Note: Descriptions are shown in the official language in which they were submitted.
CA 02359088 2001-10-15
ONLINE RENTAL/PURCHASE REWARD SYSTEM
Technical Field
The invention relates to the field of the promotion of the sale or renting
of goods or services using the Internet and more particularly to a reward
system for
promoting such sales or rentals.
Background Art
Currently reward systems such as frequent flyer points or "air miles" are
used to promote sales of goods and services. According to these systems, all
purchases
made by a particular credit card, for example, will attract reward points.
While such
systems promote the use of that particular credit card, they do not promote
the purchase
of one merchant's goods or services over those of another. Coupon systems are
common
to promote particular goods, and some retail or other services have their own
promo-
tional rewards system. In some cases the rewards are points towards purchase
of other
parties' goods or services, or the goods or services themselves. Such systems
are
expensive and difficult to administer, particularly for small businesses.
Currently many businesses advertise their goods and services over the
Internet and increasingly such goods and services can be purchased over the
Internet.
Systems have been developed to encourage potential customers to view
advertisements
over the Internet by providing incentives which can be redeemed for cash. See
for
example United States patents no. 5,855,008 and 5,794,210 issued December 29,
1998
and August 11, 1998 respectively to Cybergold, Inc. Such systems do not
necessarily
require purchase of the goods or services for the customer to qualify for the
reward.
Also such systems may require the provision of personal information, which may
be
objectionable to some customers. Also, such systems lack a random lottery or
prize
aspect which would otherwise make the system more interesting and attractive
to
customers.
There is therefore a need for an online reward system which has a random
lottery aspect and which encourages sale of goods and services.
CA 02359088 2001-10-15
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Disclosure of Invention
The invention therefore provides a method of using a global computer
network to promote the completion of deferred sales, rental or service
contracts between
customers and providers by awarding randomly selected prizes, comprising:
a) providing a web site accessible to customers on the Internet via a
plurality of client terminals and comprising an Internet accessible server
and a secure server, the Internet accessible server being adapted to
interactively display information concerning the deferred sales, rental or
service contracts to the customers; and the secure server being adapted to
i) randomly generate a prize selection weighted to the value of the sales,
rental or service contracts, the prize selection being associated with a
prize code and ii) maintain a user account for storing the prize codes
associated with a user name and address in memory means;
1 S b) randomly generating a prize selection weighted to the value of a
selected sales, rental or service contract and associating the prize
selection with a prize code when the customer selects that deferred sales,
rental or service contract;
c) storing the prize code in the memory means;
d) comparing the prize code to a prize code communicated by one of the
providers upon completion of the contract;
e) redeeming the prize associated with the prize code if a matching prize
code is located in the memory means.
The invention further provides a method of using a global computer
network to promote the sale of goods or services by participating web sites
over the
global computer network by awarding randomly selected prizes, comprising:
a) providing a prize-awarding web site accessible to customers on the
Internet via a plurality of client terminals and comprising an Internet
accessible server and a secure server, the Internet accessible server being
adapted t~ interactively display information concerning prizes t~ the
customers; and the secure server being adapted to i) randomly generate
a prize selection weighted to the value of the sale, the prize selection
being associated with a prize code and ii) maintain a user account for
CA 02359088 2001-10-15
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storing accumulated values of the prize codes associated with a user name
and address in memory means;
b) the participating web sites generating a first prize code when a sale is
made to a customer at the participating web site;
c) communicating the prize code to the prize-awarding web site;
d) randomly generating a prize selection redeemable at one of the
participating web sites, weighted to the value of the sale and associating
the prize selection with a second prize code;
e) storing the second prize code in the memory means;
f) communicating the prize selection to the customer;
g) redeeming the selected prize associated with the prize code at the
participating web site, or adding the value of the prize to the customer's
account, at the customer's option.
The invention further provides a method of using a global computer
network to promote the loyalty of customers to participating merchants through
a
plurality of incentive awards programs comprising: a) providing a web site
accessible
to customers on the Internet via a plurality of client terminals and
comprising an Internet
accessible server, the Internet accessible server being adapted to
interactively display
information to the customers and adapted to maintain a user account for each
customer
for each incentive awards program; b) providing to each customer a system user
identification and secure password; and c) providing means to the customer to
access the
customer's user accounts and consolidate incentive awards from two or more
incentive
awards programs. The method may provide that the Internet accessible server
maintains
an account of consolidated incentive awards and said incentive awards from two
or
more incentive awards programs are consolidated in the consolidated system
awards
account. The method may also provide that the Internet accessible server is
adapted to
permit each customer to convert incentive awards in the customer's account
from one
incentive award program to incentive awards in a different incentive award
program.
The method may also provide that the Internet accessible server is adapted to
permit
each customer to exchange incentive awards in the customer's account for
incentive
awards in another customer's account. The Internet accessible server is
adapted to
permit each customer to redeem incentive awards in the customer's account for
merchandise or services.
CA 02359088 2001-10-15
_ 4 _
Brief Description of Drawings
In drawings which disclose a preferred embodiment of the invention,
Fig. 1 is a block diagram illustrating a computer network for carrying out
the invention;
Fig. 2 is a flowchart illustrating the method of the invention;
Fig. 3 is a flowchart illustrating a variation of the method of the invention;
and
Fig. 4 is a block diagram illustrating the method of point consolidation
according to the invention.
Best Models) For Carrying Out the Invention
A. Deferred Purchases
With reference to Figure l, a web site 10, for example
www.onlinerents.com, consists of a web server 12, comprising web server 14
accessible
to the Internet. Web site 1.0 maintains a list of properties for rent, for
example rental
apartments owned by third party customers of the web site who pay a monthly
fee to list
a property on the web site. Web server 12 also includes a secure server 16
including
random prize generating software, account information, historical data storage
etc. and
which is protected from the Internet access by firewall 20 but can communicate
with
server 12 as well as a bank computer 24 by telephone line to approve e-
commerce
transactions. Firewall 20 reduces the possibility that hackers can access the
prize
selection process or alter account information. Web site 10 also stores a
database of
rental properties, including digital photographic images of the property,
rental rate,
address and a description of the property. A number of potential
users/customers have
access to the Internet network 30 via remote client terminals 22 using
available Internet
browser software.
The onlinerents.com server 12 supports the web site accessible t~ the
potential customers over the Internet, conducts the transactions with the
rental property
owners, the prize selection, verification and distribution. A user/renter at
terminal 22
accesses the web site 10 by pointing his or her browser at the web site URL,
e.g.
www.onlinerents.com. Rental property owners contact the web site online or by
email
CA 02359088 2001-10-15
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to provide the rental property information and digital photos, and to pay for
the service
online by e-commerce transaction, although other methods of payment could be
used.
The web site organizes the rental property data so that the user will be
presented with
a graphical and interactive interface which permits the user to search and
review the
details and photographs of the different rental properties available on the
web site. The
web site also displays advertising.
The user/renter first accesses the www.onlinerents.com web site and
searches for an appropriate property by rental raters, location etc. Once the
user/renter
locates and selects a suitable rental property, the web site asks the renter
to enter his/her
name, address, email address and telephone for purposes of awarding a prize
and the
renter verifies the entered information and agrees to the terms of the prize
program. The
web site secure server 16 then runs a random prize generator program to select
a random
prize, whereby the likelihood of selecting a prize is weighted appropriately
to the less
valuable prizes. The web site then informs the renter of the prize that will
be awarded
to him/her on the renting of the property and a code # is provided to identify
the prize
transaction. The prize is redeemable for a limited period, say, 1 month. To
redeem the
prize, it is necessary for the renter to enter into a rental agreement with
the rental
property owner, at which time the rental property owner informs the web site,
by email
or otherwise, of the prize code # and the fact that the property has been
rented. The web
site then verifies that the code has not expired and, if not, sends the
selected prize to the
renter by mail, or the web site can provide a new code # to the renter by
means of which
the prize can be redeemed online from an online retailer. If no response from
the rental
property owner is received in the one month time period, the code expires and
the prize
cannot be redeemed.
A renter is limited to one prize selection per property. However to make
the system more attractive, a single renter could enter prize selections for
up to three
different properties, in an attempt to obtain the best prize available should
he/she rent
one of the properties. After three prize selections within a given time period
(e.g. two
weeks) the renter will be cut off from further prize selections regardless of
the property
selected.
In order to make the system work financially, the average prize value is
set as a percentage of the fee charged by the web site to the rental property
owner, e.g.
up to 25%, with many prizes worth less and a few prizes worth much more. The
system
thus not only encourages renters to visit the site to view properties, and
thus attracts
CA 02359088 2001-10-15
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more interest to the listed properties for the rental property owner, but also
encourages
the completion of the rental transaction. In addition to working for rental
situations, the
system also works in situations where the service cannot be immediately
purchased over
the Internet, but requires further contact between service provider and
customer before
a transaction is completed, for example home painting or renovations where a
quote
would be required, or could be used where the web site customer wants to
ensure
personal contact from the potential customer, say in a real estate or time
share sale
situation.
As a variation on the system, the renter can apply for a future rental option
by means of which the renter enters certain criteria, such as location and
monthly rental
price, and each time a rental property is placed on the system matching those
criteria a
prize is selected and the renter is notified by email of the property and the
potential
prize, with a link to the site to complete the forms for prize redemption.
The present invention can also apply where the customer accesses the web
site of the source of the products or services which are subject of a deferred
purchase.
For example a restaurant might display its menu over an Internet web site
which is
accessed by potential customers. The customer selects items from the menu for
purchase and enters the selection. The customer is then asked to provide
his/her name,
address, phone and email, and to verify same. The restaurant web site then
communi
Gates with the www.skyprize.com web site secure server 16 which determines
that the
named person is qualified to receive a prize (i.e. has not exceeded the
maximum number
of prize requests, to avoid abuse of the system) and runs a random prize
generator
program to select a random prize, whereby the likelihood of selecting a prize
is weighted
appropriately to the value of the selected meal. The skyprize.com web site
then
communicates to the restaurant customer the prize information and a code
number. If
the customer purchases the meal within a maximum period of time, the customer
provides the code number to the restaurant and the restaurant communicates the
fact of
the purchase and code number to the web site 10. The web site may send the
redeemed
prize in the mail or alternatively could send the prize information by return
e-mail to the
restaurant for immediate redemption, as might be the case in the event of a
coupon for
a free food item or meal discount. In this case the skyprize.com web site may
charge
participating web sites a flat fee in addition to a usage fee to cover the
cost of prizes.
CA 02359088 2001-10-15
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Direct Purchases
According to a second variant of the invention, a prize is awarded
automatically each time a purchase of goods or services is made over the
Internet. In
this case, there are a plurality of participating web sites, each offering to
sell goods or
services to customers. The skyprize.com server 12 again supports the web site
also
accessible to the potential customers over the Internet, conducts the
transactions with the
customers, the prize selection, verification and distribution. Customers 22
access one
of the participating third party web sites at which the customer purchases
goods or
services. Each time such a purchase is made, the customer is given a unique
Skyprize
code number by the vendor web site, and is instructed to access the
skyprize.com web
site to check for his/her prize. The customer then enters the code number on
the
skyprize web site and the web site secure server 16 runs a random prize
generator
program to select a random prize, whereby the likelihood of selecting a prize
of a
particular value is weighted appropriately to the value of the item purchased.
The prize
consists of a dollar value for redemption at one of the participating web
sites, or a
specific prize from one of the participating web sites with an equivalent
dollar value, or
a "grand prize" offered by, and supplied by, the skyprize.com web site. The
randomly
generated prize is then associated with a Skyprize code number. If the
customer
accesses the skyprize.com web site, the web site then informs the customer of
the exact
prize. The customer is then taken to a page to enter personal information,
i.e. name and
mailing address for prize delivery purposes. Each of the participating web
sites is
obliged to redeem such prizes. Thus the customer can access the participating
web site
and enter the Skyprize code to redeem the prize.
In an off-line variant of this method, the merchant can provide to the
customer who has purchased goods a card of the "scratch-and-win'°
variety having a
Skyprize code number concealed on it which the customer then scratches to
learn the
code and enters the code at the skyprize.com web site to obtain the prize, as
above.
The customer will be given an option to open an account ("Skyprize
card°')
with the skyprize.com web site so that prizes can be accumulated for their
dollar value.
Whenever a prize is awarded, the customer is given the option of redeeming the
prize
or adding the dollar value to its Skyprize card account which can be used as
credit for
purchases at any one of the participating web sites. In another variant a
customer who
shops at a certain minimum number of participating merchants, either offline
or online,
CA 02359088 2001-10-15
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can be given a prize code. Or prize codes can be awarded to individuals who
respond
to a on-line, email or off-line advertising campaigns, whether by attending a
store,
demonstration, test drive, open house or promotional presentation, or by
purchasing
goods or services after seeing an advertisement, or to individuals who
participate in
surveys or focus groups, whether on-line or off-line.
An advantage of this system is that the participating web sites benefit
twice from the activity. First, customers are attracted to the site because of
the Skyprize
benefits. Secondly, customers who were attracted to other sites are brought to
the site
to redeem prizes awarded for purchases made at the other sites. In the latter
case the
customer might not otherwise have visited the site in question. Another
advantage to the
participating web sites is that they obtain the advertising benefits
immediately but pay
for these benefits, by prize redemptions gradually at a later date.
The system can also be used in connection with transportation services
such as taxis, limousines, busses, etc. Participating transport companies will
post their
price list for different transportation services on the skyprize.com web site.
Customers
who access the site and ultimately contract with the transport company for the
service
are provided with the Skyprize reward as above, to encourage customers to use
the
system, and where again the value of the prize will be proportional to the
value of the
service purchased. According to one variant, since transportation services
generally
have excess capacity at certain off-peak times, a potential customer can make
an offer
for a particular transportation service on-line, at a discount to the listed
price, by
depositing the amount of the offer at the skyprize.com website by credit card.
The offer
is then displayed, or emailed directly to the transport companies who can
provide the
service. If the offer is accepted, the Skyprize web site is so informed by the
transport
company, either online or offline. If the offer is not accepted within a
certain time the
customer is so informed. Where the offer is accepted, the customer is provided
a
confirmation code, eg. by email. The transport company obtains payment from
the
skyprize.com web site, or directly from the customer, and the customer
receives its prize
code when the service has been performed. The use of a wireless Internet
access such
3~ as a cellular telephone is particularly useful for obtaining taxi services
in this way.
Similarly, the Skyprize system can be used in conjunction with other
incentive systems or loyalty programs such as air miles, ClickmilesT~, and
CybergoldT"''
cash. For example, operators of other incentive systems may provide the
opportunity
to their customers to redeem points or miles through the Skyprize system. A
customer
CA 02359088 2001-10-15
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is permitted to redeem a predetermined number of points/miles for a Skyprize
prize of
a predetermined level. Redemption can be done through the incentive provider,
or
directly at the Skyprize web site. The customer is provided, for example by
the
incentive provider, with a Skyprize code number in exchange for a
predetermined
number of points/miles and is instructed to access the skyprize.com web site
to check
for his/her prize. The customer then enters the code number on the Skyprize
web site,
and completes a form setting out the customer identification and number of
points/miles
redeemed, for verification purposes. The web site secure server 16 runs a
random prize
generator program to select a random prize, whereby the likelihood of
selecting a prize
of a particular value is weighted appropriately to the number of points/miles
redeemed.
The prize may consist of a dollar value for redemption at one of the
participating web
sites, or a specific prize from one of the participating web sites with an
equivalent dollar
value, or a "grand prize" offered by, and supplied by, the skyprize.com web
site. Or the
prize itself can be more points, miles or other incentives. The randomly
generated prize
is then associated with a Skyprize prize code number. If the customer accesses
the
skyprize.com web site, the web site then informs the customer of the exact
prize. The
customer is then taken to a page to enter personal information, i.e. name and
mailing
address for prize delivery purposes. Each of the participating web sites is
obliged to
redeem such prizes. Thus the customer can access the participating web site
and enter
the Skyprize prize code to redeem the prize. The prize may be actual dollars
also, so that
in effect the customer can exchange incentive points or miles for money.
This system can be used to purchase music, videos etc. digitally by
downloading, by making the downloading of music or video a selected prize. As
in the
system above a customer obtains a prize code either by redeeming incentive
points or
as a merchant reward. Upon being informed of the nature and magnitude of the
prize,
the customer is given a choice of selecting the downloading of particular
music or video
products, or may decide to add the prize to its Skyprize account.
Again, if the customer has opened a Skyprize card account with the
skyprize.com web site, the prizes redeemed for incentive points can be
accumulated for
their dollar value. Whenever a prize is awarded, the customer is given the
option of
redeeming the prize or adding the dollar value to its Skyprize card account
which can
be used as credit for purchases at any one of the participating web sites. The
Skyprize
account can keep track of different incentives such as points or miles as well
as dollar
value, so that a customer can use the Skyprize account to consolidate
different
CA 02359088 2001-10-15
- 10-
incentives, and different Skyprize members can exchange awards with other
members
through their accounts. For example one member may require more of a certain
type of
points to obtain a desired gift and can exchange points of another type, or
dollar
equivalent in its Skyprize account, with another member who has the desired
points.
The Skyprize web site can assist members in matching up with others having the
target
incentives.
Fig. 4 illustrates how the invention can be utilized to encourage customer
loyalty to a merchant by allowing customers to apply points accumulated from
purchases
at that merchant to other incentive programs, to use points accumulated from
other
incentive programs to redeem merchandise from that merchant, or to exchange
points
with or buy and sell points with other members of the incentive system. A
customer is
provided a system code number associated with a particular merchant in
exchange for
visiting that participating merchant and joining that merchant's incentive
system, for
example by being provided with a system card bearing the number. This may be
done
online, in-store at a customer service booth or an in-mall terminal, by
telephone and may
require a purchase either on-line or in-store or may be established as a
promotional
feature with free points used as an incentive. The customer then accesses the
system
web site, skyprize.com, again on-line, at in-store terminals or by telephone,
and is
instructed to set up a system account which assigns a card number/Llser ID to
the
customer and allows the customer to select a secure password/PIN number. For
future
transactions, the customer is able to visit the system web site and carry out
transactions
by entering the User ID and password. The customer may link different
incentive
systems to the skyprize system by obtaining a system code number from other
incentive
systems which will allow the customer to consolidate his/her points from
different
incentive systems. The customer's points totals from different incentive
systems will
then be linked to the skyprize system web site and the customer will be able
to access
point totals from the different incentive programs through his/her system
account. The
system can be set up so that the different incentive points are automatically
consolidated
into the skyprize system points, or the customer may have an option to retain
the various
points within their respective categories. In the latter case the customer may
be provided
the option to exchange or convert points between the different systems at
exchange or
conversion rates which may vary from time to time. Conversion of points from
one
award system to another can be arranged automatically, say every month.
Similarly the
customer may be given the option of exchanging points with other member
accounts at
______ _. __ _ _ ~.w.x._ . .~.~. ,~.~~~.-:q;.:.~~,
CA 02359088 2001-10-15
-11-
rates of exchange which can be variable and set by the customers themselves.
The
customer can check his/her using password identification on-line, by
telephone, at in-
store terminals or customer service centres or a store may provide in-store
receipts
showing point totals.
Similarly the customers may buy points from the incentive programs or
other members or sell points back to the incentive programs or other members
at rates
which are fixed from time to time or negotiated at the time of sale. Points
which are
consolidated on the skyprize system may be redeemed for gifts or gift
certificates on the
skyprize system from an on-line catalogue, or the customer may exchange the
points for
randomly generated prizes as described above. Customers can purchase points
for cash
if the point total is too low to acquire a gift. Redemption of points for
merchandise may
be done on-line, in-store through participating merchants or by telephone. If
done on-
line, digital products can be obtained in exchange for points by downloading.
As a
further option, customers could donate points to a selected charity by
accessing their
system account on-line, in-store or by telephone. As in the previous examples,
the
incentive value of the system can be enhanced by providing members with points
in
exchange for participating in surveys, focus groups, product demonstrations
and
contests. Also higher levels of membership can be purchased or achieved
through using
the system ("Gold", "Platinum" etc). which will provide the user bonus awards
when
purchases are made. The previously described method of encouraging purchases
through deferred or direct random prizes as described above can also be
incorporated
into this system, however the aforementioned point consolidation system will
be useful
and encourage customer purchases at participating merchants without the need
for
randomly generated prizes also.
As will be apparent to those skilled in the art in the light of the foregoing
disclosure, many alterations and modifications are possible in the practice of
this
invention without departing from the spirit or scope thereof. For example,
while access
to the Internet has been described through computer terminals, wireless access
through
mobile phones, pagers and personal digital assistants is also possible.
Accordingly, the
scope of the invention is to be construed in accordance with the substance
defined by the
following claims.
