Abstract:
A system and method enable a consumer to redeem loyalty points and coupons. The consumer is presented with a choice of electronic loyalty point redemption options and coupons, specific to the consumer and based on a behavioral purchasing rating system. The consumer&#39;s selections are transmitted to the participating vendor so the consumer can immediately pick up the consumer&#39;s selection from the vendor or utilize the desired coupons. The vendor can initiate new loyalty point redemption options dynamically. The vendor can accurately identify whether or not a promotion drove the consumer to the vendor&#39;s store through time and membership identification correlation.

Description:
CROSS REFERENCE TO RELATED APPLICATIONS  
       [0001]     This application is a continuation-in-part of U.S. patent application Ser. No. 11/053/741, filed Feb. 8, 2005 which, in turn, is a continuation-in-part of 10/072,647, filed Feb. 6, 2002, the entire disclosure of which is incorporated by reference herein as if being set forth in its entirety. 
     
    
     BACKGROUND OF THE INVENTION  
       [0002]     1. Field of the Invention  
         [0003]     The present invention relates to marketing systems and methods and more particularly, to the redemption of specific consumer incentives on a real-time basis and the evaluation of their efficacy.  
         [0004]     2. Description of the Prior Art  
         [0005]     Credit card companies and vendors typically offer loyalty programs to consumers to encourage them to continue purchasing. Consumers earn loyalty points which correspond to the amount of dollars they have spent. Generally, these loyalty points translate to a set of generic reward redemption products that are offered by the credit card company and/or its affiliates, a ticket of reservation for a hotel stay, car rental, airfare, or gift card/certificates that are worth a specific amount of cash value when redeemed at a local store merchant. This gives the consumer the opportunity to acquire an incentive product or reward, without having to pay cash or have the ability to receive a discount for it. For example, a consumer who charged $500 worth of purchases or spent $500 at a particular store would earn 500 loyalty points from a specific program of the consumer&#39;s choosing, which can be accumulated and later used for redemption from the above mentioned methods. Consumers spending more money earn greater amounts of loyalty points and can be redeemed for more valuable incentive products or receive greater cash value gift cards for discounts at local stores.  
         [0006]     Typically, redemptions from electronic means such as the Internet/mobile access have not been real-time. A consumer who redeems a generic product must first contact the loyalty points program via phone/Internet/mobile access, select the product from a set of products that are offered by the loyalty points program, and then receive the product by mail after many days. This is even consistent with consumers who redeem an airline ticket, hotel stay, or car rental, because after the reservation is made, the consumer must wait until the day of the reservation to claim the reward.  
         [0007]     Specific grocery stores have introduced a method to redeem loyalty points for discounts of specific items when a consumer arrives at the grocery store. For example, grocery store AB has its own loyalty program, and stipulates that this week, consumers can redeem 100 points and get $1 discount on store branded vegetable soup. Without redeeming points, the cost to the consumer will be $3. With redeeming points the cost to the consumer will be $2. This results in the need of the consumer to physically request the discount and the discount is then administered by the store checkout attendant. This does not involve an ability of the consumer to pre-determine redeeming a promotion through electronic means so that the store checkout attendant already knows that the consumer will redeem the reward or discount.  
         [0008]     Additionally, it is not practical to establish limits on the number of persons who can redeem loyalty points for a particular product in a fair and efficient way online or at local stores. Consumers may redeem the product on a first-come-first-serve basis but this may anger consumers if there is not enough product to accommodate them. For any given promotional product, it remains unclear whether the promotional product is actually at the store upon the consumer&#39;s arrival. It is also very difficult to gauge which consumer actually received a promotion to collect data to cater to consumer preferences when gift card certificates are brought into the store, since most gift certificates are not associated with a specific consumer&#39;s purchasing details because they are generic in nature.  
         [0009]     Also, today, it is not possible for a vendor to implement changes to a loyalty program redemption “on the fly,” i.e. dynamically. For example, a restaurant owner may observe that his or her restaurant is empty at 7PM on a Tuesday evening and he or she would like to generate business by modifying the loyalty program, at that very moment. There is currently no means for notifying the consumer of this instant change and thereby driving the consumer into the store. In another example, if the restaurant unveils a loyalty redemption promotion for a free cheesecake for a specific day or time for all consumers. However, overwhelming responses limits the restaurant&#39;s ability to seat consumers above its capacity. Currently, there is not a methodology where the restaurant can change the redemption offer and add a limit count for the amount of possible redemptions for local stores. Current loyalty programs are inflexible and cannot meet the ongoing needs of the vendor.  
         [0010]     Accordingly, there exists a need in the art to: enable consumers to realize value by quickly and easily redeeming loyalty points and coupons; to enable advertisers and vendors to monitor the redemption, to better measure the effectiveness of these incentives; and to enable vendors to be able to modify their incentive programs instantaneously, to effectively drive consumers to their stores.  
       SUMMARY OF THE INVENTION  
       [0011]     The present invention discloses a method and system for enabling a consumer to redeem loyalty points at local stores. The method and system include providing the consumer with a choice of loyalty point redemption options, redeemable for a product or service, at one or more participating vendors. When the consumer selects the desired option via electronic means such as the Internet or wireless access from a mobile phone, this is recorded and transmitted to the related participating vendor, or the information is kept in a database that can be accessed by the participating vendor at any time. Accordingly, the consumer is enabled to immediately redeem the loyalty points for the incentive product selected and also thorough evaluation of the effectiveness of the incentive, which is driving the consumer to the vendor&#39;s store for pickup, a better measure of the incentive can be accomplished. The loyalty points can be immediately deducted from the consumer&#39;s account as he indicates his preference for redemption through electronic means. The vendor may also make available to the consumer new or modified loyalty point redemption options, or set limits to the amount of consumers that can redeem a certain loyalty redemption, at will and instantaneously, using a POS device, a website, using mobile wireless access, or other input methods.  
         [0012]     The present invention also discloses a method and system for enabling a consumer to select and redeem a discount coupon or gift card certificate from a selection of personalized coupon redemption options, based upon a behavioral purchasing rating system. The option selected is recorded and transmitted to the related participating vendor, kept in a database that can be accessed by the vendor at any time and/or alternatively, a barcode is also transmitted consumer&#39;s portable device. It can then be associated with the consumer&#39;s identification, eliminating the potential for fraud, and scanned into a POS device or other register so that the appropriate discount coupon or gift card certificate may be applied to the consumer&#39;s purchase on a real-time basis. 
     
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       [0013]     The invention will be more fully understood and further advantages will become apparent when reference is had to the following detailed description and the accompanying drawings, in which like numerals refer to like parts, and in which:  
         [0014]      FIG. 1  is a block diagram of the present invention illustrating a system for redeeming loyalty points;  
         [0015]      FIG. 2  is a flow diagram of the present invention illustrating a method of redeeming loyalty points;  
         [0016]      FIG. 3  is a flow diagram of the present invention illustrating a method for redeeming coupons;  
         [0017]      FIG. 4  is a block diagram of the present invention illustrating a system of redeeming coupons; and  
         [0018]      FIG. 5  is an exemplary screen shot of the loyalty points redemption user interface. 
     
    
     DETAILED DESCRIPTION OF THE INVENTION  
       [0019]     It is to be understood that the figures and descriptions of the present invention have been simplified to illustrate elements that are relevant for a clear understanding of the present invention, while eliminating, for purposes of clarity, many other elements found in a typical marketing or advertising method and system incorporating the Internet. Those of ordinary skill in the art will recognize that other elements are desirable and/or required in order to implement the present invention. However, because such elements are well known in the art, and because they do not facilitate a better understanding of the present invention, a discussion of such elements is not provided herein.  
         [0020]      FIG. 1  is a block diagram illustrating a system for enabling a consumer to redeem loyalty points without the delay inherent in the prior art. The Consumer  14  earns loyalty points by spending money  22  at Store C  18 . The Loyalty Program  12  credits the Consumer  14  with loyalty points  24  when the Consumer  14  shops with the loyalty program card  22 . A Loyalty Program  12  is implemented by a credit card company, an airline, or a retailer, for example. The Consumer  14  can also earn extra points by shopping at specific stores. Store C  18  pays a fee to the credit card company for each item charged and may also pay the Loyalty Program  12  for extra points Store C  18  gives to the Consumer  14  to further enhance incentives for the Consumer  14 . Facilitated by BonusMe  10 , Store C  18  can also modify the loyalty point redemption options available to the Consumer  14  through the Internet, mobile phone, and other electronic means.  
         [0021]     The Consumer  14  can redeem loyalty points directly from the Loyalty Program  12  in exchange for offers  32  by accessing the Internet, mobile phone, or other electronic means. Alternatively, the Consumer  14  can redeem loyalty points  20  through BonusMe  10  and secure a promotion on a real-time basis at an offline store  16 . BonusMe  10  facilitates the transaction of dollars  36   40  from the Loyalty Program  12  to Store B  16  for items redeemed by the Consumer  14  and deducts points  38  from the Consumer&#39;s  14  account. As soon as the Consumer  14  clicks on the hyperlink to redeem the promotion  FIG. 5   80 , the Consumer  14  can pick up the item from Store B  FIG. 1   16  on a real-time basis.  
         [0022]     Real-time redemption utilizing electronic means to obtain a promotion product from a local store, as described above, does not occur in the prior art. So for example, a credit card company might offer a consumer a briefcase as a reward for charging a threshold dollar amount but the briefcase company does not know who the consumer is and the consumer cannot visit the briefcase company to pick up the reward. In the case of the prior art, the credit card company, or a third-party to whom the credit card company has contracted out the function, handles point redemption. The vendor of the promotional item has no connection with the consumer, does not know who the consumer is and therefore, the consumer cannot pick up the promotional item directly from the vendor without the assistance of a printed medium such as a paper-based coupon for verification purposes. When the consumer wishes to redeem a promotional item, the Loyalty Program  12  must first be notified. The Loyalty Program  12  can then send the consumer a gift card, which the consumer can present to the vendor in order to receive the promotional item, or the Loyalty Program  12  can arrange for the item to be mailed to the consumer from the vendor.  
         [0023]     An example of a product, which can be redeemed for loyalty points is a Coca-Cola® figurine  FIG. 5   80 . When the Consumer  14  clicks on the hyperlink for the figurine, the consumer redeems the promotion  FIG. 1   20  from the BonusMe system  10  or from the Loyalty Program  12  and the redemption will now be displayed in the Special Bonus Window  FIG. 5   84 , which is a customized display and tracking of the Consumer&#39;s  14  redemption. Store B  FIG. 1   16  can further control the promotion that are given by limiting it to the first  10  people to click, for example. However, the Consumer  14  need not rush to Store B  16  because the product is reserved for the Consumer  14 , or Consumer  14  can be near or at Store B  16 , click on the promotion while Consumer  14  is at Store B  16 , and pick up the redeemed item immediately. After the Consumer  14  or checkout attendant scans Consumer&#39;s  14  membership card or manually enters a personal identification number that correlates the Consumer  14  to redemptions on a touchscreen device, which can be a PDA, small computer, POS entry system, mobile phone, etc. then the promotion which has been electronically redeemed by the Consumer  14  will appear. This can correlate the Consumer  14  to specific promotions that may only be available to the Consumer  14  at Store B  16 , and happens on a real-time basis electronically. In contrast to the prior art, in the present invention, the promotional offer is accepted online and immediately by the Consumer  14 . In the prior art, the offer is only accepted when the Consumer  14  is at the checkout counter of Store B  16 .  
         [0024]     When the Consumer  14  displays the Consumer&#39;s  14  loyalty program card for scanning, Store B  16  identifies the Consumer  14  and recognizes that Consumer  14  is the party who is entitled to the reward. Accordingly, the present invention not only avoids the delay inherent in the system of the prior art, but also determines that the promotional item, i.e. the figurine, is driving the Consumer  14  to Store B  16 , where it is quite likely that additional purchases will be made. In contrast, in the prior art, the consumer is already in the store, at the time and place when the promotional item or discount is offered. The consumer may be shopping in the store for reasons completely unrelated to the promotion, so there is no way of ascertaining the true effect of the promotion.  
         [0025]     With reference to  FIG. 2 , in the present method, BonusMe  10  facilitates the dollar flow, loyalty flow, and point flow between the Loyalty Program  12 , the Consumer  14 , Store B  16 , and Store C  18 . In this example, Store B  16  and Store C  18  are representative of a plurality of participating stores. Store B  16  notifies BonusMe  10  of a new promotional item and the points to be charged step  120 . Generally, the points to be charged are for the promotional item can dynamically vary from day to day, and the promotional item can also vary from day to day. This is in contrast to the prior art where promotional items are redeemed for static point amounts that are generally availed for long periods of time. Also, in the prior art, points can only be redeemed for promotional items offered by a single store chain, for example, D′ Agostinos Grocery Store®. The present invention promotes real time dynamic rewards at many different stores.  
         [0026]     Accordingly, in the present invention, Store B  16  can leverage its promotions more efficiently. If Store B is a restaurant, for example, Store B  16  can dynamically adjust downward the number of points it charges to procure the promotional item, such as a pizza, with the hope of driving more customers to the store. Likewise, if Store B  16  is a grocery store, when there is an overstock of a perishable promotion, such as bananas, Store B  16  can adjust the points downward with the hope of reducing its inventory of the good. Store C  18  can also dynamically adjust upward the points it allocates a consumer as bonus points in the hopes of differentiating itself from other stores. So for example, if Store C  18  normally allocates  10  points for every dollar spent on candy corn during Halloween, it can double this allocation, giving  20  points for every dollar spent, to clear out excess inventory.  
         [0027]     The present invention tracks the money the consumer spends at the Vendor  18  using the loyalty program card and allocates loyalty points to the consumer&#39;s loyalty point account step  122 . The consumer selects a promotional item using the BonusMe interface step  124  redeeming a predetermined amount of loyalty points. BonusMe deducts points from the consumer&#39;s loyalty point account step  126  and facilitates payment from the Loyalty Program  12  to the Vendor  18  for the promotional item. BonusMe notifies the Vendor  18  of the consumer&#39;s selection step  128 . The Vendor  18  sets aside the promotional item step  130 . The consumer visits the Vendor  18  and the Vendor  18  scans the consumer&#39;s Loyalty Program  12  (Saver) card to identify the Consumer  14  step  132 . The Consumer picks up the promotional item step  132  and the redemption fulfillment is recorded.  
         [0028]     Because BonusMe tracks and controls the entire redemption process, the efficacy of the promotion can be measured, evaluated, and finely tuned. BonusMe records the Consumer&#39;s  14  click stream in the process of selecting the promotion from the BonusMe website  FIG. 2  step  124   FIG. 6 , so that redeeming Consumer&#39;s  14  purchasing and promotion interests can be evaluated. BonusMe also records the time lag between selecting the promotion step  124  and picking up the reward step  134  as well as whether any additional items were purchased in the store step  132 . In this way, BonusMe can evaluate whether the promotion in fact drove the consumer to the store and whether it resulted in additional purchasing. The shorter the time lag, the more likely that the promotion prompted the store visit. Also, because promotions are dynamic and some are only available for short time periods, the connection between a promotion and a store visit can be more confidently ascertained. If a consumer: 1) logs on to the BonusMe website at 10 PM; 2) selects a free pizza coupon for redemption at 10:05 when the window for the promotion is 10 PM to 12 midnight; and 3) redeems the pizza at 10:20; the effectiveness of the promotion is clear.  
         [0029]     The prior art relies upon Cost per Impression (CPM) wherein advertisers charge vendors each time an ad is shown. This metric does not take into account any sort of tracking or follow-up on the consumer&#39;s response to the ad. It is unknown whether the consumer actually purchases anything based on the ad. Also, companies such as Google® charge vendors for advertising based upon Cost per Click (CPC). Each time a consumer clicks on an advertising link, Google® charges the vendor. For online purchasing, the efficacy of the purchase can be tracked, as cookies within a browser can verify whether the link led to an actual purchase. Of course, there is no clear connection between clicking on an ad and purchasing an item at a local store displayed in the ad. The present invention employs Cost per Delivery (CPD), which is a major improvement over the prior art. CPD tracks the effectiveness of a promotion by measuring exactly what was purchased at a local store and correlates the time that a Consumer  14  views an advertisement, redeems the promotions, and their offline responses to the promotion which ultimately results in physical obtainment of the promotion at the Store  18 .  
         [0030]     In addition to tracking redemption of promotional items, the present invention also tracks the redemption of electronic coupons, in the same manner. When the consumer enters a participating store  FIG. 1   18 , the consumer can scan the consumer&#39;s saver card  FIG. 4   74 ,  FIG. 4   82  into a digital shopping cart  FIG. 4   82 . Digital shopping carts or smart shopping carts such as Save-A-Lot from IBM or the U-Scan Shopper from Fujitsu are well-known in the art. The digital shopping cart  82  displays to the consumer the promotions available to the consumer by product and their location in the store  FIG. 3   50 .  
         [0031]     The consumer may also have redeemed certain promotions or coupons using the BonusMe website,  FIG. 5   86 ,  FIG. 2   124 . If the Consumer  14  is scanning the Consumer&#39;s  14  order using the digital shopping cart  82 , the prices will reflect the personalized promotions and discounts available to the particular consumer  FIG. 3   46   48   50   54 . Alternatively, using a cell phone  FIG. 4   80 , the consumer may dial a pre-assigned telephone number, press a designated key sequence, or use the Web access feature of the cell phone  FIG. 4   80  to enter the consumer&#39;s identification number, which is also recorded on the saver card  74 . The consumer can then download a bar code, corresponding to an electronic coupon redeemed online by the consumer, to the cell phone  80   FIG. 3   46 . Alternatively, the consumer may also download a barcode corresponding to a redeemed coupon using a Web-enabled PDA  76 .  
         [0032]     Scanning bar codes from a variety of display devices is well-known in the art. The bar code on the PDA  76  or cell phone  80  is scanned at the scanner  72  and read by a POS device, which generates the appropriate price  FIG. 3   44 . The POS device records the time and place of redemption fulfillment. Where a POS is not available, other types of registers  FIG. 4   70  or scanners  72  can be used to identify the bar code corresponding to the redeemed coupon  FIG. 3   48 . This is helpful for smaller businesses, or business in less developed nations, where POS devices are not frequently available. Of course other means of identifying the consumer or the coupon can be employed such as RFID. Connections to the Web may be through a network, directly via cable or satellite, or wireless. In addition, paper coupons may be used to further reduce the price charged the consumer  FIG. 3   52 . 54   
         [0033]     Accordingly, the effect of the coupon can be judged because there is a record of coupons redeemed by the consumer, prior to entering the store, and the use of the coupons is effectively limited in accordance with the participating vendor&#39;s intent. It is not possible for a consumer to use the same coupon more than once. Furthermore, consumers who visit a participating vendor, only after redeeming a coupon, are easily identified. The vendor may then decide not to offer the consumer further coupons because the coupons have not succeeded in instilling store loyalty in the consumer.  
         [0034]     Those of the ordinary skill in the art will recognize that many modifications and variations of the present invention may be implemented without departing from the spirit or scope of the invention. The foregoing description and the following claims are intended to cover all such modifications and variations.