After merchant 1302 has been enrolled with the reservations
portal, the inventory submissions from step 2104 for dining
inventory to be marketed exclusively by card company 1304 are made
periodically. The periodic submissions may include, for example and
without limitation, a date and/or time an offer may be redeemed, a
location at which the offer may be redeemed, and a table size for
the offer. Such information may be stored in a dining inventory
database 2107. Merchant 1302 may also offer card members incentives
through various schemes.
[0138] Once the CM preferences are received in step 2102 and the
merchant inventory is received in step 2104, method 2100 proceeds
to step 2106. In step 2106, potential offers are rank ordered and
scored based on the CM preferences. Step 2106 takes into
consideration two types of preferences, absolute preferences and
ranking preferences. Absolute preferences are those preferences
that can be used to screen out undesirable inventory, such as the
date of a reservation and a location of the restaurant. For
example, if the CM lives in New York, the CM would not be able to
avail offers for restaurants in San Francisco, and those offers can
be completely removed from the list of available offers.
[0139] Ranking preferences are those preferences that can be
applied to score and identify the most relevant inventory. Ranking
preferences include, for example, a preferred cuisine type, a
preferred time of reservation, and a preferred restaurant rating.
The CM preferences are applied to potentially available offers,
which are then scored and ranked in order of likely relevance. For
example, if preferences indicate that a CM enjoys Italian cuisine,
an offer for an Italian restaurant will be ranked higher than an
offer for a French restaurant, but the offer for the French
restaurant is not completely removed from the list of available
offers.
[0140] In step 2108, a prioritized offer list is created. The
prioritized offer list is provided to the CM in step 2110. Based
upon a capacity of the channel (e.g., a website can display many
offers, an email may display fewer offers, a text message can
display even fewer offers), the number of offers may vary for a
given channel, with the capacity being filled with the
highest-ranking offers in the prioritized offer list.
[0141] Through method 2100, merchants (such as restaurants or
hotels, or any other business that wants to avail this system) are
thus enabled to sell inventory discretely through targeted
communication instead of broadcast advertising.
[0142] Returning to FIG. 13, in step 1312, CM 1306 can opt into
general service programs and then accept specific offers marketed
by merchant 1302, according to his or her preferences.
[0143] In step 1314, CM 1306 then makes a reservation with merchant
1302. The reservation can be made, for example, through direct
access via an online reservation capability at card company 1304s
website, or by clicking, for example, a hyperlink that takes CM
1306 to card company 1304's online reservation website in an email
message, or by replying back to a text message. Card company 1304
then notifies merchant 1302 of the reservation by, for example,
phone, email, fax or its website.
[0144] In step 1316, CM 1306 dines at merchant 1302 and pays a full
price of the meal at the time of sale using a card issued to CM
1306 by card company 1304. Following this, in step 1318, CM 1306
receives a financial incentive in the form of a discount via either
a direct couponless statement credit on his or her statement
corresponding to the card account or a deposit of rewards points to
a rewards program account associated with the card. An advantage of
the couponless transaction is that CM 1306 does not have to
physically present any coupons at participating merchant 1302 to
fulfill the discount. Instead, CM 1306 can avail a reservation just
like any other CM who is not enrolled in such a scheme and pay a
full price at the time of sale. Besides being credited for a
discount in his or her statement, another exemplary financial
incentive to CM 1306 statement is the benefit of an offer for a
discount at a very short notice to a selected group of CMs like CM
1306. In such a situation, only those CMs who are actively
searching for perishable inventory or signal via their preferences
or in-program transaction history that they may be interested in an
offer and who are quick enough to avail the offer will receive
statement credit for the purchase.
[0145] Based on steps 1316 and 1318, in step 1320, card company
1304 receives a commission from merchant 1302 on any such
incremental transaction (or sale).
[0146] FIG. 14 shows a block diagram of an example restaurant yield
management portal 1400. Portal 1400 has mainly three components--a
merchant component 1402, a card company component 1404 and a
customer component 1406. Merchant component 1402 has a merchant
inventory submission/maintenance system 1408. System 1408 includes
a web-based interface or an IVR system. System 1408 interacts with
an inventory allocation engine 1416 designed to match preferences
related to any CM 1306 of FIG. 13. System 1408 also interacts with
a card company component 1404 via merchant/customer enrollment
campaign system 1410. System 1410 handles enrollment campaigns for
merchants and customers to enroll in the services. Card company
component 1404 also has a call center 1412 designed to handle calls
to merchant component 1402 to notify SEs of a sold reservation,
confirm any reservations or bookings made through customer
component 1406, or for any general assistance purposes.
[0147] System 1410 is basically a campaigning mechanism for
increasing customer membership and for directing existing and
potential customers to website 1418. Inventory allocation engine
1416 provides output to website 1418. The output of inventory
allocation engine 1416 is also used to provide content for email
1420 or SMS 1422 to a CM 1306. Retired or deleted items in the
current inventory updated by system 1408 may not be displayed on
program website 1418 or marketed via email platform 1420 or SMS
platform 1422.
[0148] At a high level, merchant 1302 gives card company 1304 an
offer to market. Card company 1304 takes that offer, applies
preferences using engine 1416, and markets the offer to CMs 1306
who most likely would want the offer via platforms 1418, 1420 and
1422. A CM 1306 accesses program website 1418, reviews available
offers, and makes a specific reservation. That reservation is then
taken out of card company 1304's inventory database. At the same
time, when that reservation is made through website 1418, an email
is triggered to call center 1412. Call center 1412 then contacts
merchant 1302 to notify merchant 1302 that an offer having a
certain discount amount has been accepted.
[0149] Additionally, for all transactions occurring between
merchant component 1402 and customer component 1406, there is a
transaction matching facility 1424 to provide couponless
discounting and to drive the merchant and CM systems. Matching is
done on a periodic basis.
[0150] FIG. 15 describes the elements of example portal 1400 in
more details. As shown in the detailed block diagram 1500, merchant
component 1402 contains a SE (merchant) self-enrollment system 1502
and an account detail system 1504. SE self-enrollment system 1502
allows merchant 1302 to, for example, accept terms and conditions
of the portal, set up an account with the portal, and build a SE
profile. Account detail system 1504 provides, among other things,
an authentication method, a method to submit inventory and an
account management system. An SE statementing and reporting system
1506 receives data from card company component 1404 and provides it
to merchant component 1402.
[0151] Card company component 1404 includes an SE marketing system
1508 and a CM marketing system 1510. SE marketing system 1508 is
used to raise general awareness for the portal among merchants, as
well as to directly solicit and enroll specific merchants 1302.
Similarly, CM marketing system 1510 is used to raise general
awareness for the portal among customers, as well as to directly
solicit and enroll specific CMs 1306.
[0152] Inventory allocation engine 1416 in card company component
1404 further receives data from a CM preferences database 1514 and
an inventory warehouse 1516 to store any patterns or preferences
related to CM 1306. Data in the inventory allocation engine 1416
can be used by an outbound marketing module 1518, which sends
offers to CM 1306 through customer component 1406. In return, there
is an inbound booking module 1520 which communicates with an
inventory warehouse 1516. Inventory warehouse 1516 is used to store
any bookings made through customer component 1406 along with
unhooked offers submitted by merchant component 1402. Inbound
booking module 1520 also communicates with call center 1412, to
notify an SE of a sold reservation. For example, booking module
1520 can send an email to call center 1412. In addition to
reservation notification 1550, merchant component 1402 can include
a backup/secondary notification module, such as a module that
generates an email or fax numbered notification of inventory that
has been reserved by customer 1406.
[0153] Card company component 1404 has a registered card platform
1522 delivering couponless offers to eligible CMs transacting at
eligible SEs at eligible times or days. Registered card platform
1522 may include, among other things, a CM log and an SE
transaction log for tracking or checking various transactions. Data
from registered card platform 1522 is used to create cardmember
statement credits 1526.
[0154] Customer component 1406 has a self enrollment module 1528,
which allows CM 1306 to accept terms and conditions of the portal,
register a card associated with card company 1304, and enter CM
preferences. Customer component 1406 also includes an
authentication module 1530 for authenticating CM 1306. After being
authenticated, CM 1306 can log in to a website 1540. Website 1540
may contain offers for which CM 1306 can make a reservation 1552.
Reservation 1552 can be provided to card company component 1404
through booking module 1520. The customer may also enroll in "push"
marketing via enrollment module 1536. Such push marketing can be
communicated through an SMS module 1534 or an email module 1538.
Offer type 1548 provided through customer component 1406 may
include, for example, a by-request message (where a CM requests
that an offer be provided to him or her based upon pre-existing
short-codes which correspond to, for example, a desired geography
or a meal type), a daily digest message (e.g., newsletter), or a
"Flash" email alert. CM 1306 can respond to SMS marketing via a
short code reply 1554, which triggers a reservation through booking
module 1520. Details of example daily digest and "Flash" email
alert are provided below.
3.1 EXAMPLE 1
Newsletter
[0155] The newsletter is a customized periodic email summary (i.e.,
digest) of inventory availability that matches CM-specified
preferences as per information stored in CM preferences database
1514. Through newsletters, CMs can receive customized emails. A
pre-determined or customized number of emails can be sent to each
CM per day outlining restaurants that match search criteria set by
CM 1306 for up to any time in the near future (e.g. next 5 days).
The number of emails can be capped (via business rules) so that no
specific restaurant can appear more than a fixed number of times
per day in such emails to CM 1306. After receiving such an email,
CM 1306 may follow a hyperlink, choose to see additional details
online through program website 1418, and make a reservation.
Additionally, if CM 1306 has enrolled to receive newsletters but
has not yet created customized alerts, default alerts based on
information from preferences database 1514 can be sent out.
[0156] An exemplary scenario may let CM 1306 fix the time of the
day when he or she receives such emails. CM 1306 can fix the size
of the party (i.e., number of people accompanying him or her) for
the reservation. The digest can further be customized based on a
particular cuisine or geographical area that CM 1306 chooses to
dine in. If there is a tie between various restaurants for a
particular search criteria entered by CM 1306, CM 1306 can decide
on further criteria to eliminate the tie. A sample newsletter is
shown in FIG. 20A.
3.2 EXAMPLE 2
"Flash" Alerts
[0157] "Flash" alerts are single offer messages delivered via
communication schemes, such as, for example and not limited to,
text message or email to a limited number of enrollee CMs. To
obtain a benefit from "Flash" alerts, CM 1306 can select specific
restaurants that he or she wishes to be alerted on if those
restaurants have availability. As in the case of daily digests, CM
1306 can pre-program the maximum number of "Flash" alerts he or she
receives. Restaurant 1302 can use "Flash" alerts as an opportunity
to proactively push out scarce inventory in a short timeframe.
Generally, the time duration for which a "Flash" alert is valid is
less than that for offers posted in a daily digest. However, the
invention is equally valid for any longer time duration for which a
"Flash" alert might be sent.
[0158] According to one embodiment of the invention, not all
eligible CMs may be sent "Flash" alerts due to limited availability
of the inventory. For example, out of 90 eligible recipient CMs,
only 60 CMs may be contacted for a particular "Flash" alert and the
remaining 30 eligible CMs might not be contacted. Such a
differentiation may be done, for example and without limitation, on
the basis of a preference-matching algorithm using, for example and
without limitation, cuisine, location, time of day, table size, and
how frequently the customer uses the system. Further, in an
exemplary embodiment, out of the 60 selected eligible CMs, a part
of them may be contacted via email, SMS or any other combination of
communication modes, depending upon individual communication
preferences as is well known to one skilled in the art. A sample
"Flash" alert is illustrated in FIG. 20B.
[0159] Other manifestations of the example portal 1400 will be
apparent to one skilled in the art, after reading this
specification.
[0160] The various functionalities of portal 1400 can be
implemented on a website, as will be apparent to one skilled in the
art. Such a website can contain, among other features, for merchant
component 1402: [0161] 1. A merchant landing page; [0162] 2. A demo
for the complete process in a popular tool, for example, "Flash" by
Adobe Systems, Inc, of San Jose, Calif.; [0163] 3. A way to contact
a website administrator; [0164] 4. A secure access to enrollment,
password recovery, updating and deletion of records, management of
individual accounts, management of inventory information, ability
to track the movement of various transactions, authentication
(e.g., user ID and password), and reporting on booked and/or unsold
offers.
[0165] Similarly for customer component 1406, such a website can
contain, among other things: [0166] 1.A CM landing page; [0167] 2.
An ability to search for real time offers made by the merchant side
1402; [0168] 3. Facilities for enrollment, password recovery,
authenticating, reviewing available offers, matching user
preferences, providing a history of transactions, and for modifying
any search related to the offers made by the merchant side
1402.
[0169] An administrator of an example yield management portal may
be responsible for various actions involving portal 1400. For
example, the administrator may be able to perform all functions
that merchant component 1402 and customer component 1406 can
perform including but not limited to: updating inventory on behalf
of merchants, viewing merchant reports, and making reservations on
behalf of CMs, changing inventory details at any time, creating CM
and merchant email lists based on profile and usage criteria (e.g.
tables, last active date, etc.), write and send email marketing
messages to targeted audience (email list could contain one or more
recipients), review, modify, and approve merchant enrollment
information, assign pricing tables and verify that the merchant is
indeed a restaurant merchant eligible to participate in the program
(merchant account may not be activated until enrollment is
approved). Merchants may have the ability to upload one or more
pricing tables with discount and spread amounts and/or fees that
can vary by day of the week, time of the day, cumulative tables
loaded/quarter, and merchant tenure in program.
[0170] The administrator can also designate merchants to appear in
a "Featured Inventory" list or have premium placement in CM search
results. The administrator can access reporting including, but not
limited to: CM and merchant usage statistics, reservations, top
restaurants (viewed and reserved), top offers (viewed and
reserved), push campaign results, and CM characteristics summary.
Other roles and functions of the administrator can be understood
easily by one skilled in the art.
4. INVENTORY UPLOAD PROCESS FLOW
[0171] FIG. 16 illustrates an example method 1600 showing the
details of how a merchant 1302 of FIG. 13 can upload the details of
its inventory to a website. In step 1602, merchant 1302 reviews
bookings and determines inventory (e.g., a number of available
tables for an offer or incentive) to load to an exemplary
restaurant yield management portal. This can be done in multiple
ways. When the portal is accessed via a website, for example,
merchant 1302 is authenticated via the website in step 1604.
Merchant 1302 then enters inventory and/or incentives onto the
website in step 1606. Method 1600 then proceeds to step 1608.
[0172] Alternatively, if the portal is accessed via telephone,
merchant 1302 is authenticated via telephone in step 1612. In step
1614, the inventory and/or incentive is submitted to the portal
over the telephone. Method 1600 then proceeds to step 1608.
[0173] In step 1608, the inventory is added to an inventory
database of card company 1304. If a customer service representative
is used, the inventory is manually entered into the system. If an
IVR or website is used, the portal autopopulates the inventory into
the inventory database.
[0174] In step 1610, merchant 1302 receives a notification (e.g.,
an "FYI" email) once the inventory is entered. The inventory may
also be seen by a CM 1306 on the reservation portal website.
[0175] Certain restrictions may apply to offers listed in the
portal. For example, for a given period of time prior to an
available reservation, merchant 1302 may be unable to make changes
to previously uploaded inventory. At a given time prior to the
available reservation, inventory may begin to be marketed to CM
1306 via, for example, program website 1540, email 1538, or text
messaging 1534 of FIG. 15.
[0176] Additionally at a given time prior to the available
reservation, available reservations may cease to be active and may
not accessible by CM 1306.
5. RESERVATION PROCESS FLOW
[0177] FIG.17 illustrates an example process 1700 for a reservation
made by CM 1306. A customer is first notified of an offer via, for
example, website 1702, email 1704, or text message 1706. If email
1704 is used for notification, email 1704 may include a link to
drive the customer to website 1702. Website 1702 includes
additional offer information, and a "reserve now" link 1707.
Similarly, text message 1706 also provides a "reserve now" option
1709 in which CM 1306 replies with an appropriate SMS short code to
trigger a reservation.
[0178] A backend system 1708 ensures that the communication from CM
1306 is appropriately handled. Backend system 1708 may include,
among other things, an inventory warehouse 1712, a reservation log
1714, and a CM messaging system 1716.
[0179] Backend system 1708 also contacts the merchant regarding
accepted offers/reservations via a merchant messaging system
1718.
[0180] If an email is received by CM 1306, a hyperlink will be
included in the email message for sending a response. CM 1306
clicks on the hyperlink to go to a program website where he or she
can make a reservation. For a text message, CM 1306 replies via a
short code indicating that they wish to avail the offer and make a
reservation. If the offer is still available, the table is
reserved, inventory warehouse 1712 and reservation log 1714 are
updated, and a reply is sent back to the CM 1306. If the offer is
not still available, an alternative offer is sent via another text
message.
[0181] FIG. 18 illustrates the process of couponless offer
fulfillment by CM 1306 and merchant 1302. In step 1802, CM 1306
enrolls in an example restaurant yield management portal. A
registered identification number is usually allotted to every such
CM 1306 whose enrollment is approved by card company 1304. Post
approval of CM 1306, card company 1304 links all products issued by
card company 1304 to CM 1306 in step 1804. Based on the enrollment
in step 1802 and the linking in step 1804, card company 1304
creates an enrollee roster in step 1806 containing all eligible
card members by enrolled card members.
[0182] In step 1808, merchant 1302 creates and submits offers for
CM 1306. In step 1810, card company 1304 uses these offers to
compile an offer roster. The offer roster is a list of all open
offers at a given time.
[0183] In step 1812, CM 1306 accepts an offer and makes a
reservation. In step 1814, card company 1304 creates a reservation
log. The reservation log is a cumulative list of reservations that
are live at a given time. The log may be made by CM 1306 but might
not yet be transacted.
[0184] Meanwhile, in step 1816, merchant 1302 continues a BAU
submission of all transaction information, by means of a BAU
transaction file, to card company 1304, via various communication
channels well known to one skilled in the art.
[0185] In step 1818, card company 1304 sorts the BAU transaction
file submitted for transaction information to identify transactions
by program enrollees at eligible restaurants at eligible times
where a reservation has also been made. matches the enrollee roster
and the offer roster
[0186] In step 1820, an output file is created based on the
transaction and eligibility matching and comparing performed in
step 1818. The output file contains, among other entries, CM 1306's
identification number, the transaction amount, date of the
transaction, merchant 1302 at which the transaction occurred and an
offer identification number. This can determine the credit to be
provided to CM 1306, as well as the charge to merchant 1302.
[0187] The output file is described in more detail in FIG. 19,
which illustrates an example output file 1900. Debits (to merchant
1302), plus credits and sales commissions are offset in any
transaction between CM 1306 and merchant 1302. Consider, for
example, the case of merchant 1302 "A". CM 1306 avails a discount
offer made by merchant 1302. Merchant 1302 debits CM 1306 an amount
of $380.00, shown in box 1901 at the time of sale. However, CM 1306
receives, in his or her periodic statement, a credit of $76.00 (or
the equivalent of value in terms of loyalty points) as shown in box
1908. As a result, the net amount paid by CM 1306 is $304.00 only.
If the commission paid by merchant 1302 to card company 1304 is
$38.00 (i.e., 10%) as shown in box 1902, the total amount by which
the card company 1304's payment to the merchant is reduced (or
invoiced) is $114.00, as shown in box 1906. Alternatively, an
invoice for $114.00 can also be sent to the merchant. This
procedure takes place for all such merchants 1302 and for all CMs
1306, as shown by an oval 1904. In this way, a couponless credit
system is carried out between CM 1306 and merchant 1302 via card
company 1304. These incentives and commissions may vary by merchant
and customer.
[0188] Similar to the process of reservations, a cancellation
process can also be implemented, according to various embodiments
of the invention described herein.
6. ADVANTAGES OF THE RESTAURANT YIELD MANAGEMENT PORTAL
[0189] Apart from the functionality details of the exemplary
restaurant yield management portal that have been described above,
one skilled in the art can understand the benefits of such a system
and its flexibility features. Some of these advantages have been
described below, as an example and not as a limitation. One skilled
in the art can further modify and gain more advantages by using a
combination of features described, in this section and elsewhere,
according to various embodiments of the present invention.
[0190] The restaurant yield management portal serves as a real time
targeted marketing platform providing both the merchant's and the
CM's ability to sell and purchase perishable and non-perishable
inventory in a real time environment on a periodic basis. The term
"periodic" encapsulates any time duration having regularity or a
period including hourly, daily, weekly, monthly or quarterly
periods, depending upon the specific embodiment in which the
invention is being used. Unlike many prior attempts for targeted
marketing by means of providing financial incentive to the CM, the
restaurant yield management portal provides a friendly GUI for the
merchant component as well as the consumer component. By means of
its friendly GUI, the restaurant yield management portal provides
an easy-to-use online booking facility in addition to separate web,
email, text message, RSS and WAP platforms for the sale of
immediately available or immediately perishable inventory.
[0191] In an exemplary scenario, a merchant might know about
consumer purchase behavior to show a low demand trend for a
particular day of the week beforehand, say three days in advance.
By means of the restaurant yield management portal, the merchant
can notify a set of registered CMs about potential discounts
associated with such low demand (or off-peak) inventory which would
have otherwise gone un-consumed. In this scenario, a winning
situation for a merchant would be to have the off-peak inventory
sold to a CM who would, in a normal scenario, have consumed it
during high demand period but due to an incentive decides to dine
at an off-peak period instead. For example, if a restaurant owner
knows that there will be heavy reservations on a Thursday night but
very low reservations on a Wednesday night, he or she can market an
incentive to entice a CM to dine on that Wednesday night to a CM
who doesn't care about which night he dines outside. The restaurant
owner can, via the restaurant yield management portal, give
discount offers to that CM which can be credited during the monthly
statement that the CM would receive from his card company, thereby
resulting in a couponless discount offer. According to one
embodiment of the invention, such a couponless rebate system is
also helpful to the merchants to avoid having to train new staff
and in easing logistics issues thereby resulting in cost
savings.
[0192] According to one embodiment of the invention, a merchant can
employ a push mechanism of marketing perishable inventory by which
specific CMs can be sent information about specific perishables by
means of explicit data analysis. This is different from systems
that sell perishable inventory by basing their marketing strategies
on an inferential model. For example, in an inferential model, if a
CM buys a product X, then it is inferred that he or she might be
interested in buying products Y and Z too from the same family of
products as X. Accordingly, information regarding Y and Z is sent
to the CM. In contrast, using restaurant yield management portal a
CM explicitly states his or her preferences. For example, in case
of a restaurant, the CM may specify favorite cuisines in an order
and solicit information about any restaurants offering deals on
those cuisines. Therefore, restaurant yield management portal
provides a more accurate method of customer characterization than
previous systems, though restaurant yield management portal may,
too, use an inferential model to supplement the matching via
explicit preferences.
[0193] According to yet another embodiment of the invention,
restaurant yield management portal facilitates a dynamic inventory
submission and accumulation mechanism that lists very limited time
offers for a specific class of perishable inventory; however,
offers can be made very specific or very general and anything in
between depending upon a merchant's discretion. By coupling a
real-time submission mechanism with "push" marketing via web, email
or text message, the merchant can reach enrollees within a short
period of time.
[0194] According to another embodiment of the current invention,
the CM can sign up for enrollment to the discounts program in the
restaurant yield management portal by signing up on a website
corresponding to the restaurant yield management portal or the card
member can refer a friend to sign up to receive discounts.
[0195] Such systems and methods may be utilized by a financial
company, such as a transaction card provider, who operates a
network such as network 102. These systems and methods (or any
part(s) or function(s) thereof) may be implemented using hardware,
software or a combination thereof, and may be implemented in one or
more computer systems or other processing systems. However, the
manipulations performed by the methods and systems disclosed herein
were often referred to in terms, such as adding or comparing, which
are commonly associated with mental operations performed by a human
operator. No such capability of a human operator is necessary, or
desirable in most cases, in any of the operations described herein
which form part of the present invention. Rather, the operations
may be machine operations. Useful machines for performing the
operation of the present invention include general purpose digital
computers or similar devices.
[0196] In fact, in one embodiment, the invention is directed toward
one or more computer systems capable of carrying out the
functionality described herein. An example of a computer system
1200 is shown in FIG. 12.
[0197] The computer system 1200 includes one or more processors,
such as processor 1204. The processor 1204 is connected to a
communication infrastructure 1206 (e.g., a communications bus,
cross-over bar, or network). Various software embodiments are
described in terms of this exemplary computer system. After reading
this description, it will become apparent to a person skilled in
the relevant art(s) how to implement the invention using other
computer systems and/or architectures.
[0198] Computer system 1200 can include a display interface 1202
that forwards graphics, text, and other data from the communication
infrastructure 1206 (or from a frame buffer not shown) for display
on the display unit 1230.
[0199] Computer system 1200 also includes a main memory 1208,
preferably random access memory (RAM), and may also include a
secondary memory 1210. The secondary memory 1210 may include, for
example, a hard disk drive 1212 and/or a removable storage drive
1214, representing a floppy disk drive, a magnetic tape drive, an
optical disk drive, etc. The removable storage drive 1214 reads
from and/or writes to a removable storage unit 1218 in a well known
manner. Removable storage unit 1218 represents a floppy disk,
magnetic tape, optical disk, etc. which is read by and written to
by removable storage drive 1214. As will be appreciated, the
removable storage unit 1218 includes a computer usable storage
medium having stored therein computer software and/or data.
[0200] In alternative embodiments, secondary memory 1210 may
include other similar devices for allowing computer programs or
other instructions to be loaded into computer system 1200. Such
devices may include, for example, a removable storage unit 1218 and
an interface 1220. Examples of such may include a program cartridge
and cartridge interface (such as that found in video game devices),
a removable memory chip (such as an erasable programmable read only
memory (EPROM), or programmable read only memory (PROM)) and
associated socket, and other removable storage units 1218 and
interfaces 1220, which allow software and data to be transferred
from the removable storage unit 1218 to computer system 1200.
[0201] Computer system 1200 may also include a communications
interface 1224. Communications interface 1224 allows software and
data to be transferred between computer system 1200 and external
devices. Examples of communications interface 1224 may include a
modem, a network interface (such as an Ethernet card), a
communications port, a Personal Computer Memory Card International
Association (PCMCIA) slot and card, etc. Software and data
transferred via communications interface 1224 may be in the form of
signals 1228 which may be electronic, electromagnetic, optical or
other signals capable of being received by communications interface
1224. These signals 1228 are provided to communications interface
1224 via a communications path (e.g., channel) 1226. This channel
1226 carries signals 1228 and may be implemented using wire or
cable, fiber optics, a telephone line, a cellular link, an radio
frequency (RF) link and other communications channels.
[0202] In this document, the terms "computer program medium" and
"computer usable medium" are used to generally refer to media such
as removable storage drive 1214, a hard disk installed in hard disk
drive 1212, and signals 1228. These computer program products
provide software to computer system 1200. The invention is directed
to such computer program products.
[0203] Computer programs (also referred to as computer control
logic) are stored in main memory 1208 and/or secondary memory 1210.
Computer programs may also be received via communications interface
1224. Such computer programs, when executed, enable the computer
system 1200 to perform the features of the present invention, as
discussed herein. In particular, the computer programs, when
executed, enable the processor 1204 to perform the features of the
present invention. Accordingly, such computer programs represent
controllers of the computer system 1200.
[0204] In an embodiment where the invention is implemented using
software, the software may be stored in a computer program product
and loaded into computer system 1200 using removable storage drive
1214, hard drive 1212 or communications interface 1224. The control
logic (software), when executed by the processor 1204, causes the
processor 1204 to perform the functions of the invention as
described herein.
[0205] In another embodiment, the invention is implemented
primarily in hardware using, for example, hardware components such
as application specific integrated circuits (ASICs). Implementation
of the hardware state machine so as to perform the functions
described herein will be apparent to persons skilled in the
relevant art(s).
[0206] In yet another embodiment, the invention is implemented
using a combination of both hardware and software.
III. CONCLUSION
[0207] While various embodiments of the present invention have been
described above, it should be understood that they have been
presented by way of example, and not limitation. It will be
apparent to persons skilled in the relevant art(s) that various
changes in form and detail can be made therein without departing
from the spirit and scope of the present invention. Thus, the
present invention should not be limited by any of the above
described exemplary embodiments, but should be defined only in
accordance with the following claims and their equivalents.
[0208] In addition, it should be understood that the figures and
screen shots illustrated in the attachments, which highlight the
functionality and advantages of the present invention, are
presented for example purposes only. The architecture of the
present invention is sufficiently flexible and configurable, such
that it may be utilized (and navigated) in ways other than that
shown in the accompanying figures.
[0209] Further, the purpose of the foregoing Abstract is to enable
the U.S. Patent and Trademark Office and the public generally, and
especially the scientists, engineers and practitioners in the art
who are not familiar with patent or legal terms or phraseology, to
determine quickly from a cursory inspection the nature and essence
of the technical disclosure of the application. The Abstract is not
intended to be limiting as to the scope of the present invention in
any way.
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