Note: Descriptions are shown in the official language in which they were submitted.
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
METHOD AND SYSTEM FOR PROCESSING
SUPPLEMENTARY PRODUCT SALES
AT A POINT OF SALE TERMINAL
FIELD OF THE INVENTION
w
The present invention relates to point-of sale terminals. and, more
specifically, to
methods and systems for processing product sales at point-of sale terminals.
BACKGROUND OF THE INVENTION
This invention relates to a lottery ticket transaction system. More
particularly, the
present invention relates to a system and a method for selling lottery tickets
using point-of
sale ("POS") terminals that generate sales receipts containing both
merchandise sales
information and lottery ticket information.
Many states in the United States, as well as some foreign countries, have
government-conducted lottery systems. Government-conducted lotteries offer the
public a
desirable product (usually the chance to win a large cash prize), and have the
benefit of
increasing governmental revenues without burdening the public with additional
or increased
taxes. In many instances, the revenue generated from a governmental lottery is
dedicated to
a particular purpose or goal, such as improving the education system or
reducing property
taxes.
In a typical government-conducted lottery system, a central lottery computer
is used
to communicate with dedicated lottery terminals. A player selects numbers on a
lottery
playsiip, and the lottery terminal operator inserts the lottery playslip into
a reader at the
1
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
lottery terminal, which optically reads the lottery playslip using a known
mark-sense
process. The dedicated lottery terminal then communicates the player's
selected numbers to
a central lottery computer which in turn stores them. After the lottery
numbers have been
stored, the dedicated lottery terminal, under the control of the central
lottery computer.
prints and issues the lottery ticket.
One popular lottery game, known as "lotto," typically requires the player to
choose
six numbers from one to forty-two. The selected group of numbers are then
compared to the
winning lottery numbers, which have been randomly selected from the larger
pool of
numbers, from one to forty-two, at some specified time and date after purchase
of the lotto
ticket, usually once or twice each week. To win a prize, the lotto ticket
numbers must be
equal to all or some of the winning lottery numbers.
While players may select their own lottery numbers, most lotto games provide
the
option of having the central lottery computer system select random "quick-
pick" lottery
numbers instead. This saves the purchaser the time and inconvenience of
picking his or her
own numbers. These automatic lottery number generation systems are usually
known as
"quick-pick" systems.
A variety of games may be played in a typical lottery. In conventional lottery
games,
a player purchases a lottery ticket. Inscribed on that lottery ticket are one
or more lottery
numbers and a serial number. The serial number functions as a simple method of
fraud
prevention, because it uniquely identifies each lottery ticket sold. The
lottery number also
allows both the player and the lottery system to identify a winner;
specifically, the lottery
numbers are compared by the player to a "winning number list", to determine if
the player
has won a prize.
CA 02284662 1999-09-20
WO 98/43149 PCTNS98/05787
There are also instant lottery games in which the outcome is determined prior
to the
sale of the lottery ticket. By uncovering concealed indicia inscribed on the
lottery ticket,
the player can determine if the lottery ticket is a winner - immediately after
purchase.
Some foreign countries (e.g. Germany) allow a lottery player to purchase
fractional
lottery tickets. However, these lottery systems only allow the player to
purchase fixed
. fractions of certain high-priced lottery tickets (e.g., a half, or quarter
share of a lottery
ticket). In these instances, if the lottery ticket is a winner, the purchaser
will only receive
one-half or one-quarter of the full prize amount.
The majority of lottery tickets are sold by grocery, liquor and convenience
stores.
These retail stores typically place the dedicated lottery terminal away from
one or more POS
terminals used for merchandise transactions. This physical separation is to
ensure that the
merchandise transaction line is not slowed-down or blocked by customers
wishing to make
lottery ticket purchases. In addition, since the lottery terminals have a
separate and distinct
accounting system, there is no need to co-locate the POS terminals and
dedicated lottery
1 S terminals.
However, some customers may consider it annoying to make two separate
transactions, i.e., merchandise and lottery tickets, on two different
terminals within the same
store. Separate terminals may also force the customers to wait in two separate
lines, or may
slow down the overall merchandise check-out procedure while a single store
clerk performs
two separate transactions on two terminals. Besides annoying the merchandise-
only
customers, these inconveniences also reduce the impulse purchasing of lottery
tickets, which
in turn leads to loss of revenue for the government and the store.
There are other disadvantages with using two separate and distinct terminals
for
merchandise transactions and lottery ticket transactions. The government
usually bears the
3
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
costs of purchasing, leasing, installing and maintaining the dedicated lottery
terminals.
There are also the considerable costs of resupplying the lottery ticket paper
and ink for each
dedicated lottery terminal. Moreover, many retail stores with multiple
checkout lines and
registers, such as supermarkets, do not have the resources to support
dedicated lottery
terminals at every check-out register. In addition, a dedicated lottery
terminal uses counter
space that could otherwise be devoted to revenue-producing merchandise
displays. It is also
costly to train store personnel in the operation of two distinct types of
transaction terminals.
These factors reduce the availability of lottery tickets to consumers, and
thus reduce
governmental revenue, by limiting the number of locations that sell lottery
tickets.
After many years of steadily increasing profits, many state-run lotteries have
seen a
downturn in profits. Improving the ease of purchasing lottery tickets and
increasing their
availability has become a primary concern as many states are modernizing their
lottery
systems. The current lottery system does not allow for the sale of fractional
value lottery
tickets at retail point of sale terminals. There is a significant loss of
revenue from this lost
opportunity to buy fractional value lottery tickets. Accordingly, there is a
need for a system
that solves the above described problems.
Most stores that are visited by customers have one or more point-of sale
{"POS")
terminals, such as cash registers. Store cashiers use POS terminals for
calculating the total
price of a purchase (one or more products) and the amount of change due to a
customer.
Some POS terminals furthermore track purchases made and adjust a database of
store
inventory accordingly.
The amount of change due is the difference between the purchase price and the
amount tendered by the customer. Customers typically tender whole number cash
amounts
in the form of bills of paper money, while purchase prices are most often non-
whole number
4
____
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
amounts. Accordingly, the amount of change due to a customer at a POS terminal
typically
includes one or more coins, which the POS terminal or cashier dispenses to the
customer.
Receiving and carrying change, especially coins, is an annoyance to many
customers. Consequently, customers often are forced to tender non-whole number
cash
amounts in order to dispose of their unwanted coins and/or reduce the coins
that would
otherwise be given to them as change for their purchase. Coins and bills that
are tendered
by the customer are collected by the cashier at the POS terminal.
Both dispensing coins to and collecting coins from a customer increases the
amount
of time a cashier spends processing a purchase, and therefore increases the
amount of time
that customers wait in line at a POS terminal. Accordingly, businesses must
pay wages for
time spent handling coins, and customers must experience delays as coins are
exchanged
between cashiers and customers.
In addition, it is possible that the cashier will make a mathematical error
and
dispense the wrong amount of change. Customers often anticipate such an error
and count
their change to assure that they received the correct amount. Such customers
typically count
their change before leaving the POS terminal, further delaying other
customers.
Businesses incur costs associated with counting, rolling, banking and
otherwise
handling coins. By some estimates, businesses expend hundreds of thousands of
hours and
hundreds of millions of dollars each year just to handle coins.
In summary, the exchange of change, especially coins, between customers and
POS
terminals is costly, time-consuming and undesirable. Unfortunately,
conventional POS
terminals merely calculate purchase prices and amounts of change due, and
cannot reduce
the amount of change due nor the exchange of coins.
5
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
Accordingly, it would be advantageous to provide a system and method that
reduced
the amount of change due, and therefore reduced the coins exchanged between
customers
and cashiers at a POS terminal.
Lotteries are extremely popular games that generate significant revenues for
sponsoring states that offer such games. In a typical lottery, a player
(ticket holder)
purchases a lottery ticket having ticket numbers and a serial number inscribed
thereon. The
ticket numbers allow both the ticket holder and a lottery agent to identify
whether the ticket
holder has won a prize. The serial number uniquely identifies the lottery
ticket, and is
typically recorded by a lottery agency so that the lottery ticket may be
validated. For
example, the serial number may be used to verify whether the ticket numbers
inscribed on a
ticket match those ticket numbers that the lottery agency has recorded as
associated with
that lottery ticket.
A typical lottery ticket has six ticket numbers, each selected from a range,
such as
the range of from one to forty-nine. The six ticket numbers may have been
selected by the
ticket holder or, at the request of the ticket holder, randomly selected by
the lottery terminal
printing the ticket. On a drawing date, the lottery agency randomly selects
six ticket
numbers, which are deemed "winning" ticket numbers. A lottery ticket having
ticket
numbers that match some or all of the winning ticket numbers is a winning
ticket, and the
corresponding holder of the lottery ticket wins a prize.
The grandparent application of the present application, Patent Application No.
08/822,709, entitled SYSTEM AND METHOD FOR PERFORMING LOTTERY TICKET
TRANSACTIONS UTILIZING POINT-OF-SALE TERMINALS, filed on March 21, 1997,
discloses a system and method by which fractional lottery tickets may be sold
to a customer
at a point-of sale ("POS") terminal in exchange for change due. For example, a
customer
6
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
may bring a purchase to a POS terminal, and the POS terminal may calculate the
purchase
price to be $4.74. If the purchase price is rounded to the nearest $1, the
change due is $5.00
- $4.74 = $0.26. Accordingly, the customer may be sold a 26% share of a $1
lottery ticket in
lieu of the change due. If the lottery ticket wins, 26% of the corresponding
prize is awarded
to the customer.
There are numerous advantages to providing a fractional lottery ticket in
exchange
for change due. As described in the parent application of the present
application, Patent
Application No. 08/920,116, entitled METHOD AND SYSTEM FOR PROCESSING
SUPPLEMENTARY PRODUCT SALES AT A POINT-OF-SALE TERMINAL. filed on
August 26, 1997, dispensing and collecting coins is costly and burdensome.
Furthermore,
many customers consider coins to be dirty, and would prefer not to handle
them. Thus,
many customers will find the exchange of change due for a fractional lottery
ticket to be
very desirable.
Unfortunately, some state lottery agencies may be reluctant to change their
practices
by issuing lottery tickets for fractional amounts. Such state lottery agencies
may instead
prefer to offer tickets in only a few predetermined, rounded amounts, such as
tickets for $1,
$2 and $~ only. In some circumstances, the ability to offer fractional lottery
tickets may
require substantial modifications to the hardware and software of lottery
terminals used
throughout one or more states. Although such changes may ultimately be
profitable, the
initial cost may be perceived to be unduly burdensome, and the eventual profit
to be made
may appear too speculative. In summary, the issuance of fractional lottery
tickets by state
lottery agencies may not be practical in all circumstances.
Accordingly, it would be advantageous to facilitate the purchase of fractional
lottery
tickets without requiring significant changes in existing lottery systems.
7
WD2-96-007W0
CA 02284662 2003-09-08
Point-of sale ("POS") terminals, such as cash registers, are used in a wide
variety of
businesses for performing such processes as calculating the total price of a
purchase (good
or service) and calculating the amount of change due to a customer. Depending
on their
level of sophistication, such POS terminals may be further useful in
performing related
functions such as inventory management by tracking purchases made and
adjusting a
database of store inventory accordingly. In addition, POS terminals may be
used with
and/or function as an offering system.
The parent application of the present application, U.S. Patent No. 6,119,099,
entitled METHOD AND SYSTEM FOR PROCESSING SUPPLEMENTARY PRODUCT
SALES AT A POINT-OF-SALE TERMINAL, filed on August 26, 1997, discloses a
system
in which a customer at a POS terminal is offered an "upsell" in exchange for
an amount of
change he is due. An upsell, as defined therein and used herein, means a
product (good or
service) which is offered along with a purchase. Types of upsells include (i)
an upgrade
from a first product to a second product different from the first product,
(ii) an additional
1 S product, (iii) a voucher which is redeemable for a product or a discount
thereon, and (iv) an
entry in a sweepstakes, contest, lottery or other game. For example, a
customer purchasing
a first product for $1.74 may be offered a second product in exchange for
$0.26 (the change
due if the customer tenders $2.00). Various other types of upsells may be used
without
departing from the scope and spirit of the present invention.
As also disclosed in the aforementioned parent application, many different
criteria
may be used in determining an upsell. For example, a POS terminal may
calculate the
purchase price, and round the purchase price to the nearest dollar to generate
a round-up
(change) amount. The POS terminal in turn determines which of a plurality of
upsells may
be profitably exchanged for the round-up amount.
8
WD2-96-007W0
CA 02284662 2003-09-08
It would be advantageous to provide other methods of determining upsells. It
would
be particularly advantageous to provide a method and apparatus for determining
an upsell
which personnel, such as a store manager or POS terminal operator, may easily
understand
and adjust.
Point-of sale ("POS") terminals, such as cash registers, are used in a wide
variety of
businesses for performing such processes as calculating the total price of a
purchase (goods
or services) and calculating the amount of change due to a customer. Some POS
terminals
furthermore track items sold and adjust a database of store inventory
accordingly.
A POS terminal may perform a supplementary process in addition to performing
the
processes listed above. A supplementary process can increase sales, and
thereby increase
the average profit gained per transaction. One such supplementary process is
described in a
parent application of the present application, U.S. Patent No. 6,119,099,
entitled
METHOD AND SYSTEM FOR PROCESSING SUPPLEMENTARY PRODUCT SALES
AT A POINT-OF-SALE TERMINAL, filed on August 26, 1997. Described therein is a
I S supplementary process in which a customer at a POS terminal is offered an
"upsell" in
exchange for an amount of change due. The POS terminal determines an upsell in
dependence on a purchase of the customer, and also determines an upsell price
(the amount
of change due) based on the purchase. For example, a customer purchasing a
first product
for $ I .74 and tendering $2.00 may be offered a second product in lieu of the
$0.26 change
due. The upsell price, $0.26, thus depends on the purchase price $1.74.
Another supplementary process is a computer-determined "suggestive sell". U.S.
Patent No. 5,353,219 describes a system for suggesting items for a customer to
purchase
from a primary category at conventional item prices. Still another
supplementary process is
described in a parent application of the present application, U.S. Patent No.
5,926,796,
9
WD2-96-007W0
CA 02284662 2003-09-08
entitled METHOD AND APPARATUS FOR SELLING SUBSCRIPTIONS
TO PERIODICALS IN A RETAIL ENVIRONMENT, filed on May 5, 1997. Described
therein is a supplementary process in which a customer purchasing an issue of
a periodical
at a POS terminal is offered the opportunity at that time to purchase a
subscription to that
periodical.
Such supplementary processes may be performed solely within the POS terminal
itself. For example, a cash register may be programmed to calculate an amount
of change
due, and determine an upsell to offer in exchange for the change due.
Alternatively, the
supplementary process may be performed with the assistance of a device in
communication
with the cash register. For example, a remote server computer connected to the
cash register
via a communications network may determine an upsell to offer in exchange for
the change
due.
A supplementary process performed at a POS terminal may undesirably slow the
rate
at which customer transactions are completed. For example, it may take several
seconds for
a cashier operating a POS terminal to offer a customer an upsell in exchange
for an amount
of change due, and for the customer to decide whether to accept such an offer.
Offering a
customer a choice of several upsells in exchange for an amount of change due
could impose
yet further delays on completing customer transactions.
Such delays may be acceptable under some conditions, yet unduly burdensome
under
other conditions: For example, during lunch or other times of day, there may
be a long line
at a POS terminal. It would be inadvisable to add to the wait of each customer
in line by
performing a supplementary process as well. However, eliminating the
supplementary
processes may speed the completion of customer transactions, but at the cost
of the extra
WD2-96-007W0
CA 02284662 2003-09-08
profit derived from such supplementary processes. Accordingly, a need exists
for
controlling the performance of supplementary processes at POS terminals.
Point-of sale ("POS") terminals, such as cash registers, are used in a wide
variety of
businesses for performing such processes as calculating the total price of a
purchase (goods
or services) and calculating the amount of change due to a customer. Some POS
terminals
furthermore track purchases made and adjust a database of store inventory
accordingly. As
described in the parent application of the present application, U.S. Patent
No. 6,119,099,
entitled METHOD AND SYSTEM FOR PROCESSING SUPPLEMENTARY
PRODUCT SALES AT A POINT-OF-SALE TERMINAL, filed on August 26, 1997, a
customer at a POS terminal is offered an "upsell" in exchange for an amount of
change due.
The POS terminal determines an upsell in dependence on a purchase of the
customer, and
also determines an "upsell price" (the amount of change due) based on the
purchase. For
example, a customer purchasing a first product for $1.74 and tendering $2.00
may be
offered a second product , perhaps at an attractively discounted price, in
lieu of the $0.26
change due. The upsell price, $0.26, thus depends on the purchase price $1.74;
the upsell
price is not fixed like most conventional prices for items.
As described in the aforementioned parent application, offering upsells in
exchange
for change due has significant advantages. For example, customers are
typically adverse to
handling change, and would welcome the opportunity to dispense with it. In
addition, the
customer derives satisfaction from a sale at an attractively-low price.
Typically, a business may have several different upsells that may be offered.
In fact,
for any particular purchase, it may be possible to offer several different
upsells. The
particular upsell that is actually offered to a particular customer may depend
on a number of
criteria associated with the purchase, such as the change amount, the time of
day and the
11
WD2-96-007W0
CA 02284662 2003-09-08
items purchased. Since there may be so many possible upsells to offer any
particular
customer, it may be difficult or impossible to determine which upsell that
customer is likely
to accept.
In addition to the difficulty of selecting an upsell to offer, offering an
upsell may in
some circumstances require time. However, there is no guarantee that the time
spent
offering an upsell will prompt the customer to accept the upsell and,
consequently, provide
revenue to the offeror. Thus, many offered upsells will be unaccepted, thus
resulting in a
waste of time and effort. Accordingly, it would be advantageous to eliminate
the
uncertainty that is inherent in offering upsells.
I O Point-of sale ("POS") terminals, such as cash registers, are used in a
wide variety of
businesses for performing such processes as calculating the total price of a
purchase (goods
or services) and calculating the amount of change due to a customer. In
addition, POS
terminals may also be used with an offering system in order to provide offers
to customers.
Such offering systems may be intended to increase sales, and thereby increase
the average
profit gained per transaction.
One type of offering system is described in the parent application of the
present
application, U.S. Patent No. 6,119,099, entitled METHOD AND SYSTEM FOR
PROCESSING SUPPLEMENTARY PRODUCT SALES AT A POINT-OF-SALE
TERMINAL, filed on August 26, 1997. As described therein, a customer at a POS
terminal
is offered an "upsell" in exchange for an amount of change he is due. The POS
terminal
determines an upsell in dependence on a purchase of the customer, and also
determines an
upsell price (the amount of change due) based on the purchase. For example, a
customer
purchasing a first product for $1.74 and tendering $2.00 may be offered a
second product in
lieu of the $0.26 change due. The upsell price, $0.26, thus depends on the
purchase price
12
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
$1.74. Another type of offering system is a computer-determined "suggestive
sell". U.S.
Patent No. 5,353,219 describes a system for suggesting items for a customer to
purchase at
conventional item prices.
In an offering system, there are many possible offers which may be provided to
customers. For example, in the above-described upsell offer, many different
upsells may be
offered to a customer in exchange for the particular amount of change due. An
offer to a
customer at a fast-food restaurant may include a soda, large French fries, or
a dessert.
Precisely which upsell to offer may be chosen according to a predetermined
program at
random, or manually by a manager or other operator.
Unfortunately, random or manual selection of an offer does not necessarily
assure
that the "best" (highest performing) offers will be provided to customers.
What constitutes
the "best" offer may be evaluated with respect to one or more criteria,
yielding
corresponding "performance rates" for the various offers. For example, the
acceptance rate
of an offer is a performance rate that may be used to evaluate the offer,
since some offers
may be less likely to be accepted by customers than other offers. In addition,
the profit
derived from an accepted offer is another performance rate that may be used to
evaluate the
offer.
It may be difficult or impossible for a manager or other operator to identify
the
"best" offers (the offers with the highest performance rates). A manager is
unlikely to have
knowledge of the true performance rates of a group of offers. A manager is
also unlikely to
have the time to analyze historical trends to identify the best offers. In
addition, at different
~ times of the day or days of the week, certain offers may be more attractive
to customers than
others. Unanticipated events, such as a high state lottery jackpot or a good
article in a
magazine, may also make certain offers more attractive. Such circumstances
impede
13
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
attempts by a manager to identify the best offers. Accordingly, a need exists
for controlling
offers that are provided at a point-of sale terminal.
SUMMARY OF THE INVENTION
It is an object of the present invention to provide methods and systems for
offering
selected products in exchange for the amount of change due at POS terminals.
Generally, according to one aspect of the present invention, a POS terminal
determines an upsell to exchange for the change due to a customer in
connection with his
purchase. The point-of sale terminal preferably maintains a database of at
least one upsell
price and a corresponding upsell to offer a customer in exchange for the
change due to him.
The upsells and upsell prices are established so that upsells are profitably
exchanged for the
change due, thus providing the business with profit and the customer with
value if the upsell
is accepted.
When a customer brings a purchase to a POS terminal, the POS terminal
generates
the purchase price and sets a "required payment amount" to be equal to the
purchase price.
The required payment amount indicates the amount the customer is expected to
pay. The
POS terminal then generates a rounded price, preferably by rounding up the
purchase price
to a whole number, and calculates therefrom a round-up amount equal to the
difference
between the purchase price and the rounded price. Accordingly, the round-up
amount
indicates the coins due as change.
By comparing the calculated round-up amount with at least one of the upsell
prices
in the database, the POS terminal may determine whether the round-up amount
corresponds
to any of the upsell prices. If so, the POS terminal identifies the upsell
corresponding to this
upsell price, and outputs signals indicative of the identified upsell. The
output signals are
14
r.
CA 02284662 1999-09-20
WO 98/43149 PCT/LJS98/05787
preferably displayed text or graphics that explain to the customer and/or the
cashier that the
upsell may be purchased for the specified amount of change due.
If the customer accepts the upsell, the cashier so indicates by pressing a
selection
button on the POS terminal. The required payment amount for the customer to
pay is then
set equal to the rounded price, rather than the purchase price. Thus, the
customer receives
the upsell in exchange for the coins due to him, and the coins need not be
exchanged
between the customer and the POS terminal.
BRIEF DESCRIPTION OF THE DRAWINGS
FIG. 1 is a block diagram of a system in accordance with the present
invention.
FIG. 2 is a block diagram of the POS controller of FIG. 1.
FIG. 3 is a block diagram of the POS terminal of FIG 1.
FIG. 4 is a block diagram of the lottery data processing system.
FIG. 5 is a table depicting the local lottery ticket database within the POS
controller
of FIG 3.
FIG. 6 is a table depicting the lottery ticket database within the lottery
data
processing system of FIG 4.
FIG. 7 is a table depicting the POS controller database within the lottery
data
processing system of FIG 4.
FIG. 8 is a flow chart depicting the lottery transaction at the POS terminal.
~ FIG. 9 is an example of a store sales receipt in accordance with the
preferred
embodiment of the present invention.
FIG. 10 is a flow chart of the operation of the POS controller.
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
FIG. 11 is a flow chart of the operation of the lottery data processing
system.
FIG. 12 is a flow chart depicting the telephone authentication process.
FIG. 13A is a schematic illustration of a POS terminal provided in
accordance with the present invention.
FIG. 13B is a schematic illustration of another embodiment of the POS
terminal of FIG. 13A.
FIG. 14 is a flow chart illustrating a method of the present invention for
determining an upsell at a POS terminal.
FIG. 15 is an exemplary illustration of a storage area of the POS terminal of
FIG.
13A.
FIG. 16 is a schematic illustration of an upsell database of the POS terminal
of FIG.
13A.
FIG. 17 is a schematic illustration of a customer database of the POS terminal
of FIG. 13A.
FIG. 18 is a schematic illustration of an inventory price database of the POS
terminal
of FIG. 13A.
FIG. 19 is a schematic illustration of an offered price database of the POS
terminal
of FIG. 13A.
FIG. 20 is a flow chart illustrating a method of the present invention for
evaluating a
counter-offer for an upsell at a POS terminal.
FIG. 21 is a schematic illustration of an identifier database of the POS
terminal of
FIG. 13A.
FIG. 22 is a schematic illustration of POS terminal connected to a lottery
data
processing system.
16
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
FIG. 23 is a schematic illustration of another embodiment of the customer
database
of the POS terminal of FIG. 13A.
FIG. 24A is a flow chart illustrating a method of the present invention for
storing
customer preferences.
S FIG. 24B is a flow chart illustrating a method of the present invention for
storing
customer preferences.
FIG. 25 is a flow chart illustrating a method of the present invention for
applying
previously-selected customer preferences.
FIG. 26 is a flow chart illustrating a method of the present invention for
receiving a
donated upsell.
FIG. 27 is a flow chart illustrating another method of the present invention
for
determining an upsell at a POS terminal.
FIG. 28 is a schematic illustration of a network of POS terminals provided in
accordance with the present invention.
FIG. 29 is a schematic illustration of a store controller of the network of
FIG. 28.
FIG. 30 is a schematic illustration of a POS terminal of the network of FIG.
28.
FIG. 31 is a schematic illustration of an alternate embodiment of a POS
terminal of
the network of FIG. 28.
FIG. 32 is a schematic illustration of a ticket supply database of the store
controller
of FIG. 29.
FIG. 33 is a schematic illustration including exemplary data for the ticket
supply
database of FIG. 32.
FIG. 34 is a schematic illustration of a transaction database of the store
controller of
FIG. 29.
17
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
FIG. 35 is a schematic illustration of records of a fractional ticket database
of the
store controller of FIG. 29.
FIG. 36 is a schematic illustration including further exemplary data for the
ticket
supply database of FIG. 32.
FIG. 37 is a flow chart illustrating a method for allocating portions of
lottery tickets.
FIG. 38 is a schematic illustration of a winning lottery ticket database of
the store
controller of FIG. 29.
FIG. 39 is a schematic illustration of a frequent shopper database of the
store
controller of FIG. 29.
FIG. 40 is a flow chart illustrating a method for redeeming a fractional
lottery ticket.
FIG. 41 is a schematic illustration of a POS terminal provided in accordance
with the
present invention.
FIG. 42 is a schematic illustration of another embodiment of the POS terminal
of
FIG. 41.
FIG. 43 is a schematic illustration of an inventory database of the PUS
terminal of
FIG. 41.
FIG. 44 is a schematic illustration of a possible upsells database of the POS
terminal
of FIG. 41.
FIG. 45 is a schematic illustration of an embodiment of an upsell offer
database of
the POS terminal of FIG. 41.
FIG. 46 is a schematic illustration of another embodiment of the upsell offer
database of the POS terminal of FIG. 41.
FIG. 47 is a schematic illustration of another embodiment of the upsell offer
database of the POS terminal of FIG. 41.
18
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
FIG. 48 is a schematic illustration of another embodiment of the upsell offer
database of the POS terminal of FIG. 41.
FIG. 49 is a flow chart illustrating a method for providing a supplementary
product
sale at a POS terminal.
FIG. 50 is a schematic illustration of a POS terminal provided in accordance
with the
_ present invention.
FIG. 51 is a schematic illustration of another embodiment of the POS terminal
of
FIG. 50.
FIG. 52 is a flow chart illustrating a method provided in accordance with the
present
invention for controlling the performance of a supplementary process at a POS
terminal.
FIG. 53 is a table illustrating an offer schedule that depends on an activity
rate of a
POS terminal.
FIG. 54 is a schematic illustration of an override decision manager of the POS
terminal of FIG. 51.
FIG. 55 is a schematic illustration of a network of POS terminals.
FIG. 56 is a table illustrating an offer schedule that depends on an activity
rate of a
plurality of POS terminals.
FIG. 57 is a schematic illustration of a POS terminal provided in accordance
with the
present invention.
FIG. 58 is a schematic illustration of another embodiment of the POS terminal
of
FIG. 57.
FIG. 59 is a schematic illustration of a network of POS terminals.
FIG. 60 is a schematic illustration of an inventory database of a POS
terminal.
FIG. 61 is a schematic illustration of a rounding code database of a POS
terminal.
FIG. 62 is a schematic illustration of data used in determining an amount of
money
due as payment for items of a purchase and an upsell.
19
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
FIG. 63 is a schematic illustration that represents information relating to
transactions.
FIG. 64 is a flow chart describing a method for determining a rounded price
for a
purchase that includes an upsell and one or more items.
FIG. 65 is a flow chart describing a method for determining a rounded price
for a
purchase that includes a plurality of upsells and one or more items.
FIG. 66 is a schematic illustration of data used in determining an amount of
money
due as payment for items of a purchase and a plurality of upsells.
FIG. 67 is a schematic illustration of a POS terminal provided in accordance
with the
present invention.
FIG. 68 is a schematic illustration of another embodiment of the POS terminal
of
FIG. 67.
FIG. 69 is a schematic illustration of a network of POS terminals.
FIG. 70 is a table illustrating an embodiment of a database of offers.
FIG. 71 is a schematic illustration of a record of a transaction database.
FIG. 72 is a flow chart illustrating a method for controlling offers that are
provided
at one or more POS terminals.
FIG. 73 is a table illustrating an embodiment of a performance rate database.
FIG. 74 is a table illustrating another embodiment of a performance rate
database.
FIG. 75 is a schematic illustration of databases employed in determining
offers
which continue to be provided.
FIG. 76 is a schematic illustration of another embodiment of databases
employed in
determining offers which continue to be provided.
FIG. 77 is a table illustrating another embodiment of a database of offers.
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
The present invention is directed to a system for performing lottery ticket
transactions at
retail POS terminals without the customer having to wait for two transaction
receipts, or go
to another check-out terminal to make other non-lottery ticket purchases. In
about the same
amount of time it takes to ring up bread or milk at a POS terminal, the
customer can also
purchase a "quick-pick" lottery ticket. This one-stop shopping facilitates the
sale of lottery
tickets, and speeds the customer on his way. In addition, the present
invention enables the
customer to purchase fractional lottery tickets which even further facilitates
the sale of
lottery tickets. In particular, in cases where a customer makes other
merchandise purchases,
instead of receiving change, he can request a fractional lottery ticket (equal
to the change
amount). Accordingly, the present invention provides a consumer with a
convenient and
efficient system to purchase lottery tickets.
The term "quick-pick" refers to a lottery ticket in which the lottery numbers
are randomly
generated for the customer by the lottery system.
A fractional lottery ticket is a lottery ticket in which the customer will
receive only a portion
of the winning prize in accordance with the fractional portion paid for the
ticket as
compared to the full price of a lottery ticket. For example, if a customer
pays 58 cents for a
fractional lottery ticket where the full price of a lottery ticket is a
dollar, the customer would
receive fifty-eight percent of the prize amount if the ticket is a winner. As
used herein, the
term "lottery tickets". or equivalents thereof includes fractional lottery
tickets.
21
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
FIG. 1 shows an overall system block diagram of a preferred embodiment of the
present
invention. In this embodiment, a POS controller 20 is linked to at least one
POS terminal 30
via a POS network 40. Four POS terminals 30 are depicted in FIG. l, but any
number of
POS terminals 30 can be used. The POS network 40 does not have to be a hard
wired
network, it can include any of a wide variety of means suitable to transmit
and receive data
communications, as described below. A lottery ticket transaction can be
initiated from any
one of the POS terminals 30. The information required to initiate a lottery
ticket transaction
is passed between the POS terminal 30 and the POS controller 20 via the POS
network 40.
It is understood that other types of information can also be passed between
the POS terminal
30 and the POS controller 20. For example, merchandise prices, coupon
discounts, and
sales event information can also be passed between the POS terminal 30 and the
POS
controller 20.
As illustrated in FIG 1., the POS controller 20 is also linked to a lottery
data processing
system 60, discussed in detail below, via a data network 50. The data network
50 can be
any one or more of a variety of networks capable of data communications. For
example, the
data network 50 can be a public switched telephone network 76 (PSTN), an
integrated
service digital network (ISDN), a packet switched network, a private data
communication
network, a wireless network or any other suitable network.
The POS terminals 30 and the POS controller 20 depicted in FIG. 1 may be
embodied in
hardware specifically provided to implement the present invention.
Alternatively, they may
be implemented using existing cash registers and central in-store servers. In
particular,
22
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
many retail stores have computerized cash registers which are coupled to an in-
store
transaction processor to receive and transmit merchandise price and other
merchandise
information. The hardware of these systems may be used for the present
invention. To
incorporate the present invention changes to the existing in-store transaction
processor or
store network server may be accomplished in various ways, such as
reprogramming the
existing in-store transaction processor or by adding an additional file
server.
FIG. 2 is a block diagram of the POS controller 20. The POS controller 20
includes a CPU
21 which performs the processing functions. POS controller 20 also includes a
read only
memory 22 {ROM) and a random access memory 23 (RAM). The ROM 22 is used to
store
at least some of the program instructions that are to be executed by the CPU
21, such as
portions of the operating system or basic input-output system (BIOS), and the
RAM 23 is
used for temporary storage of data. A clock circuit 24 provides a clock signal
which is
required by the CPU 21.
The POS controller 20 also includes a communication port 25 connected to a
data network
interface 71 and a POS network interface 72. The communication port 25 enables
the CPU
21 to communicate with devices external to the POS controller 20. In
particular. the
communication port 25 permits communication with the POS terminals 30 and also
with the
lottery data processing system 60. While a modem (not shown) and a dedicated
telephone
line for establishing communication with the lottery data processing system 60
is preferred,
other data network interfaces, including an ISDN terminal to interface with an
ISDN
- network, a radio communications interface, and an Internet interface, may be
used as well.
23
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
The CPU 21 can also store information to, and read information from, a data
storage device
26. The data storage device 26 includes a local lottery ticket database 26a
and other
databases including a local sales database 26b that a store may conventionally
maintain.
The local lottery ticket database 26a is described below. In addition, the
data storage device
26 includes instructions which can be read by and executed by the CPU 21,
thereby enabling
the CPU 21 to process transactions. While FIG. 2 depicts separate databases, a
single
database that incorporates both functions can also be used. Additional
databases may be
added as needed to store a variety of other information that may be required
for other
purposes.
FIG. 5 is a pictorial representation depicting the preferred layout and the
information stored
in the local lottery ticket database 26a. The local lottery ticket database
26a includes a date
field F1, a sales receipt number field F2, a number of tickets purchased field
F3, a sale
amount field F4, and a lottery ticket number field FS. In the case of a
fractional lottery
ticket, the sale amount field F4 would contain the fractional amount of the
lottery ticket
purchased by the customer (e.g., sixty-eight cents).
While only three records Rl for three lottery ticket transactions are depicted
in FIG. 5, any
number of records may be stored. To conserve storage space on the data storage
device 26,
records may be transferred to a different storage device or deleted after some
predetermined
time interval or after a predetermined event (e.g. after the winning lottery
number drawing).
FIG. 3 is a block diagram of the preferred POS terminal ;0, which can be
located at a
supermarket, grocery store, liquor store or any other location where consumer
transactions
24
___ _
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
are performed. As previously discussed above, there can be any number of POS
terminals
30 linked to one POS controller 20. The POS terminal 30 includes a CPU 31, ROM
32,
RAM 33, clock circuit 34, communication port 35 and a data storage device 36.
The
communication port 35 interfaces with the POS network 40 which facilitates
communication between the POS terminal 30 and the POS controller 20.
The POS terminal 30 includes an input device 37 to receive input from an
operator. Any
one of a variety of input devices would be suitable for this purpose,
including, for example,
depression-actuated buttons, keys, membranes, a mouse, touchscreens, bar code
scanners,
and the like. The input device 37 may interface directly with the CPU 31, as
shown in FIG.
3. Alternatively, an appropriate interface circuit may be placed between the
CPU 31 and the
input device 37.
The POS terminal 30 also includes a display device 38 for conveying
information to the
operator, customer or both. Any one or a variety of display devices would be
suitable for
this purpose, including, for example a CRT, LCD, LED or thin film transistor
panel.
The POS terminal 30 also includes a data storage device 36, in which
transaction processor
instructions are stored. These instructions can be read by and executed by the
CPU 31,
enabling the POS terminal 30 to process a variety of transaction types. By way
of example,
these transaction types may include "quick-pick" lottery tickets, lottery
tickets other than
"quick-pick" tickets and merchandise transactions.
The POS terminal 30 further includes a printer 39 for recording the
transaction performed by
the POS terminal 30. The printer 39 may interface directly with the CPU 31, as
shown in
CA 02284662 1999-09-20
WO 98/43149 PCT1US98/05787
FIG. 3. Alternatively, an appropriate interface circuit may be placed between
the CPU 31
and the printer 39.
It will also be understood that other combinations of POS controllers 20 and
POS terminals
30 could be employed, depending upon the requirements of a particular
establishment. In
particular, the POS terminal 30 may incorporate some of features of the POS
controller 20
so that the integrated POS terminal/controller can function as a stand-alone
unit. This type
of terminal would be advantageous for establishments that only require a
single POS
terminal.
la
Shown in FIG. 4 is a block diagram of the lottery data processing system 60.
Like the POS
controller 20 described above, the lottery data processing system 60 includes
a CPU 61,
ROM 62, RAM 63, a clock circuit 64, and a communication port 65. The
communication
port 65 is connected to the data network interface 7I . The data network
interface 71
depicted is equivalent to the data network interface in FIG. 2. One POS
controller 20 is
depicted in FIG. l, but any number of POS controllers 20 can be linked to the
lottery data
processing system 60 via the data network 50 and the data network interface
71.
As shown in FIG. 4, the communication port 65 is also connected to an IVRU
interface 74.
A customer assistance IVRU 75, as shown in FIG. l, is linked to the lottery
data processing
system 60 via the IVRU interface 74. The customer assistance IVRU 75 is also
connected
to the PSTN 76, the public switched telephone network. The customer assistance
IVRU 75
allows a caller (not shown) to communicate with the lottery data processing
system 60 using
a telephone (not shown). Voice command prompts guide the caller through
various menu
26
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
options allowing the caller to input and extract data related to a particular
lottery ticket
transaction. This process is described in greater detail below.
The CPU 61 can also store information to, and read information from the data
storage
device 68. The data storage device 68 includes a lottery ticket database 68a,
a POS
controller database 68b, and a winning lottery ticket number database 68c
which are
described below. In addition, the data storage device 68 includes instructions
which can be
read by and executed by the CPU 61, thereby enabling the CPU 61 to process
lottery
transactions. While FIG. 4 depicts separate databases, a single database that
incorporates all
the functions of databases 68a, 68b and 68c can also be used. Additional
databases may be
added as needed to store a variety of other information that may be useful in
maintaining
and administrating a lottery system.
The lottery data processing system 60 also includes a random number generator
66 and a
cryptographic processor 67. When requested by the CPU 61, the random number
generator
66 generates the random "quick-pick" numbers used for "quick-pick" lottery
ticket
transactions. The cryptographic processor 67 is used to encrypt an
authentication code
generated by the CPU 61, described in greater detail below. This encrypted
authentication
code is passed to the CPU 61 which associates it with a particular lottery
transaction. The
cryptographic processor 67 is also used to decrypt encrypted authentication
codes which are
passed to it by the CPU 61.
While the illustrated embodiment depicts the random number generator 66 and
the
cryptographic processor 67 as separate elements within the lottery data
processing system
27
CA 02284662 1999-09-20
WO 98/43149 PCT/LJS98/05787
60, it should be understood that other methods of performing their functions
may be used.
For example, these functions may be implemented in a computer program stored
in the data
storage device 68 and executed by the CPU 61.
FIG. 6 is a pictorial representation of the information stored in the lottery
ticket database
68a. The lottery ticket database 68a includes a POS controller ID number field
F6, a date
field F7, a number of tickets purchased field F8, a sales receipt number field
F9, a sale
amount field F 10, a lottery ticket numbers field F 11, and a cryptographic
code field F 12. In
the case of a fractional lottery ticket, the sale amount field F10 would
contain the fractional
amount of the lottery ticket purchased by the customer (e.g., sixty-eight
cents). The POS
controller ID number field F6 is a unique code corresponding to each POS
controller 20 that
communicates with the lottery data processing system 60. The sales receipt
number field F9
stores a serial number related to each receipt generated by the POS terminals
30. The
cryptographic code field F 12 stores the encrypted authentication code, as
discussed in detail
below.
While record R2 for one POS controller with ID number 23456 is depicted in
FIG. 6, any
number of records may be stored. As is also the case with the data storage
device 26, from
time to time records may be transferred to a different storage device or
deleted to conserve
storage space within the data storage device 68. The winning lottery ticket
number database
68c is of the other databases that the lottery data processing system
conventionally
maintains.
28
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
FIG. 7 is a pictorial representation depicting the information stored in the
POS controller
database 68b. The POS controller database 68b includes a POS controller ID
number field
F 13, a POS controller name field F 14, a POS controller location field F 15,
and a telephone
number field F 16. The POS controller name field F 14 stores the name of the
store or
establishment where the POS controller 20 is located. The POS controller
location field Fl
stores the address of where the POS controller 20 is located. The telephone
number field
F16 stores the telephone number associated with each POS controller 20. A
record R3 for
one POS controller location is depicted in FIG. 7, but any number of records
may be stored.
It should be understood that some fields within the databases discussed above
would contain
the same corresponding information (e.g. POS controller iD number field F6 in
the lottery
ticket database 68A corresponds to field F13 in the POS controller database
68B).
FIG. 8 is a flow chart depicting an exemplary lottery ticket transaction
process performed at
the POS terminal 30 from the customer's point of view. The process starts when
a customer
indicates to the POS terminal operator that he or she wishes to purchase one
or more "quick-
pick" lottery tickets in step S 1. Of course, the "quick-pick" lottery tickets
can be either full
or fractional lottery tickets. The customer may make this decision to buy
lottery tickets as a
stand-alone transaction or while purchasing other merchandise, such as milk or
bread. In
step S2, the POS terminal operator initiates a lottery transaction by
actuating a pre-
programmed designation on the input device 37 associated with the POS terminal
30. The
customer is then prompted by the POS operator for the number of "quick-pick"
lottery
tickets desired in step S3.
29
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
The number of "quick-pick" lottery tickets may also include fractional lottery
tickets. This
is convenient for customers who do not want to receive a handful of coins as
change from a
transaction. For example, a customer due sixty-eight cents in change, from a
merchandise
purchase could elect to buy a lottery ticket for sixty-eight cents which is
worth 68% of a $ I
ticket and which pays-out sixty-eight percent of the $1 payout. Alternatively,
the customer
could buy a 34% value of a $2 ticket with 68 cents. Along with the fractional
value lottery
tickets, the customer may or course purchase full value lottery tickets.
In an alternative embodiment, the customer may also be prompted for additional
lottery
ticket information, such as the type of lottery game to be played and the
particular lottery
numbers selected by the customer. For example, a particular lottery system may
offer
lottery games based on three, four and six number combinations. The customer
may also
personally select the lottery numbers to be played.
In step S4, the POS terminal operator enters the number of lottery tickets
requested by the
customer into the POS terminal 30 via the input device 37. The customer pays
for the
lottery tickets and any other purchases made at this time in step SS. In step
S6, the POS
terminal prints a single receipt containing the lottery ticket information and
any other
merchandise sales information.
Shown in FIG. 9 is an example of a store sales receipt 80 according to the one
embodiment
of the present invention. The store sales receipt 80 includes non-lottery
ticket related
merchandise information 81. The bottom portion contains lottery ticket
information
including a plurality of lottery numbers 82. a store ID number 83, a receipt
number 84, a
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
date 85, a time 86, a price 89, a lottery telephone number 87, and an
encrypted
authentication code 88. In the case of a fractional lottery ticket, the store
sales receipt 80
would also include an indication of the fraction of the full price lottery
ticket purchased
(e.g., as shown in FIG. 9, $0.68 was paid for ticket 4).
FIG. 10 is a flow chart of an exemplary operation of the POS controller 20.
The steps of the
process shown in FIG. 10 may be implemented in a computer program that may be
installed
at the POS controller 20 from a computer readable medium and then stored
therein in one or
more of the ROM 22, the RAM 23 and the data storage device 26 (shown in FIG.
2). The
POS controller 20 receives in step S7 a lottery ticket transaction request
which includes, in
this example, the number of "quick-pick" lottery tickets requested by the
customer from the
POS terminal 30. The POS controller 20 temporarily stores this information in
RAM 23,
while it establishes a real-time communication link with the lottery data
processing system
60 via the data network 50.
While one lottery data processing system 60 is depicted in FIG. 1, additional
lottery data
processing systems may be available as secondary or back-up lottery data
processing
systems. Accordingly, if the POS controller 20 fails to establish
communication with the
primary lottery data processing system, communication attempts would be made
to a
secondary lottery data processing system.
Once the real-time communication link is established, the POS controller 20 in
step S8
transmits the number of "quick-pick" lottery tickets requested to the lottery
data processing
system 60. The POS controller 20 also transmits its POS controller
identification number
31
CA 02284662 1999-09-20
WO 98!43149 PCT/US98/05787
(e.g. Fl in FIG. 7). In step S9, the POS controller 20 receives one or more
groups of lottery
numbers ( corresponding to the number of lottery tickets requested) and an
associated
encrypted authentication code from the lottery data processing system 60. A
new record
(e.g. R! in FIG. 5) is created in the local lottery ticket database (26a in
FIG. 2) in step S10.
In step Sl 1, the POS controller 20 stores in the newly created record the
date, receipt
number, time, and lottery numbers received from the lottery data processing
system (as
shown in FIG. 5, Fl-FS). The POS controller 20 then transmits the lottery
ticket
information (i.e. the lottery numbers and the encrypted authentication code)
to the POS
terminal 30 that initiated the lottery transaction request in step S 12.
Each of the steps S7-S 12 described above is executed by the CPU 21 which is
executing
computer program instructions stored in the data storage device 26. The
communication
with the POS terminal 30 takes place via the communication port 25 and the POS
network
interface 72. The communication with the lottery data processing system 60
takes place via
the communication port 25 and the data network interface 71.
In an alternative embodiment, the POS controller 20 may also handle non-"quick-
pick"
lottery ticket transactions. Customer-selected lottery numbers would be
received from the
customer via mark-sense slips or coded chits at the POS terminal 30 and sent
to the lottery
data processing system 60 for processing, as described below.
FIG. 11 is a flow chart of the operation of the lottery data processing system
60. The steps
of this process may be stored on a computer readable medium which in this case
would be
the data storage device 68 (shown in FIG. 4). Upon receiving the lottery
ticket transaction
32
CA 02284662 1999-09-20
WO 98/43149 PCTNS98/05787
request and the POS controller identification number from the POS controller
20, the lottery
data processing system 60 in step S 13 accesses the POS controller database
68b (shown in
FIGS. 4 and 7). The lottery data processing system 60 searches the POS
controller database
68b and authenticates the POS controller identification number, as shown in
step S 14. In
step S 15, the lottery ticket database 68a (shown in FIGS. 4 and 6) is
accessed and a new
lottery transaction entry is added in the appropriate POS controller record
(e.g. R2 in FIG.
6).
In step S 16, the lottery data processing system 60 generates one or more
groups of random
"quick-pick" lottery numbers using the random number generator 66 (shown in
FIG. 4).
These random "quick-pick" lottery numbers are used for the quick-pick lottery
tickets. The
lottery transaction entry added in step S 15 is then updated in step S 16 by
storing these
random ''quick-pick" lottery numbers in the designated field of the record.
The lottery data processing system 60 also generates an authentication code
based on the
variables of the particular lottery transaction in step S 17. This
authentication code is a
numeric string including all the data of one record in the lottery ticket
database 68a. An
example of such a code corresponding to the first entry shown in FIG. 6, R2,
is as follows:
23456/011597004/3343004/011020112131
In this example, 23456 represents the POS controller ID number; 011597
represents the
date; 004 represents the number of tickets purchased; 3343 represents the
sales receipt
33
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
number; 004 represents the sales amount; and 011020112131 represents the
lottery ticket
numbers.
While the use of an encrypted authentication code is the preferred embodiment,
it should
also be understood that the store sales receipt number along with the date for
each
transaction may be used instead. In this situation, the sales receipt number
and the date
would be used as a pointer to the lottery ticket database 68a. This pointer
would be used to
extract and verify lottery ticket information as required.
In step S I 8, using the cryptographic processor 67 (shown in FIG. 4), the
authentication code
is encrypted to produce a unique numeric code. The lottery transaction entry
added in step
S 15 is then updated again by storing the encrypted authentication code in the
appropriate
field of the record (see FIG. 6). The use of cryptographic processors and
encryption
algorithms are well known to those skilled in the art of cryptography. For
reference, one of
I S ordinary skill in the art may refer to Bruce Schneier, Applied
Cryptography, Protocols,
Algorithms and Source Code Inc., (2nd Edition, John Wiley & Sons, Inc., 1996).
The lottery data processing system 60 then transmits the lottery ticket
numbers and the
encrypted authentication code to the POS controller 20 initiating the lottery
ticket
transaction in step S I 9.
This authentication code provides an added level of security and protection
for the purchase
of the lottery ticket. Should the database within the lottery data processing
system 60 be
34
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
corrupted, all the information printed on the store receipt lottery ticket can
still be verified
by any other device capable of decrypting the authentication code.
Each of the steps S 13-S 19 described above is executed by the CPU 61, which
carries out
these steps by executing computer program instructions stored in the data
storage device 68.
The communication with the POS controller 20 takes place via the communication
port 65
and the data network interface 71.
In an alternative embodiment, additional information may be transmitted from
the POS
controller 20 to the lottery data processing system 60. This could include, as
described
above, customer-selected lottery numbers instead of the random "quick-pick"
lottery
numbers generated by the lottery data processing system 60. In this situation,
the lottery
data processing system 60 would store the customer-selected lottery numbers in
the lottery
ticket database 68a. An encrypted authentication code would be generated
accordingly
based on the customer-selected lottery numbers. The lottery data processing
system 60
would then send the encrypted authentication code and authorization to
complete the lottery
transaction to the POS controller 20.
FIG. 12 is a flow chart depicting the telephone authentication process. The
process starts
when a customer dials the telephone number 87 printed on the sales receipt 80,
as shown in
FIG. 9, in step 520. By dialing the telephone number 87, the customer is
connected to the
customer assistance IVRU 75, as shown in FIG. 1. This unit, via pre-recorded
voice
. messages, prompts the customer to enter the encrypted authentication code 88
printed on the
sales receipt 80 using the keys on the telephone in step S21. In step 522, the
customer
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
assistance IVRU 75 communicates this information to the lottery data
processing system 60
via the IVRU interface 74, shown in FIG. 4.
In step S23, the lottery data processing system 60 searches the cryptographic
code field F12
in the lottery ticket database 68a to find an entry that matches the
information provided from
the IVRU 75. If no match is found, the lottery data processing system 60
communicates to
the IVRU 75 that the encrypted authentication code provided by the customer is
not valid.
The IVRU 75 then prompts the customer to re-enter the encrypted authentication
code.
After a predetermined number of failed attempts to correctly enter a valid
code, the call is
terminated, as shown in step S24.
If a matching entry is found, the lottery data processing system 60 decrypts
the encrypted
authentication code. The decrypted information is then communicated to the
customer
assistance IVRU 75 in step 525. Based on this information, the customer
assistance IVRU
1 S 75 transmits a voice message to the customer providing all the decrypted
information (i.e.
lottery ticket number, time and date of purchase, etc.). The customer
assistance IVRU 75
creates the voice message by combining pre-recorded voice messages stored
therein.
A winning lottery ticket may be redeemed at one of the POS terminals 30 or at
any
conventional lottery terminal. To redeem the winning lottery ticket at one of
the POS
terminals 30, the POS terminal operator initiates a lottery ticket
verification process by
actuating a pre-programmed input designator via input device 37 associated
with the POS
terminal 30. The POS operator then enters the encrypted authentication code
printed on the
lottery ticket into the POS terminal 30 via the input device 37. This
information is
36
CA 02284662 1999-09-20
WO 98/43149 PCT/U598/05787
transmitted to the lottery data processing system 60 via the POS controller
20. The lottery
data processing system 60 decrypts this information and accesses the lottery
ticket database
68a and the winning lottery ticket number database 68b. The lottery data
processing system
60 then determines whether the lottery ticket is a winning lottery ticket
based on the
information contained in the respective databases.
This determination (along with other information as needed) is then
communicated back to
the POS terminal 30 via the POS controller 20. Other types of information that
may be
included in this communication are, for example, the winning prize amount, the
fractional
prize amount, and whether or not there was a jackpot winning ticket.
In an alternative embodiment, the random "quick-pick" lottery numbers used for
a lottery
ticket transaction may be generated by the POS controller 20. These lottery
numbers would
then be transmitted to the lottery data processing system 60 as described
above.
There are thus provided new and improved systems and methods for selling
lottery tickets at
point-of sale locations in stores. The invention uses the same equipment
provided for
processing conventional store sales of merchandise and/or services to process
lottery ticket
sales.
The dual utility of the sales equipment makes the invention cost-effective for
merchants.
The systems and methods provided permit speedy and efficient purchasing of
lottery tickets
while making routine purchases of other goods, thus encouraging impulse
purchasing of
lottery tickets without delaying the regular flow of the point-of sale
checkout line. Further,
37
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
the invention enables the quick and efficient sale of fractional lottery
tickets with what
would otherwise be customer change, again encouraging impulse purchases,
thereby
increasing the market for lottery tickets.
The present invention further provides systems and methods whereby an easy to
print, easy
to read, sales receipt is printed containing both the sales of goods/services
and lottery ticket
information. The ticket includes authenticating information, including at
least one
authenticating code and a customer service telephone number, which the
customer can use
to verify his lottery numbers with the lottery authority.
While the present invention has been described above in terms of specific
embodiments, it is
to be understood that the invention is not intended to be confined or limited
to the
embodiments disclosed herein. On the contrary, the present invention is
intended to cover
all methods, structures and modifications thereof included within the spirit
and scope of the
I S appended claims.
As used herein, an "upsell" is a product (good or service) which is offered
along with a
purchase and has a value approximately equal to a predetermined upsell price.
Types of
upsells which are described in detail herein include (i) an upgrade from a
first product to a
second product different from the first product, (ii) an additional product,
(iii) a voucher
which is redeemable for a product or a discount thereon, and (iv) an entry in
a sweepstakes,
contest, lottery or other game. Various other types of upsells may be used
without departing
from the scope and spirit of the present invention.
38
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
By offering an upsell in exchange for the customer's change, an average of
approximately fifty cents additional revenue is collected per upsell, and the
number of coins
exchanged is reduced or eliminated. The reduction or elimination of change
dispensing and
collecting greatly reduces the time a customer spends at a POS terminal. In
some cases, it
may even be possible to reduce the number of cashiers, if any, who operate POS
terminals.
In addition, customers may recognize a greater value from the transaction
while reducing or
eliminating the need to carry additional change after a purchase.
Further, the present invention allows businesses to more effectively sell aged
or perishable products by offering such products in exchange for change due.
Such
products, such as aging magazines, audio tapes, compact discs, flowers and
various
perishables can be sold, thereby generating additional revenue and reducing
the costs of
otherwise disposing of the products. Providing the customer with aged products
effectively
allows businesses to "pre-qualify" customers to receive discounts on products.
Referring to FIG. 13A, a POS terminal 1010 includes a POS processor 1012
connected to each of an input device I 014, a printer 1016 and a display
device 1018. The
POS processor 1012 comprises at least one microprocessor 1020, such as an
Intel 80386
microprocessor, which is connected to a storage device 1022, such as a RAM,
floppy disk,
hard disk or combination thereof.
The microprocessor 1020 and the storage device 1022 may each be (i)
located entirely within a cash register, vending machine or similar enclosure;
(ii) connected
thereto by a remote communication link, such as a serial port cable, telephone
line or radio
frequency transceiver; or (iii) a combination thereof. For example, the POS
processor 1012
may comprise one or more cash registers connected to a remote server computer
for
maintaining databases, or a vending machine connected to a local computer.
Many types of
39
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
conventional cash registers and other types of POS terminals may be used to
implement the
present invention in light of the present disclosure. Such terminals may only
require
software upgrades, which are typically performed without undue effort.
FIG. 13B illustrates another embodiment of the POS terminal 1010 in which
S a first device 1032 communicates with a second device 1034 via a remote
communication
link 1036. The first device 1032, which may be a cash register, comprises the
input device
1014, the display device 1018 and a microprocessor 1037 which performs some of
the
functions of the microprocessor 1020 of FIG. 13A. The second device 1034 may
be, for
example, a processing system operated by an electronic marketing service or
credit card
clearinghouse. The second device 1034 comprises the storage device 1022, the
printer 1016
and a microprocessor 1038 which performs some of the functions of the
microprocessor
1020 of FIG. 13A.
Referring again to FIG. 13A, the input device 1014 is preferably a keypad for
transmitting input signals, such as signals indicative of a purchase, to the
microprocessor
1020. The printer 1016 is for registering indicia on a portion of a roll of
paper or other
material, thereby printing receipts, coupons and vouchers as commanded by the
microprocessor 1020. The display device 1018 is preferably a video monitor for
displaying
at least alphanumeric characters to the customer and/or cashier. Many types of
input
devices, printers and display devices are known to those skilled in the art,
and thus need not
be described in detail herein.
The storage device 1022 stores a POS program 1024 for controlling the
microprocessor 1020 in accordance with the present invention, and particularly
in
accordance with the processes described in detail hereinafter. The POS program
1024 also
includes necessary program elements, such as "device drivers" for interfacing
with each of
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
the input device 1014, printer 1016 and display device 1018. Appropriate
device drivers
and other necessary program elements are known to those skilled in the art,
and need not be
described in detail herein.
The storage device 1022 also stores a required payment amount 1026. which
is an amount of money expected to be paid in return for products provided to
the customer.
From the required payment amount 1026, the microprocessor 1020 may determine,
for
example, the change due and the total amount of money that should have been
collected by
the POS terminal 1010 at the end of a day. Those skilled in the art will note
that the
required payment amount may comprise a single stored value or a plurality of
values which
each correspond to an amount of money expected to be paid for one or more
products.
The storage device 1022 furthermore stores an inventory price database 1028,
which includes products and corresponding product prices. The inventory price
database
1028 enables the microprocessor 1020 to calculate a total purchase price of
one or more
products, and in turn store the total purchase price in the required payment
amount 1026.
An upsell database 1030 stored in the storage device 1022 includes upsells
and corresponding upseil prices. An upsell price as used herein is a price,
set of prices or
range of prices at which it is desirable to sell the corresponding upsell. The
upsell price is
typically related to the cost of the upsell to the business. For example, if
the cost to a
restaurant is 20ø for a small soda, then the upsell price of one additional
small soda is a
range greater than 20ø, such as the range from 20ø to 30ø. As another example,
if the cost
to the restaurant is 22ø for a large soda, then the cost of an upsell from a
small soda to a
large soda for the restaurant is the incremental cost 22ø - 20ø = 2ø.
Accordingly, the upsell
price may possibly be a range having a lower bound of 2ø.
41
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
In addition, it is desirable that the upsell price has an upper bound that is
less
than a predetermined amount. For example, an upsell price should not exceed
the price of a
product offered as an upsell. Using the example given above, the upsell price
for an upgrade
from a small soda to a large soda is a range with a lower bound of 2ø. An
upper bound for
this upsell price should not exceed the cost of a large soda, for example,
90ø. Otherwise, the
customer would pay more than the price he would have paid if he had included a
large soda
in his purchase. Proposing such a transaction to the customer, for example,
95ø in exchange
for a 90ø large soda, is likely to be ineffective, as well as insulting to the
customer.
In general, the price of a product to a customer is different from the cost of
the product to the business that offers the product. Therefore, the upsell
prices in the upsell
database 1030 cannot be ascertained from only the product prices in the
inventory price
database 1028, but must be calculated so as to yield a profit. For example,
the inventory
price database 1028 may indicate that the price of a small soda is 55ø and the
price of a
large soda is 90ø. From these two prices alone, it is impossible to determine
that the cost to
IS a restaurant is 20ø for a small soda and 22ø for a large soda, and thus
that the cost of such an
upsell from small to large soda is 2ø. Accordingly, it is impossible to
determine, from the
inventory price database 1028 alone, that it would be profitable for the
restaurant to
profitably provide the upsell for relatively small upsell prices, such as 5ø
or 10ø. Such a
profit point can only be determined as a function of the costs.
The above-described difference between the prices of products to customers
and the costs of the products to the business permits the POS terminal to
determine upsells
which (i) are profitably sold for the change due to a customer, and also (ii)
provide the
customer with a product at a reduced price, in exchange for his change.
Providing the
product at a reduced price tends to increase customer satisfaction, generate
additional
42
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
revenue for the business and increase inventory turnover. At the same time,
the prices of
products need not be reduced, and thus the profits from sales of these
products (besides
upsells) remain substantially or completely unaffected by offering upsells.
One type of upsell, which several kinds of businesses may offer, is an
upgrade from a first product to a second product. Accordingly, a combination
of (i) a
purchase including a first product, and (ii) an upsell including an upgrade
from a first
product to a second product would effectively result in the upgrade from the
first product to
the second product. A restaurant, for example, may offer an upsell comprising
an upgrade
from a small soda to a large soda, or an upgrade from a plain taco to a deluxe
taco. An
electronics store may offer an upsell that extends the effective term of a
warranty.
Another type of upsell is an additional product to supplement the customer's
purchase. For example, a restaurant may offer an upsell comprising a
promotional cup or a
dessert; a video store may offer an upsell comprising a movie rental ticket,
additional
videotape or promotional hat; a vending machine may offer an upsell that
provides an extra
candy bar; an appliance store may offer an upsell comprising a warranty; and a
supermarket
may offer an upsell comprising any one item from a bin of perishable goods.
Such a
supermarket upsell is particularly advantageous in generating revenue and
liquidating
perishable products.
FIG. 14 illustrates a method 1040 for determining an upsell of a purchase at a
POS terminal. The POS terminal of this embodiment, for example the POS
terminal 1010,
maintains a database of upsell prices and corresponding upsells (step 1042).
The POS
terminal furthermore generates a purchase price of a purchase (step 1044), and
sets the
required payment amount 1026 (FIG. 13A) to be equal to the purchase price
(step 1046).
The step of generating a purchase price may comprise, for example, (i)
pressing keys on the
43
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
input device 1014 (FIG. 13A) which each correspond to a product, (ii) pressing
numeric
keys on the input device 1014 which correspond to the digits of the purchase
price, or (iii)
receiving digital signals indicative of a currency value from a remote
computing device.
The POS terminal then generates a "rounded" price (step 1048), and
calculates a round-up amount (step 1050) equal to the difference between the
purchase price
and the rounded price. The rounded price may be calculated as, for example,
the smallest
whole number dollar amount that is greater than the purchase price, the
smallest multiple of
five dollar amount that is greater than the purchase price, or the amount of
money tendered
by the customer, which may or may not be a whole number amount. When the
rounded
price is a whole number, the customer can easily tender bills and in turn
receive, at his
discretion, either (i) no change, or (ii) change which consists solely of
bills, not coins.
When the rounded price is a multiple of large coins, such as nickels, dimes,
quarters or half
dollars, the customer can receive change that consists solely of coins the
customer desires,
such as quarters. Many other forms of rounded prices may be calculated in
accordance with
the present invention.
The POS terminal then determines at least one upsell to be exchanged for the
round-up amount (change due). Preferably, to identify the upsell, the POS
terminal
compares the round-up amount with at least one of the upsell prices in the
upsell database
(step 1052) to identify at least one upsell having an upsell price including
the round-up
amount. If the round-up amount corresponds to an upsell price (step 1054), the
POS
terminal identifies an upsell (step 1056) which corresponds to that upsell
price, thereby
identifying the upsell to exchange. The POS terminal then outputs signals
indicative of the
identified upsell (step 1058), such as displaying text and/or graphics that
explain to the
44
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05?87
customer and/or the cashier that the identified upsell may be purchased for
the round-up
amount.
The customer indicates to the cashier whether he accepts or rejects the
offered
upsell. The cashier then presses a button on the POS terminal or otherwise
generates a
selection signal for indicating selection between the identified upsell and
change (step
1060). If the selection signal indicates selection of the upsell, the required
payment amount
is set to be equal to the rounded price (step 1062). Thus, the customer
tenders cash, a check
or a credit card to satisfy the amount of money expected to be paid, and
receives the upsell
in exchange for the round-up amount.
As discussed above, those skilled in the art will realize that the required
payment amount may comprise a single stored value or a plurality of values
which each
correspond to an amount of money expected to be paid for one or more products.
For
example, the step 1062 of setting the required payment amount to be equal to
the rounded
price may comprise (i) setting a stored unitary value to be equal to the
rounded price; or (ii)
1 S setting a first stored value to be equal to the purchase price and setting
a second stored value
to be equal to the round-up amount, similar to the case where two purchases
are recorded.
In the example illustrated in FIG. 15, a customer at a fast-food restaurant
orders a purchase that includes a hamburger and a small soda. A cashier
records the
purchase at a POS terminal, and the POS terminal in turn determines the
product prices of
each of the hamburger and the small soda from entries 1070 and 1072 in the
inventory price
database 1028. The POS terminal generates therefrom the purchase price $1.62,
and sets the
required payment amount 1026 to be $1.62.
The POS terminal then generates a "rounded" price of $2.00 (using, in this
example, "2" as the smallest whole number which is greater than the purchase
price), and
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
calculates a round-up amount 1074 of $2.00 - $1.62 = 38ø. Since the rounded
price is a
whole number, the customer may easily tender bills and receive either no
change or change
which consists solely of bills, not coins.
The POS terminal compares the round-up amount 1074 with at least one of
the upsell prices in the upsell database 1030. The round-up amount 74
corresponds to a
compared upsell price 1076 (the range from 2ø to 45ø), and the product sold
(small soda)
corresponds to the upsell condition 1078, so the POS terminal identifies an
upsell 80 in the
upsell database 1030 which corresponds to the upsell price 1076. The POS
terminal then
displays text or graphics that explain to the customer and/or the cashier that
the upsell 1080
may be purchased for the specified amount of change due (the round-up amount
1074).
The customer indicates to the cashier whether he accepts or rejects the
offered
upsell. The cashier then presses a button on the POS terminal or otherwise
generates a
selection signal for indicating selection between the identified upsell 1080
and change. If
the selection signal does not indicate selection of change, but instead
selection of the upsell
1 S 1080, the required payment amount 1026 is set to be equal to the rounded
price. Thus, the
customer receives the upsell (an upgrade from a small soda to a large soda),
and there are no
coins due.
In some embodiments of the present invention, the POS terminal determines
the upsell(s) by identifying at least one upsell in the database that
corresponds to the
compared upsell price. For example, an upsell comprising a small soda may
correspond to
an upsell price range of between 2ø and 20ø. In other embodiments, the POS
terminal
determines the upsell(s) by identifying at least one upsell in the database
which corresponds
to both (i) the compared upsell price, and (ii) at least one "purchase
condition".
46
r....
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
A purchase condition is a condition in effect when the purchase is processed
at the POS terminal. Some types of purchase conditions are the purchase price,
time of day,
day of the week, season, the identity of a product included in the purchase,
the cost of a
product included in the purchase, and/or past purchases made by the customer.
Other types
of purchase conditions may be employed without departing from the spirit and
scope of the
present invention.
The use of purchase conditions in the present invention allows upsells to be
more accurately determined, and in turn increases the likelihood that an
upsell will appeal to
a customer and be exchanged for change due. For example, at certain times
during a day, a
customer may have a stronger desire for certain upsells. A meal is a more
appealing upsell
during dinnertime than during the mid-afternoon, and a video rental is more
appealing in the
evening than in the morning. Accordingly, consideration of the time of a
purchase may
allow more appealing upsells to be offered.
In embodiments that employ purchase conditions, upsell prices in the upsell
database have a corresponding upsell and at least one corresponding upsell
condition to
compare with the purchase condition. Furthermore, the POS terminal generates
the
purchase conditions) in any of a number of ways. For example, a clock signal
can provide
the time and/or date, the purchase recorded by the POS terminal can provide
the identity of
products, and a "frequent shopper card" can provide signals indicative of the
customer's
identity and past purchases made by the customer.
Referring to FIG. 16, an upsell database 1090, which is one embodiment of
the upsell database 1030 of FIG. 13A, includes upsell prices 1092, upsell
descriptors 1094
and a plurality of upsell conditions, including the items purchased 1096,
whether a customer
identifier is required 1098, customer product preferences 1100, the time of
day 1102 and
47
CA 02284662 1999-09-20
WO 98!43149 PCT/US98/05787
cost 1103 to the business. The entries in the upsell database 1090 may be
uniquely
identified by upsell codes 1104.
Several types of purchase conditions, which are compared with upsell
conditions, may be stored in one or more databases in the storage device 1022
(FIG. 13A).
For example, FIG. 17 illustrates a customer database 1110, which includes
unique customer
identifiers 1112, as well as customer-specific information, such as name 1114,
address 1116,
telephone number I 1 I 8 and historical product preferences 1120. The POS
terminal 1010
(FIG. 13A) may employ the customer database 1110 to determine various purchase
conditions, and offer upsells accordingly as described above. A customer at a
POS terminal
may provide a corresponding customer identifier, and thereby provide his
customer-specific
information, in any of a number of ways. For example, the customer may type
his customer
identifier into the POS terminal, or may "swipe" (pass) a frequent-shopper
card containing a
unique identification code through a card reader at the POS terminal.
Other types of purchase conditions may be derived from an inventory price
database. Referring to FIG. 18, an inventory price database I 130, which is
one embodiment
of the inventory price database 1028 of FIG. 13A, includes products 1132 and
corresponding product prices 1134. The inventory price database 130 may also
include
unique product identifiers 1136, as well as the numbers of such products in
stock 1138. It
may also be desirable to store the "age" (expiration date or time) 1140 of
certain types of
products, thus allowing older products to be identified and offered as
upsells.
For each purchase, the above-described purchase conditions, the round-up
amount and whether the upsell was selected may be stored in a database of
offered upsells.
Such a database of offered upsells could provide information on which upseils
were
accepted by customers, and under what circumstances the upsells were accepted.
Thus,
48
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
from this database, the value of upsells to consumers may be determined, and
the upsell
database can be adjusted accordingly. For example, if consumers rarely accept
a certain
upsell, the upsell may be eliminated from the database or may be offered in
exchange for
much smaller amounts of change.
FIG. 19 illustrates an embodiment of an offered upsell database 1150 stored
in the storage device 1022 (FIG. 13A). The offered upsell database 1150
includes upseils
which were offered 152, the corresponding round-up amount 1154 and which
upselh if any,
was accepted 1156. Other purchase conditions may be desirable to store in the
offered
upsell database 1150, such as the date 1158 of the offered upsell, a unique
customer
identifier 1160, an expiration period 1162 for redeeming the upsell, if any,
and the date 1164
the upsell was accepted (redeemed), if any.
In the embodiments discussed above, the POS terminal identified a single
upsell to offer in exchange for a round-up amount. However, the POS terminal
1010 (FIG.
13A) may identify more than one upsell that corresponds to an upsell price. In
such an
embodiment, the POS terminal 1010 can provide the customer with a selection of
possible
upsells. The POS terminal 1010 may display all of these upsells
simultaneously, or may
display the upsells sequentially.
In embodiments where the upsells are displayed simultaneously, the
customer selects from among the displayed upsells. In embodiments where the
upsells are
displayed sequentially, the customer may reject (fail to select) the first
displayed upsell, and
the POS terminal 1010 then displays a second upsell. Sequentially-displayed
upsells can be
. sorted according to a sorting criteria, allowing the sequence of displayed
upsells to proceed
in a desired manner. Thus, a first upsell that is sorted before a second
upsell is displayed
first. If the first upsell is not selected, the second upsell is then
displayed.
49
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
The upsells may be sorted according to the profit earned on each upsell. In
such an embodiment, the upsell yielding the highest profit to the business is
offered first. If
the customer rejects the highest profit upsell, other upsells having lower
profits may be
subsequently-displayed. Thus, even if a customer rejects a first upsell, he
may select a
subsequent upsell that still provides profit to the seller.
In certain other embodiments of the present invention, the POS terminal
provides a second upsell having a higher-value to the customer if a first
upsell has been
rejected. Such a higher-value upsell may be more likely to be accepted than
the first upsell.
Such a sequence of increasingly-valuable offers may result in the customer's
consistent
rejection of the first upsell offer. Accordingly, in another embodiment, the
POS terminal
generates a random number using any of a number of known methods. The random
number
may be used to determine (i) whether subsequent upsells are offered at all, or
(ii) the relative
order in which the upsells of different value will be offered. Thus, customers
are unsure of
whether a second upsell will be offered and/or what the value of a second
upsell may be, so
they will not automatically reject the first upsell.
FIG. 20 illustrates a method 1180 in which the customer provides a counter-
offer to exchange his change for a second upsell. The POS terminal then
determines
whether to accept this counter-offer.
As described above, the POS terminal outputs signals indicative of a first
(identified) upsell (step 1182). The POS terminal generates a selection signal
for indicating
selection between the first upsell, change and a second upsell (counter-offer
by customer).
If the selection signal indicates selection of the first upsell (step 1184),
then, as described
above, the required payment amount is set equal to the purchase price (step
1186).
However, if the selection signal indicates selection of the second upsell
(step 1188) (i.e., the
CA 02284662 1999-09-20
WO 98/43149 PCT/US98105787
customer counter-offers for the second upsell), a second upsell price
corresponding to the
second upsell is determined (step 1190) from the upsell database. If the
calculated round-up
amount corresponds to the second upsell price (step 1192) (i.e., the
customer's change is
sufficient for the second upsell), the required payment amount is set to be
equal to the
rounded price (step 1186), and the second upsell is thereby accepted.
Besides product upgrades and additional products, another type of upsell is a
voucher that is redeemable for a product or a discount thereon. Vouchers can
be especially
valuable to a seller because they attract customers back to a business and
possibly provide
repeat sales. A customer is typically more likely to return to a business to
use a purchased
voucher (i.e. purchased with his change) than to use a free voucher. Vouchers
provide
further value to the seller through the possibility of breakage (i.e. loss and
thus non-
redemption of a purchased voucher).
A voucher may either be related to the round-up amount or independent
thereof. For example, one type of voucher is a coupon redeemable for a
discount on a future
purchase, in which the discount amount is equal to the round-up amount of the
present
purchase. In contrast, another type of voucher is a coupon redeemable for a
certain product,
regardless of the round-up amount of the present purchase.
Upon accepting the upsell, either the cashier presents a pre-printed coupon to
the customer, or the POS terminal prints one for the customer. Printed
vouchers may be
registered with many different types of indicia, such as redemption
information, a unique
identifier, the date of the purchase or an expiration date.
In embodiments that include printing a unique identifier on the voucher, the
POS terminal maintains a database for storing a plurality of identifiers. When
a new
voucher must be printed, the POS terminal generates a unique identifier that
does not
51
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
already exist in the identifier database. This identifier is then stored in
the identifier
database. By searching the identifier database for a voucher identifier,
redemption of the
voucher may be tracked and the same voucher cannot be redeemed more times than
permissible.
Referring to FIG. 21, the storage device 1022 stores an identifier database
200, which includes unique identifiers 1202 for identifying each voucher. The
identifier
database 1200 may further include voucher face values 1204, which may (or may
not) equal
the round-up amount exchanged for the voucher. Stored voucher face values
allow each
voucher to be redeemed for a different value, while minimizing fraud. For
example, the
voucher face values 1204 stored in the database 1200 may be retrieved upon
redemption and
compared with values printed on the vouchers. Discrepancies between stored and
printed
voucher values would indicate forgery of the printed voucher.
Yet another type of upsell is an entry in a game, such as a lottery, contest,
sweepstakes or other game. In some embodiments, the prize for winning the game
depends
on the round-up amount used to purchase the game entry. For example, the prize
for
winning the game may be proportional to the round-up amount paid for the game
entry. In
such embodiments, the prize collected upon winning the game is greater for
greater round-
up amounts. In other embodiments, the probability of winning may be greater
for greater
round-up amounts. For example, a game entry for which a customer paid $1.50
may have
twice as much of a chance of winning as a game entry for which another
customer paid 75ø.
Upon receiving an input indicating selection of the game upsell in exchange
for the round-up amount, the POS terminal generates a unique identifier to
identify the game
entry. The unique identifier and the round-up amount are stored in a game
database of
identifiers and round-up amounts. When a winning entry is determined, the game
database
52
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
provides the round-up amount corresponding to the entry, and thereby
determines the prize
value.
The game database may be, for example, a database maintained by the POS
terminal and stored in the storage device 1022 (FIG. 13A). In another
embodiment
illustrated by FIG. 2210, the game database resides in a lottery data
processing system 1220
that is connected to POS terminals 1222 and 1223 through a communication link
1224.
Although two POS terminals are shown in FIG. 22 for purposes of clarity, more
POS
terminals may be connected to the lottery data processing system 1220.
The lottery data processing system 1220 is typically a controller located in a
store for controlling lottery ticket transactions performed at POS terminals
in the store. The
system 1220 thereby serves to collect and store lottery transactions (such as
lottery ticket
upsells) performed at the store's POS terminals. Such centralized control of
lottery
transactions allows customers at a number of POS terminals to each receive
upsells that
permit participation in a single lottery, contest or other game.
The lottery data processing system 1220 comprises a microprocessor 1226
for controlling other components described below. The microprocessor 1226
communicates
with each of a cryptographic processor 1228 for authenticating lottery
transactions and a
random number generator 1230 for generating "quick-pick" lottery numbers for
each game
entry. A storage device 1232 also communicates with the microprocessor 1226,
and stores
(i) the above-described game database 1234 of identifiers and round-up
amounts; (ii) a POS
terminal controller database 1236 for maintaining information on POS terminals
connected
to the lottery data processing system 1220, such as a unique identifier for
each terminal and
the specific lottery transactions of each terminal; and (iii) a winning
lottery ticket number
database 1238 for storing winning numbers, and thereby indicating winning
entries.
53
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
In each of the embodiments of the present invention described above, the
customer selects and receives an upsell. However, as described below, the
customer may
prefer to transfer ("donate") his upsell to a second customer, with the upsell
being received
by the second customer at his next visit to a POS terminal. The second
customer may visit
the POS terminal, for example, to pay for products, as described above, or
specifically to
collect the donated upsell.
FIG. 23 depicts a customer database 1260 which is another embodiment of
the customer database 1110 (FIG. 17) stored in the storage device I 022. The
customer
database 260 includes unique customer identifiers 1262, as well as customer-
specific
information described above, such as name 1264, address 1266, telephone number
1268 and
historical product preferences 1270. In addition, the customer database 1260
includes
linked customer identifiers 1272 that identify others (if any) to which the
customer's upsells
are donated.
For example, using the functionality of the customer database 1260, a
customer may specify that an acquaintance receives the customer-earned upsell.
The
customer database 1260 also includes upsells due 1274 to the customer, such as
upsells
previously earned or transferred to him by another, as well as upsell
expiration dates 1275
indicating the last dates for receiving the upsells due.
Using the exemplary data shown in the database 1260 of FIG. 23, a first
customer identifier 1276 of the record 1277 identifies a customer name "Bill
Smith" and
further identifies a corresponding linked customer through identifier 1278 in
field 1272.
This linked customer identifier 1278 corresponds to the customer identifier
1280 identifying
the customer "Jill Smith". Accordingly, Jill Smith has been identified and
receives upsells
donated by Bill Smith.
54
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
An upsell due 1282 is associated with customer identifier 1280 of record
1281 (Jill Smith). The upsell due 1282 is provided based on a purchase by Bill
Smith, and
is collected by Jill Smith during a visit to a POS ternlinal. The upsell
identifier "A" in field
1274 may comprise, for example, a small soda. Thus, the use of "linked
customers" thus
allows customers to transfer earned upsells, or even purchased products,
thereby increasing
both customer satisfaction and customer retention.
A customer may prefer to randomly donate his upsell to one (or more) of a
number of customers, such as a number of family members or a predetermined
list of needy
families, rather than to any one customer in particular. In such an
embodiment, the donating
customer may first designate an associated group of linked customer
identifiers 1272.
Alternatively, the customer may let the store select a group of customers. A
random one (or
more) of this group is selected by the POS terminal as the recipient of the
upsell.
Referring now to Figs. 12a and 12b, a process 1300 is shown whereby
automated upsell processing is performed for a customer having a frequent
shopper card. A
customer who wishes to register for a frequent shopper card which stores his
preferences
provides personal information (step 1302), such as his name, address and/or
telephone
number, to a POS operator or other person who responsible for data entry. This
personal
information is then stored (step 1304) in a record of the customer database.
Such records
are exemplified in FIG. 23 by the records 1276 and 1281 of the customer
database 1260.
The customer selects (step 1306) if he would like to normally receive an
upsell, rather than change. If he so selects, possible choices of upsells are
displayed (step
1308) to the customer. The customer chooses which of the displayed upsells he
prefers to
normally receive (step 1310), and the chosen upsell is stored (step 1312) in
the historical
preferences field 1270 of his customer record.
CA 02284662 1999-09-20
WO 98/43149 PCT/US98105787
The customer may also choose (step 1314) if he would like to donate his
upsells to a "linked" customer having a frequent shopper card. If so, the
customer provides
information (step 1316) identifying the linked customer, such as the name,
address and/or
account number of the linked customer. The customer may select multiple other
linked
customers to receive donated upsells. The information is verified (step 1318)
to assure that
the second customer may be properly identified from the information provided,
and the
information is stored in the customer database record. As necessary,
additional customer
records are created for second and subsequent customer(s).
Possible upsells to donate to the second customer are displayed (step 1320) to
the customer. The customer chooses which of the displayed upsells he prefers
to normally
transfer (step 1322), and the chosen upsell is stored (step 1324) in the
customer record.
Finally, the customer is issued his frequent shopper card (step 1326) through
which the POS
terminal may identify his customer record.
Referring to FIG. 25, a method 1340 for applying previously-selected
customer preferences to a current visit to a POS terminal begins with a
determination (step
1342) of whether a frequent shopper card is being used. Such a determination
may be made,
for example, by receiving a signal from a card reader, thereby indicating that
a card has been
"swiped" through the card reader. If a frequent shopper card is not being
used, an upsell is
determined (step 1344) as previously described, and an upsell (if selected) is
provided to the
customer (step 1346) in exchange for his change.
If a frequent shopper card is being used, the customer database is searched to
determine (step 1348) if the customer has a preferred upsell. If he does, the
preferred upsell
is selected (step 1350). The customer database is also searched to determine
(step 1352) if
the customer has established a second customer to receive donated upsells. If
so, an
56
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
identifier for the selected upsell is stored (step 1354) in an account of the
second customer,
thereby indicating that the second customer may receive the selected upsell.
In other
embodiments, the second customer may receive donated products that are not
upsells, such
as products bought for "list" price.
Referring now to FIG. 26, a method 1370 illustrates how the second
customer may receive the donated upsell. While at the POS terminal, the second
customer
swipes his frequent shopper card through a card reader (step 1372), thereby
identifying a
customer record of the customer database providing information on his
preferences and any
upsells donated to him. The customer record is searched to determine (step
1374) if an
upsell has been donated to the second customer. If not, the second customer
completes his
transaction (step 1376) at the POS terminal as described above. If an upsell
has been
donated, the second customer is informed and the upsell is provided (step
1378), thereby
clearing the donated upsell from the record of the second customer. A
transaction-specific
upsell, dependent on the change of the second customer, can be offered in
addition to the
donated upsell.
As described above, an upsell may have a corresponding expiration date after
which the upsell may not be redeemed. For example, a donated upsell may be
transferred
only if the second customer collects the upsell through the above-described
method 1370
(FIG. 26) before a predetermined date. An expiration date for donated upsells
is especially
advantageous to a store in that it can increase customer retention by
providing an incentive
to visit the store having the POS terminals before the upsell expires.
Breakage also provides
the store with profit.
In many of the embodiments presented herein, the methods and apparatus of
the present invention have been described in detail with respect to a single
device
57
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
functioning as a POS terminal, such as a cash register. However, as also
described above,
the functionality of the present invention may be implemented by a plurality
of devices
sharing the described functionality, such as the mufti-unit system illustrated
in FIG. 13B.
Accordingly, FIG. 27 illustrates a method 1390 for determining an upsell at a
POS terminal in accordance with the embodiment of FIG. 13B. The method 1390
may be
performed, for example, by a combination of a cash register and a processing
system
operated by an electronic marketing service or credit card clearing house. The
cash register
generates a purchase price and transmits the purchase price to the processing
system (step
1392).
The processing system generates a rounded price (step 1394), and generates a
round-up amount in dependence thereupon (step 1396). As described above, the
processing
system identifies an upsell to offer to the customer (step 1398). If the
customer selects the
upsell (step 1400), then the required payment amount of the cash register is
set, manually or
automatically through a connection with the processing system to the rounded
price (step
1402).
It will be understood by those skilled in the art that many different systems
may be provided wherein the functionality of the present invention is shared
amongst
multiple hardware and/or software devices.
Although the present invention has been described with respect to a preferred
embodiment thereof, those skilled in the art will understand that various
substitutions may
be made to those embodiments described herein without departing from the
spirit and scope
of the present invention. For example, many other types of upsells that are
not discussed in
detail herein are contemplated by the present invention. One such upsell may
comprise
"points", such as those redeemable for store credit, telephone calls, Internet
access or pay
58
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
television events. Furthermore, many types of POS terminals. besides those
requiring
cashiers, are contemplated by the present invention.
In accordance with the present invention, a business may acquire a lottery
ticket, and
allocate a portion of the lottery ticket to a customer. A share of any prize
that is won with
the lottery ticket is provided to the customer, the share of the prize
corresponding to the
allocated portion of the lottery ticket. For example, if a customer receives a
$0.34 portion of
a $2.00 lottery ticket, then the customer receives 17% ($0.34 / $2.00 = I 7%}
of the prize
derived from the lottery ticket. A portion of a lottery ticket may be
expressed as a monetary
value, such $0.34, and may be expressed as a percentage, such as 17%.
Typically, the business will acquire a group of lottery tickets and allocate
portions of
those lottery tickets to customers as needed. The prizes derived from the
group of lottery
tickets are received by the business, which in turn pays shares of the prizes
to customers
based on the allocated portions. Since the business need only purchase
conventional lottery
tickets, the business may facilitate the play of fractional lottery tickets
without requiring
significant changes in existing lottery agency practices.
The portion of the lottery ticket allocated to the customer may be based on a
change
amount that is due in connection with a transaction at a POS terminal. Such an
embodiment
is advantageous since many customers will welcome an alternative to receiving
change.
Moreover, receiving something having a high perceived value, such as a
fractional lottery
ticket, instead of change can be even more attractive to customers.
Referring to FIG. 28, a network 2008 comprises a store controller 2010. which
is in
communication with a lottery server 2012 and with POS terminals 2014, 2016,
2018 and
2020. The POS terminals 2014, 2016, 2018 and 2020, which are typically cash
registers or
59
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
other terminals, may initiate and/or complete fractional lottery ticket
transactions. Although
four POS terminals are shown in FIG. 28, any number of POS terminals may be in
communication with the store controller 2010. The POS terminals 2014, 2016,
2018 and
2020 may be located in the same store, in different stores of a chain of
stores, or in other
locations.
The store controller 2010 directs the operation of, stores data from and
transmits data
to the POS terminals 2014, 2016, 2018 and 2020. The store controller 2010 may
itself be a
POS terminal or may be another computing device that can communicate with one
or more
POS terminals. The lottery server 2012 is typically controlled by a state
lottery agency, and
responds to requests from the store controller 2010. For example, the lottery
server 2012
may issue lottery tickets as requested by the store controller 2010, and may
provide the
winning numbers for a drawing date.
Referring to FIG. 29, the store controller 2010 of FIG. 28 comprises a
processor
2022, such as one or more conventional microprocessors. The processor 2022 is
in
communication with a data storage device 2024, such as an appropriate
combination of
magnetic, optical and/or semiconductor memory. The processor 2022 and the
storage
device 2024 may each be (i) located entirely within a single computer or other
computing
device; (ii) connected to each other by a remote communication link, such as a
serial port
cable, telephone Iine or radio frequency transceiver; or {iii) a combination
thereof. For
example, the store controller 2010 may comprise one or more computers that are
connected
to a remote server computer for maintaining databases.
The storage device 2024 stores a program 2026 for controlling the processor
2022.
The processor 2022 performs instructions of the program 2026, and thereby
operates in
accordance with the present invention, and particularly in accordance with the
methods
CA 02284662 1999-09-20
WO 98/43149 PCT/US98105787
described in detail herein. The program 2026 furthermore includes program
elements that
may be necessary, such as an operating system and "device drivers" for
allowing the
processor 2022 to interface with computer peripheral devices. Appropriate
device drivers
and other necessary program elements are known to those skilled in the art,
and need not be
described in detail herein.
The storage device 2024 also stores (i) a ticket supply database 2030;
(ii) a transaction database 2032; (iii) a fractional ticket database 2034;
(iv) a winning lottery
ticket database 2036; and (v) a frequent shopper database 2038. The databases
2030. 2032,
2034, 2036 and 2038 are described in detail below and depicted with exemplary
entries in
the accompanying figures. As will be understood by those skilled in the art,
the schematic
illustrations of and accompanying descriptions of the databases presented
herein are
exemplary arrangements for stored representations of information. A number of
other
arrangements may be employed besides the tables shown. Similarly, the
illustrated entries
represent exemplary information, but those skilled in the art will understand
that the number
and content of the entries can be different from those illustrated herein.
Referring to FIG. 30,a schematic illustration of a POS terminal 2040 is
descriptive of
the POS terminals 2014, 2016, 2018 and 2020 of FIG. 28. The POS terminal 2040
comprises a processor 2042, such as one or more conventional microprocessors.
The
processor 2042 is in communication with a data storage device 2044, such as an
appropriate
combination of magnetic, optical and/or semiconductor memory. The processor
2042 and
the storage device 2044 may each be (i) located entirely within a single
computer or other
computing device; (ii) connected to each other by a remote communication link,
such as a
serial port cable, telephone line or radio frequency transceiver; or (iii) a
combination
61
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
thereof. For example, the POS terminal 2040 may comprise one or more computers
which
are connected to a remote server computer for maintaining databases.
An input device 2046, a printer 2048 and a display device 2050 are each in
communication with the processor 2042. The input device 2046 preferably
comprises a
keypad for transmitting input signals, such as signals indicative of a
purchase, to the
processor 2042. The input device 2046 may also comprise an optical bar code
scanner for
reading bar codes and transmitting signals indicative of those bar codes to
the processor
2042. The printer 2048 is for registering indicia on paper or other material,
thereby printing
fractional lottery tickets as commanded by the processor 2042. The display
device 2050 is
preferably a video monitor for displaying at least alphanumeric characters to
the customer
and/or a cashier operating the POS terminal 2040. Many types of input devices,
printers and
display devices are known to those skilled in the art, and need not be
described in detail
herein.
The storage device 2044 stores a POS terminal program 2052 for controlling the
1 S processor 2042. The processor 2042 performs instructions of the POS
terminal program
2052, and thereby operates in accordance with the present invention, and
particularly in
accordance with the methods described in detail herein. The POS terminal
program 2052
furthermore includes program elements that may be necessary, such as an
operating system
and "device drivers" for allowing the processor 2042 to interface with
computer peripheral
devices, such as the input device 2046, the printer 2048 and the display
device 2050.
Appropriate device drivers and other necessary program elements are known to
those skilled
in the art, and need not be described in detail herein.
FIG. 31 illustrates an alternate embodiment of a POS terminal 2058, which is
descriptive of the POS terminals 2014, 2016, 2018 and 2020 of FIG. 28. A
control device
62
CA 02284662 1999-09-20
WO 9$/43149 PCT/US98/05787
2060 is in communication via a communication medium 2062 with a system 2064
for
printing fractional lottery tickets, receipts and/or coupons. The control
device 2060
comprises a processor 2066 that is in communication with the input device 2046
(FIG. 30)
and the display device 2050 (FIG. 30). The system 2064 for printing comprises
a processor
2068 in communication with the storage device 2044 (FIG. 30) and the printer
2048 (F1G.
30). In this embodiment, the control device 2060 may be a cash register, and
the system
2064 may be an electronic device for printing tickets in accordance with data
received from
the cash register. Other configurations of the POS terminal 2040 will be
understood by
those skilled in the art.
The description that follows is arranged into the following sections:
Allocating
Portions of Lottery Tickets, Acquiring Additional Lottery Tickets, and
Redeeming Portions
of Lottery Tickets.
Allocating Portions of Lottery Tickets
Referring to FIG. 32, the ticket supply database 2030 of FIG. 29 includes rows
2080,
2082, 2084, 2086 and 2088, each of which represents an entry of the ticket
supply database
2030. Each entry defines a lottery ticket that is to be allocated, in which
the allocated
portions of the lottery ticket are included in fractional lottery tickets. In
particular, each
entry includes (i) a ticket identifier 2090 that uniquely identifies the
entry, such as a serial
number of the lottery ticket or a portion of the serial number; (ii) a drawing
date 2092 that
_ indicates when winning ticket numbers will be announced; (iii) ticket
numbers 2094; (iv) an
unallocated portion 2096 of the lottery ticket; and (v) a ticket price 2098,
which indicates
the total of the unallocated portion 2096 and any allocated portions. For any
entry, the
63
CA 02284662 1999-09-20
WO 98143149 PCT/US98/05787
unallocated portion 2096 and the ticket price 2098 may be used to determine
how much of
the corresponding lottery ticket has been allocated. For example, referring to
the entry
2084, of the $1.00 ticket price, $0.23 remains unallocated. Accordingly, $0.77
($1.00 -
$0.23) has been allocated. A total remaining unallocated amount 2100 indicates
the sum of
the unallocated portions of all lottery tickets. Given the exemplary data
shown in FIG. 31,
the total remaining unallocated amount 2100 is $1.54 ($0.12 + $0.31 + $0.23 +
$0.78 +
$0.10 = $1.54).
Referring to FIG. 33, exemplary data for the ticket supply database 2030
(FIGS. 29
and 32) are shown before and after a portion of a lottery ticket has been
allocated. The table
2110 represents the ticket supply database 2030 before a transaction
represented by a round-
up amount 2130. The table 2120 represents the ticket supply database 2030
after the
transaction represented by the round-up amount 2130. The round-up amount 2130
has a
value of $0.35, and corresponds to a transaction where a customer exchanges
his change due
($0.35) for a fractional lottery ticket. The customer thus obtains a portion
of a lottery ticket,
and the portion is based on the monetary amount $0.35.
As described above, each of the entries shown in the table 2110 corresponds to
a
ticket. Except for the entry 2135, the monetary amount $0.35 is greater than
the unallocated
portions of every entry. By contrast, the entry 2135 has an unallocated
portion of $0.78, and
thus a $0.35 portion of the corresponding lottery ticket may be allocated
therefrom.
Accordingly, the lottery ticket corresponding to the entry 2135 is selected,
and a portion
corresponding to $0.35 is allocated to make a new fractional lottery ticket.
The entry 2135 represents the ticket "1234563" before the $0.35 portion is
allocated
therefrom. An entry 2140 of the table 2120 represents the ticket "1234563"
after the $0.35
portion is allocated therefrom. The unallocated portion of the entry 2140 is
$0.43, which is
64
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
the original $0.78 unallocated portion reduced by $0.35. Similarly, before the
transaction
represented by the round-up amount 2130, the total remaining unallocated
amount (of all
lottery tickets) is $1.54. After the transaction, the total remaining
unallocated amount is
$1.19, which is $1.54 reduced by $0.35.
Referring to FIG. 34, the transaction database 2032 of FIG. 29includes rows
2150,
2152, 2154, 2156 and 2158, each of which represents an entry of the
transaction database
2032. Each entry defines a transaction initiated by a POS terminal. In
particular, each entry
includes (i) a transaction number 2160 that uniquely identifies the
transaction; (ii) a POS
terminal identifier 2162 that uniquely identifies the POS terminal initiating
the transaction;
(iii) a purchase price 2164; (iv) a rounding multiple 2165 that is used to
indicate an amount
to which the purchase price is to be rounded; (v) a round-up amount 2166 that
is the
monetary amount used to purchase the fractional lottery ticket; (vi) an
indication of whether
the offer for a fractional lottery ticket was accepted 2168; (vii) a frequent
shopper number
2170 identifying a customer who has used a frequent shopper card for the
transaction; (viii)
a date 2172 of the transaction; and (ix) a fractional ticket identifier 2174
that identifies a
fractional lottery ticket provided in exchange for the round-up amount.
The round-up amount 2166 is the monetary amount used to purchase the
fractional
lottery ticket. In some embodiments, round-up amount 2166 is equal to the
allocated
portion of a lottery ticket. For example, a customer may have $0.62 in change
(the round-up
amount) from a purchase, and use that change to acquire a $0.62 portion of a
lottery ticket.
However, the monetary amount used to purchase the fractional lottery ticket
need not be
equal to the allocated portion of the corresponding lottery ticket. In certain
embodiments,
the allocated portion of a lottery ticket is based on a rounded-down (or
rounded-up)
monetary amount. For example, a customer may have $0.62 in change from a
purchase, and
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
use that change to acquire a fractional lottery ticket. The fractional lottery
ticket may be
based on an allocated $0.60 ($0.62 rounded down to the nearest nickel) portion
of a lottery
ticket. Of course, the monetary amount may be rounded down to other multiples,
such as to
the nearest dime, quarter or dollar, and that rounded amount would define the
allocated
portion of a lottery ticket. The difference between the change due and the
rounded-down
amount upon which the fractional lottery ticket is based may, for example, be
kept as a
service fee by the seller of the fractional lottery ticket.
The allocated portion of a lottery ticket may be based on the monetary amount
in still
further ways. For example, the allocated portion may be double the monetary
amount. It
may be advantageous to provide such a double-value allocated portion if a
customer buys a
predetermined good or type of good, or if the customer uses a frequent shopper
card. For
example, if a customer has $0.62 in change and purchases a product of a
particular
manufacturer, the customer receives a fractional lottery ticket that is based
on an allocated
$1.24 (double $0.62) portion of one or more lottery tickets in exchange for
his change.
Referring to FIG. 35, tables 2180 and 2190 represent records of the fractional
ticket
database 2034 (FIG. 29). Typically, the fractional ticket database 2034
includes a plurality
of records such as those represented by the table 2180 and 2190. Each record
of the
fractional ticket database 2034 defines a fractional lottery ticket, and each
fractional lottery
ticket includes allocated portions of one or more lottery tickets.
The record represented by the table 180 defines a fractional lottery ticket
that is
identified by an identifier 2185 (the identifier "1001 "}. The table 2180
includes an entry
2187, which defines a portion of a lottery ticket that is included in the
fractional lottery
ticket " 1001 ". The entry 2187 includes (l) a ticket identifier 2182 that
uniquely identifies
66
_._
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
the lottery ticket; and (ii) a portion 2184 indicating a portion of the
lottery ticket that is
included in the fractional lottery ticket "1001 ".
Similarly, the record represented by the table 2190 defines a fractional
lottery ticket
that is identified by an identifier 2195 (the identifier "1003"). The table
2190 includes
entries 2197 and 2198, which each include (l) a ticket identifier 2192; and
(ii) a portion
2194. Since the fractional lottery ticket "1003" includes portions from more
than one lottery
ticket, the fractional lottery ticket "1003" may include allocated amounts
which collectively
exceed the maximum price of one lottery ticket.
As described above, a fractional lottery ticket includes portions of one or
more
lottery tickets. In certain embodiments, the lottery tickets are not chosen by
the customer,
but are instead chosen automatically by the POS terminal or store controller
2010 (FIG. 28).
In such embodiments, a lottery ticket is selected from the plurality of
lottery tickets in the
ticket supply database 2030 (FIG. 29). The lottery ticket may be selected in
several ways.
For example, a lottery ticket having an unallocated portion at least as great
as the monetary
value may be selected. Similarly, a set of lottery tickets that each have an
unallocated
portion at least as great as the monetary value may be determined. From this
set, the lottery
ticket which has a minimal unallocated portion is selected. The description
below further
clarifies this method of selecting a lottery ticket.
Referring to FIG. 36, a table 2200 illustrates exemplary data for the ticket
supply
database 2030 (FIGS. 29 and 32). The table 2200 includes entries 2202, 2204,
2206 and
2208. A round-up amount 2220 has a value of $0.60, and corresponds to a
transaction
where a customer exchanges his change due ($0.60) for a fractional lottery
ticket. The
customer thus obtains a portion of a lottery ticket, and the portion is based
on the monetary
amount $0.60. To select the lottery ticket from which to allocate a portion,
the store
67
CA 02284662 1999-09-20
WO 98/43149 PCT/EJS98/05787
controller 2010 determines a set of tickets that each have an unallocated
portion of at least
$0.60. This set includes the entries 2204, 2206 and 2208. From this set, the
lottery ticket
which has a minimal unallocated portion is selected. Of the entries 2204, 2206
and 2208,
the entry 2208 has the minimal unallocated portion ($0.61 ). Accordingly, the
lottery ticket
corresponding to the entry 2208 is selected, and a $0.60 portion is allocated
therefrom.
In other embodiments, the customer may select the ticket numbers himself at
the
time of the transaction, either manually or through numbers stored on a
frequent shopper
card. One or more lottery tickets that include those ticket numbers would be
acquired (e.g.,
by electronic request to the lottery server 2012), added to the ticket supply
database 2030
(FIG. 29), and one or more portions thereof would be included in the
fractional lottery ticket
purchased by the customer. Such an embodiment allows a customer to obtain a
fractional
lottery ticket having his favorite or "lucky" numbers.
Once a fractional lottery ticket has been determined, the POS terminal prints
for the
customer a ticket indicative of the fractional lottery ticket, for example, on
a receipt. The
printed ticket serves as proof that the customer is entitled to the indicated
portions of any
prizes won by the indicated lottery tickets. Such a printed ticket may include
the
corresponding (i) fractional lottery ticket identifier, (ii) ticket numbers,
(iii) allocated
portions) of the lottery ticket(s), (iv) transaction identifier, and (v) an
encrypted code based
on a combination thereof. Such an encrypted code may be used to verify that
the printed
ticket is unaltered. Encryption techniques are described in "Applied
Cryptography:
Protocols, Algorithms and Source Code in C, Second Edition", by Bruce
Schneier,
published 1996. Those skilled in the art will understand that the encrypted
code will be
determined by a cryptographic algorithm such that it would be almost
impossible for a
forger to generate a valid code, much less a code that indicates a winning
lottery ticket.
68
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
The printed ticket may also include contractual language, such as provisions
assigning to the customer the right and title in and to the indicated portions
of any prizes
won by the indicated lottery tickets. Still further matter such as the drawing
date and an
expiration date of the fractional lottery ticket may be included on the
printed ticket, as will
be understood by those skilled in the art. It may be further desirable to
print a bar code that
' indicates any or all of the above information, thereby facilitating entry of
the information
using a bar code scanner.
Referring to FIG. 37, a method 2240 for allocating portions of lottery tickets
initiates
by determining a monetary value {step 2242). For example, a POS terminal may
calculate
an amount of change due and round this amount down to the nearest dime. The
POS
terminal transmits the rounded amount to the store controller, and the store
controller
thereby determines the monetary value to be this rounded amount. The store
controller in
turn allocates a portion of a lottery ticket, the portion being based on the
monetary value
(step 2244). The store controller then outputs (i) a ticket identifier that
identifies the lottery
ticket, and (ii) a portion identifier that identifies the allocated portion of
the lottery ticket
(step 2246). For example, the store controller typically transmits the ticket
identifier and the
portion identifier to the POS terminal, and the POS terminal in turn prints a
fractional lottery
ticket based on the transmitted identifiers, as described above. The store
controller also
stores the ticket identifier and the portion identifier (step 2248), for
example, in the
fractional ticket database 2034 (FIG. 29), for authentication purposes.
- Acquiring Additional Lottery Tickets
69
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
As described above, portions of lottery tickets from the supply of lottery
tickets are
allocated. After an allocation, it is possible that a lottery ticket will have
an unallocated
portion of $0.00. In other words, the entire lottery ticket will have been
allocated, and no
further portions of the lottery ticket remain to be allocated.
In addition, after an allocation, it is possible that no single lottery ticket
has an
unallocated portion which is sufficient to satisfy a particular request (or an
anticipated
request) for a fractional lottery ticket. For example, there may be an attempt
to allocate a
$0.35 portion of a lottery ticket, yet no lottery ticket represented in the
ticket supply
database 2030 (FIG. 29) has an unallocated portion of $0.35 or more. In such a
situation, it
may be possible to allocate portions from a plurality of lottery tickets, such
that the portions
collectively equal $0.35. However, it may be desirable to allocate a portion
from a single
lottery ticket, rather than from many. For example, it is simpler for a
customer to track one
set of ticket numbers, rather than a plurality of sets of ticket numbers.
Accordingly, it is advantageous to acquire additional lottery tickets for the
supply of
lottery tickets. It is particularly advantageous to acquire additional lottery
tickets at a time
before the lottery tickets are needed, so as not to introduce undue delays
into a transaction.
Additional tickets may be acquired in predetermined amounts to reduce time
spent acquiring
lottery tickets. For example, thirty tickets may be acquired at once. In
addition, the
predetermined amount may depend on criteria such as the number of POS
terminals in use.
Additional lottery tickets may be acquired by purchasing "quick pick" tickets
(Tickets with
randomly selected ticket numbers) from the state lottery in a known manner.
In one embodiment, the store controller 2010 (FIG. 28) counts the number of
tickets
that have an unallocated portion that is above a first predetermined
threshold. For example,
the store controller 2010 may count the number of tickets that have an
unallocated portion
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
that is above $0.50. This number is compared with a second predetermined
threshold, and
one or more additional lottery tickets are acquired if this number is below
the second
predetermined threshold. For example, if there are less than ten lottery
tickets having
unallocated portions above $0.50, additional lottery tickets are acquired.
In another embodiment, the store controller 2010 (FIG. 28) counts the number
of
' tickets that have an unallocated portion that is above a requested portion.
For example, a
POS terminal may request a $0.40 fractional lottery ticket from the store
controller. The
store controller 2010 then counts the number of tickets that have an
unallocated portion that
is above $0.40. This number is compared with a predetermined threshold, and
one or more
additional lottery tickets are acquired if this number is below the
predetermined threshold.
For example, if there are less than eight lottery tickets having unallocated
portions above
$0.40, additional lottery tickets are acquired.
In another embodiment, the store controller 2010 (FIG. 28) calculates the sum
of the
unallocated portions of ali tickets. If the sum is below a predetermined
threshold, additional
tickets are acquired. For example, if the total remaining unallocated amount
is below
$10.00, a block of thirty additional tickets are acquired.
Redeeming Portions of Lottery Tickets
The business or other entity acquiring and maintaining the supply of lottery
tickets
may check each to determine whether any are winning tickets. If so, the
business preferably
redeems the winning tickets for prizes as soon as practical, so that the
prizes may be used to
pay those customers that have corresponding fractional lottery tickets.
Winning ticket
numbers may be entered manually into the store controller 2010 (FIG. 28) when
available.
71
CA 02284662 1999-09-20
WO 98/43149 PCT/US98105787
Ideally, the store controller 10 will receive from the lottery server 2012
(FIG. 28) the
winning ticket numbers for each drawing date. The store controller can store
these winning
ticket numbers in the winning lottery ticket database 2036 (FIG. 29).
Referring to FIG. 38, the winning lottery ticket database 2036 includes
entries 2260,
2262 and 2264, each defining winning ticket numbers for a drawing date. Each
entry
includes (i) a corresponding drawing date 2266, (ii) winning ticket numbers
2268, and (iii) a
prize 2270. The winning lottery ticket database 2036 should include entries
for all drawing
dates corresponding to valid and redeemable fractional lottery tickets. For
example, if
fractional lottery tickets may be redeemed up to one year after the
corresponding drawing
date, then the entries for each drawing date of at least the past year should
be stored. The
prize 2270 may be, for example, the prize won upon matching all winning ticket
numbers.
More prizes may be specified for each entry. For example, a prize for matching
only five of
six winning ticket numbers may be specified for each entry as well.
When winning ticket numbers for a drawing date are received by the store
controller
2010 (FIG. 28), the store controller 2010 may simply store them in the winning
lottery ticket
database 2036, where they are accessed when fractional lottery tickets are
redeemed by
customers. However, the store controller 2010 may also determine which
fractional lottery
tickets include portions of a winning lottery ticket. Then the corresponding
records of the
fractional ticket database 2034 (FIG. 29) may be modified to indicate that the
fractional
lottery tickets include portions of winning lottery tickets. In addition, if
those fractional
lottery tickets were purchased using frequent shopper cards, then the
corresponding
customer may be notified.
Referring to FIG. 39, the frequent shopper database 2038 includes entries
2280,
2282, 2284 and 2286, each defining a frequent shopper (a customer who has used
a frequent
72
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
shopper card for the transaction). In particular, each entry includes (i) a
frequent shopper
number 2288 for uniquely identifying the frequent shopper; (ii) an address
2290 of the
frequent shopper; (iii) a telephone number 2292 of the frequent shopper; (iv)
a name 2294 of
the frequent shopper; and (v) an email address 2296 of the frequent shopper.
With such
stored information, frequent shoppers may be notified by mail, telephone call.
email or other
forms of notification as desired. In addition, frequent shoppers may be
notified by the POS
terminal when they next use their frequent shopper card. Providing frequent
shopper with
the additional benefit of notification is advantageous because it may prompt
customers to
become frequent shoppers. Consequently, these customers are more likely to
continue
frequenting the corresponding business.
To redeem a fractional lottery ticket, a customer preferably provides the
printed
ticket to show that he is entitled to the indicated share of the prize. The
printed ticket is
verified to assure that it is valid and unaltered. For example, if the printed
ticket is valid, the
fractional lottery ticket identifier inscribed on the printed ticket indicates
a record in the
fractional ticket database. That record should in turn indicate corresponding
information on
the printed ticket. In addition, the encrypted code can be verified.
Referring to FIG. 40, a method 2300 for redeeming a fractional lottery ticket
initiates
by receiving (i) a ticket identifier that identifies a lottery ticket, and
(ii) a portion identifier
that identifies an allocated portion of the lottery ticket (step 2302). Such
identifiers may be
received by manually entering one or more identifiers into a POS terminal,
from which the
identifiers are transmitted to the store controller 2010 (FIG. 28).
Alternatively, a bar code
. scanner of the POS terminal may read a bar code on the printed ticket, and
transmit the bar
code to the store controller 2010. The entered identifier or bar code may be
indicative of the
fractional lottery ticket identifier, which may be used to retrieve a
corresponding ticket
73
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
identifier and portion identifier from the fractional ticket database 2034
(FIG. 29). The store
controller thus receives the ticket identifier and portion identifier.
Once the identifiers are received, thereby identifying one or more lottery
tickets and
allocated portions thereof, a prize value of the lottery tickets is determined
(step 2304). As
discussed above, the prize value may be determined by comparing ticket numbers
of a
lottery ticket with winning ticket numbers stored in the winning lottery
ticket database 2036
(FIG. 29). As also described above, the portion of the prize that is to be
provided to the
customer is determined by the allocated portion of the lottery ticket. This
portion of the
prize is provided to the customer (step 2306), typically by providing cash
from a cash
register or by writing or printing a check made out to the customer.
A winning lottery ticket may have an unallocated portion greater than zero.
Such a
winning lottery ticket will have an associated portion of the prize value that
is not to be paid
to customers. This portion of the prize is instead retained by the business,
and may be used
to finance various customer incentives. For example, a portion of retained
prize value may
be provided back to customers in the form of fractional lottery tickets (e.g.,
$0.05 of change
buys a $0.50 fractional lottery ticket).
The business may retain further winnings by providing winning tickets with
portions
of certain prize values. For example, customers may only be provided with
shares of
"jackpot" prizes (e.g. matching all six winning ticket numbers). Any other
prizes are
retained by the business. Of course, such restrictions would typically be
explained to the
customers through advertising and printed information on the fractional
lottery ticket.
Although the present invention has been described with respect to a preferred
embodiment thereof, those skilled in the art will note that various
substitutions may be made
to those embodiments described herein without departing from the spirit and
scope of the
74
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
present invention. For example, the present invention is applicable to many
types of games
besides lotteries in which prizes are awarded. In addition, in some
embodiments the data
stored on the store controller may instead be stored among the POS terminals.
Similarly,
some of the functions performed by the store controller may be performed by
the POS
terminal, and vice versa.
A method an apparatus are provided whereby an upsell to offer to a customer is
determined
from the items in his purchase, according to predefined relationships. Such
relationships
between items in a purchase and upsells to offer may be described conceptually
by a table
that includes both the items and the upsells. The table, in turn, describes a
corresponding
database defining upsells to offer when a customer's purchase consists of
particular items.
Such a table-based embodiment is particularly easy for a typical store manager
to
understand. For example, a store manager of a fast-food restaurant might
desire to see what
upsells can be offered to a customer that orders a hamburger and small French
fries. The
store manager may search the table for entries that correspond to a hamburger
and small
1 S French fries, and then determines corresponding upsells from those
entries.
Such a table-based embodiment is also easy for a typical store manager to
adjust as
necessary. For example, a store manager might determine that a significant
number of
customers who order a hamburger and small French fries would also find a
dessert
appealing. The store manager could then adjust the table (which represents a
database) to
include an entry which defines a dessert upsell for purchases that consist of
a hamburger and
small French fries.
Since upsells are exchanged for spare change due, not all customers pay the
same
price for the same upsell. For example, if a customer has a first purchase
price of $4.64, a
particular upsell may be offered in exchange for payment of a rounded price
that is $5.00
CA 02284662 1999-09-20
WO 98/43149 PCTlUS98/05787
($4.64 rounded to the nearest dollar). The customer would thus pay $0.36 for
the upsell.
However, another customer with a second purchase price of $4.72 may be offered
the same
upsell for $5.00 ($4.72 rounded to the nearest dollar). Thus, this customer
would pay $0.28
for the same upsell. Accordingly, the upsell is not a product that is merely
on-sale and has a
fixed price for every customer. Instead, the upseIl is purchased for an amount
that may be
different for every customer: an amount necessary to round the purchase price
to some
rounding multiple.
Referring to FIG. 41, a POS terminal 3010 comprises a processor 3012, such as
one
or more conventional microprocessors. The processor 3012 is in communication
with a data
storage device 3014, such as an appropriate combination of magnetic, optical
and/or
semiconductor memory. The processor 3012 and the storage device 3014 may each
be (i)
located entirely within a single computer or other computing device; (ii)
connected to each
other by a remote communication medium, such as a serial port cable, telephone
line or
radio frequency transceiver; or (iii) a combination thereof. For example, the
POS terminal
3010 may comprise one or more computers that are connected to a remote server
computer
for maintaining databases.
An input device 3016, a printer 3018 and a display device 3020 are each in
communication with the processor 3012. The input device 3016 preferably
comprises a
keypad for transmitting input signals, such as signals representative of a
purchase, to the
processor 3012. The input device 3016 may also comprise an optical bar code
scanner for
reading bar codes and transmitting signals representative of those bar codes
to the processor
3012. The printer 3018 is for registering indicia on paper or other material,
thereby printing
receipts as commanded by the processor 3012. The display device 3020 is
preferably a
video monitor for displaying at least alphanumeric characters to the customer
and/or a
76
_ _.....
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
cashier operating the POS terminal 3010. Many types of input devices, printers
and displace
devices are known to those skilled in the art, and need not be described in
detail herein.
The storage device 3014 stores a program 3022 for controlling the processor
3012.
The processor 3012 performs instructions of the program 3022, and thereby
operates in
accordance with the present invention, and particularly in accordance with the
methods
' described in detail herein. The program 3022 furthermore includes program
elements that
may be necessary, such as an operating system and "device drivers" for
allowing the
processor 3012 to interface with computer peripheral devices, such as the
input device 3016.
the printer 3018 and the display device 3020. Appropriate device drivers and
other
necessary program elements are known to those skilled in the art, and need not
be described
in detail herein.
The storage device 3014 also stores (i) an inventory database 3024; (ii) a
possible
upsells database 3026; (iii) an upsell offer database 3028; and (iv) an
accepted offer
database 3030. The databases 3024, 3026, 3028 and 3030 are described in detail
below and
depicted with exemplary entries in the accompanying figures. As will be
understood by
those skilled in the art, the schematic illustrations of, and accompanying
descriptions of the
databases presented herein are exemplary arrangements for stored
representations of
information. A number of other arrangements may be employed besides the tables
shown.
Similarly, the illustrated entries represent exemplary information, but those
skilled in the art
will understand that the number and content of the entries can be different
from those
illustrated herein.
Referring to FIG. 42, another embodiment of a POS terminal 3040 includes a
control
device 3042 which is in communication via a communication medium 3044 with a
system
3046 for printing receipts and/or coupons. The control device 3042 comprises a
processor
77
CA 02284662 1999-09-20
WO 98/43149 PCT/US98l05787
3048 that is in communication with the input device 3016 (FIG. 41 ) and the
display device
3020 (FIG. 41 ). The system 3046 for printing comprises a processor 3050 in
communication with the storage device 3014 (FIG. 41 ) and the printer 3018
(FIG. 41 ). In
this embodiment, the control device 3042 may be a cash register, and the
system 3046 may
be an electronic device for printing coupons in accordance with data received
from the cash
register. Other configurations of POS terminals will be understood by those
skilled in the
art.
Referring to FIG. 43, the inventory database 3024 of FIG. 41 includes entries
3100,
3102, 3104, 3 I 06, 3108, 31 I 0, 3112 and 3114, each def ning an item which
may be
purchased. Each entry includes (i) an item identifier 3116 that uniquely
identifies the item;
(ii) an item description 3118; (iii) an item price 3120; and (iv) an item cost
3122. For each
entry, the item price 3120 indicates a price that a customer normally pays for
the
corresponding item, and the item cost 3122 indicates a cost of the item to the
business.
Accordingly, the item cost 3122 may be, for example, a price that the business
itself pays for
the item. In some embodiments, the inventory database 3024 may also include an
indication
of the quantity available of each item.
Referring to FIG. 44, the possible upsells database 3026 of FIG. 41 includes
entries
3140, 3142, 3144 and 3146, each defining an upsell that may be offered to a
customer in
exchange for change due. Each entry includes (i) an upsell identifier 3148
that uniquely
identifies the upsell; and (ii) an upsell description 3150.
Referring to FIG. 45, a table 3155 illustrates one embodiment of the upsell
offer
database 3028 (FIG. 41 ). The table 3155 includes entries 3160, 3 I 62, 3164,
3166, 3168 and
3170, each defining upsells to offer when a customer's purchase consists of
particular items.
Each entry includes (i) items 3172 included in the purchase; and (ii) upsells
3174 to offer.
78
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
For example, if a purchase consists of small French fries and a large cola,
then the entry
3164 indicates that the upsell "D" is to be offered. As illustrated by the
entry 3146 of the
possible upsells database 3026 (FIG. 44), the upsell "D" is an upgrade from
small French
fries to large French fries. Accordingly, if the customer accepted this offer,
he would
receive large French fries and a large cola.
' The items included in a particular purchase may correspond to more than one
entry
of the upsell offer database 3028. For example, a purchase that consists of a
hamburger and
small French fries corresponds to the entry 3160 and to the entry 3162. If a
purchase
corresponds to more than one entry, then one entry may be selected at random,
or in
accordance with direction from a cashier, and the upsell(s) corresponding to
this entry are
offered to the customer. Alternatively, the customer may be allowed to select
from amongst
the entries, and thereby choose the upsell(s) corresponding to the selected
entry.
An entry of the upsell offer database 3028 rnay indicate more than one upsell.
For
example, the entry 3166 indicates that a customer purchasing a hamburger,
large cola and
small French fries is offered upsells "C" and "D". Similarly, the entry 3168
indicates that a
customer purchasing a hamburger, a large cola and medium French fries is
offered upsells
"C" and "C" (two units of upsell "C"). As indicated by the entry 3144 of the
possible
upsells database 3026 (FIG. 44), the upsell "C" is an apple pie. Accordingly,
if the customer
accepted this offer, he would receive a hamburger, a large cola, medium French
fries and
two apple pies.
A rounded price that the customer pays for both the items and the upsell(s)
may be
determined by rounding up the purchase price to a predetermined multiple, such
as to the
next higher dollar amount. Alternatively, the upsell offer database 3028 may
indicate the
rounded price, directly or indirectly, as described below.
79
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
Referring to FIG. 46, a table 3180 illustrates another embodiment of the
upsell offer
database 3028 (FIG. 45). The table 3180 includes entries 3190, 3192, 3194,
3196, 3198 and
3200, each defining upsells to offer when a customer's purchase consists of
particular items.
Each entry includes (i) items included in the purchase 3202; (ii) upsells 3204
to offer; and
(iii) a rounded price 3206 to charge for the items and the upsells if the
customer accepts the
offer. For example, if a purchase consists of a hamburger, a large cola and
large French
fries, and upsell "C" is offered and accepted in accordance with the entry
3200, then the
entry 3200 also indicates that a rounded price of $5.00 is charged to the
customer. Although
the exemplary rounded prices depicted in FIG. 46 are each multiples of one
dollar, the
rounded prices may be multiples of any value, such as five dollars or twenty-
five cents.
Referring to FIG. 47, a table 3220 illustrates another embodiment of the
upsell offer
database 3028 (FIG. 45). The table 3220 includes entries 3222, 3224, 3226,
3228, 3230 and
3232, each defining upsells to offer when a customer's purchase consists of
particular items.
Each entry includes (i) items included in the purchase 3234; (ii) upsells 3236
to offer; and
(iii) an upsell price 3238 to be added to the purchase price if the customer
accepts the offer.
Preferably, the upsell prices are such that, when added to the corresponding
purchase price,
the resulting sum is a rounded price, such as a multiple of a dollar.
Referring to FIG. 48, a table 3250 illustrates another embodiment of the
upsell offer
database 3028 (FIG. 45). The table 3250 includes entries 3252, 3254. 3256,
3258, 3260 and
3262, each defining upsells to offer when a customer's purchase consists of
particular items.
Each entry includes {i) items included in the purchase 3264; (ii) upsells 3266
to offer; and
(iii) a rounding multiple 3268 that indicates an amount to which the purchase
price is
rounded if the customer accepts the offer. Thus, the purchase price would be
determined,
and then rounded in accordance with the corresponding rounding multiple to
yield a rounded
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
price. For example, the entries 3252, 3254, 3256, 3258, 3260 and 3262 each
define that the
purchase price is rounded to the nearest dollar.
Referring to FIG. 49, a method 3280 for providing a supplementary product sale
at a
POS terminal initiates when the POS terminal receives the items in a purchase
(step 3282).
Typically, each item will have a bar code that is scanned by a bar code
scanner, and the POS
terminal in turn receives, from the bar code scanner, signals representative
of the items.
Alternatively, various keys of the input device 3016 may be pressed to
generate signals
representative of the items. The POS terminal then determines an upsell based
on the items
(step 3284). To determine the upsell, the POS terminal may search the upsell
offer database
3028 (FIG. 41 ) in order to determine one or more records that correspond to
the items, and
thereby determine the corresponding upsells of those records.
The POS terminal determines a rounded price that the customer may pay for both
the
items and the upsell(s) (step 3286). As described above, the rounded price may
be
determined by rounding up the purchase price to a predetermined multiple, such
as to the
next higher dollar amount. In other embodiments, the rounded price is
determined from the
upsell offer database. In one embodiment, the rounded price may be determined
based on a
record of the upsell offer database. For example, as described above with
respect to FIG.
46, each entry of the upsell offer database may include the rounded price. In
another
embodiment, as described above with respect to FIG. 47, each entry of the
upsell offer
database may include a rounding multiple, and the purchase price is rounded in
accordance
with the rounding multiple to thereby generate the rounded price. In still
another
embodiment, as described above with respect to FIG. 48, each entry of the
upsell offer
database may include an upsell price that is added to the purchase price to
thereby generate
the rounded price.
81
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
The customer is provided with an offer to exchange (purchase) the items and
the
upsell(s) for the rounded price (step 3288). For example, the POS terminal may
output an
indication of the upsell(s), such as the name of the upsell(s), on the display
device 3020
(FIG. 4I ). If the customer accepts the offer, a required payment amount is
set to be the
rounded price. This required payment amount is an amount of money expected to
be paid in
return for products provided to the customer. From the required payment
amount, the
processor 3012 (FIG. 41 ) may determine, for example, the total amount of
money that
should have been collected by the POS terminal at the end of a day. Those
skilled in the art
will note that the required payment amount is typically stored on the data
storage device
3014, and may comprise, for example, a single stored value for the transaction
or a plurality
of values which each correspond to an amount of money expected to be paid for
one or more
products in the transaction.
The customer responds to the offer, and the response is received by the POS
terminal
when a key on the input device 3016 is pressed, or in other manners known to
those skilled
in the art (step 3290). If the response indicates acceptance of the offer, the
items and the
upsell(s) are exchanged for the rounded price (step 3292). If desired, the POS
terminal
makes appropriate adjustments to stored indications of available quantities of
items to
reflect that the items and upsell(s) have been sold. The POS terminal may also
store the
response to the offer for accounting and marketing analysis.
Applicants have recognized that supplementary processes performed by POS
terminals may introduce delays in the completion of customer transactions, and
that these
delays may be acceptable under certain circumstances. For example, when there
are few
pending customer transactions, such delays do not significantly affect
relevant measures of
performance such as sales per hour or profit per hour.
82
CA 02284662 2003-09-08
WD2-96-007W0
Accordingly, performing supplementary processes during periods of low
activity, yet
reducing or refraining from supplementary processes during periods of high
activity, can
result in increased profit. Such increased profit can exceed the profit of POS
terminals that
either always perform the supplemental process or never perform the
supplemental process.
S In one embodiment of the present invention, a POS terminal measures one or
more
criteria, such as an activity rate of a terminal, and performs a supplementary
process if the
criteria are less than predetermined thresholds. In another embodiment, a POS
terminal
measures an activity rate of a terminal, determines an offer schedule in
accordance with the
activity rate, and in turn provides a supplementary product offer in
accordance with the offer
schedule. The offer schedule may specify that time-consuming offers (offers
with a low
"offer speed") are made during periods of low terminal activity, while quicker
offers (offers
with a high "offer speed") are made during periods of higher terminal
activity.
It is particularly desirable to provide an offer to exchange spare change due
for an
upsell, as described in the aforementioned parent application, >;1.S. Patent
No. 6,119,099.
Accordingly, the present invention contemplates providing offers for upsells
having high
performance rates. In addition, the present invention contemplates providing
offers for
different upsells in accordance with an offer schedule.
Referring to FIG. 50, a POS terminal 4010, which may be the IBM "4683" or IBM
"4693" manufactured by International Business Machines, comprises a processor
4012, such
as one or more conventional microprocessors. The processor 4012 is in
communication
with a data storage device 4014, such as an appropriate combination of
magnetic, optical
and/or semiconductor memory. The processor 4012 and the storage device 4014
may each
be (i) located entirely within a single computer or other computing device;
(ii) connected to
each other by a remote communication medium, such as a serial port cable,
telephone line or
radio frequency transceiver; or (iii) a combination thereof. For example, the
POS terminal
4010 may comprise one or more computers which are connected to a remote server
computer for maintaining databases.
An input device 4016 preferably comprises a keypad for transmitting input
signals,
such as signals indicative of a purchase, to the processor 4012. A printer
4018 is for
registering indicia on paper or other material, thereby printing receipts,
coupons and
vouchers as commanded by the processor 4012. A display device 4020 is
preferably a video
monitor for displaying at least alphanumeric characters to the customer and/or
cashier.
83
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
Many types of input devices, printers and display devices are known to those
skilled in the
art, and need not be described in detail herein. The input device 4016,
printer 4018 and
display device 4020 are each in communication with the processor 4012.
A sensor 4022 is also in communication with the processor 4012. The sensor
4022
and processor 4012 may be used to measure, for example, the number of
customers entering
a store or the number of customers in the vicinity of the POS terminal 4010.
Many other
types of sensors are known and need not be described in detail herein.
The storage device 4014 stores a program 4024 for controlling the processor
40I 2.
The processor 4012 performs instructions of the program 4024, and thereby
operates in
accordance with the present invention, and particularly in accordance with the
methods
described in detail herein. The program 4024 furthermore includes program
elements that
may be necessary, such as an operating system and "device drivers" for
allowing the
processor to interface with computer peripheral devices, such as the input
device 4016, the
printer 4018, the display device 4020 and the sensor 4022. Appropriate device
drivers and
other necessary program elements are known to those skilled in the art, and
need not be
described in detail herein.
FIG. 51 illustrates another embodiment of the POS terminal 10 of FIG. 50, in
which
a control device 4028 is in communication via a communication medium 4030 with
a
system 4032 for providing a supplementary process. The control device 4028
comprises a
processor 4034 in communication with the input device 4016 and the display
device 4020.
The system 4032 for providing a supplementary process comprises a processor
4036 in
communication with the storage device 4014, the printer 4018 and the sensor
4022. In this
embodiment, the control device 4028 may be a cash register, and the system
4032 may be an
electronic device connected thereto for printing coupons in accordance with
data received
from the cash register. Other configurations of the POS terminal 4010 will be
understood
by those skilled in the art.
Referring to FIG. 52, a method 4040 for controlling the performance of a
supplementary process initiates with the POS terminal 4010 of FIG. 50 and FIG.
51
measuring one or more criteria, such as the activity rate of the POS terminal
4010 (step
4042). For example, the POS terminal 4010 may measure the number of completed
transactions per time (transaction rate), the number of items purchased
through the POS
terminal 10 per period of time (item sale rate), or the number of upsells
accepted by
84
r
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
customers per period of time (upsell acceptance rate). The POS terminal 4010
may measure
the number of customers, such as the number of customers in a store or the
number of
customers in the vicinity of the POS terminal 4010, through input signals
received from the
sensor 4022. Many other types of measurements may be made by the POS terminal
4010.
The POS terminal 4010 then determines, based on the measured activity rate or
other
criteria, whether to perform a supplementary process, such as offering an
upsell in exchange
for change due. In one embodiment, the POS terminal 4010 compares the activity
rate to a
predetermined threshold. Such a threshold may be determined (step 4044) in a
number of
ways. For example, the threshold may be a predetermined value {e.g. a rate of
three
' 10 transactions per minute), or a variable value (e.g., three transactions
per minute after 5:00
PM, two transactions per minute otherwise). Many methods of calculating
thresholds, based
on many variables such as time of day and day of the week, will be understood
by those
skilled in the art.
Once the threshold is determined, the activity rate is compared to the
predetermined
15 threshold (step 4046). One comparison is to determine whether the activity
rate is less than
the threshold. For example, the POS terminal 4010 may determine whether the
measured
number of completed transactions in the last ten minutes is less than a
predetermined
threshold of seven transactions per ten minute period.
If the comparison is valid, (e.g., the measured activity rate is less than the
threshold),
20 then the POS terminal 4010 performs the supplementary process (step 4048).
The POS
terminal 4010 may perform the supplementary process by executing instructions
of the
program 4024 (FIG. 50). Alternatively, the POS terminal 4010 may perform the
supplementary process by sending control signals from the control device 4028
(FIG. 51 ) to
the system 4032 for providing a supplementary process. In such an embodiment,
the control
25 device 4028 determines whether to enable or disable the system 4032. For
example, the
control device 4028 may disable the system 4032 if the activity rate is
greater than a
predetermined threshold, and enable the system 4032 if the activity rate is
less than the
predetermined threshold. The control device 4028 may enable and disable the
system 4032
by transmitting thereto appropriate enable signals and disable signals. Such
signals may be
30 control signals, which serve only to enable or disable the performance of
the supplementary
process. or may be data signals, which contain additional information for use
by the system
4032. Instead of separate enable and disable signals, the control device 4028
may transmit
WD2-96-007W0
CA 02284662 2003-09-08
to the system 4032 a signal that toggles the system 4032 between an enabled
mode and a
disabled mode.
It will be understood by those skilled in the art that the system 4032 may
alternatively be "enabled-until-disabled". In other words, the control device
4028 would
only need to transmit a disable signal when the supplementary process is not
to be
performed. When no disable signal is transmitted to the system 4032, the
system 4032
would perform the supplementary process (even if no enable signal is
received). Similarly,
the system 4032 may be "disabled-until-enabled". In other words, the control
device 4028
would only need to transmit an enable signal when the supplementary process is
to be
performed. When no enable signal is transmitted to the system 4032, the system
4032
would not perform the supplementary process (even is no disable signal is
received).
As an illustration of the above-described method 4040, the POS terminal may
measure an activity rate, and determine if the activity rate is less than a
predetermined
threshold. If so, the POS terminal then determines an upsell in dependence on
a purchase,
as described in a parent application of the present application, U.S. Patent
No. 6,119,099,
entitled METHOD AND SYSTEM FOR PROCESSING SUPPLEMENTARY
PRODUCT SALES AT A POINT-OF-SALE TERMINAL, filed on August 26, 1997. The
POS terminal further determines an upsell price in dependence on the purchase,
and offers
the customer an upsell in exchange for the upsell price.
In the above-described embodiments, the POS terminal 4010 determines whether a
supplementary process is or is not performed. 1n other embodiments, the POS
terminal
4010 may further select a supplementary process based on the measured~activity
rate or
other criteria. For example, it may be desirable that different types of
offers are provided to
customers depending on the activity rate of the POS terminal. In particular,
more time-
consuming offers are provided when the measured activity rate is low, while
quicker offers
are provided when the measured activity rate is high.
FIG. 53 is a table 4060 that illustrates an offer schedule, which may be
implemented
as a database stored on the storage device 4014 in a manner well known in the
art. Each row
of the table 4060 represents an entry, and each entry defines an upsell to
offer for an activity
rate. In particular, each entry includes an activity rate identifier 4062 that
uniquely
identifies the entry, an activity rate 4064 which describes a rate or range of
rates, and an
upsell to offer 4066 at that activity rate. As described in Patent Application
No. 08/920,116,
86
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
the upsell to offer 4066 may include two or more upsells which are offered one
at a time
until an upsell is accepted.
An entry 4068, corresponding to activity rates less than eight transactions
per fifteen-
minute period, indicates that an additional product is to be offered during
these (relatively
low) activity rates. Additional product offers typically have low "offer
speeds", since it may
be several seconds for a cashier to retrieve the additional product if the
offer is accepted by
the customer. An entry 4070, corresponding to activity rates between eight and
fifteen
transactions per fifteen-minute period, indicates that a "triple-your-change"
coupon is to be
offered during these activity rates. Typically, printing a coupon is quicker
than offering an
additional product. A coupon offer thus has a higher offer speed, which is why
a coupon is
to be offered during periods of higher terminal activity. An entry 4072
indicates that no
offer is to be provided at activity rates greater than fifteen transactions
per fifteen-minute
period.
The above embodiments describe how the POS terminal automatically controls the
performance of a supplementary process. It may further be desirable to provide
a method
and apparatus to, at times, counteract such automatic control. Allowing a
manual override
of the decision of the POS terminal would provide even finer control over the
performance
of the supplementary process. For example, a store manager may wish to test
the
supplementary process, even though the POS terminal is not currently
performing the
supplementary process. In addition, there may be certain situations, which a
device cannot
accurately account for, in which a supplementary process should not be
performed.
Referring to FIG. 54, an apparatus 4080 includes an override decision manager
4082
which receives input from an override signal circuit 4084 and from an
automatic control
signal circuit 4086. The override signal circuit 4084 is a device that
provides an override
signal, such as a switch in communication with the POS terminal. The override
signal
circuit 4084 may be one or more keys on the input device 4016 (FIG. 50 and
FIG. 51 ), or
may be another device that transmits and/or generates signals. The automatic
control signal
circuit 4086 is the portion of the POS terminal that provides the control
signal for
controlling automatic performance of the supplementary process, as described
above. The
override decision manager 4082 receives the override signal and control signal
from circuits
4084 and 4086, respectively, and generates in dependence thereon an "enhanced
control"
signal for controlling performance of the supplementary process. The enhanced
control
87
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
signal is transmitted to a system 4088 for performing a supplementary process.
The system
4088 may be a software module which is a component of the POS terminal 4010 of
FIG. 50,
or may be the system 4032 for providing a supplementary process of FIG. 51.
The override signal may be used to counteract the performance of the
supplementary
process that would have otherwise occurred in accordance with the control
signal from the
automatic control signal circuit 4086. Referring to Table 1 below, the Truth
Table shown
describes the output (Enhanced Control Signal) as a function of the inputs
(Override Signal
and Control Signal). Table 1 describes an embodiment where the override signal
may attain
one of two values (i.e., 0 or 1). However, those skilled in the art will
understand that the
override signal may attain more than two values.
Override Signal Control Enhanced Control
Signal Signal
0 0 0
0 1 1
1 0 0
1 1 0
where:
Override Signal = 0 for Allowing Automatic Control
Override Signal = 1 for Disabling the Supplemental Process
Control Signal = 0 for Disabling the Supplemental Process
Control Signal = 1 for Enabling the Supplemental Process
Enhanced Control Signal = 0 for Disabling the Supplemental Process
Enhanced Control Signal = 1 for Enabling the Supplemental Process
TABLE 1 - Truth Table for Override Decision Manager
88
CA 02284662 1999-09-20
WO 98/43149 PCT/US98105787
For example, when Override Signal = 1 and Control Signal = 1, then a user is
overriding the automatic determination to enable the supplemental process.
Accordingly,
the Enhanced Control Signal = 0, and the supplemental process is disabled.
Referring to FIG. 55, a network 4100 includes a server computer 4102 in
communication with POS terminals 4104, 4106 and 4108. The server computer 4102
may
itself be a POS terminal, as described above. Although three POS terminals are
shown in
FIG. 55, any number of POS terminals may be in communication with the server
computer
4102 without departing from the spirit and scope of the present invention. The
server
computer 4102 may perform many of the above-described processes, especially
those
processes which are performed for more than one POS terminal. For example, the
server
computer 4102 may (i) measure the activity rate of any or all of the POS
terminals 4104,
4106 and 4108, (ii) determine whether to provide a supplementary process at
any or all of
the POS terminals 4104, 4106 and 4108, (iii) enable or disable one or more
systems for
providing a supplementary process, and/or (iv) transmit an override signal to
any or all of
the POS terminals 4104, 4106 and 4108. The server computer 4102 may also
collect data
from the POS terminals 4104, 4106 and 4108, thereby aggregating information
about the
processes that each POS terminal performs. For example, each POS terminal may
measure
its own activity rate, and transmit to the server computer 4102 signals
indicative of the
measured activity rate. The server computer 4102 may then determine an overall
activity
rate for the network 4100 of POS terminals.
The measured activity rate may be, for example, the number of POS terminals in
use
(processing transactions) or the percentage of POS terminals in use. Based on
the activity
rate, the server computer 4102 may determine whether to permit the
supplementary process
to be performed at each POS terminal. Alternatively, the server computer 4102
may
determine which of the POS terminals are to perform the supplementary process.
FIG. 56 shows a table 4120 that illustrates an offer schedule for a network of
POS
terminals. Each row of the table 4120 represents an entry, and each entry
defines an upsell
to offer for an activity rate. The activity rate used in the table 4120 is
based on which of a
_ plurality of terminals are in use. Each entry includes an activity rate
identifier 4122 that
uniquely identifies the entry, an activity rate 4124 which describes a rate or
range of rates,
and an upsell to offer 4126 at that activity rate. For example, the entry
4128, corresponding
to less than 50% of all POS terminals in use, indicates that three products
are to be offered.
89
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
and the customer is to choose one. The entries 4130, 4132 and 4134 similarly
describe
upsells to be offered for different activity rates. As described above, more
time-consuming
upsells such as multiple upsells offered one after the other may be offered
during periods of
lower activity.
The present invention allows a customer to select an upsell before a purchase
is processed at
a POS terminal. Thus, the customer need not be offered a system-selected
upsell at the POS
terminal that may be rejected. The present invention thus may save time at the
POS
terminal. The selected upsell also indicates an amount to which the purchase
price should
be rounded, saving even more time.
If a business has old or aging inventory, it may be advantageous to allow that
inventory to be selected as an upsell in exchange for change due. Customers
would act to
clear the inventory, and thereby eliminate the costs of otherwise disposing of
the inventory.
Referring to FIG. 57, a POS terminal 5010, which may be the IBM "4683" or IBM
"4693" manufactured by International Business Machines, comprises a processor
5012, such
as one or more conventional microprocessors. The processor 5012 is in
communication
with a data storage device 5014, such as an appropriate combination of
magnetic, optical
and/or semiconductor memory. The processor 5012 and the storage device 5014
may each
be (i) located entirely within a single computer or other computing device;
(ii) connected to
each other by a remote communication medium, such as a serial port cable,
telephone line or
radio frequency transceiver; or (iii) a combination thereof. For example, the
POS terminal
5010 may comprise one or more computers which are connected to a remote server
computer for maintaining databases.
An input device 5016 preferably comprises a keypad for transmitting input
signals,
such as signals indicative of a purchase, to the processor 5012. The input
device 5016 may
also comprise an optical bar code scanner for reading bar codes and
transmitting signals
_....__. _.
r
CA 02284662 1999-09-20
WO 98/43149 PCTNS98/05787
indicative of those bar codes to the processor 5012. A printer 5018 is for
registering indicia
on paper or other material, thereby printing receipts, coupons and vouchers as
controlled by
the processor 5012. A display device 5020 is preferably a video monitor for
displaying at
least alphanumeric characters to the customer and/or cashier. Many types of
input devices,
printers and display devices are known to those skilled in the art, and need
not be described
in detail herein. The input device 5016, printer 5018 and display device 5020
are each in
communication with the processor 5012.
The storage device 5014 stores a program 5022 for controlling the processor
5012.
The processor 5012 performs instructions of the program 5022, and thereby
operates in
accordance with the present invention, and particularly in accordance with the
methods
described in detail herein. The program 5022 furthermore includes program
elements that
may be necessary, such as an operating system and "device drivers" for
allowing the
processor 5012 to interface with computer peripheral devices, such as the
input device 5016,
the printer 5018 and the display device 5020. Appropriate device drivers and
other
necessary program elements are known to those skilled in the art, and need not
be described
in detail herein.
The storage device 5014 also stores (i) inventory database 5024; (ii) rounding
code
database 5026; and (iii) transaction database 5028. The databases 5024, 5026
and 5028 are
described in detail below and depicted with exemplary entries in the
accompanying figures.
As will be understood by those skilled in the art, the schematic illustrations
and
accompanying descriptions of the databases presented herein are exemplary
arrangements
for stored representations of information. A number of other arrangements may
be
employed besides the tables shown. Similarly, the illustrated entries
represent exemplary
91
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
information, but those skilled in the art will understand that the number and
content of the
entries can be different from those illustrated herein.
FIG. 58 illustrates another embodiment of the POS terminal 5010, in which a
control
device 5029 is in communication via a communication medium 5030 with a system
5032 for
providing an offer for an upsell. The control device 5029 comprises a
processor 5034 in
communication with the input device 5016 and the display device 5020. The
system 5032
for providing an offer comprises a processor 5036 in communication with the
storage device
5014 and the printer 5018. In this embodiment, the control device 5029 may be
a cash
register, and the system 5032 may be an electronic device for printing coupons
in
accordance with data received from the cash register. Other configurations of
the POS
terminal 5010 will be understood by those skilled in the art.
Referring to FIG. 59, a network 5040 includes a server 5042 in communication
with
POS terminals 5044, 5046 and 5048. The server 5042 directs the operation of,
stores data
from and transmits data to the POS terminals 5044, 5046 and 5048. The server
5042 may
itself be a POS terminal, as described above, or may be another computing
device that can
communicate with one or more POS terminals. Although three POS terminals are
shown in
FIG. 59, any number of POS terminals may be in communication with the server
5042
without departing from the spirit and scope of the present invention. Each of
the POS
terminals 5044, 5046 and 5048 may be located in the same store, in different
stores of a
chain of stores, or in other locations. The server 5042 may perform many of
the processes
described below, especially those processes that are performed for more than
one POS
terminal. The server 5042 may furthermore store data, such as the inventory
database 5024
(FIG. 57), that is to be shared by the POS terminals 5044, 5046 and 5048.
92
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
Referring to FIG. 60, the inventory database 5024 includes rows 5032, 5033.
5034,
5035, 5036, 5037 and 5038, each of which represents an entry of the inventory
database
5024. Each entry defines an item of inventory that may be sold. In particular,
each entry
includes (i) an item identifier 5040 that uniquely identifies the entry; (ii)
a description 5042
that describes the item of inventory; (iii) a price 5044 of the item; and (iv)
an taxable status
5046 that indicates whether the item is subject to sales tax (or other tax).
The inventory
database 5024 is accessed to determine a purchase price in a manner known in
the art. For
example, each item of a purchase may include a bar code that can be read by a
POS
terminal. The price of each item, corresponding to the bar code identifier,
would in turn be
determined from the inventory database 5024. The sum of the item prices and
any
appropriate taxes applied thereto would yield the purchase price.
Referring to FIG. 61, the rounding code database 5026 includes rows 5050, 5052
and
5054, each of which represents an entry of the rounding code database 5026.
Each entry
defines a rounding code. In particular, each entry includes (i) a rounding
code identifier
5056 that uniquely identifies the entry; (ii) a rounding multiple 5058 that
indicates an
amount to which a purchase price is to be rounded; and (iii) a fixed value
5060 that indicates
a fixed price to pay for the corresponding upsell, if the upsell is not
purchased for an amount
of change due. For example, a rounding code corresponding to the entry SO50,
identified by
"567", has a rounding multiple of $1. Thus, if a purchase includes an upsell
having the
rounding code "567", the corresponding purchase price will be rounded to next
higher dollar
amount (e.g. from $7.38 to $8.00). It can be advantageous, and simpler for
customers, to set
the rounding multiple of each upsell equal to the fixed price of that upsell.
The upsells are accessible to customers, allowing customers to select the
upsells as
they select the items of their purchase. Each upsell has a rounding code which
may be
93
CA 02284662 1999-09-20
WO 98/43149 PCTNS98/05787
determinable from a bar code printed on an adhesive label that is affixed to
the upsell. For
example, in a bookstore, there may a set of bins located near the POS
terminals. Each bin
holds several books, each having a bar code. The customer selects a book from
a bin. and
brings it to the POS terminal with the items he wishes to purchase. An optical
bar code
scanner of the POS terminal reads the bar code of the book, and the bar codes
of the items of
the purchase.
Instead of a bar code, each upsell may include another indication of the
corresponding rounding code. For example, each book in a first bin may be
affixed with a
green adhesive label, and each book in a second bin may be affixed with a blue
adhesive
label. In such an embodiment, the green adhesive label would indicate a first
rounding
code, and the blue adhesive label would indicate a second rounding code. A
cashier or other
operator of the POS terminal would in tum press a button or otherwise allow
the POS
terminal to receive data indicating the rounding code.
It can be advantageous for upsells having the same rounding code to be grouped
together. For example, a first bin could contain a number of books that each
have a first
rounding code. A second bin could contain a number of books that each have a
second
rounding code. If any book from the first bin is selected as an upsell, the
purchase price
would be rounded to a first multiple (e.g. the nearest $5). Similarly,
selecting any book
from the second bin would cause the purchase price to be rounded to a second
multiple (e.g.
the nearest $10).
Referring to FIG. 62, the inventory database 5024 and the rounding code
database
5026 are used in determining an amount of money due as payment for items of a
purchase
and an upsell. Tables 5080 and 5082 each represent data corresponding to a
transaction
identified by a transaction identifier "I2345678". Accordingly, the tables
5080 and 5082
94
r
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
represent data stored in the transaction database 5028 (FIG. 57). Typically,
the transaction
database 28 will include data representing a plurality of such transactions.
The table 5080 represents one or more items included in the transaction, and
the
table 5082 represents one or more upsells included in the transaction. The
table 5080
includes entries 5084 and 5086, each defining a type of item to purchase. Each
entry
includes (i) an item identifier 5088; corresponding to the item identifier
5040 of FIG. 60; (ii)
a quantity 5090 of the item; (iii) a price 5092 of each unit of the item, the
price
corresponding to the price 5044 of FIG. 60; and (iv) a price with tax 5094 of
each unit of the
item. The price with tax of an item may be determined from the corresponding
price 5092,
the taxable status 5046 of FIG. 60 (which indicates whether the item is
subject to sales tax
or other tax), and a tax rate 5096. Those skilled in the art will readily
understand that the tax
rate 5096 may be, for example, stored on the storage device 5014 (FIG. 57) as
a database or
as a variable of the program 5024. The price with tax of each item is summed
to yield a
subtotal price with tax 5098. The subtotal price with tax 5098 is a price that
would be due if
no upsell is included in the transaction.
The table 5082 includes an entry 5100 that defines an upsell included in the
transaction. The entry 5100 includes (i) a rounding code identifier 5102,
corresponding to
the rounding code identifier 5056 of FIG. 61; (ii) a rounding multiple 5104,
corresponding
to the rounding multiple 5058 of FIG. 61; and (iii) a fixed value 5106,
corresponding to the
fixed value 5060 of FIG. 61. The rounding multiple of the entry 5100 has the
value $5,
indicating that the subtotal price with tax 5098 is to be rounded to the next
higher multiple
of $5. Accordingly, the subtotal price with tax 5098, which has the value
$26.20, is rounded
to the next higher multiple of $5, yielding a rounded price 5108 having the
value $30.
CA 02284662 1999-09-20
WO 98143149 PCT/US98/05787
FIG. 63 depicts a table 5120 that represents further information relating to
transactions. Such information may be stored in the transaction database 5028
(FIG. 57) in
certain embodiments of the present invention. The table 5120 includes entries
5122 and
5124, each defining further information relating to a transaction. Each entry
includes (i) a
transaction identifier 5126 that uniquely identifies the transaction; (ii) a
date 5128 on which
the transaction occurred; (iii) a time 5130 at which the transaction occurred;
(iv) a POS
terminal identifier 5132 that indicates the POS terminal at which the
transaction occurred;
and (v) a revenue 5134 that was derived from the transaction. Information
represented by
the table ~ 120 may be used, for example, in determining patterns in revenue
generation over
time.
FIG. 64 illustrates a method 5150 in which the above-mentioned databases are
used
in determining a rounded price for a purchase that includes an upsell and one
or more items.
A POS terminal receives a code for each item in the purchase (step 5152). For
example, a
bar code scanner reads a bar code imprinted on each item and generates signals
indicative of
the bar code. The POS terminal also receives a rounding code for an upsell
(step 5154).
Those skilled in the art will understand that the rounding code may be
received before,
during or after the receiving of the item codes. After all codes are received,
the POS
terminal determines a purchase price from the item codes (step 5156). As
described above
with reference to FIG. 62, the purchase price is determined by summing the
price with tax of
each item. The POS terminal determines a rounding multiple from the rounding
code (step
5158) by accessing the rounding code database 5026 (FIG. 57). Based on the
rounding
multiple, the POS terminal rounds the purchase price to yield a rounded price
(step ~ 160).
The rounded price is the price due in exchange for the items and the upsell.
96
_ __ __. .
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
In the embodiments described above, one upsell was included in a purchase.
However, a plurality of upsells may be included in a purchase. In such an
embodiment, one
upsell would be sold in exchange for change due, while the remaining upsells
would be sold
at a fixed price. As described above with reference to FIG. 61, each rounding
code has both
a fixed price and a rounding multiple. Thus, a fixed price may be determined
for each
" upsell.
FIG. 65 illustrates a method 5180 for determining a rounded price for a
purchase that
includes a plurality of upsells with rounding codes. The POS terminal receives
a code for
each item in a purchase (step 5182) and also receives a rounding code for each
of a plurality
of upsells (step 5184). As described above, a purchase price is determined
from the item
codes (step 5186).
One of the rounding codes is selected (step S 188), and its rounding multiple
is
determined (step 5190). The selection defines a selected rounding code and a
set of
unselected rounding codes. The set of unselected rounding codes may consist of
one
rounding code (if there are two rounding codes) or more than one rounding
code. The
choice of which rounding code is selected may depend on different criteria. In
one
embodiment, the POS terminal selects a rounding code having the smallest
(minimal)
rounding multiple. That is, the POS terminal selects a rounding multiple that
is not greater
than the rounding multiple of each unselected rounding code. For example, if
there are three
rounding codes, having corresponding rounding multiples of $5, $5 and $10,
then either of
the first two rounding codes (having rounding multiples of $S) would be
selected.
Once a rounding code is selected, the fixed price of each remaining
(unselected)
rounding code is determined {step 5192). As described above, the fixed prices
are
determinable from the rounding code database 5026 (FIG. 57 and F1G. 61 ).
These fixed
97
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
prices are added to the purchase price determined at step 5186, thereby
generating an
augmented price (step 5194). This augmented price is rounding based on the
rounding
multiple determined at step 5190, thereby generating a rounded price (step
5196). This
rounded price is exchanged for the items and the upsells included in the
purchase. Those
skilled in the art will understand that the step 5196 may be performed before
the step 5194,
rather than after.
Referring to FIG. 66, tables 5210 and 5212 each represent data corresponding
to a
transaction identified by a transaction identifier "12345671 ". Accordingly,
the tables 5210
and 5212 represent data stored in the transaction database 5028 (FIG. 57). The
table 5210,
similar to the table 5080 of FIG. 62, represents one or more items included in
the
transaction, and the table 5212, similar to the table 5082 of FIG. 62,
represents upsells
included in the transaction. The table 5210 includes entries 5214 and 5216,
each defining a
type of item to purchase. A subtotal price with tax 5218 and tax rate 5220
function as those
described above with respect to FIG. 62.
1 S The table 5212 includes entries 5222, 5224 and 5226 that each define an
upsell
included in the transaction. Similar to the table 5082 (FIG. 62), each entry
of the table 5212
includes (i) a rounding code identifier 5228, corresponding to the rounding
code identifier
5056 of FIG. 61; (ii) a rounding multiple 5230, corresponding to the rounding
multiple 5058
of FIG. 61; and (iii) a fixed value 5232, corresponding to the fixed value
5060 of FIG. 61.
As described above, one upsell is selected to define a rounding multiple, and
the remaining
upsells have fixed prices that are added to the subtotal price with tax. In
accordance with an
embodiment described above, in the example described by FIG. 66 an upsell
having a
minimal rounding multiple is selected. Such an upsell may be either upsell
defined by the
98
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
entries 5224 and 5226, each having a rounding multiple of $ l . Accordingly,
the remaining
two upsells have fixed prices of $1 and $10.
A table 5234 represents the use of the fixed prices of the upsells. The
additional
upsell fixed prices 5236, which is the sum of the fixed prices of the
remaining (unselected)
upsells, is $11. Thus the subtotal price with the additional upsells 5238 is
the sum of $26.20
and $1 l, which is $37.20. This subtotal price is rounded in accordance with
the rounding
multiple of the selected upsell ($1 ), generating a rounded price 5240 of
$38.00.
In another embodiment of the present invention, each upsell may have a
corresponding "minimum price", which is a minimum difference betwenn the
subtotal price
I O with tax and the rounded price. For example, if a subtotal price with tax
is $4.98, and a
corresponding rounding multiple is $5.00, then the rounded price would
normally be $5.00
(only $0.02 extra). However, if a minimum price for the upsell is $2.00, then
a rounded
price of $7.00 ($4.98 + $2.00 rounded up to the nearest dollar) is generated.
One or more POS terminals control offers that are provided to customers, such
that
those offers which have high performance rates are provided. The present
invention
determines the best offers by providing customers with a group of offers, and
evaluating the
performance rates of the offers. By contrast, random or manual (human)
selection of offers
is unlikely to determine the best offers. Furthermore, the present invention
advantageously
relieves managers or other personnel of the task of selecting offers.
By continually evaluating the performance rates of offers, the offers provided
to
customers continue to be the highest performing. If the performance rate of a
once-
attractive offer decreases, it can be replaced by other, higher-performing
offers.
99
CA 02284662 1999-09-20
WO 98/43149 PCT/IJS98/05787
The present invention may further make the offer appear to the customer to be
random, since a POS terminal typically provides different offers at different
times. This, in
turn, can make it difficult for customers to manipulate the offer system to
their advantage.
Referring to FIG. 67, a POS terminal 6010, which may be the IBM "4683" or IBM
"4693" manufactured by International Business Machines, comprises a processor
6012, such
as one or more conventional microprocessors. The processor 6012 is in
communication
with a data storage device 6014, such as an appropriate combination of
magnetic, optical
and/or semiconductor memory. The processor 6012 and the storage device 6014
may each
be (i) located entirely within a single computer or other computing device;
(ii) connected to
each other by a remote communication medium, such as a serial port cable,
telephone line or
radio frequency transceiver; or (iii) a combination thereof. For example, the
POS terminal
6010 may comprise one or more computers which are connected to a remote server
computer for maintaining databases.
An input device 6016 preferably comprises a keypad for transmitting input
signals,
such as signals indicative of a purchase, to the processor 6012. A printer
6018 is for
registering indicia on paper or other material, thereby printing receipts,
coupons and
vouchers as commanded by the processor 6012. A display device 6020 is
preferably a video
monitor for displaying at least alphanumeric characters to the customer and/or
cashier.
Many types of input devices, printers and display devices are known to those
skilled in the
art, and need not be described in detail herein. The input device 6016,
printer 6018 and
display device 6020 are each in communication with the processor 6012.
The storage device 6014 stores a program 6022 for controlling the processor
6012.
The processor 6012 performs instructions of the program 6022, and thereby
operates in
accordance with the present invention, and particularly in accordance with the
methods
100
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
described in detail herein. The program 6022 furthermore includes program
elements that
may be necessary, such as an operating system and "device drivers" for
allowing the
processor 6012 to interface with computer peripheral devices, such as the
input device 6016.
the printer 6018 and the display device 6020. Appropriate device drivers and
other
necessary program elements are known to those skilled in the art, and need not
be described
in detail herein.
The storage device 6014 also stores (i) a database of offers 6024; (ii) a
transaction
database 6026; and (iii) a performance rate database 6028. The databases 6024,
6026 and
6028 are described in detail below and depicted with exemplary entries in the
accompanying
figures. As will be understood by those skilled in the art, the schematic
illustrations and
accompanying descriptions of the databases presented herein are exemplary
arrangements
for stored representations of information. A number of other arrangements may
be
employed besides the tables shown. Similarly, the illustrated entries
represent exemplary
information, but those skilled in the art will understand that the number and
content of the
entries can be different from those illustrated herein.
FIG. 68 illustrates another embodiment of the POS terminal 6010, in which a
control
device 6028 is in communication via a communication medium 6030 with a system
6032 for
providing an offer. The control device 6028 comprises a processor 6034 in
communication
with the input device 6016 and the display device 6020. The system 6032 for
providing an
offer comprises a processor 6036 in communication with the storage device 6014
and the
printer 6018. In this embodiment, the control device 6028 may be a cash
register. and the
system 6032 may be an electronic device for printing coupons in accordance
with data
received from the cash register. Other configurations of the POS terminal 6010
will be
understood by those skilled in the art.
101
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
Referring to FIG. 69, a network 6040 includes a server 6042 in communication
with
POS terminals 6044, 6046 and 6048. The server 6042 directs the operation of,
stores data
from, and transmits data to the POS terminals 6044, 6046 and 6048. The server
6042 may
itself be a POS terminal, as described above, or may be another computing
device which can
communicate with one or more POS terminals. Although three POS terminals are
shown in
FIG. 69, any number of POS terminals may be in communication with the server
6042
without departing from the spirit and scope of the present invention. Each of
the POS
terminals 6044, 6046 and 6048 may be located in the same store, in different
stores of a
chain of stores, or in other locations. The server 6042 may perform many of
the processes
described below, especially those processes that are performed for more than
one POS
terminal. The server 6042 may furthermore store data such as the database of
offers 6024.
Referring to FIG. 70, a table 6060 illustrates an embodiment of the database
of offers
6024 (FIG. 67). The table 6060 includes entries 6062, 6064, 6066 and 6068,
each of which
describes an offer to be provided to customers. It will be understood by those
skilled in the
art that the table 6060 may include any number of entries. Each of the entries
6062, 6064,
6066 and 6068 specifies (l) an offer identifier 6070 for uniquely indicating
the offer; (ii) an
offer description 6072 for describing the offer; (iii) a cost of the offer
6074 to the offeror;
and (iv) an offer frequency 6076. The offer frequency 6076 indicates the
average
percentage of times that the corresponding offer is to be provided when an
offer is provided.
For example, each of the entries 6062, 6064, 6066 and 6068 includes an offer
frequency of
25%, and thus each of the entries 6062, 6064, 6066 and 6068 will be provided
to customers
approximately one out of every four times an offer is provided, on average.
Referring to FIG. 71, a record 6090 of the transaction database 6026 (FIG. 67)
defines the transactions performed at a POS terminal identified by a POS
terminal identifier
102
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
6092. The transaction database 6026 (FIG. 67) typically includes a plurality
of records such
as the record 6090, each defining the transactions performed at a different
POS terminal.
The record 6090 includes entries 6094, 6096 and 6098 which each describe a
transaction. It
will be understood by those skilled in the art that the record 6090 may
include any number
of entries. Each of the entries 6094, 6096 and 6098 specifies (i;) a
transaction identifier 6100
that uniquely indicates a transaction; (ii) a date 6102 of the transaction;
(iii) a time 6104 of
the transaction; (iv) a purchase description 6106 that describes details of
the transaction,
such as the items purchased, the purchase price and/or the identity of the
customer; (v) an
offer identifier 6108 that indicates an offer that was provided during the
transaction; (vi) an
indication of whether the offer was accepted 6110; and (vii) a revenue 6112
that is derived
due to the customer accepting the offer.
Referring to FIG. 72, a flow chart 6120 illustrates a method for controlling
offers
that are provided at one or more POS terminals. Offers are provided to
customers (step
6122) in accordance to the database of offers 6024 (FIG. 67). As described
above with
reference to the table 6060 (FIG. 70), each offer includes an offer frequency
that indicates
the average percentage of times that the corresponding offer is to be
provided. Thus, the
database of offers 6024 indicates which offers are to be provided to
customers, and also
indicates the frequency with which the offers are to be provided.
For example, the POS terminal 6010 (FIG. 67) (or the server 6042 of FIG. 69,
in a
networked embodiment) may generate a random number between 0 and 1 each time
an offer
is to be provided. Then, an offer would be selected in accordance with the
random number
and with the offer frequency illustrated in FIG. 70. A random number between
0.00 and
0.25 would correspond to the offer "A", while a random number between 0.26 and
0.50
would correspond to the offer "B", and so on for offers "C" and "D".
103
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
Alternatively, the POS terminal 6010 or server 6042 can provide a first offer
during a
first series of transactions, and then provide subsequent offers during
consecutive series of
transactions. The sizes of the series of transactions (the number of
transactions in the series)
would be selected in accordance with the offer frequencies 6076 of the table
6060 (FIG. 70).
For example, each of the offers specified by the table 6060 of FIG. 70 has an
equal offer
frequency (25%). Thus, the first offer "A" defined by the entry 6062 could be
provided to
customers during a first series of ten transactions, and the remaining three
offers defined by
the entries 6064, 6066 and 6068 could be provided during subsequent series of
ten
transactions each. Since there are four offers and each offer is provided to
customers during
I 0 ten out of forty transactions, each offer has a frequency of 25%.
In another embodiment, each of a plurality of POS terminals may provide a
different
offer to customers. For example, a first POS terminal could provide a first
offer during a
series of one hundred transactions, and a second POS terminal could provide a
second offer
during a series of one hundred transactions. Accordingly, both the first offer
and the second
offer would have a frequency of 50% (100 / (100 + 100) = 0.50 = 50%).
Once offers are provided to customers at step 6122, the POS terminal 6010 or
server
6042 calculates the performance rate of each offer (step 6124). The
performance rate may
be any measured and/or calculated quantity, such as an Acceptance Rate or a
Profit Rate.
Many other performance rates will be understood by those skilled in the art.
The
performance rate of each offer may be calculated at predetermined periods,
such as at the
end of each day, or after predetermined numbers of offers have been provided
to customers.
An Acceptance Rate may be calculated in accordance with the following:
Acceptance Rate = Number of Times Accepted / Number of Times Provided
104
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
The Number of Times Provided is the number of times a particular offer was
provided to
customers. Similarly, the Number of Times Accepted is the number of times that
the
provided offer was accepted by customers. Both the Number of Times Provided
and the
Number of Times Accepted may be determined from data stored in the transaction
database
' 6026 (FIG. 67). It is typically desirable to have a high Acceptance Rate,
and ideally an offer
will have an Acceptance Rate of 100%. However, it is likely that the
Acceptance Rate of an
offer will be less than 100%.
Referring to FIG. 73, a table 6140 illustrates an embodiment of the
performance rate
database 6028 (FIG. 67). In this embodiment, the performance rate database
6028 is
configured to store Acceptance Rate data as described above. The table 6140
includes
entries 6142, 6144, 6146 and 614$, each of which describes an offer that has
been provided
to customers. It will be understood by those skilled in the art that the table
6140 may
include any number of entries. Each of the entries 6142, 6144, 6146 and 6148
specifies (i)
an offer identifier 6150 for uniquely indicating the offer; (ii) a number of
times accepted
6152; (iii) a number of times provided 6154; and (iv) an acceptance rate 6156
of the offer.
The table 6140 may thus be used in determining which offers have the highest
performance
rate.
A Profit Rate is a performance rate of an offer that may be calculated in
accordance
with the following:
Profit Rate = (Revenue - Cost) / Number of Times Provided
105
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
The Revenue is the amount of all income derived due to customers accepting the
offer. The
Cost is the expense incurred from customers accepting the offer. The Number of
Times
Provided is the number of times a particular offer was provided to customers.
Referring to FIG. 74, a table 6170 illustrates another embodiment of the
performance
rate database 6028 (FIG. 67). In this embodiment, the performance rate
database 6028 is
configured to store average profit per offer. The table 6170 includes entries
6172, 6174,
6I?6 and 6178, each of which describes an offer that has been provided to
customers. It
will be understood by those skilled in the art that the table 6170 may include
any number of
entries. Each of the entries 6172, 6174, 6176 and 6178 specifies (i) an offer
identifier 6180
for uniquely indicating the offer; (ii) a number of times accepted 6182; (iii)
a number of
times provided 6184; (iv) an average revenue derived per accepted offer 6186;
(v) an
average profit derived per accepted offer 6188; and {vi} an average profit
derived per offer
6190.
Those skilled in the art will understand that the number of times accepted
182, the
I S number of times provided 6184 and the average revenue 6186 may be
determined from data
stored in the transaction database 6026 (FIG. 67). For example, referring
again to the record
6090 of FIG. 71, at the POS terminal #7 the offers "A", "B" and "C" have each
been offered
once, as seen from the offer identifier 6108. The offers "B" and "C" have each
been
accepted once, as indicated by the offer accepted 6110 field. Similarly, the
revenue derived
for the offers "A", "B" and "C" is $0.00, $0.50 and $0.78 respectively. An
average revenue
for each offer would be derived by dividing the total revenue from each offer
by the number
of times it was offered.
The average profit per accepted offer 6188 may be determined by subtracting
the
cost per offer (the cost 6074 of FIG. 70) from the average revenue 6I 86.
Finally. the
I06
___ ________ ___ ___
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
average profit per offer 6190, which is the profit rate defined above, may be
determined by
multiplying the average profit per accepted offer 6188 by the acceptance rate
of the offer.
As described above, the acceptance rate of the offer is determined by dividing
the number of
times accepted 6182 by the number of times provided 6184.
Referring again to FIG. 72, after the performance rates of the offers have
been
calculated (step 6124), the POS terminal 6010 or server 6042 determines
modifications to
the database of offers 6024 based on the performance rates (step 6126). Each
offer may be
provided at a different offer frequency, or even discontinued, in accordance
with the
calculated performance rate of that offer. As described below, offers with
higher
performance rates continue to be provided to customers, and are typically
provided at higher
offer frequencies. Similarly, offers with low performance rates are typically
provided at
lower offer frequencies, or may even cease to be provided altogether.
In one embodiment, only offers having performance rates greater than a
predetermined threshold continue to be provided to customers. If one or more
offers cease
to be provided, each offer frequency must be changed, as described below.
FIG. 75 illustrates the selection of offers to discontinue. A table 6200
depicts data
stored in an embodiment of the performance rate database 6028 (FIG. 67). For
each offer,
there is an offer identifier 6202 and an acceptance rate 6204. A threshold
6206 of 10%
defines which of the offers in the table 6200 will continue to be provided. In
particular, the
offers defined by entries 6208 and 6210 (the offers "A" and "B") have
acceptance rates
greater than 10%, and thus will continue to be provided. By contrast, the
offers defined by
entries 6212 and 6214 (the offers "C" and "D") have acceptance rates less than
10%, and
thus will be discontinued.
107
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
A table 6216 depicts data stored in an embodiment of the database of offers
6024
(FIG. 67). As described above with respect to FIG. 70, each offer has an offer
identifier
6218 and an offer frequency 6220. Since the offers "C" and "D" have been
discontinued,
the corresponding offer frequencies of those offers are 0%. The offer
frequencies of the
offers "A" and "B", which continue to be offered, change accordingly. The
offer
frequencies may be changed so that they are equal to each other (50% each).
Alternatively,
the offer frequencies may be changed in accordance with their relation to one
another, as
follows:
Fne", = Fo~a / Fco~a~
Where:
F~eW is the new offer frequency
Fo,~ is the offer frequency prior to being changed
F,o~a~ is the sum of the values of Fo,d for the offers that are not
discontinued
In FIG. 75, the offer frequency "58%" of the offer "A" is calculated by from
the offer
frequencies of the offers that are not discontinued:
58% = 20.4% / (20.4% + 14.8%)
The offer frequency "42%" of the offer "B" is similarly calculated:
42% = 14.8% / (20.4% + 14.8%)
108
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
Those skilled in the art will understand that there are other methods for
changing the offer
frequencies of offers.
In another embodiment, a predetermined number of the highest-performing offers
continue to be provided to customers. The remaining offers, if any, are not
provided. FIG.
76 illustrates the selection of offers to discontinue in this embodiment. A
table 6240 depicts
data stored in another embodiment of the performance rate database 6028 (FIG.
67}. For
each offer, there is an offer identifier 6242 and an average profit per order
6244. A
threshold 6246 of "three" defines the number of highest-performing offers in
the table 6240
which will continue to be provided. In particular, the offers defined by
entries 6248. 6250
and 6252 (the offers "A", "B" and "C") are the top three offers with respect
to average profit
per order, and thus will continue to be provided. By contrast, the offer
defined by entry
6254 (the offer "D") will be discontinued.
A table 6256 depicts data stored in an embodiment of the database of offers
6024
I 5 (FIG. 67). As described above, each offer has an offer identifier 6258 and
an offer
frequency 6260. Since the offer "D" has been discontinued, the corresponding
offer
frequency is 0%. The offer frequencies of the offers "A", "B" and "C", which
continue to be
offered, change accordingly. The offer frequencies may be changed so that they
are equal to
each other (33 1/3% each). Alternatively, the offer frequencies may be changed
in
accordance with their relation to one another, in the manner described above.
Once offers have been discontinued, it may be desirable to make them available
again at some time in the future. For example, after an offer has been
discontinued due to a
poor performance rate, conditions such as consumer tastes may change.
Accordingly.
discontinued offers may continue to be maintained in the database of offers
6024 (FIG. 67),
109
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
and, after an offer has been discontinued for more than a predetermined amount
of time, it
may be advantageous to evaluate its performance rate once again. The
discontinued offer
may be granted a randomly-selected or predetermined offer frequency, allowing
the
corresponding performance rate to be evaluated.
In addition, in some situations, after offers are discontinued only one offer
may
continue to be offered. The performance rate of this offer is evaluated, and
compared with
the performance rate of the offer in prior time periods. If the performance
rate declines
below that of prior time periods, the offer may be discontinued and replaced.
As a
replacement, another (discontinued) offer may be granted a randomly-selected
or
predetermined offer frequency, allowing the corresponding performance rate to
be
evaluated.
In some embodiments it may be desirable that the offer frequency of certain
offers be
unchanged, regardless of the performance rate calculated for those offers. For
example, a
high-value offer could have a very low offer frequency. The offer could then
act as a prize
that few customers could receive. Accordingly, the cost of giving such a high-
value offer in
exchange for change due would be incurred rarely, yet could serve as
advertising to prompt
customers to frequent a business.
Referring to FIG. 77, a table 6300, similar to the table 6060 of FIG. 70,
illustrates
another embodiment of the database of offers 6024 (FIG. 67). The table 6300
includes
entries 6302, 6304, 6306 and 6308, each of which describes an offer to be
provided to
customers. Each of the entries 6302, 6304, 6306 and 6308 specifies (i) an
offer identifier
6310 for uniquely indicating the offer; (ii) an offer description 6312 for
describing the offer;
(iii) a cost of the offer 6314 to the offeror; (iv) an offer frequency 6316
and (v) a fixed
frequency indication 6318. The fixed frequency indication 6318 indicates
whether the
110
CA 02284662 1999-09-20
WO 98/43149 PCT/US98/05787
corresponding offer frequency may be changed based on the performance rate of
the offer,
as described above. For example, the entry 6308 includes an offer frequency of
1 %. Since
this offer has a relatively high value ($50 gift certificate), it is likely
that it will be accepted
often, perhaps always. However, the high cost ($50) of the offer can make it
unprofitable to
offer more frequently. Accordingly, the frequency of that offer is fixed at 1
%.
Although the present invention has been described with respect to a preferred
embodiment thereof, those skilled in the art will note that various
substitutions may be made
to those embodiments described herein without departing from the spirit and
scope of the
present invention.
111
