Note: Descriptions are shown in the official language in which they were submitted.
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Loyalty and Rewards Program Over Distributed Network
Field of the Invention
The invention relates to loyalty and rewards program for use with Internet-
based
promotions and marketing systems. In conjunction with Internet-based
promotions and
marketing systems, the invention relates to point-of sale systems and
transactions
involving loyalty and rewards programs.
Background Of The Invention
Various known, systems enable users to download coupons, rebates, and other
promotions in an Internet-based system. Various known Internet based systems
provide a
loyalty or rewards program for frequent users. Many drawbacks and limitations
exist with
these known systems. Many such systems do not offer consumers the ability to
monitor
or receive rewards or other benefits in timely or effective manner, much less
a real-time
fashion. This leads to consumer disinterest and negatively effects the ability
of such
programs to attract consumers to the offering merchants, manufacturers, etc.
The present invention relates to the electronic distribution of secure money
saving
or discount coupons and other marketing incentives and in particular to use of
a centrally
located online computer system for interactively distributing such coupons to
remotely
connected consumer computers and for collecting user-specific data regarding
coupon
usage and user demographic information from the remote computers.
Millions of consumers regularly use product redemption coupons and realize
substantial savings as a result. Significant time is spent clipping and
sorting coupons,
discarding expired coupons and organizing current coupons for use on shopping
trips.
Conventional coupon distribution results in significant wasted time due to
consumers'
attempts to manage their coupon use.
Coupons are delivered to consumers through a variety of media. The primary
coupon distribution is via pull-out sections in newspapers, which are known as
free
standing inserts (FSIs). This accounts for just over 80% of coupons used.
Other methods
of distribution include in-store shelf coupon dispensers, check-out coupons
(generally
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issued based on the customer's current purchase), register receipt coupons, in-
product
coupons, instant peel-off on-product coupons and direct mail coupons. In
addition to
manufacturers' coupons, consumers use retail store coupons, such as those
issued by large
retail chains on a weekly basis.
Some consumers use coupons on a fairly random basis. These consumers tend not
to keep coupons for future use, but will review coupons available just prior
to shopping to
see if any of them cover products they plan to buy or if there are any for new
or improved
products of interest.
More organized coupon users maintain some form of storage system to keep
coupons for future use. These consumers often clip coupons regularly from all
available
sources, and often have coupon filing systems by product category. They will
also review
their coupons regularly, discarding unused coupons which have expired.
For most consumers, attempts to maintain an organized coupon file often fails.
The "bother" and time required to maintained organized coupon files often
results in
neglect of those files, even though diligent shoppers know that a consistent
significant
savings is easily achievable using coupons.
The notion of issuing product redemption coupons to consumers was an
innovative idea to entice consumers to try new products in the hope that,
after the first try
of a new product at a coupon discounted price, they would become repeat
customers at the
regular price. Coupons are effective tools used in launching new products.
Manufacturers also find coupons can shore up flagging sales, help reduce
excess
inventory or win back consumers' brand loyalty, and so coupons for existing
products
have become customary, so much so that today's consumers have come to expect
coupons. Often, coupon price incentives significantly reduce brand loyalty,
and
manufacturers must issue more coupons than desired to maintain market share.
Market
share also has been impacted by an increase in the number and variety of
competing "no-
name" store brands. The competitive nature of the retail industry does not
allow
manufacturers to reduce coupon distribution, and in some market sectors, such
as cereals,
the majority of purchases are made with coupons.
Consumers are most familiar with FSIs as a source for manufacturers' coupons.
In
1993, the coupon redemption rate from FSIs was 2.3%, and gradually declining.
The
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primary factors which keep the redemption rate low include consumers not
needing or
wanting the product advertised, consumers not bothering to clip coupons,
losing clipped
coupons or leaving them behind on shopping trips, lack of 100% distribution of
newspapers, overcouponing within specific areas, and unavailability of new
products
when the coupon is issued.
Free standing inserts currently represents the largest share of the coupon
distribution industry, roughly 80.2%. On average, manufacturers who use FSIs
for
coupon distribution, spend approximately $.92 per coupon redeemed, which is
the lowest
redeemed cost per coupon redeemed when compared with other current coupon
distribution methods. FSI coupon distribution results in high costs per coupon
because of
the shear complexity of and volume of materials involved in coupon
distribution and
redemption. Charges to manufacturers by FSI producers cover set-up, paper,
printing,
freight, newspaper insertion costs, sales and marketing, overhead and profit.
Direct mail coupons accounted for approximately 4.4% of coupon distribution in
1992. Direct mail coupons rnay be issued as part of a nationwide campaign or a
regional
campaign, may be cooperative or solo, and may be mass, zip-
code/lifestyle/lifestage
segmented or household targeted. Regional direct mail coupons are more common,
and
are usually limited to marketing the products and/or services of local
vendors. Companies
who practice database marketing make use of direct mail campaigns for
delivering
targeted incentives.
Run-of Press ("ROP") Coupons accounted for 4.1% of the coupons distributed in
1992. These coupons consist primarily of stand alone newspaper advertisements
with
clip-out coupons. Often these advertisements are specifically placed to
coincide with a
relevant feature article. This form or coupon is marketed directly or through
third party
coupon issuers who have the nationwide newspaper distribution channels through
which
to place ROP coupons.
In/on pack coupons accounted for 3.5% of the coupons distributed in 1992. On
pack coupons consist of an attached coupon which is removed and redeemed at
the cash
register at the time of purchase. In pack coupons are found within the product
and act as
an incentive to customers to repurchase the same product. It is estimated that
the actual
cost per in/on pack coupon redeemed is significantly less than that associated
with other
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coupon distribution methods. Most on-pack coupons are redeemed as customers
pay for
their purchases. However, this also means that all items are sold at the
coupon discount,
lowering a manufacturer's overall revenues per product more so than other
types of
coupons.
In 1992, various other coupon distribution methods represented 5% of coupons
distributed. Two important coupon distribution methods in this category
include shelf
distribution and custom prepared coupon distribution. Thousands of stores use
coupon
dispensers which are attached to a product's shelf. Customers can pull out one
coupon
from the dispenser for the product advertised. This method of coupon
distribution is
designed to reach the consumer at the point of making a purchase decision, and
has a
redemption rate of approximately 18%.
Check-out coupons are printed at the check-out by a printer installed at the
cash
register. A computer analyzes the purchases made by each customer, and can
print the
competitor's coupons or other coupons related to items in the current
purchase. This
system has a coupon redemption rate of approximately 9%.
The coupon industry expends a great deal of resources in market research,
printing, issuing, distributing and redeeming coupons, yet produces an
extremely low
redemption rate. This is attributed to the haphazard systems used by most
consumers of
manually clipping, filing, sorting through, and ultimately using the coupons,
and to the
high cost associated with targeting coupons to each consumer.
Attempts have been made in the prior art to meet the needs of the coupon
industry
and the consumer. U.S. Patent No. 5,249,044 to Von I~ohorn describes a
television-based
coupon reception system wherein coupon information is transmitted along with
program
information to a broadcast audience. A member of the audience can generate a
coupon
for subsequent redemption at a store.
U.S. Patent No. 5,285,278 and 5,287,181 to Holman also teach a television-
based
coupon reception system. Coupon information is encoded into a television
broadcast
signal and decoded at the consumer's television by circuitry similar to that
used for
closed-caption broadcast decoding. The extracted coupon information is then
recorded on
a medium such as a magnetic stripe card or a microprocessor-based "smart
card". The
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user can then present the medium at the supermarket in order to automatically
receive the
appropriate discount.
U.S. Patent No. 5,185,695 to Pruchniki discloses an electronic paperless
coupon
system which obviates the need for a paper coupon in order to save printing,
processing
and clearinghouse costs as well as eliminating counterfeiting. Coupon
redemption
information is transmitted from a central system to local retailers, where
coupon signs are
placed near the related item. The discount is automatically applied at the
point of sale
without the need for the consumer to present a paper coupon.
U.S. Patent No. 5,176,224 to Spector teaches a closed-loop coupon system which
consists of a kiosk type printer station located at a retail store. The kiosk
is linked to the
manufacturers) in order to obtain specific coupon information. The consumer
selects the
desired coupon at the kiosk, and the coupon is printed and dispensed. The
consumer
presents the coupon at the register, where the discount is applied and the
discount
transaction data is transmitted back to the manufacturer.
U.S. Patent No. 4,674,041 to Lemon et al. discloses a system with remotely
located coupon printing stations capable of limiting the number of coupons
printed in a
given time period. Each coupon station has a display for indicating the
available coupons,
selection means to allow the consumer to choose the desired coupon, and coupon
printer.
The system disables display of a particular coupon when a preselected coupon
limit has
been reached.
While these aforementioned prior art attempts at providing couponing systems
are
useful in their own right, they fail to provide for a secure and interactive
coupon
generation system in which the user can request, select, store, manipulate and
print
coupons as desired, in which user-specific information such as demographic
data and data
representative of those coupons so requested, selected, printed and actually
used may be
provided back to the coupon issuer and distributor for more efficient coupon
targeting in
subsequent coupon issuance and distribution.
It is therefore an object of the present invention to provide such a coupon
distribution system which overcomes the aforementioned problems and
shortcomings of
the prior art.
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It is an object of the present invention to provide an electronic coupon
distribution
system which can be easily accessed by masses of consumers by using a readily
available
personal computer rather than needing to purchase special-purpose equipment.
It is a further object of the present invention to provide such an electronic
coupon
distribution system which allows a user to request transmission of coupon data
and select,
store, manipulate and print coupons from such coupon data.
It is a further object of the present invention to provide such an electronic
coupon
distribution system which allows the coupon issuing companies to access
valuable
information directly from the consumer without requiring specific and
additional action
by the consumer but rather by using the information from the user's personal
computer
regarding the consumer's selection, printing and actual redemption of coupons,
as well as
responses to demographic queries posed to the users.
It is a further object of the present invention to provide such an electronic
coupon
distribution system which allows a consumer to generate shopping lists
associated with
coupons selected and printed, in order to simplify the shopping process and
promote the
use of product coupons.
It is a further object of the present invention to provide such an electronic
coupon
distribution system which allows for automatic deletion of expired coupons in
the user's
computer database and the modification of redemption amounts of coupons in the
user's
database, both of which can be transparent to the user.
It is a still further object of the present invention to provide a secure
coupon
system which generates unique coupons with user-identifying data and allows
the printing
of a coupon only once, thus eliminating the possibility of fraud by both the
consumer and
the retailer.
It is a still further object of the invention to provide an efficient, low
cost, zip-
code/lifestyle/lifestage or household targeted coupon distribution system to
tailor the
incentives to each user.
An other object of the invention is to provide a Loyalty and Rewards Program
for
Use with Internet-Based Promotions and Marketing System.
It is a still further object of the invention to provide an efficient loyalty
and
rewards program in conjunction with an online promotions and marketing system
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whereby consumers can receive rewards and other benefits in an essentially
instantaneous
manner and can monitor their loyalty accounts to determine immediately the
updated
status of such accounts based upon actions taken by the respective consumers.
It is a further object of the invention to process information from point-of
sale
facilities to provide essentially real-time updating of loyalty and rewards
transaction
information in consumer loyalty and rewards accounts.
It is a further object to provide and to provide such consumers with updated
information directly at a point-of sale facility in conjunction with a
consumer effecting a
transaction at the point-of sale.
Summary Of The Invention
These and other objects are addressed through various embodiments of the
invention. According to one embodiment, a system and method are provided to
enable
users to view promotions, e.g., via a browser by accessing a web site). The
promotions
may be categorized in a variety of ways. For each or at least some promotions,
the web
site may display, along with the display of promotions, information about
loyalty points
associated with the promotion. For example, one promotion available from an
electronics
retailer's web site may be a coupon for $50 off a particular digital
camcorder. The web
site may simultaneously display the camcorder, promotion information and
loyalty
program information, with options (e.g., a hyper-link) to obtain more
information by a
single user action (e.g., clicking on the desired link). According to one
embodiment,
when a user clicks on the loyalty link (or other icon associated with that
promotion), the
system will display two types of information. The first is a number of points
the user will
receive just for downloading the promotion (e.g., coupon). The second is the
number of
points the user will receive for taking some specified action, e.g., buying
the product
using the coupon. Preferably, the number of points for taking action is
greater than the
number of points for downloading.
According to another aspect of the invention, the web site comprises a user
registration feature. Once a registered user accesses the web site, the system
will display
status information regarding the user's loyalty program account. According to
one
embodiment, the status information includes the current number of points
accumulated
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and the number of pending points. The pending points may represent the number
of
points the user can obtain if the user takes the specified action for coupons
(or other
promotions) that have been downloaded but not yet redeemed.
According to another aspect of the invention, the user account information is
updated in real time. For example, when a user downloads a coupon, the total
points for
that user is updated to reflect the number of points associated with
downloading that
coupon and the number of pending points is updated to reflect the number of
points the
user will receive if the coupon is redeemed.
Optionally, the web site may be in communication with various point of sale
locations so that when a coupon is redeemed by a user, that information is
supplied to the
web site and the user's account can be updated.
In one embodiment of the present invention a promotions system including a
loyalty program includes a server system for storing promotions information
and loyalty
program information, a means for receiving requests from a user to view
promotions, and
a means for transmitting to the user promotion information including one or
more
available promotions and loyalty information associated with individual ones
of the
promotions. According to on aspect of system operation, for at least some
promotions a
user receives a first number of loyalty points for taking a first action
associated with that
promotion and a second number of points for taking a second action associated
with that
promotion. According to another aspect of system operation, the promotion
involves
downloading and receiving a coupon. According to another aspect of system
operation,
the system further includes means for storing loyalty program account
information for
registered users, wherein the account information includes current point
balance
information and pending point information that reflects the number of points a
user may
receive if certain actions are taken. According to another aspect of system
operation, the
system transmits to the user for display with the promotion information the
user's current
and pending point balances. According to another aspect of system operation
the user may
view information about a particular promotion, and with a single user action,
receive
information about loyalty points associated with that promotion. In a further
embodiment
of the present invention the system cooperates with a retailer, distributor,
etc. at the point-
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of sale level to, among other things, receive redemption information and to
effect real
time updating of loyaltylrewards account balances.
Another embodiment of the present invention provides a loyalty program system
used in a system for distributing and generating at a remote site coupons. The
coupon
distribution and generation system includes a centrally located repository of
electronically
stored coupon data, a transmission means operatively associated with the
centrally located
repository for providing data communication between the repository and a
plurality of
remote user computers, and a remote user computer operatively associated with
the
transmission means and being attached to a printer, the remote user computer
adapted to
request coupon data from the centrally located repository and execute a coupon
data
management program for generating printable coupon data. The loyalty program
system
includes means for transmitting to the user coupon data including one or more
available
coupons and loyalty information associated with individual ones of the
available coupons,
means for establishing and maintaining a user loyalty program account, means
for
providing user access to the user loyalty program account, and means for
instantaneously
updating the user loyalty program account based on a first loyalty reward
associated with
a user selecting a coupon for downloading and presenting the updated account
information to the user in real-time. In another aspect of the invention, at
least one of the
promotions provided by the system includes a coupon offer, wherein the user
may receive
a first reward for downloading the coupon and a second reward for redeeming
the coupon.
In a further aspect of the invention the system further includes means for
storing loyalty
program account information for registered users, wherein the account
information
includes current reward information and pending reward information that
reflects the
rewards a user will receive upon the user taking further action.
Other features and functions of the invention are detailed below.
In accordance with these and other objects, provided is a system for
distributing
and generating at a remote site product redemption coupons comprising a
centrally
located repository of electronically stored product redemption coupon data,
transmission
means operatively associated with said centrally located repository for
providing data
communication between said repository and a plurality of remote user
computers, and a
remote user computer operatively associated with said transmission means. The
remote
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user computer in the present invention comprises interface means for providing
user
interaction with the centrally located repository, a memory, and a coupon data
management program. The coupon data management program is implemented by the
computer fox requesting coupon data from the centrally located repository, for
storing in
the memory coupon data transmitted from the centrally located repository, and
for
generating printable coupon data from the stored coupon data. The remote user
computer
also comprises a coupon output buffer operatively associated with the data
management
program for storing the printable coupon data generated by said coupon data
management
program.
The present invention additionally comprises a printer for printing product
redemption coupons from the printable coupon data stored in the coupon output
buffer.
Alternatively, the system may enable the user to transmit electronically the
printable
coupon data from the coupon output buffer to the centrally located repository
or directly
to the retailer for electronic coupon redemption.
As a result of the present invention, a user of the remote computer is able to
request coupon data to be transmitted from said centrally located repository,
and the user
is able to instruct his computer to print or electronically transfer product
redemption
coupons generated from the transmitted coupon data. In particular, the user's
computer
assembles product redemption coupons for printing by using two data
components; (1)
fixed coupon data which is transmitted to the user's computer during an
initialization or
"sign-up" process and which remains stored on the user's computer for
subsequent
coupon generation, and (2) variable coupon data which is transmitted to the
user's
computer whenever he requests coupon data from the central repository.
Additionally, the coupon data management program of the present invention
operates in conjunction with the remote computer to allow the user to select
and store
certain desired coupon data from the coupon data transmitted by the centrally
located
repository and print coupons as selected. The coupon data management program
also
allows the user to generate a shopping list which is correlated to the coupons
printed for
subsequent redemption.
In the present invention, the data exchange capabilities provided by the
transmission medium between the remote computer and the central repository
allow the
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automatic transfer of valuable information from the remote computer to the
central
repository and, ultimately, to the coupon distributing and issuing centers.
Information
related to the coupons selected and printed can be supplied to the coupon
distributors and
issuers, which can also use information obtained from the various retail
stores as to which
coupons were actually redeemed in order to more intelligently market
subsequent coupons
and target coupon issuance in a more cost effective manner.
The data exchange capabilities are further advantageously utilized in the
present
invention to allow, via the central repository, the updating of coupon data
stored in the
user's remote computer without required interaction from the user if the user
is online. In
particular, the central repository can delete expired coupons from the remote
computer's
coupon database and can vary the amount of redemption value of a non-expired
coupon if
so desired. The capability for the updating and deleting of coupons within a
user's
computer is programmed in the user's computer such that no further interaction
with the
central repository is required for such coupons to be deleted or updated.
Finally, the present invention provides for secure coupon generation by
allowing
the printing of a particular coupon only once. Further, and quite importantly,
the present
invention provides for the printing on each coupon of certain user-specific
data, thus
making each coupon printed unique. Thus, two different users with access to
printing a
particular coupon will each print coupons with the same product, discount, and
expiration
date data, yet each will be unique since printed thereon will be user-specific
data,
preferably in the form of a user-specific bar code. Thus, any attempts to
duplicate via
photocopying techniques any particular coupon will be discouraged since the
coupon
redemption center will detect when a particular coupon has been redeemed, will
identify
the user who redeems a particular coupon, and will disallow any attempt at
redemption of
a second coupon with identical product and user-specific data.
Brief Description Of The Drawing
Fig. 1 is a block diagram schematic of the system of the preferred embodiment
for
the electronic distribution of coupons.
Fig. 2 is a detailed block diagram of the remote personal computer of Figure 1
configured in accordance with the present invention.
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Fig. 3 illustrates exemplary data field formats of the electronic coupon data
as
implemented in the present invention.
Figs. 4a and 4b is a pictorial representations of the online and offline
display
screens, respectively, which are exhibited to a user in the present invention.
Fig. 5 is a diagram of a printed coupon resulting from the electronic
distribution in
accordance with the present invention.
Fig. 6 is a schematic block diagram illustrating the main functional areas
serviced
by the online service provider of the preferred embodiment system.
Fig. 7 is a diagram of the use of an external cue to prompt access by the user
of the
system.
Fig. 8 is a block diagram of an alternative embodiment of the present
invention in
which data is transmitted between the central repository and personal computer
by
satellite.
Fig. 9 is a flowchart of the operation of the present invention.
Fig. 10 is a schematic block diagram of the implementation of the coupon data
package generation.
Fig. 11 is a schematic block diagram of an online promotions system utilizing
the
loyalty reward system of the present invention.
Fig. 12 is a flow chart illustrating the logical sequence of steps associated
with one
aspect of the loyalty reward system of the present invention.
Fig. 13 illustrates a sample screen shot of a webpage employing a graphical
user
interface for presenting promotion categories in implementing the loyalty
reward system
of the present invention.
Fig. 14 illustrates a sample screen shot of a webpage associated with the
selection
of a desired category of promotions from the webpage of Fig. 13.
Fig. 15 illustrates a sample screen shot of a webpage associated with the
selection
of a desired promotion from the webpage of Fig. 14.
Detailed Description Of The Preferred Embodiment
Referring to the system block diagram of Figure 1 and the flowchart of Figure
9,
the electronic coupon distribution system of the preferred embodiment
comprises a central
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located repository of electronically stored coupon data, which in the
preferred
embodiment is an online service provider 2. The term online service provider
refers
herein to any computer-based information service provider which is accessible
by a
remote personal computer user via a communications data link such as the
public
switched telephone network (PSTN) or the like, such as PRODIGY, COMPUSERVE, or
AMERICA ONLINE. In addition, it is contemplated that the electronic coupon
data
distribution may be carried out by connection to any readily accessible
Internet site such
as the World Wide Web. Referring to Figure 8, it is further contemplated that
electronic
coupon distribution may also be carried out via digital satellite
communication links, thus
avoiding the need for hardwired (i.e., PSTN) connectivity between the
repository and the
remote user computer. Thus, any centrally located computer system which is
accessible
to the public by any transmission means is contemplated as being within the
scope of this
invention. As used herein, the term "user" denotes an individual user or a
household of
users linked through one account.
The online service provider has stored in its database 40 (see Figure 6 and
10)
various packages of electronic coupon data, the content of which will be
further described
below. The electronic coupon data is provided, by a coupon distributor 16 or
coupon
issuer 14, by any various means such as electronic transmission via the PSTN
or satellite
data exchange. The online service provider also stores in a demographic data
file 42 user-
specific data, including coupons selected data, coupons deleted data, coupons
printed data
and user demographics, as will be described below, for subsequent transmission
to a
coupon distributor 16. The coupon distributor 16 will utilize the user-
specific data and
coupon redemption data in compiling subsequent coupon packages targeted
specifically at
certain user categories.
The online service provider 2 is connected with the data link 4 and is thus
accessible by any remote personal computer 6 having a data communications
interface 20
such as a modem (see Figure 2). The online service provider communicates with
the
personal computer 6 in order to transmit requested coupon data, and also in
order to
receive coupon requests and the user-specific data mentioned above.
The remote personal computer 6 has connected thereto a printer 8, which may be
any type of computer printer capable of printing graphics. The printer 8 is
instructed by
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the coupon data management routines 32 stored in the computer 6 in order to
print printed
coupons 18, as will be described in detail below.
The printed coupons 18 are used in the normal fashion by a consumer when
shopping at a desired retail store 10. That is, the coupons 18 are presented
to a product
checkout station 11 along with the associated products for purchase, and the
discount
amount shown on the coupon 18 is credited to the consumer at the point of
sale. The
redeemed coupons 18 are transmitted to a coupon redemption center 13 where
they are
electronically read, and user-specific data is stored in a coupon redemption
database 12.
In addition to the usual coupon information found in prior art coupons (e.g.,
redemption amount, company and product name, expiration date, etc.), the
coupons 18 of
the preferred embodiment of the present invention contain user-specific data
in the form
of a unique user bar code 90, as shown graphically in Figure 5. The user bar
code 90 is
encoded with user-specific information such as the user name and/or other
unique
identification criteria such as a social security number or online service
address. This
information renders each printed coupon 18 unique, since an otherwise similar
coupon
presented by a different consumer will comprise a different user bar code 90.
The use of
a unique coupon 18 is but one aspect of the secure nature of the present
invention as will
be described in detail below.
The coupon redemption center 13 receives from a number of stores 10 the
coupons
redeemed, verifies the value of the redeemed coupons, determines the
identification of
users who redeemed the coupons, and distributes the information read from the
coupons
18 to the individual coupon issuer 14 and to the coupon distributor 16. In
particular,
information regarding the redemption amount and the redeeming store 10 is
forwarded to
the particular coupon issuer 14 named on the coupon 18, which then credits the
redeeming
store 10 with the total amount of discounts given. Of particular value in the
present
invention is the distribution of user-specific data to the coupon distribution
center 16,
which collates such user information and performs marketing analysis via a
marketing
analysis means 17 in order to compile subsequent coupon packages targeted
specifically
at certain user categories. The coupon distribution center 16 utilizes the
user-specific
redemption data along with user-specific demographic data supplied by the
online service
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provider 2 in order to compile subsequent coupon data download packages for
use by
consumers once again.
An online display screen 60 is shown in Figure 4a, which is provided to a user
on
a display 24 of his remote computer 6 whenever he is in online communication
with the
service provider 2. The online display screen 60 comprises a join service
function button
62, a download coupons function button 64, a help function button 66, and an
online
communications button 68. When the user desires to initially register for the
electronic
coupon distribution service, he selects the join service function button 62
which initiates a
dialog with the online service provider 2 in order to request certain
demographic data
from the user which will be used to target specific coupon data packages for
subsequent
downloading. The user has the option of providing the requested information if
he so
desires. In addition, an offline coupon management program is transmitted
electronically
to the user's computer 6 for subsequent coupon data requesting, downloading
and
processing.
Figure 6 illustrates the functional aspects of the online service provider 2
in the
preferred embodiment of the present invention. The main features provided by
the online
service provider 2 are the coupon packages file 40, the demographic data file
42, the
online communications server 44, and the help file 46. Each of the
aforementioned
features communicates with the user via the data communications interface 48.
The coupon packages file 40 comprises electronic coupon data and other types
of
advertising materials supplied by the various coupon issuers 14 through the
coupon
distributor 16. Individual users' coupon data packages are drawn from this
file based on
demographic data and historic buying profiles stored in the demographic data
file 42.
Advertisements may consist of graphics, text, recipes, competitions or other
inducements
or a combination thereof.
After joining the electronic coupon service, the user can order a package of
electronic coupons from the online service provider 2 by selecting the
download coupon
function button 64. When this button is selected, commands are generated and
transmitted via the data communications interface 20, through the data link 4,
and up to
the coupon package file 40 resident at the online service provider 2. The
requested
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coupon data package and associated advertising materials are transmitted by
the online
service provider 2 to the personal computer 6, where it is stored in the
downloaded
coupon data file 30a in the coupon database 30.
The demographic data file 42 contains data representative of demographic
inquiries presented to a user at the time that the user requests a download of
coupon data
from the coupon package data file 40, as well as data representative of the
users'
responses thereto.
The online communication server 44 is accessed by the user selecting the
online
communication button 68. The online communication server is a bulletin board
type file
where users can post messages to a coupon distributor or issuer regarding any
issue of
interest. The message data is transferred to the appropriate destination by
the online
service provider 2, which also collects the responses thereto and posts them
on the online
communication server 44, thus allowing the user to fetch the response when
logged on at
a subsequent time.
By selecting the help function button 66, the help file 46 is used as a means
for
providing standard help and other useful information to a user.
Referring to Figure 2, the remote personal computer 6 of the preferred
embodiment comprises a data communications interface 20 (such as a modem) for
connecting the computer to the data link 4 (such as a PSTN), a user input
device 22 such
as a keyboard and mouse or other type pointing device, a display 24, and a
processor 26,
all of which are common to personal computers and are well known in the art.
The
computer 6 also comprises an output buffer 28, which typically resides in
random access
memory. The computer 6 is configured to operate in accordance with the present
invention via a coupon database file 30 and an offline coupon data management
routine
file 32 loaded onto a fixed memory such as a hard disk drive. All of these
internal
components and files are connected to a data bus 21 for communication
therebetween in
accordance with techniques well known in the art.
The coupon database file 30 is segmented into various sections as shown in the
memory map of Figure 2. The coupon database of the preferred embodiment
comprises
downloaded coupon data 30a, which is the entire coupon data package downloaded
from
the online service provider 2; selected coupon data 30b, which is a subset of
the
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downloaded data and represents specific coupons electronically "clipped" and
stored
therein; sorted coupon data 30c, which is selected coupon data sorted in
accordance with a
particular set of criteria (e.g., all fruits together, then all dairy
products, etc.); fixed
coupon parameters and user-specific data 30d, which is certain unvarying data
used in
printing the coupons as will be described in detail below; and store-specific
data 30e,
which is information regarding the product arrangement in a certain retail
store 10 which
will allow the user to prepare a shopping list tailored to the particular
store.
The offline coupon data management routines 32 are executed by the processor
26
in conjunction with the coupon database 30 in order to request, obtain, store,
select, sort,
and print coupons as desired. The offline coupon data management routines 32
are
executed by selecting a desired function button 52, 54, 56, or 58 as shown in
the offline
display screen 50 in Figure 4b. The offline display screen 50 is shown on the
display 24
when the user runs the coupon data management program on his or her personal
computer
6. The offline coupon data management routines 32 are executed in an offline
fashion;
that is, the user does not need to first be in online communication with the
service
provider 2. If a particular function button 52, 54, 56, or 58 chosen by the
user initiates a
routine 32 which requires online communication, that routine will initiate,
control and
terminate an online session with the service provider 2 automatically.
The request coupon download routine 32a is executed when the user desires to
order a package of electronic coupons from the online service provider 2. This
routine is
called when the user selects the download coupon function button 54. When this
routine
is called, commands generated by this routine are transmitted via the data
communications interface 20, through the data link 4, and up to the coupon
package file
40 resident at the online service provider 2. The requested coupon data
package and
associated advertising materials are transmitted by the online service
provider 2 to the
personal computer 6, where it is stored in the downloaded coupon data file 30a
in the
coupon database 30.
Prior to downloading the requested coupon data package to the computer 6, the
demographic data file 42 provides certain demographic queries to the user in
order to
obtain valuable information for use in marketing analysis and subsequent
coupon package
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generation. The users' responses to the queries are transmitted to the online
service
provider 2 and stored in the demographic data file 42 for subsequent
processing.
The user may select the view function button 52 in order to view the coupons
and
advertisements previously downloaded. This selection will call the view
coupons routine
32b, which will access the downloaded coupon data file 30a and present it to
the user via
the display 24.
While viewing the coupons and advertisement, the user may select a desired
coupon for further sorting, storage, printing or deleting and/or shopping list
generation by
selecting or "clipping" the coupon with the mouse or keyboard input 22.
Coupons are
clipped by scrolling through related advertisements. In order to avoid the
need for
clipping, the user may print or delete a desired coupon. The coupons selected
in this
function are stored for further processing in the selected coupon data file
30b.
The coupon file function button 56 enables the user to perform several
operations
on his selected coupon data file 30b. The user may view the coupons selected
(from the
selected coupon data file 30b), and may choose any of them for printing.
Further, a
sortation option is provided which logically sorts, by category and
subcategory, the
coupons stored. Thus, the management program automatically places all the
dairy
coupons together, and may also place all the milk coupons together within the
dairy
category. This is carried out by the coupon sortation routine 32c, and is akin
to the
manual filing system used in the prior art and will aid the user in viewing
his selected but
unprinted coupons in an efficient manner. The sorted coupons may be loaded
into the
sorted coupon data file 30c for subsequent viewing and printing. The user may
optionally
sort the coupons manually by his own classification.
The shopping list function button 58 calls the shopping list generation
routine 32g
when selected by the user. This routine will allow the user to generate a list
from a menu
presented on the screen whichever items the user desires to purchase, and the
user can
store and/or print this list as desired. The items on the list are compared
against coupon
data stored in the coupon database 30 and the user is informed of their
existence. The
user may then print out those coupons along with the shopping list.
Alternatively, the
user may select certain coupons for printing, and the item associated
therewith is
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automatically placed on the shopping list. Thus, in either fashion, the user's
shopping list
generation and coupon "clipping" tasks are conveniently merged in a timesaving
manner.
The shopping list generation routine 32g may also advantageously use data
stored
in the store-specific data file 30e in order to prepare a shopping list
tailored to an
individual retail store. Thus, data regarding the layout of the store, the
food items
available at the store, and the like, are used by the list generation routine
32g in order to
organize the purchase items accordingly. The data stored in the store-specific
data file
30e may be obtained by any of several methods; by downloading from the online
service
provider 2, by inputting via a floppy disk memory supplied by the store, or
even manually
input by the user. Data for different stores can be kept in the file 30e and
the user simply
selects the store he intends on using at that particular time. The user may
select a standard
pre-programmed shopping list, his last generated shopping list, or a blank
shopping list
from which to commence his shopping list preparation.
The coupon upload routine 32cc is called automatically and without user
request
whenever user requests a coupon download package from the online service
provider 2.
A record is kept by the upload routine 32cc indicative of each coupon selected
by the user
and each coupon printed by the user. This record is sent to the demographic
data file 42
in the online service provider 2, and is used for marketing analysis along
with data
regarding which coupons were actually redeemed, which information is obtained
from the
manufacturers' redemption agency or center.
Coupons are printed by the printable coupon data generation routine 32d, which
is
invoked by a user when he selects a print command from the coupon file
function 56.
This routine obtains data from two sources in the coupon database 30: the
fixed coupon
parameters and user-specific data file 30d, and the variable coupon data
associated with
the particular coupon selected for printing.
Referring to Figure 3, the data format of the fixed coupon parameters and user-
specific data are set forth and include predefined border graphics which are
the same for
every coupon printed, redemption instructions, and a user identification bar
code number.
The user identification bar code number is a unique number assigned to that
user, e.g. his
social security number or online identification number. This number will be
encoded by
the printable coupon data generation routine 32d and printed as a bar code 90
on each
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coupon 18 printed for the particular user. This information will thus be
obtained by the
coupon redemption center and provided to the coupon distributor 16 for
demographic
analysis and the like.
The unique user bar code 90 also renders the electronic coupon system of the
present invention secure and virtually fraud-proof. Although a user is able to
print out a
particular coupon 18 only once (to be described in detail below), the coupon
issuer 14
could still be defrauded by a user or retailer who might photocopy a printed
coupon
numerous times and fraudulently and repeatedly present it for redemption.
However, in
accordance with the present invention, each coupon printed by a user is
unique, and the
scanning of a coupon presented for redemption will be stored at the coupon
redemption
center. Thus, the coupon issuer will know if a particular user has redeemed a
particular
coupon and thus disallow further redemption of a photocopied coupon bearing
the same
indicia.
Referring again to Figure 3, the data format of the variable coupon parameters
are
set forth and include the coupon expiration date, the redemption amount, the
company and
product information, the UPC code, the redemption address, and the description
of the
coupon offer.
Thus, the printable coupon data generation routine 32d combines all this
information and generates a record indicative of the unique coupon to be
printed. This
record is temporarily stored in the output buffer 28, where it is subsequently
sent to the
printer 8 for printing. In the alternative, the coupon may be redeemed
electronically by
sending the coupon data in the output buffer via the data communications
interface 20
back to the online service provider 2. This is especially useful in the
"electronic shopping
mall" environment now found in many online services. The electronic coupon
data could
also be routed via the data communications interface 20 to a retail store
where the user
will be shopping, where the coupon data is held in a buffer pending purchase
by the user
of the matching product.
As described above, the electronic coupon distribution system of the present
invention allows the printing of a particular coupon only once, thus providing
for security
and guarding against fraudulent redemption. This is accomplished by the coupon
deletion
routine 32e, which is called whenever a coupon is printed and deletes the
coupon from the
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database 30 or renders it unprintable by setting an appropriate flag. In
addition, the
coupon deletion routine 32e allows for automatic deletion of expired coupons
by
periodically checking the expiration date field of each coupon against a real-
time clock
found in the computer 6. Optionally, the user may voluntarily delete any
coupon which is
expired if the real-time clock is not set to the correct date. For the user's
convenience, the
online service provider 2 can check the system clock of the user's computer 6
during a
communications session and, if the date is incorrect, can ask the user if he
would like the
date adjusted automatically.
Since the actual expiration date is always printed as part of the coupon, the
function of deleting expired coupon data from the user's computer 6 is for the
convenience of the user rather than for security purposes.
The system of the present invention also allows for time-sensitive deletion of
certain coupon data from the user computer 6 which is unrelated to the
expiration date.
That is, certain coupon data may be automatically deleted from the user's
computer after,
e.g., one month, notwithstanding that the coupon, if printed, might have an
expiration date
in six months. This feature is included to prompt users who know of the time-
sensitive
autodeletion to promptly print (and use) coupons rather than risk having them
deleted
from their database.
The coupon management program also can vary the redemption value of any
coupon already downloaded to the user's computer 6 without the need for
specific user
interaction. A coupon variation routine 32f is called which aids in this task.
Again, any
time that a user initiates a download of coupon data, the on-line service
provider 2 can
update redemption amounts for coupons whose issuers have decided to change the
discount amount.
Referring to Figure 5, the secure coupon 70 generated and printed in the
preferred
embodiment is illustrated in detail. The secure coupon 70 comprises the
following fixed
components taken from the fixed coupon parameter and user-specific data file
30d:
border graphics 72, redemption instructions 88, and user identification bar
code 90. The
secure coupon 70 also comprises the following variable components which change
for
each coupon selected: expiration date 78, redemption amount 74, description of
the offer
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76, company and/or product information 80, the item's UPC number 82 and the
associated UPC bar code 84, and the redemption address 86.
Referring to Figure 10, the generation of coupon data packages by the coupon
distributor 16 will be explained. The information collected by the coupon
distributor 16
from the online service provider 2 regarding the coupon data selected by the
user, the
coupon data printed by the user, and the requested demographic information is
stored in a
database 11. The database 11 also stores information from the coupon
redemption center
13 regarding the coupons actually redeemed by the user. The database 11
further stores
information regarding all coupons which are made available by the various
coupon issuers
14 from which it will generate coupon data packages for subsequent downloading
to
users.
The information stored in the database 11 is input to the marketing and
targeting
analysis means 17, which carries out the function of analyzing the
aforementioned
information in a manner known in the art to arrive at different coupon
packages. That is, it
may be determined by the analysis means 17 that users with dogs in their
household
(which is known by the demographic responses) will get a certain package
comprising
dog food coupons. It may be further determined that users who select, print
and redeem
dog food coupons of Brand X will get coupons issued by Brand Y, or will get
only low
value coupons since they are already dog food coupon users, etc. That is,
depending on
the marketing and targeting criteria and objectives, the analysis means will
generate
coupon packages as desired.
Thus, the analysis means generates a number of differing coupon data packages
for transmittal to the online service provider 2. The analysis means also
provides specific
mapping information which will instruct the online service provider as to
which user
should be provided with which package(s). For example, user 1 may be mapped to
coupon data packages 2 and 3; user no. 2 to packages 3 and 6, etc. This
mapping function
may be carried out by the coupon distributor and provided to the online
service provider
at regular intervals, e.g. once per week. Thus, the coupon selection, printing
and
redemption habits may be analyzed over a time period and used to determine the
subsequent targeted packages.
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In addition to mapping certain coupon data packages to certain users, certain
advertising packages may be mapped to the users in a similar fashion.
In accordance with the present invention, the marketing analysis, coupon
packaging, and coupon package distribution functions carried out by the coupon
distributor 16 may be carried out at the central data repository, i.e.
Internet web site.
Further, the coupon redemption and user redemption information processing
functions
individually carried out by the coupon redemption center 13 and the individual
retail
stores 10 may be combined into a single redemption center, as shown by the
dotted line in
Figure 1. The physical layout of the functions within the system of the
present invention
is a matter of practicality and choice of the systems designer and does not
impact the
utility of the present invention.
In an alternative embodiment of the present invention, the user is provided
with a
visual or auditory stimulus or cue to suggest an access of the electronic
coupon
distribution system. Referring to Figure 7, a message or logo may be included
along with
the advertising material normally provided on television, in the newspapers,
and the like.
This will indicate to a user that he should access the online service provider
2 in order to
obtain coupon data related to the advertised product. The availability of the
coupon could
be time-sensitive, which would provide further incentive to the user to use
the system in a
prompt and efficient manner. When the radio media is used, a tonal or spoken
cue may be
included during the advertising message to accomplish the same result.
The amount of redemption discount included with a coupon downloaded to a user
may be varied depending on certain demographic information that the system has
about
the user. For instance, the system may provide a certain value for known users
of a brand
(which information it will obtain by demographic inquiry or through previous
redemptions in the system), and it may provider a higher discount in order to
provide an
incentive to users of a competitive brand. The ability to vary the value of a
discount offer
in accordance with such demographic and usage data is a unique advantage
offered by the
system of the present invention and heretofore unavailable in the prior art.
Referring to Figure 8, an alternative means of communication between the
online
service provider 2 or the coupon distributor 16 and the remote computer 6 is
illustrated.
A satellite communications apparatus 94 is advantageously used to provide a
wireless
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data link 4. In this embodiment, the data communications interface 20 is a
satellite
antenna dish or other transceiver unit which provides operative communication
between
the remote computer 6 and the satellite 94. A similar unit is located at the
online service
provider 2 in order for full wireless data communications to be achieved.
The flowchart of Figure 9 illustrates the flow of information in the system of
the
present invention. The information flow illustrated therein has been described
in detail in
connection with the implementing system.
In a further alternative embodiment of the present invention, the functions of
the
online service provider 2 are carried out at a site on the Internet. That is,
a user may
access the coupon data repository by accessing an appropriate Internet site.
In this
embodiment, the downloaded coupon management routines are encoded with a
unique
user identification number, which may be for example the user's e-mail
Internet address.
When the user requests coupon data packages to be transmitted, the user
identification
number is encrypted and sent to the Internet site along with the request.
Appropriate
routines are implemented at the Internet site to decrypt the user's
identification number
and compare it against a list of valid members in order to ensure the validity
of the user.
In another alternative embodiment of the present invention, all coupon data
management functions are carried out by the online service provider 2 rather
than by the
offline coupon data management routines 32. In this case, the speed of access
of the
online service provider 2 must be high, for example on the order of 28.8kbps.
When high
speed communications are used, the need for offline data manipulation is
eliminated and
all processing can be carried out in an efficient manner while connected to
the online
provider 2.
Referring to Fig. 1 l, an online promotion system or service 132 communicates
with a plurality of remote users 134 to provide access to a plurality of
promotions
associated with goods or services. A user, upon identifying a promotion of
interest, may
select and download the desired promotion, which may include a coupon or other
incentive for use in purchasing the associated good or service. In one manner,
the online
promotion service transmits coupon data to the user for generating and
printing a coupon
136 via an attached printer. In accordance with one aspect of the present
invention, the
online promotions system provides the user with a user loyalty account and,
upon the user
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selecting and downloading a promotion, updates the user account to credit a
reward
associated with the user's act of selecting and downloading the promotion. The
rewards
may be any form of incentive, including loyalty reward points which may be
accumulated
and redeemed for purchases, rebates, etc.
As intended, the user takes the printed coupon 136 and presents the coupon to
a
retailer or the like at a point-of sale facility 138 in conjunction with
making a purchase of
the good or service associated with the promotion and coupon. In the
alternative, rather
than downloading and printing a coupon at the user site, the system may
provide an
electronic means for acting on the promotion, such as by forwarding via
electronic mail a
message and promotion data to a retailer, or e-tailer, for benefit of the
user. Also, a direct
link to an online retail site may be presented to the user to make the use of
the incentive
more convenient to the user and provide the retailer or manufacturer with a
more
powerful method of consummating the transaction. Also, where the user is
accessing the
promotions in a wireless fashion, such as by a mobile phone, PDA, notebook
computer,
onboard vehicle computer or other such appliance that is not conveniently
coupled with a
printing device, the promotion data may be preferably forwarded in an
electronic fashion.
Upon the user making the intended purchase, the system provides the user with
a
second reward, typically of significantly greater value than the first reward,
and updates
the user's loyalty account. The updating of the account may be done upon the
system
receiving the redemption data in a non-real-time fashion or, as shown in Fig.
1 l, in real-
time fashion by having the point-of sale facility in communication with the
online
promotion system. Further, the system can accommodate presenting the user with
the
updated information at the point-of sale.
As shown in Fig. 12, the online promotion system includes a loyalty program
module 142, a user module 144, and a promotion module 140, as well as
associated
databases 146, 148 and 150. As described hereinabove, the functionality
associated with
the online distribution of incentives as well as the online loyalty rewards
program may be
accomplished using intermediary facilities, such as redemption clearing
houses, direct
promotion issuer facilities, etc. Also, the remote user terminal 134 may be a
computer at
the user's residence or place of business, a wireless device; a.kiosk at a
retail facility or
other public facility, etc.
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The flow chart of Fig. 12 illustrates the logical steps associated with the
loyalty
reward program conducted over the distributed network of Fig. 11. As
referenced
generally by numeral 200, the step 202 involves presenting the user with
promotions, such
as offers for discounts on goods or services. At 204 the user selects a
promotion of
interest and downloads an incentive associated with the promotion, such as a
coupon for
printing at an attached printer. At 206, the system updates the user's loyalty
rewards
account based upon a first defined reward associated with the step 204 of
selecting and
downloading the promotion offer. Upon the user presenting the downloaded
incentive to
a retailer in conjunction with purchasing the associated goods or service, the
system
receives redemption confirmation and updates the user's reward account based
on a
second reward associated with the purchase of the good or service. Although
the loyalty
reward system is described as being used in conjunction with an incentives
system, it
should be understood that the invention is not so limited and may be used
wholly
independently of such an incentives system. For instance, the reward program
itself may
be the incentive offered to potential consumers to motivate them to purchase a
good or
service.
One example of a manner of presenting promotions and the loyalty reward
program to consumers is over the Internet at a website on the World Wide Web.
An
example of a webpage 220 in such a system is illustrated in Fig. 13. The
webpage
includes various links and buttons to facilitate user access to promotions,
user accounts,
product information, and other items of interest. In the example of Fig. 13,
six
promotions categories 222 are presented to the user. To entice the user to
engage the link
to the various categories, the user is shown the number of coupons available
in that
category as well as the total savings associated the promotions. The user is
presented with
a display 224 of the user's loyalty reward account, including current reward
status, as
shown in the form of points, and pending reward status. Links to these items
may be
provided to present the user with an itemized listing of the individual
rewards received as
well as the pending rewards. Also, the user may review and edit the member
profile by
engaging the link 234. Other categories of interest may be presented such as
at coupon
category section 226.
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Upon the user selecting a category 222, the user is presented with category
webpage 221 and a list of individual promotions 222a through 222f. Each of the
individual promotions may include links to additional information concerning
the offer,
the product or the reward. Also, each individual promotion displays the
associated reward
for selecting the promotion for downloading and may also display the reward
for
purchasing the good or service associated with the promotion. A print button
228 is
provided to enable the user to print coupons or the like associated with
clipped
promotions. A link 230 may be provided to link the user directly to the source
of goods
or services or to a retailer or e-tailer and to facilitate purchase of the
good or service.
Fig. 15 illustrates an individual promotion 240 that is presented to the user
upon
the user selecting one of the promotions 222a through 222f. The promotion
includes a
product logo andlor graphic illustration 242 of the product associated with
the promotion
and the loyalty reward program information, such as a first reward 244, for
printing the
coupon, and a second reward 246, received upon the user purchasing the good or
service
or taking some other desired action. Further, there may be additional rewards
associated
with the user taking any of a number of desired actions associated with the
promotion or
the related business. Additional promotion information and links 250, 252, 254
are
provided to assist the user.
Associated with the loyalty reward program may be a webpage directed to
presenting different goods, services or other benefits, such as vacations,
free or discounted
travel or lodging, free tickets to events, such as sporting events, etc. that
may be obtained
upon redemption of the user's collected loyalty rewards, such as points. Also,
a service
provider, such as an airline, may use the loyalty reward program described
herein in
conjunction with another rewards program. Also, multiple companies may became
affiliated to provide a loyalty program wherein the goods and services offered
by the
various members of the association are offered to the users for redemption of
reward
points.
Other embodiments and uses of the invention will be apparent to those skilled
in
the art from consideration of the specification and practice of the invention
disclosed
herein. The specification and examples should be considered exemplary only and
do not
limit the intended scope of the invention.
