Note: Descriptions are shown in the official language in which they were submitted.
21 9386q
COMPUTER-IMPLEMENTED METHOD AND APPARATUS FOR IDENTIFYING
PRODUCTS THAT ARE OF LIKELY INTEREST TO PURCHASERS
IN A RETAIL ESTABLISHMENT
CROSS-REFERENCE TO RELATED APPLICATIONS
This is a contiml~tion-in-part of application Serial No. 08/316,909 filed October 3,
1994, which is a contiml~tion of application Serial No. 07/947,285 filed September 17, 1992,
now Patent No. 5,353,218.
BACKGROUND OF THE INVENTION
This invention relates generally to co~ ul~l systems used for marketing articles and,
in particular, to such systems which utilize microlllalketing techniques. The invention has
particular application for merchandising items in a retail establishment, such as a grocery
store, but has applications in other forms of retailing.
One form of marketing merchandise is known as micromarketing. Micromarketing is
the targeting of promotional activities to consumers who are likely to purchase a particular
article. One such micromarketing technique is disclosed in United States Patent No.
5,353,218 issued to James P. DeLapa et al. for a FOCUSED COUPON SYSTEM. The
focused coupon system selects coupons for individual households based upon attributes of that
household. A set of such coupons are provided to the particular household which then
selectively redeems coupons according to the shopping habits of that household. Coupons
which are redeemed by households are sc~nn~, preferably at the point of sale in a retail
establishment, and utilized to update attribute records of each household. The household
attribute records are then utilized to generate another set of coupons, which are provided to
the households, based upon a point-of-sale transaction in which one or more coupons are
redeemed. The focused coupon system is especially effective at bringing consumers to a retail
establishment who are not present customers of that retail establishment. Additionally, the
21 938~
~cused coupon system is capable of reinvigorating a customer of a retail establishment when
the consumer significantly reduces the amount of purchases made at the retail establishment,
as a whole, or in particular departments of the establishment. This may be accomplished
because the focused coupon system not only updates the household attribute records on the
5 basis of redeemed coupons, but also is capable of capturing details of the entire transaction to
provide information regarding total purchases, purchase by department, and the like for each
household redeeming one or more coupons.
Frequent-shopper clubs have grown in popularity. In frequent-shopper clubs, club
members are provided with encoded identification cards which identify the member or
10 household. The swiping of the member's card in a card reader at the point-of-sale terminal,
or check-out counter, attributes the transaction to that household and allows the club's
colllputer to track purchases made by each household. In order to encourage membership in
such frequent-shopper club, discounts are typically provided to members who present their
membership card at the beginning of a point-of-sale transaction. The swiping of the
15 membership card is the event that causes the system to provide a different lower price on
particular items to club members. If the club member forgets his or her card or does not
present the card, the discounts are not afforded the club member.
Attempts have been made to utilize the vast amount of data which is collected on club
member purchases in order to micromarket to club members. One such system provides
20 shopping lists to club members based upon manufacturer's promotional allowances. Such
system dispenses shopping lists to club members when the club member swipes his or her card
through a card reader at an in-store kiosk terminal. In order to obtain the discounts, the club
member must present their membership card to the cashier during the check-out procedure at
the point-of-sale terminal. If the membership card is forgotten, the shopping list cannot be
2 I q386~
Qbtained directly from the kiosk. If the club member forgets to present the membership card
to the cashier during the transaction, the discounts may not be obtained.
- In addition to promotional allowances, m~nllf~ctllrers offer promotional discounts on
numerous items. Such promotional discounts are numerous and are typically offered by the
retailer to anyone purchasing the promoted item. However, in order to obtain such
promotional discounts from the m~nllf~rtllrer, the m~mlf~lrer typically requires evidence
that the retailer has actively promoted the discounted item. The promotion by the retailer may
be in the form of special displays within the store, or in-store signs announcing the promotion
of the particular item. Another frequent promotional activity is for the retail establishment to
take out a single-, or multiple-, page advertisement in a local newspaper in order to advertise
various promotional items. Because the number of promotions at any given time is large,
often excee-ling 2,000 items, the amount of print space afforded to each particular
promotional item is often so small that it is hardly capable of attracting the attention of the
consumer. Such ads are known as obituaries for this reason. Such newspaper advertisements
are exceptionally time-con~uming for the consumer to use because the consumer must
carefully review one or more pages of disolg~ni~e~l, small advertisements in order to
determine which promotions may be of interest to that particular consumer. The consumer
must then record the promotions so that the consumer is reminded to make the purchase at the
establishment.
Such newspaper advertisements do not provide the capability for micromarketing
because they are distributed en masse to the entire readership of the newspaper. Furthermore,
newspaper advertisements inform not only consumers of the promotional activity of a
particular retail establishment but also inform the competitors of that retail establishment of
the promotional pricing of that retail establishment. This allows competitors to adjust their
2 1 ~3869
pmmotional activities in an effort to neutralize the promotional activities of the advertising
establishment.
SUMMARY OF THE INVENTION
The present invention provides a computer-implemented method and apparatus for
5 marketing articles, which brings micromarketing to retail store promotional activities by
endeavoring to find items that people want to purchase rather than finding buyers for
particular products. This is accomplished, according to an aspect of the invention, by
sc~nning items with a scanner at a point-of-sale terminal in order to establish records of user
purchases. A comL~uL~r file is established of promotional programs, each including a discount
10 that is provided to all purchasers of a particular merchandise item. A colllpuLel generates, for
a particular user, a personalized shopping list of promotional programs in the colll~uLeL file
that also include merchandise items that relate to attributes of the user, such as previous
purchases made by that user, household size, or other characteristics. Because each
merchandise item listed on the personalized shopping list relates to an attribute of the user,
15 there is a greater likelihood that the consumer has an interest in that particular item.
Furthermore, the attention of the consumer is directed to these items of likely interest to that
consumer, which reduces corLfusion at the store resulting from a plethora of promotions to
which the consumer is exposed at the store.
A promotional program may be placed on the personalized shopping list of a user by
20 category, according to a weighted number assigned to each promotional item. A greater
weight value is assigned to a promotional program if the precise merchandise item had been
purchased previously by that user. A lesser weight value is provided to a promotional
program if the user purchased a merchandise item in the same category as the promotional
program. The categories are preferably organized by departments within the store and the
2 ? j ~869
~erchandise items arranged within a category according to the weighted number assigned to
each item. Alternatively, the items may be arranged on the personalized shopping list
according to the geographical layout of the store with aisle numbers listed by each item.
Promotional programs may be placed on the list at a time-lapse from the last purchase of the
discounted merchandise item that is equal to the interval between previous purchases of that
item by that user.
The present invention provides a store-based micromarketing system which elimin~es
the necessity for the user to possess and utilize a membership card either in obtaining the
personalized shopping list or in obtaining discounts. This is accomplished, according to
another aspect of the invention, by generating with a computer, for a particular user, a
personalized shopping list of items in a co~ u~el file of promotional programs, each including
a discount for purchase of a particular merchandise item. The colll~utel further applies to the
list a user identification code of the particular user. In this manner, purchases can be linked
to a particular user by scanning the identification code at the point-of-sale terminal. Because
the user identification code is carried by the personalized shopping list, such as by printing on
the list, the cashier may scan the user identif1cation code in order to identify the user and
thereby elimin~te the necessity for a membership card. Furthermore, the list may be
dispensed to the user by a simple user identification, such as the household's telephone
number, that does not require use of a membership card.
In a preferred embodiment, the items on the shopping list are items that are discounted
to all purchasers when purchased. The user identification code merely serves to update the
user's purchasing record in the co~ u~er system and is unnecessary for obtaining discounts.
As a result, the user identification code may be scanned at any time during the check-out
transaction either prior to, during, or subsequent to sc~nning of the items to be purchased.
21 i386q
This greatly improves the appeal of the system to users who are provided with discounts
without concern for remembering a membership card or remembering to present the
- membership card to the cashier prior to the start of the check-out transaction.
A personalized shopping list may be combined with discount coupons; for example,
5 the type disclosed in the DeLapa et al. '218 patent, in order to provide a complete system for
bringing new customers into a store, enhancing purchases by and building loyalty of existing
customers, and rejuvenating customers whose purchases at a particular store or store
department have significantly declined. This may be accomplished according to another
aspect of the invention by sc~nning items at a point-of-sale terminal in order to establish
10 records of user purchases and to redeem discount coupons presented by users. A computer
file is established of promotional programs, each including a discount for purchase of a
particular merchandise item. The co~ uLe. generates for a particular user a personalized
shopping list of promotional programs in the coll~u~el file that include merch~n(1ice items in
the record of purchases made by that user and generates at least one discount coupon for that
15 user. The user's personalized shopping list and the discoùnt coupons are outputted to the
particular user in response to identification of the user.
This aspect of the invention uniquely combines the ability of the focused coupon
system to increase purchases in areas where the user has changed purchasing habits with the
ability to inform regular customers of the retail establishment of promotional programs which
20 are likely to be of interest to that user. Advantageously, both the personalized shopping list
and the coupons may be dispensed with the same equipment, which may be located in various
locations. One such location is at the entrance of the retail establishment, whereby the user
may obtain an up-to-date personalized shopping list and one or more discount coupons that are
uniquely assigned to that user, at the beginning of a shopping trip. In order to bring new
2 -1 ~386 )
customers, or forrner customers, into the retail establishment, coupons may be mailed to the
household. Preferably, the user identification code is encoded on the shopping list and on
- each discount coupon. In this manner, the redemption of any coupon, or the presenting of the
shopping list to the cashier, will cause the point-of-sale terminal to capture the entire
S transaction and assign that transaction to the user corresponding to the identification code.
Either the personalized shoppirig list or any coupon may be presented at any time before,
during, or after the transaction. The user will obtain all discounts.
The present invention is exceptionally beneficial to both the retail establishment and
the coIlsuming public. The invention may be embodied in a computer system which is highly
10 automated and easy to a~lmini.~ter. The system gives everyone a fair chance at price reduction
features and readily accepts new members into the system without delays needed to emboss
and mail a membership card. New members may enroll at the store and begin immediately
participating in the program during the same visit to the store. Consumers become less
dependent on sc~nning newspapers for better deals and, therefore, are provided with an
15 efficiency enhancing product. For the retailer, the invention is capable of attracting new
customers to a store, retaining good customers, and bringing back wayward former
customers. Additionally, a store's pricing policy is not colllnlul~icated to competitors through
newspaper advertisements.
The present invention is exceptionally effective because it focuses on the attributes of
~0 households including items that the household previously purchased, household size, and other
characteristics. This locates items that people will likely want to purchase and brings such
items to the attention of the consumer. Advantageously, the system facilitates its use by
consumers who do not need to remember a membership card in order to obtain a personalized
2 i 9386'~
shopping list and/or coupons. Furthermore, the user does not have to present a membership
card at the beginning of a check-out transaction in order to obtain discounts.
These and other objects, advantages, and features of this invention will become
apparent upon review of the following specification in conjunction with the drawings.
BRIEF DESCRIPTION OF THE DRAWINGS
Fig. 1 is a hardw~e block diagram of a colllpule~-implemented marketing system
according to the invention;
Fig. 2 is a flowchart of a computer-implemented process for generating personalized
shopping lists;
Fig. 3 is a flowchart of a co~ utel-implemented process for generating discount
coupons;
Fig. 4 is a flowchart of a computer-implemented process for dispensing personalized
shopping lists and discount coupons to a user;
Fig. 5 is a flowchart of a c~ uter-implemented process for inducting new members to
the marketing system;
Fig. 6 is an illustration of a personalized shopping list according to the invention;
Fig. 7 is the same view as Fig. 6 of an alternative embodiment;
Fig. 8 is the same view as Fig. 6 of another alternative embodiment; and
Fig. 9 is an illustration of discount coupons useful with the invention.
DESCRIPTION OF THE PREFERRED EMBODIMENT
Referring now specifically to the drawings and the illustrative embodiments depicted
therein, a computer-based marketing system 10 is organized around a host computer 12 which
performs substantially all of the processing for marketing system 10 (Fig. 1). Host computer
12 may be located on the premises of the retail establishment utili7ing market system 10.
21 93869
However, in the illustrated embodiment, host computer 12 is remotely located and thereby
able to service more than one retail establishment. Each retail establishment, or chain,
- includes a retail customer management computer 14, which is utilized by the retailer to enter
in the system coupon specifications and personalized shopping list specifications selected by
5 that retailer. Data files generated on computer 14 may be communicated over public
telephone system 16 to a network server 18. Network server 18, typically located at the same
premises as host co~ ul~l 12, receives the retail personalized shopping list and coupon
specification files. After making a record of the files, network server 18 passes them on to
host computer 12. Retail customer management Colll~ul~L 14 may communicate with host
10 computer 12 in other ways, such as by the physical transportation of magnetic tapes, dedicated
phone lines, and the like.
Another network server 20 physically located with host computer 12 receives files
cont~ining personalized shopping lists and coupons generated by host computer 12. Network
server 20 makes a record of the files and passes them on through public telephone system 16
to an in-store controller 22 located in the retail establishment. Network servers 18, 20 may be
separate units or be combined into a single unit. In-store controller 22 is a colll~uLer system
which services one or more customer interface terminals 24. In the illustrated embodiment,
each customer terminal 24 includes a touch-screen device 26, which prolllpl~ the user to enter
an identification number to receive a personalized shopping list and one or more discount
20 coupons, and a printer 28, which prints personalized shopping lists and discount coupons.
Customer terminal 24 may alternatively be equipped with a m~gnetic strip reader, a bar code
reader, an optical character recognition reader, a Smart Card reader, a voice recognition
device, a handprint recognition device, a mechanical keypad, or any such device capable of
providing user identification. In the illustrated embodiment, management colll~ulel 14 and in-
2 1 93869
store controller 22 are IBM compatible personal computers of the type marketed by numeroussources. Touch screen 26 is marketed by Data Lux under Model No. DB66AC, MLCE-XX
and printer 28 is marketed by Epson under Model No. TM L80. Network servers 18, 20 are
marketed by Hewlett Packard Company under Model No. 5/66 LF. Host computer 12 is a 96
5 billion floating-point-operations-per-second (Giga Flop) mainframe computer marketed by
Hewlett Packard Company under Model No. 9000.
Marketing system 10 additionally includes an in-store processor 30, which
communicates with network server 18 over telephone system 16. As disclosed in more detail
in United States Patent 5,353,218 issued to James P. DeLapa et al. for a FOCUSED
10 COUPON SYSTEM, the disclosure of which is hereby incorporated herein by reference, in-
store processor 30 co~ ,lunicates with a point-of-sale master terminal 32 which, in turn,
communicates with a plurality of point-of-sale terminals 34. Host colllL,uLel 12 downloads to
in-store processor 30 files of valid coupon records, including a coupon identification code
assigned to each coupon record. Each point-of-sale terminal 34 supports a scanner, such as a
15 bar code reader, in order to scan codes, such as one-dimensional or two-dimensional bar
codes on merchandise packages and on coupons. Point-of-sale master terminal 32 m~int~in.c a
database of coupon records and product codes in order to decode the data scanned through
each terminal 34 and thereby construct a transaction set. Each transaction set includes each
product purchased by a consumer and each coupon redeemed by a consumer. Each
20 transaction set is associated with a particular purchasing entity, such as a user or household,
and is uploaded through in-store processor 30 to host co~ ulel 12. The transaction set may
be associated with a particular purchasing entity by any means for entering the identity of the
purchasing entity in POS terminal 34 such as by scanning a machine-readable user
identification code provided on a personalized shopping list presented to the cashier, or on one
-10-
~ i 933S~~
or more coupons turned in for redemption, by swiping an identification card, such as a
frequent shopper membership card, through a card reader or by other such means. Host
- co~ uler 12 m~int~in~ records of purchases made and coupons redeemed by each user. This
information is utilized to update a file of attributes for each user household.
Host computer 12 generates on a regular basis, such as daily, weekly, biweekly, or
monthly, a personalized shopping list and/or one or more coupons for each user household as
follows. To geneldt~ a personalized shopping list, a personalized shopping list generation
process 36 is performed with host colll~uLer 12 (Fig. 2). In order to generate a shopping list,
host colll~uLel 12 selects a first member record 38 and a first authorized promotional program
40 entered by the retail establishment ~lmini~trator through management computer 14. For
the first promotional program, the count of the member's, or user's, past purchases of the
discounted merch~n~ e item is retrieved (42). Additionally, the past purchases by the user of
items in the same category as the promotional program is retrieved (44). A weighted ranking
value is obtained (46) by concaltnalillg the actual item count deltllllilled at 42 with the same
category count obtained at 44. The concatenation is a weighted number which gives greater
weight to purchases of the actual authorized item than to purchases of items in the same
category as the authorized item. The weighted ranking of the authorized item is then loaded
(48) into an array for that user. If additional authorized promotional programs are available
(50), the next authorized program is selected (52) and the weighted ranking for that program
is developed (4246) and loaded (48) to the array.
After all of the promotional programs selected by the ~-lmini.ctrator through
management computer 14 have been processed for that user, host computer 12 sorts (54) the
weighted numbers of each item by validity date in order to present offers that will be made
available and expire sooner, prior to offers that come into being and expire later. The items
21' 3~69
-
are next sorted by category, such as by department within the store. Such categories may
include the meat/poultry/seafood department, dairy department, produce department, bakery
- department, deli department, frozen food department, grocery food department, and others.
Finally, the list of items is sorted by the rank developed at 42-46. Promotional programs for
5 merchandise items which have been most frequently purchased are ranked higher than items
that were less frequently purchased. Similarly, actual purchase of the item ranks higher than
purchase of items in the same category as the particular item. After the items have been
sorted (54), any duplicate item entries are squeezed out of the selected items array (56). Host
co~ u~r 12 then fetches the first selected item at 58 and assigns this item to the user at 60.
After an item is assigned (60), it is determined at 62 whether additional entries may be
selected. The number of entries that may be selected is typically entered by the system
~llmini.strator through management co~ uLer 14. In a preferred embodiment, the number of
entries per category is dynamically adjusted for the size of the user household. Thus, by way
of example, a household having four or more members may be provided with up to six items
15 per category whereas a two-member household may be assigned up to three items per
category. If additional selections are available, the next selected item is fetched at 64 and
assigned to the member at 60. After all items have been assigned to the user (58-64~, it is
determined at 66 whether all user households have been processed. If additional user
households are available for processing (66), the next member record is selected at 68 and a
20 personalized shopping list is generated for that member. If it is determined at 66 that all user
households have been processed, the personalized shopping list generating process is exited at
70.
In a preferred embodiment, promotional programs selected by the system
~lminictrator, using management computer 14, are promotional discounts which are available
-12-
- 2, ~386~
to anyone purchasing the particular merchandise item. Many of such promotional discounts
are offered by m~mlf~tllrers to retailers at any given time. It is not unusual to have as many
- as 2,000 or more merchandise items that are promotionally discounted at a given time. The
system ~rlmini.~trator may choose to enter all of the available promotional programs through
5 management computer 14 as being available for listing on a personalized shopping list.
Alternatively, the ~tlmini~trator may choose to limit the number of promotional programs
available for listing on a personalized shopping list. The greater the number of available
programs, the potentially larger the personalized shopping list provided for the users.
However, in order to be assigned to a user's personalized shopping list, the user typically
10 must have purchased the discounted merchandise item, or at least an item in the same category
as the offered item, in the past. Because the shopping list generating process 36 ranks the
items on the shopping list according to the frequency of purchase, it is possible that items that
have been purchased in the past, which are available for assignment, will not be assigned to a
particular user if the limit for that category has been reached. Because, in the preferred
15 embodiment, promotional programs that are available for listing on a personalized shopping
list are of discounts provided to anyone purchasing the merchandise item, placement of the
item on a user's personalized shopping list does not generate the discount for that user. The
personalized shopping list, in the prefeiled embodiment, primarily serves as a marketing and
convenience tool in order to advise users of merchandise items that are being discounted
20 which have been previously purchased by that user. Not only does this assist in marketing of
the promotional items, it additionally provides a convenience to the user who is provided with
a list of items of likely interest to that user without the necessity of laboriously receiving
numerous items in newspaper advertisements. Alternatively, the promotional programs used
with system 10 may include m~nllf~rtllrer's promotional allowances, customer-specific pricing
2 1 938S9
programs, or other discount programs which provide discounts only to identified system
members.
- Promotional programs may be assigned to a household's personalized shopping list
based not only on the number of times that a purchase has been made of the actual
5 merchandise item, or of an item from the same category, but also upon when such purchase
was made. Personalized shopping list generation process 36 may place promotional programs
on a personalized shopping list when the period since the last purchase of the merchandise
item matches the interval between prior purchases of that item or items from the same
category. In this manner, not only are items listed for households that are likely to purchase
10 that item, because they have previously purchased it. The system may additionally present the
promotional discount at a time when the household is likely to need to replace that
merchandise item.
A personalized shopping list 72 generated by personalized shopping list generation
process 36 is illustrated in Fig. 6. For each promotional program, the shopping list may
15 include a product description column 74, including a size or weight column 74a. The
personalized shopping list may additionally advertise the regular price of the item in a column
76, as well as the sale price in column 78 and the savings in a column 80. A user
identification code 82 is applied to personalized shopping list 72. In the illustrated
embodiment, the user identification code is in the form of a one-dimensional bar code.
20 However, the personalized shopping list could be encoded with the household identification
code by way of a two-dimensional bar code, a scannable human-readable font, a m~gn~tic
track, or any other machine-readable identification technique. Preferably, the household
identification code 82 is applied to the front of the personalized shopping list in order to
utilize the same printing mechanism utilized to print the list. However, the household
-14-
2 1 9386q
-
identification code 82 could be applied to the back of the personalized shopping list, if a
different printing mechanism is utilized. By applying the household identification code to the
personalized shopping list, a convenient means for identification of the user at the point-of-
sale terminal 34 is provided. This causes the point-of-sale master terminal 32 and in-store
5 processor 30 to identify an entire transaction set with the household identified by household
identification code 82. Each item purchased by a user, as scanned by the sc~nning device, is
captured by the point-of-sale terminal in a transaction set. When the cashier scans the
household identification code 82 over the point-of-sale scanner, the point-of-sale master
terminal 32 identifies the transaction set with that particular household. In-store processor 30
10 then uploads this information to co~ uler 12, which, in turn, updates the record associated
with that household identification code to include the purchases in the transaction set. In this
manner, a database is built up of purchases made by each household which is a member of
marketing system 10.
Marketing system 10 additionally includes a coupon-generating process 84 carried out
by host colll~ulel 12 (Fig. 3). When process 84 is initi~te~l, the colll~uLel selects a first
member record (86) and selects a first authorized coupon offer (88). Authorized coupon
offers are entered by the system Allmini~trator with management computer 14 and uploaded to
host computer 12. A coupon offer would typically specify an item to be discounted, or other
triggering event such as purchase of a ~ini~ amount of merchandise, and an amount of
20 discount, which could be a specific amount, two-for-one or even a specific free item. The
offer may additionally include an expiration date. It should be noted that multiple coupon
offers may be available for a given triggering event, but varied by the discount amount. This
allows coupon generating process 84 to be a customer-specific pricing program by providing
-15-
~ ~ s3~~~9
different discounts to different households as a function of attributes of the household, as is
disclosed in more detail in the DeLapa et al. '218 patent.
- For the selected member record and the selected first coupon offer, the process finds
(90) a relationship between this offer and possible member data. Member data includes
attributes of households, which, in the illustrated embodiment, may be broken down into 96
possible criteria, such as household size, composition, and various purchasing habits. The
system then examines (92) the relationship between the attributes of the member and the
coupon offer relationship criterion and determines (94) if the criterion is satisfied. If so, the
coupon offer is assigned to that user (96). The system then determines (98) if there are any
additional offers. If so, the next coupon offer is selected at 100 and considered for assignment
to the member at 90-96.
When it is determined that all of the offers have been considered at 98, the selected
offer array is sorted (102) by the offer and validity dates of the offer. The process then
squeezes (104) any duplicate coupons from the offer array and fetches (106) the first coupon
offer. The first coupon is assigned (108) to the household. It is then determined (110) if
additional unfilled coupon offer spaces are available for this member. If so, it is d~tellllhled
(112) if additional entries are available in the selected offer array. The number of coupons
offered to the member may be selected by the system a~lmini~trator on management computer
14 and may be dynamically adjusted by household size or the like. If it is d~tellllhled (112)
that additional entries are available, the next coupon offer is fetched (114) and assigned (108)
to the member. When it is determined (110) that there are no unfilled coupon offer spaces or
it is determined (112) that there are no additional coupons in the offer array, that particular
household coupon assignment has been filled. It is then determined (114) if additional
-16-
- 21 93869
households need to be processed. If so, the next user record is selected (116) and coupons are
assigned (88-114). When all members have been processed (114), the function is exited.
- In order to obtain a personalized shopping list 72 and coupons 158, an individual
approaches customer terminal 24 and is pron~ted to identify the individual or the household
of which that individual is a member. In a preferred embodiment, the individual is pro~ ed
to enter his or her household telephone number. If the telephone number corresponds to a
member household, a personalized shopping list 72 and coupons 158, which are presently
stored in in-store controller 22 and in host colll~ulel 12, is printed for the requester by printer
28. If there is no member household corresponding to the entered telephone number, the
individual is invited to become a member of marketing system 10. If the individual accepts,
the individual is then plolllpted to enter minim~l information, such as name, address,
telephone number, and the number of individuals living in the household, segregated by the
number of adults and the number of children. Alternatively, the user may also enter
information regarding the retail store shopping plefelellce of the user. The individual is then
presented with a standard shopping list, which is presented to all new members of the same
size household, and one or more welcoming coupons. One advantage of storing the
personalized shopping list at both the in-store controller and in host colll~uler 12 is that a
personalized shopping list may be retrieved from the various stores in the retailer chain.
The user is not required to possess a membership card in order to obtain a personalized
shopping list 72 and coupons 158. This avoids the frustration of missing out on discounts
resulting from not obtaining a personalized shopping list because of a failure to bring a
membership card with the user. All items listed on personalized shopping list 72 are available
for discount to all purchasers whether or not they are members of the marketing system 10.
The purpose achieved by obtaining a personalized shopping list is to provide a convenience to
~ 1 ~38~9
the user and to provide a micromarketing based promotional tool to the retailer. Additionally,
the sc~nning at point-of-sale terminal 34 of the household identification code on the
- personalized shopping list ca~lules purchasing information of the household for which the list
was generated. There is not a great concern that individuals will attempt to defraud the
5 system, by aLLelllptillg to prove false identification, because the discounts are available to all
purchasers. Additionally, high value coupons can be limited in a number of ways which
would be apparellt to the skilled artisan. Furthermore, non-members can become members
on-the-spot and receive their own shopping list. As such, security is not an overriding
concern.
Other techniques may be utilized to identify the user household at customer terminal
24 in order to obtain a personalized shopping list 72 and coupons 158. For example, each
member could be assigned a PIN number or membership number, which could be entered by
the user with touch screen 26 or a mechanical keypad. Alternatively, the user could be
assigned a membership card or a Smart Card which could be swiped with a magnetic card
15 reader or a Smart Card reader. Alternatively, the user could be identified by a voiceprint or a
handprint or the like. In the illustrated embodiment, customer terminal 24 is preferably
located at the entrance to the retail establishment, either on a wall or in a kiosk located in the
aisle. Such location serves to remind the user to obtain a current personalized shopping list at
the beginning of a shopping trip. Alternatively, a printing device could be positioned at each
20 point-of-sale terminal 34. Such printing device would print out the personalized shopping list
for that household, as identified during the check-out of items purchased by the user and
coupons. The dispensed personalized shopping list would be for use by the household at the
next shopping trip. Alternatively, the personalized shopping list and coupons could be
delivered to the household electronically by alternative means, such as by depositing the data
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in an E-Mail mailbox of the user as provided by a commercial on-line service, such as
America Online, Prodogy, or the like, or by distribution over a cable television system or
- other electronic distribution system. This would allow the user to download the household's
personalized shopping list and coupons through a personal co~ uler, via a modem, in the
same manner that the user ~ccesses other illrollllation available from such on-line services, or
via a cable system access box, or the like.
In a preferred embodiment, personalized shopping list generation process 36 and
coupon-generating process 84 generate more than one computerized shopping list and coupon
set for each member household. Each of the generated personalized shopping lists and coupon
sets will differ based upon validity dates of the offers selected. If the first list and coupon set
are not retrieved by the user in time, the second list and coupon set are dispensed when
requested. When a personalized shopping list and coupon set are retrieved, new ones are
generated by host colll~uLer 12 at the next generation cycle. When personalized shopping lists
and coupon sets are generated for the member households, a file is downloaded from host
colll~ul~r 12 to in-store controller 22 where the personalized shopping lists and the coupon
sets are stored for retrieval by the system users. However, personalized shopping lists and
coupon sets are also stored at host colll~uler 12. This allows the user to retrieve their
personalized shopping list and coupon set at multiple terminals located at different retail
outlets of the same chain.
A retrieval process 120 is performed when a user approaches a customer terminal 24
and responds to prulllpL~ to enter the user's personal identifier (122) (Fig. 4). The personal
identifier may be the telephone number of the household, a PIN number, or other number
assigned to the user household, or may be a voiceprint, handprint, or swipe of a user or Smart
Card. In-store controller 22 then determines (124) if the entered number is recognized. If so,
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then a determination is made (126) whether the number matches a member in a membership
file. If so, then in-store controller 22 causes printer 28 to print (128) a personalized shopping
list and the coupon set selected for that individual (130). If a match has not been found (126)
between the entered identification number and the list of members, a function 132 is carried
out in order to sign up the user as a new member in the marketing system. Sign-up process
132 begins by asking a customer (134) if he or she wlshes to join the system (Fig. 5). If the
customer answers "yes" (136), the customer is plonlpted (138) through a few survey
questions. The survey questions would typically include the name, address, and telephone
number of the household. Additionally, the user would be queried as to how many adults and
how many children are in the household. Alternatively, the user may also be queried as to the
retail store shopping preference of the user to determine if the user is a customer of the
participating retailer or a customer of a competitor.
It is then determined (140) if all questions have been answered. If so, the answers are
recorded (142) and tr~n.smittecl to host computer 122. A standard new member personalized
shopping list is prepared (144) and printed (146). The standard new member personalized
shopping list may be based upon the household size as entered at 138. Alternatively, a new
member personalized shopping list may be the same for all new members.
If it is d~tell~ ed (124) that the in-store controller does not recognize the personal
identifier entered by the user at 122, the in-store controller makes a connection to host
computer 12 and passes (148) the personal identifier via network server 20 to the host
computer (Fig. 4). The host co~ uler then attempts to locate (150) the personal identifier in
its customer master database. If a match is found (152), a personalized shopping list and
coupon set applopliate to the requesting retail establishment is generated (154). Personalized
shopping lists and coupons bear logos and other identification of the issuing retail
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establishment. Therefore, it is necessary that the generated personalized shopping list and
coupons match the criterion for the retail establishment requesting the personal identifier
check. In this manner, the user may obtain their personalized shopping list and coupons at
any outlet of a participating retail establishment chain. If it is determined (152) that the
5 personal identifier does not match any in host colllpulel 12, a "not found" status flag is set at
156 and the new member customer sign-up function 132 is performed.
As the personalized shopping list is printed (128) and the authorized coupons are
printed (130), they are dispensed by printer 28. Printer 28 has roll paper of a given width
that is sufficient to print the personalized shopping list (72, 72') lengthwise on the paper and
10 one or more coupons 158 sideways on the paper. Because such printer has a cutter that will
cut the paper to a selectable length, the personalized shopping list and coupons may be
individually dispensed sequentially by the printer.
In one preferred form, a personalized shopping list 72' lists the promotional programs
by categories 160 which typically include departments within the store (Fig. 7). In another
15 preferred form, a personalized shopping list 72" lists promotional items organi7ecl
geographically with respect to the retail establishment so that the items are listed in the
sequence in which they would be encountered by the user (Fig. 8). Each promotional
program could be listed first by a generic name 162 for each merchandise item and then by a
brand name (if any) 164 for the merchandise item, or vice versa. Each coupon 158 is
20 preferably encoded at 166 with the coupon identification code and household identification
code in the manner disclosed in the DeLapa et al. '218 patent. In this manner, the presenting
of any coupon 158 for redemption will generate the discount for the user and capture the
entire transaction set by household identification code.
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A user is dispensed a personalized shopping list 72, 72', 72" and/or one or more
coupons 158 whenever the user identifies his or her self to the customer terminal. As
- previously set forth, this may occur when the user enters the store, checks out at the point-of-
sale terminal or within the home of the user by downloading using a personal computer or
5 cable television box. If marketing system 10 determines that a particular household has
discontinued shopping at the retail establishment, then a set of coupons 158 may be printed for
that household and mailed to that household. Likewise, in order to bring new customers into
the retail establishment, coupon sets could be mailed to consumers based upon purchased
mailing lists, telephone solicitation, and the like.
Marketing system 10 may additionally generate proof to marketers that a particular
promotional program is authorized for inclusion in system 10 or that the item is listed on a
stated number of personalized shopping lists. This provides evidence that may be used by the
retail establishment for proof-of-pelrolmal1ce programs in order to obtain the promotional
dollars.
In addition to selecting promotional items according to purchasing habits of
households, the retail establishment may wish to place m~n~tory listings on the personalized
shopping list. Such m~n~tory listings may be sold to m~m-f~ctllrers at premium prices or
sponsored by the retail establishment.
A marketing system according to the present invention significantly elimin~tes barriers
20 both to the addition of new members to the system and to use of the system by existing
members. Individuals may be signed up on the system at the store and immediately obtain a
personalized shopping list and one or more "welcoming" coupons without a complicated
procedure. Likewise, users may retrieve a personalized shopping list and assigned coupons
without remembering to bring a membership card on the shopping trip. Coupons 158 may be
2' 1 93869
presented to the cashier at any time during the transaction or even after the transaction. When
the cashier passes the encoded coupon over the point-of-sale scanner, the user is provided the
stated discount and the entire transaction set is assigned to the household identified by the
household identification code on the coupon. In the pleferled embodiment, presentation of the
S personalized shopping list to the cashier is not required in order to obtain discounts listed on
the shopping list. However, presentation of the shopping list, so that the household code 82
may be passed over the point-of-sale scanner, ensures that the transaction set with be assigned
to that household for updating of its purchase file.
Changes and modifications in the specifically described embodiments can be carried
10 out without departing from the principles of the invention. For example, although use of
promotional programs, which provide discounts to all purchasers of the merchandise item, are
preferred for inclusion on a personalized shopping list, customer-specific pricing programs
could also be used. Also, coupon-generating programs other than that disclosed in the
DeLapa et al. '218 patent could be utilized to generate the discount coupons. The protection
15 afforded the invention is intended to be limited only by the scope of the appended claims, as
hltel~leted according to the principles of patent law including the doctrine of equivalents.
