U.S. patent application number 16/025127 was filed with the patent office on 2018-10-25 for loyalty program parameter collaboration.
The applicant listed for this patent is Visa International Service Association. Invention is credited to Edward W. Fordyce, III, Sarah Pankratz McCarthy, Karteek Hasmukh Patel, David Chauncey Shepard.
Application Number | 20180308105 16/025127 |
Document ID | / |
Family ID | 39136963 |
Filed Date | 2018-10-25 |
United States Patent
Application |
20180308105 |
Kind Code |
A1 |
Fordyce, III; Edward W. ; et
al. |
October 25, 2018 |
Loyalty Program Parameter Collaboration
Abstract
Collaborative constituents collaborate to develop a loyalty
program within a transaction processing system. Transmissions
addressed to the collaborative constituents are formed and received
from the collaborative constituents containing suggested parameters
for the loyalty program. At least one remaining parameter for the
loyalty program that a set of remaining collaborative constituents
have agreed upon is determined. Another transmission addressed to
each of the collaborative constituents in the set of remaining
collaborative constituents is formed, the another transmission
including the remaining parameters for the loyalty program.
Inventors: |
Fordyce, III; Edward W.;
(Sedalia, CO) ; Patel; Karteek Hasmukh; (Napa,
CA) ; McCarthy; Sarah Pankratz; (San Mateo, CA)
; Shepard; David Chauncey; (Novato, CA) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
Visa International Service Association |
San Francisco |
CA |
US |
|
|
Family ID: |
39136963 |
Appl. No.: |
16/025127 |
Filed: |
July 2, 2018 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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11848179 |
Aug 30, 2007 |
10037535 |
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16025127 |
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60915079 |
Apr 30, 2007 |
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60895111 |
Mar 15, 2007 |
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60824426 |
Sep 1, 2006 |
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60824275 |
Aug 31, 2006 |
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Current U.S.
Class: |
1/1 |
Current CPC
Class: |
G06Q 30/02 20130101;
G06Q 30/0226 20130101; G06Q 30/00 20130101 |
International
Class: |
G06Q 30/00 20060101
G06Q030/00; G06Q 30/02 20060101 G06Q030/02 |
Claims
1. A computer-implemented method for collaboration, comprising:
providing a loyalty platform in communication with a transaction
handler, the loyalty platform configured to be accessed by a
plurality of collaborative users through at least one user
interface, the plurality of collaborative users comprising a
plurality of merchant users and at least one financial institution
user; storing, in at least one database, loyalty program
information for a plurality of loyalty programs, wherein each
loyalty program of the plurality of loyalty programs corresponds to
a plurality of loyalty program parameters; receiving, from at least
one collaborative user of the plurality of collaborative users, a
selection of at least one pre-existing loyalty program of the
plurality of loyalty programs, the at least one pre-existing
loyalty program corresponding to a subset of loyalty program
parameters; creating a set of loyalty program parameters based at
least partially on the subset of loyalty program parameters and
input received from other collaborative users of the plurality of
collaborative users, the set of loyalty program parameters
comprising at least a first loyalty program parameter from the
subset of loyalty program parameters and at least one other loyalty
program parameter; identifying a group of collaborative users that
have agreed to the set of loyalty program parameters; and
implementing, with the transaction handler, a customized loyalty
program based on the set of loyalty program parameters by comparing
values for the set of loyalty program parameters to transaction
data for transactions involving the group of collaborative
users.
2. The computer-implemented method of claim 1, wherein at least one
parameter of the set of loyalty program parameters comprises a
business rule as a value.
3. The computer-implemented method of claim 1, wherein creating the
set of loyalty program parameters comprises: receiving proposals
for one or more loyalty program parameters from collaborative
users; and facilitating a negotiation process among the
collaborative users to negotiate the set of loyalty program
parameters.
4. The computer-implemented method of claim 3, wherein identifying
the group of collaborative users that have agreed to the set of
loyalty program parameters comprises identifying collaborative
users that have not exited the negotiation process.
5. The computer-implemented method of claim 3, wherein identifying
the group of collaborative users that have agreed to the set of
loyalty program parameters comprises identifying collaborative
users that have not contributed to the negotiation process for a
period of time.
6. The computer-implemented method of claim 1, wherein the at least
one pre-existing loyalty program comprises a loyalty program
profile template.
7. The computer-implemented method of claim 1, wherein the
customized loyalty program comprises at least one loyalty program
module from the at least one pre-existing loyalty program.
8. A system for collaboration, comprising: a transaction handler
configured to process a plurality of transactions in an electronic
payment processing network; a loyalty database configured to store
loyalty program information for a plurality of loyalty programs,
wherein each loyalty program of the plurality of loyalty programs
corresponds to a plurality of loyalty program parameters; at least
one processor in communication with the transaction handler and the
loyalty database, the at least one processor programmed or
configured to: provide a loyalty platform in communication with the
transaction handler, the loyalty platform configured to be accessed
by a plurality of collaborative users through at least one user
interface, the plurality of collaborative users comprising a
plurality of merchant users and at least one financial institution
user; receive, from at least one collaborative user of the
plurality of collaborative users, a selection of at least one
pre-existing loyalty program of the plurality of loyalty programs,
the at least one pre-existing loyalty program corresponding to a
subset of loyalty program parameters; create a set of loyalty
program parameters based at least partially on the subset of
loyalty program parameters and input received from other
collaborative users of the plurality of collaborative users, the
set of loyalty program parameters comprising at least a first
loyalty program parameter from the subset of loyalty program
parameters and at least one other loyalty program parameter;
identify a group of collaborative users that have agreed to the set
of loyalty program parameters; and implement a customized loyalty
program based on the set of loyalty program parameters by comparing
values for the set of loyalty program parameters to transaction
data for transactions processed by the transaction handler
involving the group of collaborative users.
9. The system of claim 8, wherein at least one parameter of the set
of loyalty program parameters comprises a business rule as a
value.
10. The system of claim 8, wherein creating the set of loyalty
program parameters comprises: receiving proposals for one or more
loyalty program parameters from collaborative users; and
facilitating a negotiation process among the collaborative users to
negotiate the set of loyalty program parameters.
11. The system of claim 10, wherein identifying the group of
collaborative users that have agreed to the set of loyalty program
parameters comprises identifying collaborative users that have not
exited the negotiation process.
12. The system of claim 10, wherein identifying the group of
collaborative users that have agreed to the set of loyalty program
parameters comprises identifying collaborative users that have not
contributed to the negotiation process for a period of time.
13. The system of claim 8, wherein the at least one pre-existing
loyalty program comprises a loyalty program profile template.
14. The system of claim 8, wherein the transaction handler
comprises the at least one processor.
15. The system of claim 8, wherein the customized loyalty program
comprises at least one loyalty program module from the at least one
pre-existing loyalty program.
16. A computer program product for collaboration, comprising at
least one non-transitory computer-readable medium including program
instructions that, when executed by at least one processor, cause
the at least one processor to: provide a loyalty platform in
communication with a transaction handler, the loyalty platform
configured to be accessed by a plurality of collaborative users
through at least one user interface, the plurality of collaborative
users comprising a plurality of merchant users and at least one
financial institution user; receive, from at least one
collaborative user of the plurality of collaborative users, a
selection of at least one pre-existing loyalty program of a
plurality of loyalty programs, the at least one pre-existing
loyalty program corresponding to a subset of loyalty program
parameters; create a set of loyalty program parameters based at
least partially on the subset of loyalty program parameters and
input received from other collaborative users of the plurality of
collaborative users, the set of loyalty program parameters
comprising at least a first loyalty program parameter from the
subset of loyalty program parameters and at least one other loyalty
program parameter; identify a group of collaborative users that
have agreed to the set of loyalty program parameters; and implement
a customized loyalty program based on the set of loyalty program
parameters by comparing values for the set of loyalty program
parameters to transaction data for transactions processed by the
transaction handler involving the group of collaborative users.
17. The computer program product of claim 16, wherein at least one
parameter of the set of loyalty program parameters comprises a
business rule as a value.
18. The computer program product of claim 16, wherein creating the
set of loyalty program parameters comprises: receiving proposals
for one or more loyalty program parameters from collaborative
users; and facilitating a negotiation process among the
collaborative users to negotiate the set of loyalty program
parameters.
19. The computer program product of claim 18, wherein identifying
the group of collaborative users that have agreed to the set of
loyalty program parameters comprises identifying collaborative
users that have not exited the negotiation process.
20. The computer program product of claim 18, wherein identifying
the group of collaborative users that have agreed to the set of
loyalty program parameters comprises identifying collaborative
users that have not contributed to the negotiation process for a
period of time.
Description
CROSS-REFERENCES TO RELATED APPLICATIONS
[0001] This application is a continuation of U.S. application Ser.
No. 11/848,179 filed Aug. 30, 2007, which claims priority to and
the benefit of U.S. Provisional Patent Application Nos. 60/824,275,
filed Aug. 31, 2006, 60/824,426, filed Sep. 1, 2006, 60/915,079,
filed Apr. 30, 2007, and 60/895,111, filed Mar. 15, 2007, the
entire contents of which are hereby incorporated by reference.
FIELD
[0002] The present invention generally relates to loyalty programs
and more particularly, to methods, systems and apparatus for
collaborating on parameters of a loyalty program.
BACKGROUND
[0003] Loyalty programs provide consumers with incentives to shop
at certain loyalty program participating facilities or to show
loyalty to a particular merchant or service provider, such as a
financial institution. In addition, to receiving discounts or
financial awards, an incentive may include redeemable goods or
services, or special recognition of some sort, such as an upgrade.
Often, financial institutions, such as an issuing bank or acquiring
bank, support the loyalty program. Loyalty programs may be
associated with various transaction programs such as a credit card
program, a charge card program, a debit card program, a prepaid
card program, or a gift card program.
[0004] A degree of success of a loyalty program is how well it can
target consumers that will participate in the program in order to
receive the incentives described and provided as part of the
loyalty program.
[0005] These loyalty programs are typically constructed, marketed,
qualified, fulfilled, or refined with limited interaction between
the various participants of the programs, which may include
merchants, financial institutions such as acquirers and issuers,
transaction handlers such as credit card companies, and consumers
such as an account holder. For example, a merchant wishing to
participate in a co-branded credit card program may be confined to
loyalty program parameters set by the issuing bank such as a credit
limit, a bonus mile to purchase ratio, or a redemption option
thereby not being able to finely target the merchant's potential
consumers. The level of loyalty program parameter confinement is
especially prominent among merchants with a smaller portion of the
market.
[0006] Moreover, loyalty programs may be developed with limited
access to detailed transaction data. For example, some loyalty
program participants, such as financial institutions, may rely on
their own transaction data history to determine the type of
incentive to provide. However, this data history may be limited in
scope depending on the degree of transaction specificity the issuer
collects or is able to maintain. Similarly, merchants wishing to
set up a loyalty program may solicit financial institutions for
information, gaining limited access to the full scope of the
transaction data. Even if a merchant gains access to the
transaction data, the transaction data may not be in a form the
merchant can effectively utilize.
[0007] The lack of uniformity in handing transaction data may
hamper accurate communication between participants of the
transaction program. For example, acquirers may identify a single
merchant differently; one acquirer may identify a merchant by its
name and address while another acquirer may identify the same
merchant by its name and franchise store number. Similarly, each
participant of the loyalty program may be accustomed to processing
transaction data in a particular format that may not be the same as
the format of another participant of the loyalty program. For
example, an airline company may analyze transaction data in units
of "bonus miles per dollar" while an issuer may record dollars
spent per month.
[0008] Therefore, packaged loyalty program services of a financial
institution may not properly meet the needs of merchants that could
otherwise benefit from loyalty programs. Often, loyalty program
participants lack detailed information about transactions and,
thus, fail to create an effective and targeted program that is
refined to meet the specific needs of those funding the programs.
It would be an advance in the art to provide a platform for
collaborating to develop, implement and refine transaction programs
in a way that lessens the foregoing drawbacks.
SUMMARY
[0009] Collaborative constituents within a transaction processing
system collaborate on developing, implementing, and refining a
loyalty program. In one implementation, the collaborative
constituents including two or more of a consumer, an issuer, an
acquirer, a merchant, and a transaction handler, collaborate on
parameters for the loyalty program. The parameters, for example,
may be the duration of a promotion within the loyalty program, the
good or service promoted, the value of the promotion, or a loyalty
program business rule such as an algorithm to determine whether a
purchase qualifies for the promotion. The collaboration may occur
through forming of a first transmission including at least one
parameter for the loyalty program that is compliant with at least
one predetermined loyalty program rule, such has a formatting rule
for populating a transaction message. The first transmission may be
addressed to at least one of the collaborative constituents. A
determination can be made as to which parameters are a remaining
set of parameters for the loyalty program that a remaining set of
the collaborative constituents within the plurality of
collaborative constituents have all agreed upon. A second
transmission, addressed to each of the collaborative constituents
among the remaining set of the collaborative constituents, can be
sent including the remaining set of parameters for the loyalty
program.
[0010] After determining the remaining parameters for the loyalty
program a request to alter the remaining set of parameters for the
loyalty program may be received in a third transmission addressed
from at least one of the collaborative constituents within the
remaining set of the collaborative constituents is received. A
determination can be made as to the alteration to the remaining set
of parameters for the loyalty program that each of the
collaborative constituents among a second remaining set of the
collaborative constituents have agreed upon. A fourth transmission,
addressed to each of the collaborative constituents among the
second remaining set of the collaborative constituents, can be sent
including the altered remaining set of parameters for the loyalty
program.
[0011] In another implementation, a method of collaborating to
develop at least one parameter of a loyalty program for a payment
processing system processing is presented. A first transmission is
formed including a suggestion for at least one of the parameters
and is addressed to at least one of the collaborative constituents.
The at least one remaining parameter that has been agreed upon by a
remaining set of the collaborative constituents within the
plurality of collaborative constituents is determined. The
determining can include receiving one or more second transmissions,
addressed from one or more of the collaborative constituents, each
including at least one of: the suggestion; a corresponding position
selected from the group consisting of favor and disfavor on the
suggestion; another suggestion for at least one of the parameters;
and a corresponding position selected from the group consisting of
favor and disfavor on the another suggestion. The forming can
further include: forming one or more third transmissions, each
addressed to at least one of the collaborative constituents, each
including at least part of the content of the received one or more
second transmissions and selecting each of the at least one
remaining parameter from among the suggestion and the another
suggestion. The selecting can be based on: a plurality of the
received positions corresponding to each of the suggestion and the
other suggestion; and a corresponding compliance of the suggestion
and the other suggestion with at least one predetermined loyalty
program rule. A fourth transmission containing the at least one
remaining said parameter for the loyalty program, can be formed and
addressed to each of the remaining set of the collaborative
constituents.
BRIEF DESCRIPTION OF THE DRAWINGS
[0012] Implementations of the invention will become more apparent
from the detailed description set forth below when taken in
conjunction with the drawings, in which like elements bear like
reference numerals.
[0013] FIG. 1 is a schematic illustrating an exemplary system for
collaborating to develop, implement, and refine a loyalty program
via a platform configured to be accessible to various collaborative
constituents;
[0014] FIG. 2 illustrates a flow chart of an exemplary method for
collaborating to develop, implement, and refine a loyalty program
having at least one parameter;
[0015] FIG. 3 is a schematic of an exemplary transaction lifecycle
the phases of which can be facilitated within the environment of
the system illustrated in FIG. 1;
[0016] FIG. 4 is a schematic illustrating an exemplary platform and
components of a loyalty program;
[0017] FIG. 5 is a block level diagram illustrating an exemplary
transaction processing system that can be part of the system
illustrated in FIG. 1; and
[0018] FIG. 6 illustrates a flow chart of an exemplary method for
utilizing a globally unique identifier for a merchant to determine
an incentive for the loyalty program.
DETAILED DESCRIPTION
[0019] Implementations enable collaborative constituents to
collaborate to construct, implement, refine, or a combination
thereof, a loyalty program. For example, entities within a
transaction processing system (e.g., transaction processing
environment) may become collaborative constituents collaborating
during various phases of the loyalty program. The transaction
processing system may be a payment processing system such a system
having entities including a credit card company, an issuer, an
acquirer, a consumer, and a merchant.
[0020] Referring to FIG. 1, an exemplary system or environment is
illustrated for collaborative constituents to collaborate on
developing, implementing, and refining a loyalty program 114 via a
platform 112.
[0021] The collaborative constituent may include a consumer 102
such as an account holder in the transaction processing system, an
issuer 104, a transaction handler 106 such as a credit card
company, an acquirer 108, or a merchant 110. The merchant 110 may
be a person or entity that sells a commodity such as a good, a
service, or a combination thereof. Examples of the merchant 110
include: a manufacturer, a distributor, a retailer, a load agent, a
service provider, or a healthcare provider. In a
business-to-business setting, the consumer 102 may be a second
merchant making a purchase from the merchant 110. Third-party
processors may perform many operational support tasks on behalf of
the collaborative constituent, such as creative agencies, loyalty
program marketing agencies or consultants, business intelligence
companies or consultants, letter shops, Email and Short Message
Service (SMS) or Text message delivery agencies, and registered
card loyalty program companies.
[0022] A participant of the loyalty program 114 can be, but need
not be one of the collaborative constituent. For example, the
franchisor McDonald's Corporation may be one of the collaborative
constituents having a McDonald's.RTM. loyalty program accessible
through the platform 112 and one of a McDonald's.RTM. loyalty
program participant; however, a single McDonald's.RTM. store
located in Los Angeles, Calif. may not be one of the collaborative
constituents but be one of the McDonald's.RTM. loyalty program
participant wherein purchases made at the single McDonald's.RTM.
restaurant would qualify for the McDonald's.RTM. loyalty
program.
[0023] The platform 112 can be a forum accessible via a network,
the Internet, an extranet, a wireless network, a wire line network,
a local area network, a wide area network, a messaging system, a
correspondence system, or a telephone system that is a market place
for collaborative constituents to interact to construct, implement,
and refine the loyalty program 114. The platform 112 may be a part
of the transaction handler 106 as denoted by broken lines 116 in
FIG. 1.
[0024] The platform 112 can be scaled to meet the needs of any
number of the collaborative constituents. For example, the platform
112 may be configured to accommodate a small or a large number of
collaborative constituents, globally, in multiple languages.
[0025] Moreover, the platform 112 can be scaled to meet the needs
of the participants of the loyalty program 114. For example, the
number of participants of the loyalty program 114 for each entity
may vary, such as having several franchisees as the participants of
the loyalty program 114 for a single franchisor. Similarly, the
platform 112 may be configured to allow different numbers of
entities to participate in the loyalty program 114. For example,
the merchant 110 can be a single merchant that may interact with a
single financial institution to create and maintain the loyalty
program 114. Conversely, a large number of merchants can create the
loyalty program 114 through interaction with a large number of
financial institutions. For example, all merchants 110 selling
clothing in the southwest can interact with several banks, such as
Wells Fargo and Bank of America, to create and maintain the loyalty
program 114.
[0026] Moreover, the platform 112 may be configured to accommodate
modularity in the loyalty program 114. The modularity in the
loyalty program 114 includes the loyalty program 114 that has the
characteristic of being versatile, allowing for a combination of
diverse parameters. The loyalty program 114 may be created in an a
la carte fashion having parameters that mimic those in a
pre-existing loyalty program and other parameters that may be
unique or did not exist before. For example, the loyalty program
114 may have parameters include a point to cash back ratio
mimicking a pre-existing loyalty program.
[0027] The collaborative constituents may set up a profile within
the platform 112. The platform 112 may have a secure Internet
setting configured to allow the collaborative constituent access to
the platform 112. The profile may include information about the
collaborative constituent. For example, the consumer 102 may set up
a profile including information about the consumer 102 such as a
the consumer's 102 name, the consumer's 102 address, the consumer's
102 account number for an account within the transaction processing
system, the consumer's 102 inputted data such as preference for
particular promotion or preference for a channel for receiving
promotions, a promotion category that the consumer 102 would like
to receive promotions for, or the consumer's 102 shopping habits,
for example. The issuer 104 may set up a profile including
information about the issuer 104 such as an issuer unique
identifier within the transaction processing system (a global
unique identifier (GUID) that distinguishes the issuer 104 within
the transaction processing system); the issuer's 104 address;
standard loyalty program business rules typically proposed by the
issuer 104 for a plurality of the loyalty programs 114; the
issuer's 104 loyalty program fulfillment options (e.g., credit to
statement or cash back); the issuer's 104 standard loyalty program
parameters, such as cardholder accounts participating, branding
requirements and other business rules; and information on third
parties that act as proxies to the issuer 104. The acquirer 108 may
set up a profile including information about the acquirer 108 such
as an acquirer unique identifier (a GUID that distinguishes the
acquirer 108 within the transaction processing system), the
acquirer's 108 address, a settlement request, a acquirer
identification for the merchant 110 that is a client of the
acquirer 108, or accumulated merchant daily sale report. The
transaction handler 106 may set up a profile including information
about the transaction handler 106 such as transaction message field
formatting requirements, authorization standards for a transaction
amount, credit card spending limits by credit card type, or
demographic analysis. The merchant 110 may set up a profile
including information about the merchant 110 such as a merchant
unique identifier (e.g., a GUID for the merchant 110 that
distinguishes the merchant 110 within the transaction processing
system), a merchant code that may be nonunique globally, franchise
codes, or a loyalty program business rules that the merchant 110
typically utilizes, for example.
[0028] The collaborative constituents can access the platform 112,
via the Internet for example, to negotiate parameters of the
loyalty program 114 such that a negotiated set of parameters for
the loyalty program 114 forms a negotiated agreement to the
parameters of the loyalty program 114. The negotiated set of
parameters for the loyalty program 114 are those parameters that
remain after the negotiation is completed among the collaborative
constituents, such that the collaborative constituents left in the
negotiation process all agree to the remaining parameters.
Thereafter, the collaborative constituents can implement and refine
or alter the remaining parameters of the loyalty program 114, such
as by changing a value of the reward associated with the loyalty
program.
[0029] Each of the collaborative constituent, such as the merchant
110, may submit a proposal, via the platform 112, for the loyalty
program 114 containing a parameter that governs the creation and/or
implementation of the loyalty program 114. The parameter
transmitted in the proposal may be predetermined such that the
merchant 110 can pick the parameter a la cart within a menu
provided at the platform 112, or the parameters may be customized.
A parameter may include, for example, the duration of a promotion
within the loyalty program 114, the good or service promoted, the
value of the promotion, or a loyalty program business rule such as
an algorithm to determine whether a purchase qualifies for the
promotion. To illustrate, the merchant 110 may propose a loyalty
program business rule as a parameter having a form of: "if variable
one occurs then offer variable two." Standard promotions that the
merchant 110 may propose include: discounts (e.g., "ten (10%)
percent off a purchase of socks if you use a Nordstrom.RTM. credit
card"), rewards, coupons, and spent-and-get promotions. A coupon
promotion may be structured such that if the consumer 102 uses an
account associated with the transaction processing system to make a
purchase at the merchant 110 store that exceeds $100 U.S. in value,
then ten (10) percent will be taken off the purchase value at the
merchant's 110 point of service (POS) device. Similarly, the
promotion may be a spend-and-get promotion such as if the consumer
102 conducts four purchases made with the account associated with
the transaction processing system at the merchant's 110 store the
consumer's 102 fifth purchase at the merchant's 110 store will
result in $10.00 U.S. being credited to the account. Other
variables that can be included in the loyalty program business rule
include: an upgrade in a value of a commodity being purchased, a
discount on a price of the commodity being purchased, a rebate, a
statement credit for an account within the transaction processing
system and associated to the consumer 120, or a combination of the
foregoing.
[0030] The merchant 110 may also select the type of the consumer
102 it wishes to target the promotion to at the platform 112. For
example, the merchant 110 may want to target the consumer 102 based
on geographical location or the consumer's 102 transaction history.
The merchant's 110 proposal may indicate that the promotion should
be targeted to the consumers 102 living within 10 miles from the
location of one of the merchant's 110 franchisee stores.
Alternatively, or in combination, the merchant's 110 proposal may
indicate that the promotion should be targeted to the consumers 102
that have purchased a particular good or service in the past--such
as the consumers 102 that have purchased baseball cards at
competitor stores within the past two months. For example, the
merchant 110 may wish to target consumers 102 that have purchased
Digital Video Discs "DVDs" in the past, the transaction handler 106
may mine a database containing a plurality of the consumer's 102
transaction histories, looking for trends of purchases dealing with
DVDs. Moreover, once a set of eligible consumers is identified, the
transaction handler 106 may query the merchant 110 to refine the
set of eligible consumers.
[0031] An exemplary template for establishing a loyalty program or
merchant promotion (114) on the platform (112) is as follows:
[0032] Merchant Name: [0033] Originator's Contact: [0034] Date of
Request: [0035] Description of project: [0036] What are the
business objectives? [0037] Describe the marketing environment:
names of competitors, current attitudes of target audience(s),
etc.: [0038] Provide logo, if applicable [0039] What are the
business objectives? [0040] What are the main benefits of this
project to each audience, in order of priority? [0041] What is the
key message we want to communicate to each audience? [0042] What do
we want each audience to do or believe as a result of this project?
[0043] What Transaction Processor materials would provide
background information?(Please attach.) [0044] Additional
information or direction: [0045] What information would help
Marketing Communications and Agency determine the copy tone or
style for the overall project?Do certain components need a
different tone? [0046] What type of copy input will be provided
(copy points, brochures, Uniform Resource Locators "URLs")? [0047]
What information would help Marketing Communications and Agency
determine the design tone or style for the overall project? [0048]
Are there any print production issues or requirements for this
project? [0049] Offer Period: [0050] Offer Redemption Process (e.g.
coupon, statement credit). (If using bar codes, specify type,
positioning, size and other requirements here). [0051] Will offer
be available online? [0052] If offer will be available online,
provide online code requirements. Attach additional spreadsheet if
needed. [0053] Will offer be available via catalog? [0054] If offer
will be available via catalog, provide code and requirements.
[0055] Attach additional spreadsheet if needed. [0056] Creative
branding guidelines and considerations. If branding guidelines are
available, please provide here as well. [0057] Delivery method
[0058] Letter with coupon [0059] Buckslip [0060] Insert (if doing
an insert, please provide size and specs) [0061] e-mail [0062]
mobile [0063] Cashier instructions (to be placed on coupon): [0064]
Merchant messaging (if applicable): [0065] Phone number and/or URL
for offer: [0066] Who will review each round of creative? [0067]
How many days should we schedule for originator's group to review
rounds if different than a normal transaction handler review time?
[0068] List the primary and secondary target audience(s). [0069]
Potential audience/segments: [0070] Will there be a customer
suppression list? If so, please provide description and date this
will be available (see Customer Suppression File Format) [0071]
Will a Merchant Store Location List be provided for geo-coding
purposes (if applicable)? [0072] Please describe any targeting
requirements: [0073] Location/Geographies: [0074] Type of program
output: [0075] Qualified Transactions Only [0076] Calculated Awards
[0077] Discounts [0078] Bonus Points [0079] Statement Credits
[0080] Discount File [0081] Transaction Purchase Start Date: [0082]
Transaction Purchase End Date: [0083] Cardholder Selection Criteria
[0084] If transactions will be qualified based on cardholder
information, please complete this section. [0085] Transactions will
be identified at the following level: [0086] an Issuer code [0087]
Issuer Card Range [0088] Issuer Bank Identification Number (BIN)
[0089] Participating/Eligible Cardholder List [0090] Approximate
number of participating/eligible cardholders: [0091] Cardholder
files will be updated with the following frequency: [0092] Daily
[0093] Weekly [0094] Monthly [0095] Other--Please specify below:
[0096] Transaction files will be delivered with the following
frequency: [0097] Daily [0098] Weekly [0099] Monthly [0100] At the
end of the promotion period [0101] Other--Please specify below:
[0102] Selection Criteria [0103] If transactions will be qualified
based on specific information, please provide selection criteria.
[0104] Transactions will be qualified based on (check one): [0105]
Acquirer BIN(s) [0106] Merchant Category Codes [0107] List of
Specific Participating Merchants [0108] Merchant Identifiers [0109]
Merchant GUID [0110] Other (specify); [0111] Additional Transaction
Selection Criteria [0112] Please briefly describe any additional
targeting qualification criteria that must be applied. [0113]
Option Limits [0114] Applies only if calculating awards. [0115]
Program Limits: [0116] Money Unit amount [0117] Points [0118]
Number of Awards [0119] Please specify below: [0120] Option Limits
[0121] Applies only if calculating awards. [0122] Cardholder
Limits: [0123] Money Unit amount [0124] Points [0125] Number of
Awards [0126] Bonus Processing: [0127] Please list the bonus point
ratio here. [0128] Statement Credits [0129] How is the program
funded? [0130] Merchant funded [0131] Issuer funded [0132]
Transaction Processor funded [0133] Third party loyalty provider
[0134] Funding BIN [0135] Please specify funding BIN for statement
credit processing
[0136] An exemplary template for establishing a loyalty program
profile includes: [0137] 1. Please select whether your promotion(s)
should be provided to: [0138] a. Consumers [0139] b. Small
Businesses [0140] c. Large corporations [0141] d. Government
entities [0142] e. Other commercial entities [0143] f. A
combination of the foregoing. [0144] 2. Please select the objective
for your promotion: (tips/templates on ads/promotions that work for
the merchant's stated industry may be suggested--the tips/templates
will change based upon objectives and the issuer 104 can edit the
parameters and copy etc.) [0145] a. Reward existing customers
[0146] b. Increase spend from existing customers [0147] c. Obtain
sales from new customers [0148] d. Would you like assistance in
creating your promotion? [0149] 3. Provide some targeting
parameters: [0150] a. Geographical: [0151] (i) Region [0152] (ii)
City [0153] (iii) Draw your own borders [0154] (iv) Within X miles
of your address [0155] b. Check the business types that may buy
from you [0156] c. Include people from previous promotions? [0157]
d. Would you like to target customers who spend (include spend
bands) [0158] e. Would you like to target customers who are similar
in characteristics to your existing customers? [0159] 4. How would
you like your promotion to appear? [0160] a. Statement credit
[0161] b. Coupon [0162] c. Point of Service (POS) [0163] d. Email
[0164] e. Mobile [0165] f. Statement insert for bank [0166] g. Visa
or bank promotion site [0167] 5. When would you like your promotion
to first appear? [0168] 6. What is the promotion period for your
promotion? [0169] 7. What type of reporting do you require? [0170]
8. Pricing [0171] a. What is your budget? (the merchant 110 enters
budget and system provides approximate number of cardholders
addressed based upon parameters selected) [0172] b. Enter # of
cardholders desired (system calculates pricing based upon
parameters selected)
[0173] The other collaborative constituents may negotiate with the
collaborative constituent that submitted the proposal until the
parameters of the loyalty program 114 are agreed upon among the
collaborative constituents. For example, the collaborative
constituent that submitted the proposal may receive a response
thereto indicating that the parameter for the loyalty program 114
is not agreed upon. Consequently, the collaborative constituent
that submitted the proposal may transmit a reply to the response
including an alternative parameter for the loyalty program 114. The
negotiation can continue until the collaborative constituents have
agreed on the remaining set of parameters for the loyalty
program.
[0174] Thereafter, a loyalty program implementer, such as one of
the collaborative constituents that agreed on a set of parameters
for the loyalty program 114, may implement the loyalty program 114.
For example, as one of the loyalty program implementers, the issuer
104 may disseminate a Nordstrom.RTM. credit card account number
associated with the loyalty program 114 to the consumer 102.
Dissemination modes may include direct mail, email, cellular phone
transmissions, and/or messages sent to the consumer 102 via the
merchant's 110 POS device (e.g., a message printed on the
receipt).
[0175] When the consumer 102 uses the Nordstrom.RTM. credit card
account number at the merchant's 110 POS terminal to purchase a
good or service such as a pair of socks, a transaction message can
be sent from the merchant 110 POS to the acquirer 108. The
transaction message may include fields populated with transaction
data for the purchase such as the date, the time, a merchant unique
identifier, a promotion code, a Stock Keeping Unit (SKU), a
Universal Product Code (UPC), manufacturing codes, geographical
distribution codes, or sale, license, or hire value such as an item
price. The acquirer 108 may send at least portions of the
transaction data for the purchase to the transaction handler 106
that implements the loyalty program business rules (e.g., "ten
(10%) percent off a purchase of socks if you use a Nordstrom.RTM.
credit card") to the transaction data for the purchase to evaluate
whether the transaction qualifies for the loyalty program 114 and
what benefits the consumer 102 should receive if the consumer 102
qualifies. The benefit to the consumer 102 making the pair of sock
purchase with the Nordstrom.RTM. credit card account number may be
a statement credit on the consumer's 102 Nordstrom.RTM. credit card
account equal to ten (10%) percent of the purchase price of the
socks. The transaction handler 106, as one of the loyalty program
implementers, may forward the result of the evaluation, the value
of the benefit, or combinations thereof to the issuer 104, the
merchant 110, or the consumer 102, for example. The platform 112
may provide several tools to facilitate the negotiation process of
proposal, response, and reply.
[0176] At least a portion of the transaction data for a plurality
of purchases, analysis on the transaction data for a plurality of
purchases, or combinations thereof may be accessible to the
collaborative constituents via the platform 112. For example, the
transaction handler 106 may store in a database the transaction
data for a plurality of the consumers 102 conducting transactions
using a respective account within the transaction processing system
associated with the consumer 102. The transaction handler may allow
collaborative constituents access to a portion of the transaction
data for a plurality of the consumers 102 stored in the database or
a copy of a portion of the transaction data for a plurality of the
consumers 102 stored elsewhere via the platform 112.
[0177] The transaction handler may analyze the transaction data for
the plurality of the consumers 102 using an algorithm and allow
access to the collaborative constituents to the analysis via the
platform. For example, the algorithm's input may include a portion
of the parameter for the loyalty program (e.g., the promotion, such
as socks) and data on one or more purchases from one or more of the
merchants by one or more of the consumers. The algorithm's output
may include a quantitative trend within the purchases as a function
of the parameter for the loyalty program or portions thereof. Any
conventional or predetermined algorithm for data analysis may be
used to determine trends within the data of purchases on the
account. For example, data mining analysis such as Market Basket
Analysis, a pattern recognition analysis, optimization analysis,
statistical analysis, a data mining analysis, algorithm demographic
analysis, classification analysis, or segmentation analysis can be
used. To illustrate, the consumer 102 who has purchased lawn care
items in April for the last four years might be identified as being
highly likely to purchase lawn care items this April. In another
example, general consumer trends may be analyzed to determine
highly correlative events, such as "consumers who purchased a pair
of shoes also buy a pair of socks within 90 days from the date of
purchase of the pair of shoes." In another example, the consumer
102 purchase behavior trends may be analyzed to reveal the
consumers 102 that spend significantly larger amounts in
restaurants than average restaurant patrons.
[0178] The collaborative constituents may repeat the process of
proposal, response, and optionally reply to refine or alter the
remaining set of parameters of the loyalty program 114 based in
part on the transaction data for a plurality of purchases, analysis
on the transaction data for a plurality of purchases, or
combinations thereof, for example.
[0179] The loyalty program 114 illustrated in FIG. 1 may be any
number of loyalty programs 114 that may be created or maintained
within the platform 112. Moreover, any single of the collaborative
constituents may be involved in any number of the loyalty programs
114 accessible via the platform 112.
[0180] Referring to FIG. 2, an implementation for a method 200 for
collaborating to develop the loyalty program 114 begins at step
202. At step 202, a proposal having parameter(s) for the loyalty
program 114 is formed. The parameters may include incentives that
may be offered to the consumer 102, limits for the incentives such
as a duration for the availability of the incentive, or the
location where the incentive may be earned, or a specific time of
day when the incentive is available. Parameters for the loyalty
program 114 may be based on the merchant's current inventory, the
merchant's projected future inventory, or the merchant's past
inventory of a commodity such as a good or service. The parameters
may also include the loyalty program business rule to determine
whether a purchase qualifies for the promotion or incentive such as
a spent-and-get promotion or a coupon promotion. For example, a
coupon promotion may be structured such that if the consumer 102
uses an account associated with the transaction processing system
to make a purchase at the merchant's 110 store that exceeds $100
U.S. in value, then 10% will be taken off the purchase value at the
merchant's 110 POS device at the time of the purchase. Other
loyalty program business rules may include ratios between the money
or value spent and the promotion such as: a unit of value spent to
a statement credit ratio (e.g., airline point spend to a credited
U.S. dollar ratio); a unit of value spent to a redeemable point
ratio; a unit of value spent to a redeemable money ratio; a unit of
value spent to a redeemable discount ratio; a unit of money spent
to a rebate ratio; a unit of value spent to a statement credit
ratio; a unit of money spent to a good ratio; a unit of money spent
to service ratio, and combinations thereof.
[0181] The proposal may be formed in accordance with a
predetermined loyalty program rule. The predetermined loyalty
program rule may include rules on the procedure to form and
transmitting the proposal and/or rules on the content of the
proposal for the loyalty program 114. The predetermined loyalty
program rule for the procedure of forming and transmitting the
proposal may include: the format of the proposal such as text based
message formatting, the prerequisites for submitting a proposal
such as identifying the entity making the proposal, or contractual
obligations for transmitting a proposal such as an agreement to
negotiate in good faith. The predetermined loyalty program rule for
the content of the proposal may include rules delineating the types
of parameters that can be proposed. For example, the predetermined
business rule may require that the loyalty program 114 involve the
use of the transaction processing system. To illustrate, the
predetermined loyalty program rule may require that the proposal
for the loyalty program 114 must reward the use of a particular
brand of credit card. Similarly, the predetermined loyalty program
rule may require that the transaction messages associated with a
transaction be in a particular format, such as magnetic stripe
format having fields that can be populated. For example, the
predetermined loyalty program rule may include a rule for
populating the transaction message with an identifier for the
merchant 110 such as the GUID for the merchant 110, information on
the transaction (e.g., a date or a time of the transaction, a
transaction amount, or location), information on the reward (e.g.,
a value for the reward, an identifier for the reward), or an
identifier for a commodity purchased during the transaction.
[0182] At step 204, the proposal is transmitted to a collaborative
constituent. A transmission of the proposal can be formed that is
addressed to at least one other collaborative constituent. A third
party may transmit the proposal to the destined collaborative
constituent. For example, the proposal can be addressed to the
collaborative constituent via an email address. Alternatively, the
address can be to a category of collaborative constituents such as
"all issuers within the transaction processing system." The third
party may then transmit the proposal to the collaborative
constituent in accordance with a workflow identifying the order of
deliver of the proposal addressed to the collaborative
constituent(s). The workflow may identify a sequence of
collaborative constituents that should receive the proposal such as
in a series or parallel sequence. To illustrate, the merchant 110
may form a proposal for a spend-and-get loyalty program (e.g., buy
two pairs of shoes get the third pair of shoes free). The merchant
110 may address the proposal to two collaborative constituent that
are each issuers 104: Wells Fargo and Bank of America, via the
transaction handler 106. The transaction handler 106 may receive
the proposal and send the proposal to both Wells Fargo and Bank of
America at the same time. The transaction handler 106 may analyze
the proposal to make sure it comports with the predetermined
loyalty program rule prior to transmitting the proposal to either
Wells Fargo or Bank of America.
[0183] At step 206, a response from the collaborative constituent
to the transmitted proposal is received. The response may be
transmitted to the entity that formed the proposal and/or to
another collaborative constituent via a workflow identifying a
predefined order of delivery thereof. In the example above, Wells
Fargo may wish to respond favorably to the merchant's 110
spend-and-get proposal. Consequently, Wells Fargo may respond by
indicating that it will help create and implement the spend-and-get
loyalty program for the consumers 102 that are account holders with
Wells Fargo. Wells Fargo may also present a counter proposal in its
reply stating that if spend-and-get loyalty program availability to
the consumers 102 is limited to the months of March through May,
Wells Fargo can credit the value of the third pair of shoes on the
statement of the consumer 102 that is an account holder with Wells
Fargo such that the consumer 102 can charge the purchase of the
third pair of shoes at the merchant's 110 store but Wells Fargo
will apply a credit for the value of the third pair of shoes to the
consumer's 102 Wells Fargo.RTM. account. Consequently, the response
can be used to further negotiate the parameters of the loyalty
program 114 being proposed, for example, by containing a favor or
disfavor of the at least one parameter for the loyalty program
114.
[0184] The response may contain further detail on how the loyalty
program 114 can be implemented. For example, the issuer 104 may
respond to the merchant's 110 proposal for the loyalty program 114
by indicating how the issuer 104 may market the loyalty program 114
to the issuer's 104 account holders such as: identifying the
consumer 102; creating a marketing collateral for the loyalty
program 114; delivering the marketing message to at least one of
the consumers 102; registering a potential consumer for the loyalty
program 114; or a combination of the foregoing.
[0185] At step 208, a reply to the response can be formed. The
reply may also be in accordance with the predetermined loyalty
program rule for the loyalty program 114. For example, the reply
may state that the merchant 110 expresses favor to Wells Fargo's
response to the spend-and-get loyalty program proposal further
indicating that transaction messages from the merchant 110 for each
purchase of the consumer 102 will include a code for the
spend-and-get loyalty program so that Wells Fargo can distinguish
the consumer 102 that has made a purchase toward the spend-and-get
loyalty program at the merchant's 110 store. For example, the
merchant 110 may populate a field within the transaction message
with "SPGT" to distinguish transactions eligible for the
spend-and-get loyalty program of the merchant 110. Alternatively,
or in combination, the issuer may populate a field within the
transaction message with free form text such as "authorized a third
purchase for this customer toward Fry's.RTM. spend-and-get loyalty
program."
[0186] At step 210, the reply is transmitted to at least one
collaborative constituent. The reply may be transmitted to any
collaborative constituent such as the collaborative constituent
that sent the response. For example, the merchant 110 may transmit
the reply of favor to Wells Fargo's response by sending the reply
in a Short Message Service (SMS) to the transaction handler 106
that forwards the SMS to Wells Fargo. Alternatively, or in
combination, the merchant 110 may address the reply to Bank of
America inquiring if Bank of America is willing to make a better
deal than that sent by Wells Fargo. Bank of America may transmit a
Bank of America response including a set of parameters that the
merchant 110 may find more favorable.
[0187] The workflow for the order of delivery of the proposal,
response, or reply may be serial (e.g., sequential such that each
addressed collaborative constituent receives the transmission
consecutively), parallel (e.g., such that each addressed
collaborative constituent receives the transmission concurrently)
or a combination thereof. Moreover, the workflow for the proposal,
response, or reply may be the same as each other or different from
each other. The collaborative constituent can optionally specify
the workflow for the order of delivery of each of the proposal,
response, or reply.
[0188] The steps of 202 through 210 may be repeated until an
agreement is reached. For examples, proposals, responses, and
replies may contain offers, counteroffers, and acceptances from the
collaborative constituents developing the parameters for the
loyalty program 114. The repetition of the steps 202 through 210
may take several iterations and collaborative constituents may
participate or stop participating at any step of 202 through
210.
[0189] The business case for parameters can be made during the
negotiation process (e.g., steps 202 through 210). The
collaborative constituents may evaluate the business case for the
parameter of the loyalty program 114 and argue its effectiveness to
the other collaborative constituents involved in the negation. For
example, the business case may entail: determining a cost and a
benefit for the parameter; determining a cost and a benefit for not
having the parameter; determining a business need that the
parameter may address; performing a gap analysis; determining a
reason for the parameter; or determining a reasons for one of
favoring and disfavoring the parameter.
[0190] The collaborative constituents may use analytical tools to
determine the effectiveness of at least one parameter of the
loyalty program 114 being negotiated. The analytical tools can
include: a data mining tool; a reporting tool; a metrics tool; a
demographics tool; an analytic tool; a targeting tool; a statistic
tool; a segmentation analysis tool; a tool for determining at least
a cost and a benefit for the parameter; a tool for determining at
least a cost and a benefit for not having the parameter; a tool for
determining the business need that the parameter will address; a
tool for gap analysis; a tool for determining a reason for the
parameter; a tool for determining the reasons for at least one of
favoring and disfavoring the parameter; or a combination of the
foregoing.
[0191] The transaction handler 106 may provide the other
collaborative constituents, via the platform 112, data mining tools
and access to a plurality of the consumer's 102 transaction data
during the negotiation process. For example, the merchant 110, such
as a hardware store, may want to know the transaction history of a
plurality of the consumers 102 living within 10 miles of the
merchant 110 hardware store--specifically, the transaction history
of purchases of florescent lights. The transaction handler 106 may
have access to a database containing the transaction history of a
plurality of the consumers 102 across a plurality of the merchants
110 within the transaction processing system. The transaction
handler 106 may allow the merchant 110 access to an analytical
tool, such as a data mining tool, to filter out the florescent
light transaction history of the consumers 102 within ten miles of
the merchant's 110 hardware store. The outcome of the analytical
tool may indicate that only twenty florescent light purchases have
been made within the last month within the ten mile radius of the
merchant's 110 hardware store. The merchant 110 may determine that
a loyalty program centered on florescent lights may not be feasible
for the merchant 110. Consequently, the merchant 110 may transmit a
reply indicating that the merchant 110 will no longer participate
in the negotiation of the loyalty program 114 that is centered
around florescent lights.
[0192] At step 212, a negotiated set of parameters to which all
remaining collaborative constituents have communicated favor to the
negotiated set of parameters is received, the negotiated set of
parameters being the remaining parameters for the loyalty program
114. The negotiated set of parameters can be the minimum parameters
that the collaborative constituents need to agree on in order to
implement the loyalty program 114. The negotiated set of parameters
need not have all of the details to implement the loyalty program
114. For example, the address for the location for all the
merchants 110 that will participate in the loyalty program 114 need
not be settled. The negotiated set of the parameters for the
loyalty program 114 may be received from at least one implementer
of the loyalty program 114.
[0193] The remaining collaborative constituents need not
communicate favor to each and every parameter in the negotiated set
of parameters; rather, the remaining collaborative constituents can
communicate favor to the negotiated set of the parameters. The
remaining collaborative constitutes can be those that have not
expressed a desire to exit the negotiation process or those that
have not contributed to the negotiation process for a period of
time (e.g., days or months), such that their lack contribution
indicates a desire to exit the negotiation process.
[0194] The communicated favor for the negotiated set of parameters
forms a negotiated agreement to the negotiated set of parameters
that can be communicated to each of the collaborative constituents
that remained in the collaboration and agreed to the negotiated set
of the parameters. For example, the I transaction handler 106 may
transmit the negotiated set of the parameters for the loyalty
program 114 to the remaining set of the collaborative constituents.
The transaction handler 106 may determine which of the remaining
parameters for the loyalty program 114 the remaining set of
collaborative constituents have agreed upon as being the negotiated
set of the parameters for the loyalty program 114. The transaction
handler 106 may address a second transmission to each of the
collaborative constituents among the remaining set of the
collaborative constituents including the negotiated set of the
parameters for the loyalty program.
[0195] To illustrate, the merchant 110 may be a coffee shop wishing
to create and implement a coffee shop loyalty program for its
patrons. The coffee shop owner may form a coffee promotion proposal
using an interactive interface on a network in communication with
the transaction processing system, the promotion proposal including
a parameter indicating that the coffee shop loyalty program should
have a spend-and-get promotion wherein patrons can purchase ten
cups of coffee and receive the eleventh one free.
[0196] The coffee shop owner may use an interface device connected
to the system 100 for collaborating to develop, implement, and
refine a loyalty program, such as a cellular telephone with an
Internet connection, to log on to the transaction handler's 106
website and input the proposed spend-and-get promotion parameters
using the platform 112. Other forms of interface include: a
personal computer, a personal digital assistant, a hand-held
computing device, a mobile computing device having telephony
functionality, a cellular telephone, a mobile consumer device, and
a combination of the foregoing. The coffee shop owner may transmit
the coffee promotion proposal to the issuer 104, a Wells Fargo.RTM.
bank, via the transaction handler 106 such that the transaction
handler 106 receives a first transmission from the coffee shop
owner and the transaction handler 106 send another transmission
including at least a portion of the first transmission to the Wells
Fargo.RTM. bank.
[0197] The Wells Fargo.RTM. bank can transmit a response indicating
favor to the coffee promotion proposal further indicating that the
coffee shop loyalty program should be marketed to patrons living
within 10 minutes from the coffee shop. The coffee shop owner may
agree, submitting a reply to the response expressing favor to the
10-minute limitation not having discussed if the 10 minutes is
calculated based on using surface streets or the subway. The
transaction handler 106 may determine that the coffee shop owner
and Wells Fargo.RTM. bank have agree that the spend-and-get
promotion and the 10-minute limitation are the parameters for the
coffee shop loyalty program thereby forming the negotiated
agreement for the coffee shop loyalty program even without knowing
if the 10-minute limitation is calculated based on using surface
streets or the subway. The transaction handler 106 may determine
that both the coffee shop owner and Wells Fargo.RTM. bank have
agree to the remaining parameters for the coffee shop loyalty
program by polling the number of favor positions received from each
of the coffee shop owner and Wells Fargo.RTM. bank for each of the
remaining parameters for the coffee shop loyalty program.
[0198] Moreover, parameters that do not comply with a predetermined
loyalty program rule may be filtered out and not included in the
remaining parameter for the coffee shop loyalty program. For
example, if the coffee shop owner may have proposed a parameter for
the coffee shop loyalty program stating that cash purchases count
toward the coffee shop loyalty program; however, one of the
predetermined loyalty program rules may indicate that only credit
purchases may apply toward loyalty programs developed through the
use of the platform 112.
[0199] The negotiated agreement for the coffee shop loyalty
program, including the negotiated set of parameters, can be
communicated back to both the coffee shop owner and the Wells
Fargo.RTM. bank in a transmission using the workflow or another
workflow identifying another predefined order of delivery.
[0200] After the negotiated agreement is communicated to each of
remaining set of the collaborative constituents, which may include
one of the loyalty program implementers, the loyalty program 114
may be refined or altered. The alteration may include renegotiating
a parameter within the negotiated set of parameters or negotiating
a new parameter. The refinement may occur before or after the
loyalty program 114 has been implemented as long as the remaining
collaborative constituents agree that the negotiated set of
parameters can be further negotiated. For example, one of the
collaborative constituents within the remaining set of the
collaborative constituents may address a transmission to the
transaction handler 106 requesting to alter the at least one
remaining said parameter for the loyalty program. The request may
include an affirmative representation that each of the
collaborative constituents in the remaining set of the
collaborative constituents have each agreed to the request to
alter. Alternatively, or in combination, the transaction handler
106, for example, can determine that each of the collaborative
constituents in the remaining set of the collaborative constituents
have each agreed to the request to alter, such as by taking a pole
through electronic communication with each of the collaborative
constituents among the remaining set of the collaborative
constituents.
[0201] The steps to alter the remaining parameters for the loyalty
program may include similar steps as the negotiation process (e.g.,
steps 202 through 212): a refinement proposal in accordance with
the predetermined loyalty program rule can be formed and
transmitted to an addressed collaborative constituent; a refinement
response from the addressed collaborative constituent can be
received, wherein the response is to the transmitted refinement
proposal; a refinement reply to the received refinement response in
accordance with the predetermined loyalty program rules may be
formed and transmitted; a second negotiated set of parameters to
which all remaining collaborative constituents have communicated
favor to the second negotiated set of parameters can be received,
the second negotiated set of parameters being the parameters for
the loyalty program 114 that has been refined; and a second
negotiated agreement to the second negotiated set can be
communicated to each of the of collaborative constituents among a
second remaining set of the collaborative constituents.
[0202] For example, the coffee shop owner may use the analytical
tools available at the platform 112 to evaluate the performance of
the spend-and-get coffee shop loyalty program after it has been
implemented for six months. The analytical tool may isolate all
purchases of coffee at the merchant's 110 store for the past six
months across all of the consumers 102 that made a purchase at the
merchant's 110 store. The coffee shop owner may determine that
sales volume for coffee has not increased at his coffee shop store
in the past six months that the spend-and-get coffee shop loyalty
program has been implemented. The analysis may provide a comparison
of sales volume of the coffee shop of the coffee shop owner against
other coffee shops in the area. Given the outcome of the analysis,
the coffee shop owner may determine that the spend-and-get coffee
shop loyalty program is not cost effective and should be
terminated. Alternatively, or in combination, the coffee shop owner
may request that an analysis be done showing sales volume of all
spend-and-get loyalty programs involving coffee across a plurality
of the merchants 110 within a fifteen mile radius. Thereafter, the
coffee shop owner may decide to alter one of the parameter of the
spend-and-get coffee shop loyalty program such as by requiring only
five purchases of coffee prior to receiving the sixth one free.
[0203] A computer program product can be configured to enable a
computer to facilitate the loyalty program 114. Software
instructions for enabling the computer to perform predetermined
operations facilitating construction, marketing, loyalty program
qualification, fulfillment, and refinement of the loyalty program
114 can be accessible from a computer readable medium bearing the
software instructions for the methods beginning at step 202. For
example, the transaction handler 106 may maintain the computer such
as by controlling access to the platform 112, hosting the computer,
or controlling the flow of transmissions.
[0204] FIG. 3 is a schematic of a transaction lifecycle 300 for the
loyalty program 114 including the phases of a Before Phase 302, a
During Phase 304, and an After Phase 306. In one embodiment, the
platform 112 supports the loyalty program 114 throughout the
transaction lifecycle 300.
[0205] At the Before Phase 302, the loyalty program 114 may be
created using the platform 112. For example, potential consumer
information may be analyzed at the Before Phase 302 including
obtaining one or more transaction files of corresponding potential
consumers, transforming the files into readable form, and
segmenting and identifying the potential consumer of the loyalty
program 114. Moreover, negotiations can occur with collaborative
constituents, such as the issuer 104 or the merchant 110 to
construct loyalty program business rules in order to determine what
transactions may qualify for the loyalty program 114.
[0206] At the During Phase 304, the platform 112 can facilitate
information exchange. For example, information in a transaction
message associated with a transaction may be relayed to a
participant of the loyalty program 114 such as the transaction
handler 106 that in turn relays the information in the transaction
message to the other participant of the loyalty program 114 via the
platform 112. Moreover, the information in the transaction message
may be analyzed such as by qualifying and authenticating
non-financial data (e.g., authenticating the GUID for the merchant
110).
[0207] At the After Phase 306, the platform 112 can facilitate the
refinement of the loyalty program 114. For example, the loyalty
program 114 can be refined to better meet the needs and intended
goals of the participants by evaluating the transaction data of a
plurality of the consumers 102 that have participated in the
loyalty program 114.
[0208] The actions described for each of the Before Phase 302, the
During Phase 304, or the After Phase 306, are not limited to a
particular phase alone. For example, construction of the loyalty
program 114, construction of loyalty program business rules,
analysis of information, and negotiation between collaborative
constituents, can occur at the Before Phase 302, the During Phase
304, and/or the After Phase 306. For example, at the After Phase
306, a new parameter of the loyalty program 114 can be created.
Similarly, actions such as facilitating the exchange of transaction
data and analysis of the transaction message can occur at the
Before Phase 302, the During Phase 304, and/or the After Phase 306.
For example, at the After Phase 306, the information in the
transaction message may be analyzed. Moreover, actions such as
further qualifying the transaction message, refining the loyalty
program 114 and fulfillment calculation and realization can occur
at the Before Phase 302, the During Phase 304, and/or the After
Phase 306. For example, at the Before Phase 302, the loyalty
program 114 may be further refined and the qualifying fulfillment
for the loyalty program 114 may occur at the During Phase 304
(e.g., discount at the POS).
[0209] FIG. 4 is a schematic illustrating various layers of the
platform 112 that the collaborative constituent may have access to
and the components of the loyalty program 114 that the platform 112
can facilitate.
[0210] Several layers can support the platform 112 including an
access services layer 402, a business logic layer 404, and a data
layer 406. The access services layer 402 of the platform 112
represents the common data interface between collaborative
constituents. Via the access services layer 402, collaborative
constituents can communicate with one another in a market place
type environment. For example, each collaborative constituent may
transmit proposals, responses, and/or replies under a predetermined
loyalty program rules.
[0211] The business logic layer 404 is the infrastructure within
the platform 112 that supports collaboration between collaborative
constituents. For example, the business logic layer 404 may include
a server, a database, and a program that can determine whether the
consumer's 102 transaction for the purchase of a hammer qualifies
for the merchant's 110 loyalty program involving hand carpentry
tools.
[0212] The data layer 406 represents transaction and participant
data, such as (but not limited to) card holder names, addresses,
communication preferences and history, that may be available to the
collaborative constituent at the platform 112. The transaction data
come from various sources including: information from the consumer
102, information from the issuer 104, information from the acquirer
108, information from the transaction handler 106, or information
from the merchant 110, or information from a third party, such as
demographics. The information from the consumer 102 may include:
the consumer's 102 identification such as name or address, the
consumer's 102 account identification such as account number, the
consumer's 102 inputted data such as preference for particular
incentives, or the consumer's 102 shopping trends. The information
from the issuer 104 may include: the issuer's 104 unique
identifier, the issuer's 104 address, the issuer's 104 business
rules, the issuer's 104 fulfillment options, accumulated
information about the consumer 102 for a period of time (e.g.,
types of credit cards the consumer 102 has owned over the past two
years), and information on third parties that act as proxies to the
issuer 104. The information from the acquirer 108 may include: the
acquirer's 108 unique identifier, the acquirer's 108 address, the
GUID for the merchant 110, or accumulated daily sale report of the
merchant 110. The information from the transaction handler 106 may
include: transaction message field formatting requirements, credit
card spending limits, credit history, or demographic analyses.
Information from the merchant 110 may include: the GUID for the
merchant 110, the merchant's 110 acquirer code, franchise codes, or
the merchant's 110 business rules codes. The information from third
parties could include such information as household income,
marriage status, number of children, homeowner status, and years in
home.
[0213] The transaction data may also includes different types of
information including: a transaction message; product or service
information such product or service type, SKU number, chain of
distribution, manufacturing codes, and geographical distribution
codes; sale, license, or hire value information such as an item
price; loyalty program business rule; loyalty program incentive
information such as points, conditions for receiving double points,
rewards, or cash back; an offer, negotiation, or a posting
transaction cost information such as cost of processing a token
transaction.
[0214] The collaborative constituents can access the platform 112
to facilitate various components of the loyalty program 114
including: a construction 410, a marketing 412, a loyalty program
qualification 414, a fulfillment 416, and a refinement 418
components of the loyalty program 114.
[0215] The collaborative constituents may access the platform 112
for the construction 410 component of the loyalty program 114.
Through the access services layer 402, two or more of the
collaborative constituents can interact to construct the loyalty
program 114. The construction 410 of the loyalty program 114 can
include: constructing the business case that supports a parameter
of the loyalty program 114, posting proposals, negotiating
proposals, or identifying potential participants. For example, the
collaborative constituent may choose from predetermined parameters
developed by the transaction handler 106 prior to the negotiation
in constructing the loyalty program 114, negotiating them in
isolation or combinations. The collaborative constituent, such as
the merchant 110, may transmit proposal containing a parameter that
the merchant 110 wishes another of the collaborative constituents
to accept (e.g., express favor to), identify the consumer 102 such
as a consumer group desired to become a recipient of the proposal,
or elect to receive information from the data layer 406 regarding
the consumer 102.
[0216] Through the use of the data layer 406, collaborative
constituents can construct the loyalty program 114 targeting the
consumer 102 and the product purchased. For example, the loyalty
program 114 can be a loyalty program that utilizes high level
product information (e.g., a SKU) as a trigger for the loyalty
program business rule. The trigger can be product category specific
"music players," or product line specific such as iPod.RTM. Nano,
or a manufacturer such as Apple Computer, Inc. (e.g. "ten percent
off all Apple Computer.RTM. products if you use your Wells
Fargo.RTM. credit card."). Consequently, the collaborative
constituent involved in different levels of the chain of
distribution such as a manufacturer, a distributor, a retailer, or
the merchant 110, can better target the loyalty program 114
promotion via the platform 112.
[0217] Moreover, the collaborative constituent, such as the issuer
104, can manage its participation in the loyalty program 114 such
as during the construction 410 component of the loyalty program 114
and through the access services layer 402. The managing
participation in the loyalty program 114 can include: choosing
marketing initiatives; registering the issuer's 104 rewards
programs, ensuring that the issuer 104 qualifies for certain
interchange levels, choosing specific promotions for the consumer
102 to receive or participate in; selecting a method by which
proposal messages can be delivered; finding the merchant 110
partners for proposals the issuer 104 would like to run; posting
information about proposals the issuer 104 would like to run for
the consumer 102 such as what type of cardholder qualifies for the
loyalty program 114 or how many cardholders can qualify; obtaining
the consumer's 102 transaction data; or choosing proposal
parameters.
[0218] The collaborative constituents may access the platform 112
for the marketing 412 component of the loyalty program 114. The
marketing may include sending a marketing transmission containing
information based in part on the remaining parameter for the
loyalty program 114 (e.g., buy three hamburgers from Hamburger Co.
and get the fourth free), wherein the third transmission is
addressed to at least one of the consumers 102. For example, the
transaction handler 106 can assist a collaborative constituent in
the creative development of a marketing strategy, such as creating
the marketing collateral, registering a participant of the loyalty
program 114 such as the consumer 102, or delivering a marketing
message to the consumer 102 via a number of channels such as email
direct mail, email, text messaging, media advertising, pop up
advertising, telemarketing, or point of sale communication. The
registering of the participant of the loyalty program 114 can
include registering collaborative constituents for the loyalty
program 114 or registering entities that are not one of the
collaborative constituents. For example, the consumer 102 may send
a transmission indicating that the consumer 102 wishes to have an
account that is rewarded based on the parameters on the loyalty
program 114 the consumer 102 received in the marketing
transmission.
[0219] The collaborative constituent may access the platform 112
for the loyalty program qualification 414 component of the loyalty
program 114. The loyalty program business rules may be applied to
the transaction data associated with the consumer's 102 purchase to
determine if the purchase qualifies for the reward associated with
the loyalty program 114. The transaction data may include data that
populate a field within the transaction message associated with the
transaction such as the merchant unique identifier, the consumer's
102 account number within the transaction processing system, and
information about the product or service purchased, a code for the
loyalty program 114, for example.
[0220] The fulfillment 416 component may entail changing the cost
of an amount that is made payable on an account involved in the
transaction based on a value of the incentive for the loyalty
program 114 or providing value to the consumer associated with the
account involved in the transaction, such as a free cup of
coffee.
[0221] The collaborative constituent may access the platform 112
for the fulfillment 416 component of the loyalty program 114. For
example, once a transaction, or set of transactions qualify for
fulfillment of the loyalty program 114, the transaction handler 106
can facilitate fulfillment of that reward in accordance with one of
the remaining parameter for the loyalty program 114. For example,
if the loyalty program 114 is the coffee shop spend-and-get loyally
program, the transactions that qualify for the coffee shop
spend-and-get loyally program can be electronically tracked and a
message sent to a cell phone of the consumer 102 that the consumer
102 can receive a free cup of coffee the next time the consumer 102
goes to the coffee shop owner's store. The transaction handler 106
may taking fulfillment actions including: calculate a the value of
a promotion; awarding bonus points or miles; facilitating providing
a statement credit, cash back value, or discount value to the
participant of the loyalty program (e.g., the consumer 102);
forwarding the part of the transaction data regarding the
fulfillment (e.g., the calculated value of the promotion) to
another of the collaborative constituent or to a support group such
as a third party having a contractual obligation with the
collaborative constituent. The fulfillment actions can occur in
real time, as part of the clearing and settlement process, or
sometime thereafter, for example.
[0222] The collaborative constituents may access the platform 112
for the refinement 418 component of the loyalty program 114. The
collaborative constituent, can access tools available at the
platform 112 such as reporting, metrics and analytical tools,
enabling the collaborative constituent to get statically generated
analysis, dynamically generated analysis, or review forward looking
promotional calendars to refine the collaborative constituent's
marketing strategies. For example, the merchant 110 may access the
platform 112 to evaluate the loyalty program's 114 performance. The
merchant 110 may create reports via statistical software accessible
at the platform 112 and determine the degree that the consumer 102
or any group of the consumers 102 that are targeted as participated
in the loyalty program 114 have changed the consumer's 102
purchasing behavior based on parameters including: demographics,
SKU numbers, store locations, seasonal variances, or consumer
habits of buying related commodities such as shoes and socks. The
merchant 110 may decide to refine the merchant's 110 range of the
consumers 102 that are targeted or promotions in the loyalty
program 114 by continuing the negotiation process, such as steps
201 through 210 of FIG. 2.
[0223] Although illustrated in a progressive manner, the
transaction components of the following can follow any order or be
concurrent: the construction 410, the marketing 412, the loyalty
program qualification 414, the fulfillment 416, and the refinement
418 components. For example, the refinement 418 component of the
loyalty program 114 may occur during the marketing 412 component
such as by narrowing the group of the consumers 102 that are
targeted, the fulfillment 416 component may occur during the
transaction component program qualification 314 component such as
when the consumer 102 receives a discount during a purchase, and
the marketing 412 can occur during the fulfillment 416 component
such as providing the consumer 102 with a coupon for the next
purchase. Other combinations are readily conceivable to a person of
ordinary skill in the art.
[0224] As background information for the foregoing description, as
will be readily understood by persons of ordinary skill in the art,
a transaction such as a payment transaction, can include
participation from different entities that are a component of a
transaction processing system. An exemplary such transaction
processing system such as a transaction processing environment is
depicted in FIG. 5 as a payment processing system 500. The payment
processing system 500 includes the issuer 104, the transaction
handler 106, such as a credit card company, the acquirer 108, the
merchant 110, or the consumer 102. The acquirer 108 and the issuer
104 can communicate through the transaction handler 106. The
merchant 110 may utilize at least one POS terminal that can
communicate with the acquirer 108, the transaction handler 106, or
the issuer 104. Thus, the POS terminal is in operative
communication with the payment processing system 500.
[0225] Typically, a transaction begins with the consumer 102
presenting a portable consumer device 502 to the merchant 110 to
initiate an exchange for a good or service. The portable consumer
device 502 may include a payment card, a gift card, a smartcard, a
smart media, a payroll card, a health care card, a wrist band, a
machine readable medium containing account information, a keychain
device such as the SPEEDPASS.RTM. commercially available from
ExxonMobil Corporation or a supermarket discount card, a cellular
phone, personal digital assistant, a pager, a security card, an
access card, a wireless terminal, or a transponder. The portable
consumer device 502 may include a volatile or non-volatile memory
to store information such as the account number or an account
holder's name.
[0226] The merchant 110 may use an acceptance point device, such as
a POS terminal, to obtain account information, such as an account
number, from the portable consumer device 502. The portable
consumer device 502 may interface with the POS terminal using a
mechanism including any suitable electrical, magnetic, or optical
interfacing system such as a contactless system using radio
frequency or magnetic field recognition system or contact system
such as a magnetic stripe reader. The POS terminal sends a
transaction authorization request to the issuer 104 of the portable
consumer device 502. Alternatively, or in combination, the portable
consumer device 502 may communicate with the issuer 104, the
transaction handler 106, or the acquirer 108.
[0227] The issuer 104 may authorize the transaction using the
transaction handler 106. The transaction handler 106 may also clear
the transaction. Authorization includes the issuer 104, or the
transaction handler 106 on behalf of the issuer 104, authorizing
the transaction in connection with the issuer's 104 instructions
such as through the use of business rules. The business rules could
include instructions or guidelines from the transaction handler
106, the consumer 102, the merchant 110, the acquirer 108, the
issuer 104, a financial institution, or combinations thereof. The
transaction handler 106 may maintain a log or history of authorized
transactions. Once approved, the merchant 110 can record the
authorization, and allow the consumer 102 to receive the good or
service.
[0228] The merchant 110 may, at discrete periods, such as the end
of the day, submit a list of authorized transactions to the
acquirer 108 or other components of the payment processing system
500. The transaction handler 106 may compare the submitted
authorized transaction list with its own log of authorized
transactions. If a match is found, the transaction handler 106 may
route authorization transaction amount requests from the
corresponding acquirer 108 to the corresponding issuer 104 involved
in each transaction. Once the acquirer 108 receives the payment of
the authorized transaction amount from the issuer 104, it can
forward the payment to the merchant 110 less any transaction costs,
such as fees. If the transaction involves a debit or pre-paid card,
the acquirer 108 may choose not to wait for the initial payment
prior to paying the merchant 110.
[0229] There may be intermittent steps in the foregoing process,
some of which may occur simultaneously. For example, the acquirer
108 can initiate the clearing and settling process, which can
result in payment to the acquirer 108 for the amount of the
transaction. The acquirer 108 may request from the transaction
handler 106 that the transaction be cleared and settled. Clearing
includes the exchange of financial information between the issuer
104 and the acquirer 108 and settlement includes the exchange of
funds. The transaction handler 106 can provide services in
connection with settlement of the transaction. The settlement of a
transaction includes depositing an amount of the transaction
settlement from a settlement house, such as a settlement bank,
which the transaction handler 106 typically chooses, into a
clearinghouse, such as a clearing bank, that the acquirer 108
typically chooses. The issuer 104 deposits the same from a
clearinghouse, such as a clearing bank, which the issuer 104
typically chooses into the settlement house. Thus, a typical
transaction involves various entities to request, authorize, and
fulfill processing the transaction.
[0230] Global unique identifiers, such as GUIDs for the
participants of the loyalty program 114, can promote uniformity in
the exchange of information amongst the participant of the loyalty
program 114 and facilitate the determination of whether a
transaction between the consumer 102 and the merchant 110 qualifies
for an incentive of the loyalty program 114. The GUID for the
merchant 110 may take the form of a random code; an indicator of a
franchiser for one or more of the merchants 110; an indicator of a
franchisee store number for the merchant 110; an indicator of a
corporate entity associated with the merchant 110; an indicator of
a merchant category into which the merchant 110 is classified; or a
combination thereof. The GUID for the merchant 110 may contain
information that can categorize the merchant 110 into a merchant
category, such as a retail store, having a corresponding merchant
code such as "RSTR598183" the first four letters indicating that
the merchant is categorized as a Retail SToRe=RSTR.
[0231] The GUID for the merchant 110 can distinguish the merchant
110 from other merchants within the transaction processing system.
For example, an acquirer X may identify a Neiman Marcus.RTM. store
number 99 by "9999" while another acquirer Y may identify a
Safeway.RTM. located at 99th Avenue with "9999." Because "9999" is
not unique within the payment processing system, a purchase at
Safeway can not be distinguished from a purchase at Neiman Marcus.
On the other hand, if each of the merchants 110 have a unique
number within the payment processing system, purchases at each of
the merchants 110 can be distinguished from one another.
[0232] In another example, "HD hardware store" may be a franchisor
that has a HD hardware store loyalty program in connection with the
issuer 104 developed using the platform 112. HD hardware store may
have two franchisee merchants "HD hardware store X" and "HD
hardware store Y" each having different acquirers: Acquirer X and
Acquirer Y. Acquirer X may keep an internal log on franchisee
merchant HD hardware store X with an identifier "9999." Acquirer Y
may keep a separate internal log on HD hardware store Y with an
identifier "WQ83." The issuer 104 involved in the HD hardware store
loyalty program may not be able to recognize that hardware store X
and hardware store Y have the same franchisor via the internal
identifiers of acquirer X "9999" or acquirer Y "WQ83" respectively;
consequently, the issuer 104 may have difficulty determining if a
purchase at each store would qualify for the HD hardware store
loyalty program. On the other hand, if HD hardware store's
franchisee's are each assigned merchant unique identifiers, the
issuer 104 may be able to better distinguish HD hardware store X or
HD hardware store Y as participants of the HD hardware store
loyalty program.
[0233] Other transaction data that may also be taken into
consideration when determining whether a transaction qualifies for
the incentive of the loyalty program 114 include: SKU numbers,
UPCs, a timestamp for the transaction, an account GUID (e.g., an
account number for an account within the payment processing system
associated with the consumer 102), a code identifying the consumer
102 as a valued customer, or a code identifying a purchase
qualifying for a loyalty program incentive. The collaborative
constituent, such as the transaction handler 106, can transform the
high level product or service information within the transaction
message into a form usable to the collaborative constituent. For
example, the SKU number can be subsequently transformed into
banking industry file formats, validated, matched to corresponding
financial records and delivered to the participant of the loyalty
program 114 via a number of different channels.
[0234] Referring to FIG. 6, an exemplary method 600 for determining
if a transaction between the consumer 102 and the merchant 110
qualifies for the incentive of the loyalty program 114 begins at
step 602. At step 602, data characterizing the transaction is
received, for example, by one of the loyalty program implementers
receiving a notice containing the data characterizing transaction
from the acquirer 108. The data characterizing the transaction may
be received in a transmission at a computer, an electrical device
having circuitry to receive electrical signals, or a radio
frequency receiving device, for example. The transmission may be
sent via a computer network, a wireless network, an electrical
communication line, or a combination thereof.
[0235] The data characterizing the transaction can include the date
of the transaction; the time of the transaction; an identifier for
an account such as the account number of the consumer's 102 account
used in the transaction; a code for the merchant 110 such as the
GUID for the merchant 110 ("merchant GUID"); a code for the
commodity traded in the transaction, such a GUID for the commodity
("commodity GUID"), SKU or a UPC of a good or service; or a
combination of the foregoing.
[0236] The code for the merchant 110 may be nonunique. For example,
the merchant 110 may have multiple codes associated with it such as
when two acquirers 108 each have a different indicator for the
merchant 110. Alternatively, or in combination, the code for the
merchant 110 may be nonunique because a single indicator may be
associated with multiple merchants 110 such as when the acquirer
108 has the indicator "XYZ" for a particular Sears.RTM. store while
another acquirer has the indicator "XYZ" for a Dairy Queen.RTM.
store.
[0237] At step 604, the GUID for the merchant 110 is optionally
determined using the data characterizing the transaction, for
example, the determination can occur if the GUID for the merchant
110 is not in the received data. An algorithm can be used to
determine the GUID for the merchant 110. For example, a code for
the merchant 110 that is nonunique within the payment processing
system, the merchant's 110 address, a GUID for the acquirer, or a
combination of the foregoing may serve as input to the algorithm to
determine the GUID for the merchant 110. To illustrate, the data
characterizing the transaction may include a Wells Fargo.RTM.
merchant code "XYZ" as the merchant's 110 code and the information
that the merchant's 110 acquirer is Wells Fargo.RTM. branch number
603 located in Chandler Ariz. An algorithm can be used to determine
the merchant's 110 GUID given "XYZ" and the Wells Fargo.RTM. branch
number because the algorithm may include computer code for
accessing a database linking acquirers, their respective merchant
codes, and the GUID for the merchant 110. The transaction handler
106 may have assigned the GUID for the merchant 110 for example, by
using the algorithm to determine the GUID for the merchant 110.
[0238] Multiple identifiers, such as a plurality of the merchant
GUIDs, the account GUIDs, or the commodity GUIDS, may be stored in
a database. For example, a loyalty program database may contain a
plurality of merchant GUIDs that exist in the payment processing
system. Moreover, the merchant GUIDs of those merchants 110 that
are participants in a loyalty program 114 can be associated with
the loyalty program 114 within the loyalty program database.
Similarly, the account GUIDs of those consumers 102 that are
participants in the loyalty program 114 can be associated with the
loyalty program 114 within the loyalty program database and the
commodity GUIDs of those commodities that are participants in the
loyalty program 114 can be associated with the loyalty program 114
within the loyalty program database. The loyalty program database
can be a network of multiple databases that are either co-located
or geographically dispersed. The transaction handler 106 may
maintain the loyalty program database.
[0239] Moreover, an incentive for a loyalty program, such as the
incentive for the loyalty program 114, may be stored in the loyalty
program database. For example, the loyalty program business rule
may be stored the loyalty program database such that the incentive
may be calculated. The incentives for each of the corresponding
loyalty programs, such as loyalty program 114, may be associated
with the corresponding loyalty programs within the loyalty program
database.
[0240] Therefore, a GUID, such as the merchant GUID, may be used as
a search term within the loyalty program database to facilitate
determining if the transaction is eligible for an incentive of the
loyalty program 114 and determining a value of the incentive of the
loyalty program 114. For example, a search within the loyalty
program database using the account GUID as a search term may reveal
that the consumer 102 with the account GUID is one of the
participants of the loyalty program 114 and that the incentive for
loyalty program 114 is a $10 U.S. credit toward the consumer's 102
account associated with the account GUID if the consumer makes a
purchase at the merchant's 110 store.
[0241] At step 606, a determination is made as to whether the
transaction is eligible for the incentive of a loyalty program,
such as the loyalty program 114, by using a GUID matching
algorithm. Step 606 may include determining whether the merchant
110, the account of the consumer 102, the commodity purchased, or a
combination of the forgoing are participants of the loyalty program
114 by matching the data characterizing the transaction, such as
the GUID for the merchant 110, with corresponding GUIDs stored in
the loyalty program database. Parameters of the loyalty program
business rule may determine how many components of the data
characterizing the transaction should be matched with the
corresponding GUIDs in the loyalty program database to satisfy
becoming eligible for the incentive.
[0242] For example, the loyalty program business rule may have
parameters such that both the account and the merchant 110 must be
participants of the loyalty program 114 for the transaction to be
eligible for the incentive of the loyalty program 114. The
determination of the eligibility may entail matching both the
account GUID and the GUID for the merchant 110 characterizing the
transaction against a plurality of account GUIDs and merchant GUIDs
respectively in the loyalty program database. The loyalty program
database of account GUIDs and merchant GUIDs may associate at least
some of the GUIDs with various transaction programs, such as the
loyalty program 114. Consequently, when a match exists, information
about the transaction program can be obtained and a determination
made as to what loyalty program 114 he merchant 110 or the account
used in the transaction may be a participant of.
[0243] To illustrate, the consumer 102 may be a participant of a
Neiman Marcus.RTM. apparel loyalty program. The consumer 102 may
purchase a pair of shoes from Neiman Marcus.RTM. store #33 using
the consumer's 102 Neiman Marcus.RTM. credit card account. If at
step 606 the consumer's 102 Neiman Marcus.RTM. credit card account
number is matched with a credit card number within the loyalty
program database of account numbers, information can be obtained
about the transaction programs that the consumer's 102 Neiman
Marcus.RTM. credit card account may be a participant of. If the
Neiman Marcus.RTM. apparel loyalty program is one of the
transaction programs that the Neiman Marcus.RTM. credit card
account is a participant of, the consumer 102 may be eligible for
receiving an incentive of the Neiman Marcus.RTM. apparel loyalty
program. Similarly, if the GUID for Neiman Marcus.RTM. store #33
matches with a GUID for Neiman Marcus.RTM. store #33 in the loyalty
program database of GUIDs for merchants, it can be determined
whether the Neiman Marcus.RTM. store #33 is part of the Neiman
Marcus.RTM. apparel loyalty program.
[0244] Moreover, the Neiman Marcus.RTM. apparel loyalty program may
be such that only Salvatore Ferragamo.RTM. brand shoes qualify for
the Neiman Marcus.RTM. apparel loyalty program. The data
characterizing the transaction may have a GUID for the merchant's
110 commodity (e.g., Salvatore Ferragamo.RTM. shoes) such as a SKU
number. The SKU number can be matched against a database, such as
the loyalty program database, of SKU numbers to determine if the
commodity is a participant of the loyalty program. In the example,
above, if the consumer 102 purchased the pair of Salvatore
Ferragamo.RTM. shoes, the SKU would match the SKUs in the database;
thus the transaction would be a transaction that is eligible toward
the incentive of the Neiman Marcus.RTM. apparel loyalty
program.
[0245] At step 608, the incentive (e.g., reward) for the loyalty
program 114 is derived for the transaction that is eligible for the
incentive. The incentive can be derived using the loyalty program
business rule for the loyalty program 114. The loyalty program
implementer may use the loyalty program business rule for the
loyalty program 114 to determine the value of the incentive for the
loyalty program 114.
[0246] One of the collaborative constituents may have developed the
loyalty program business rule. For example, the merchant 110 may
have developed a business rule for the Neiman Marcus.RTM. appeal
loyalty program such that the consumer 102 may receive $10 U.S.
credit toward the consumer's 102 Neiman Marcus.RTM. credit card
account when the consumer 102 purchases a pair of Salvatore
Ferragamo.RTM. shoes at Neiman Marcus.RTM. store #33.
[0247] One of the loyalty program implementers may facilitate the
fulfillment of the incentive. For example, the transaction handler
106 may facilitate the application of a statement credit to the
consumer's 102 account, if the loyalty program business rule so
delineates. Alternatively or in combination, the facilitation may
entail assisting other loyalty program implementers to fulfill the
incentive, such as by reporting the value of the incentive to a
third party agency.
[0248] At step 610, information regarding the derived incentive may
be transmitted. For example, the value of the derived incentive,
the date the derived incentive was redeemed, the time the derived
incentive was redeemed, past incentive that have been derived for
the loyalty program 114 can be included in a formed transmission
addressed to the merchant 110 corresponding to the merchant GUID
within the data characterizing the transaction.
[0249] The transmission may be sent to the merchant 110, the
loyalty program implementer, the third party agency, or the
consumer 102. For example, the consumer 102 may receive a report of
all derived loyalty program incentives that have been applied to
the consumer's 102 account for the past year. Similarly, reports
can be derived for transactions involving the merchant 110 and
transmitted to the collaborating constituents to facilitate
refining the loyalty program 114. The transmission may be created
through the use of a computing device, a telecommunication device,
the portable consumer device 502, or combinations thereof.
[0250] The data characterizing the transaction or the information
regarding the derived incentive may be stored in a database, such
as the loyalty program database. For example, the shopping trends
of the consumer 102 may be analyzed using the loyalty program
database containing the information regarding the derived incentive
and the data characterizing the transaction.
[0251] Information on incomplete matches may be stored and
communicated to the merchant 110, the consumer 102, or a
combination thereof. For example, the loyalty program 114 may have
a loyalty program business rule indicating that if the consumer 102
makes a purchase of chairs at the merchant's 110 store, the
consumer 102 may receive cash back for ten (10) percent of the
purchase price. Consequently, in this example, in order for a
transaction to be eligible for the incentive of the loyalty program
114, each of the merchant GUID, the commodity GUID for the chairs,
and the account GUID (or account GUID) in the transaction must
match corresponding the merchant GUID for the merchant 110 in the
loyalty program database, the commodity GUID for the chairs in the
loyalty program database, and the account GUID for the consumer 102
in the loyalty program database. If any of the merchant GUID, the
commodity GUID, or the account GUID do not match, the transaction
is not eligible for the incentive of the loyalty program 114;
however, the consumer 102 may potentially get the incentive of the
loyalty program 114 to incent the consumer 102 to change their
commercial behavior such that the remaining variables of the
loyalty program business rule are satisfied. Consequently, a
potential incentive may exist when the loyalty program business
rule is partially satisfied. A transmission can be formed having
information on the potential incentive, such as information on the
variables that remain unmatched between the data characterizing the
transaction and the various GUIDs that are stored in the loyalty
program database. The transmission may be addressed to the merchant
110 or the consumer 102.
[0252] To illustrate, the consumer 102 may go into a furniture
store that is merchant 110. Both the consumer 102 and the merchant
110 may be participants in the merchant's 110 loyalty program for
chairs. The consumer 102 purchases a table at the merchant's 110
store. At the POS, the merchant 102 receives a transmission
indicating the consumer 102 is a member of the merchant's 110
loyalty program for chairs. The merchant 110 may convey to the
consumer 102 that if the consumer also purchases the chairs that go
with the table, the consumer 102 may receive a ten (10) percent
cash back incentive.
[0253] Alternatively, or in combination, the information on the
incomplete matches can be accumulated in a manner that can be
retrieved based on a characteristic of the information on the
incomplete matches. An algorithm can be used to store the
information on the incomplete matches in the loyalty program
database or to filter the information on the incomplete matches.
For example, the algorithm may filter the information on the
incomplete matches such that only those incomplete matches
involving merchant 110 are retrieved in a set. The set can then be
transmitted to the merchant 110. Given the set, the merchant 110
may refine the parameters of the loyalty program 114 to better
capture sales potentials and increase sale value.
[0254] Various terms may be used herein, which are to be understood
according to the following descriptions 1 through 8:
[0255] 1. Point of Service (POS) devices includes a device capable
of communicating with a payment device, where the POS device can
include a cellular phone, personal digital assistant (PDA), a
pager, a security card, an access card, a smart media, a
transponder, personal computer (PC), tablet PC, handheld
specialized reader, set-top box, electronic cash register (ECR),
automated teller machine (ATM), virtual cash register (VCR), kiosk,
security system, or access system;
[0256] 2. Account holder or consumer includes any person or entity
with an account and/or a payment device associated with an account,
where the account is within a transaction processing system;
[0257] 3. Issuer includes any entity that issues one or more
accounts and/or payment devices;
[0258] 4. Merchant includes any entity that supports an POS
device;
[0259] 5. Participant includes any consumer, person, entity,
charitable organization, machine, hardware, software, merchant or
business who accesses and uses the system of the invention, such as
any consumer (such as primary member and supplementary member of an
aggregate consumer account), retailer, manufacturer, and
third-party provider, and any subset, group or combination
thereof;
[0260] 6. Redemption includes obtaining a reward using any portion
of points, coupons, cash, foreign currency, gift, negotiable
instruments, or securities;
[0261] 7. Reward includes any discount, credit, good, service,
package, event, experience (such as wine tasting, dining, travel),
or any other item; and
[0262] 8. Portable consumer device includes a card, smartcard,
ordinary credit or debit cards (with a magnetic strip and without a
microprocessor), a keychain device (such as the SPEEDPASS.RTM.
commercially available from Exxon-Mobil Corporation), cellular
phone, personal digital assistant (PDA), pager, payment card,
security card, access card, smart media, or transponder, where each
portable consumer device can include a loyalty module with a
computer chip with dedicated hardware, software, embedded software,
or any combination thereof that is used to perform actions
associated with a loyalty program.
[0263] It should be understood that the present invention can be
implemented in the form of control logic, in a modular or
integrated manner, using software, hardware or a combination of
both. The steps of a method, process, or algorithm described in
connection with the implementations disclosed herein may be
embodied directly in hardware, in a software module executed by a
processor, or in a combination of the two. The various steps or
acts in a method or process may be performed in the order shown, or
may be performed in another order. Additionally, one or more
process or method steps may be omitted or one or more process or
method steps may be added to the methods and processes. An
additional step, block, or action may be added in the beginning,
end, or intervening existing elements of the methods and processes.
Based on the disclosure and teachings provided herein, a person of
ordinary skill in the art will appreciate other ways and/or methods
to implement the present invention.
[0264] It is understood that the examples and implementations
described herein are for illustrative purposes only and that
various modifications or changes in light thereof will be suggested
to persons skilled in the art and are to be included within the
spirit and purview of this application and scope of the appended
claims.
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