Note : Les descriptions sont présentées dans la langue officielle dans laquelle elles ont été soumises.
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SYSTEM AND METHOD FOR
TRANSACTION ENABLED ADVERTISING
BACKGROUND OF THE INVENTION
This disclosure is directed to electronic commerce, and in particular to a
system and method for conducting transactions using transaction enabled
advertising
and integrated electronic commerce services.
Advertising is one of the two main sources of revenue for owners of Internet
websites. Total revenue is projected to grow exponentially over the next few
years,
as indicated by all industry commentators, including Gartner, Jupiter
Communications and Forrester. The compound annual growth rate for the on-line
advertising market is projected to be 72 % per annum between 1996 and 2002,
according to Jupiter Communications, compared to an annual growth rate of 6 %
in
the advertising industry as a whole. These projections are supported by actual
results in the last two years, as on-line revenue has grown in line with or
exceeded
proj ections.
There has also been a shift in the type of companies advertising on-line.
Initially spending has been dominated by technology companies but
increasingly,
2 0 more mainstream consumer goods companies are allocating budgets to
Internet
advertising. For example, Volvo spent $ 1 million on-line out of a total
campaign
budget of $ 13 million during 1997, according to Jupiter Communications, 1998
Online Advertising Report, p.107.
Despite these positive indicators, there is still significant scope for
2 5 improvement, since on-line advertising is at present almost entirely
focused on
promoting brand, or raising customer awareness of websites. It does little to
exploit
the interactive capabilities of the Internet.
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The majority of on-line advertising space is unsold. Estimates vary, but it is
estimated by analysts such as Jupiter that only 10 % - 20 % of space is sold.
Even
the most popular websites have significant volumes of unsold space.
Solutions that effectively exploit the potential of interactivity are
therefore
likely to find ready audiences in both websites and advertisers.
The second major source of revenue for Internet websites is transactions.
There has been a lot of media comment about on-line transactions, but volumes
have
been held back by a number of factors, including lack of confidence in
security, and
lack of products for sale. Most websites are marketing-focused, providing
information without transaction capability.
The physical security of transactions has been addressed through the wide
spread adoption of Secure Socket Layer (SSL). As a result, confidence is now
growing in the security and reliability of on-line transactions, and more
websites
include transaction capability. As a result, there are increasing numbers and
types of
purchases on-line, for example; Dell was at one time taking $ 5 million to $
10
million per day in on-line orders, up from $ 1 million per day at the end of
1996,
while Netscape launched commerce services on its website in 1997, earning $
100
million on these services during the year, of which $ 56 million was in the
fourth
quarter of 1997. Volumes continue to climb rapidly, and projections for
business-to-
2 0 consumer and business-to-business transactions are expected to be an order
of
magnitude greater than consumer transactions in the next few years.
To date, Internet advertising has been viewed as being of minor strategic
importance by traditional advertising agencies. Hence, although these
companies
are key players in the off line advertising marketplace, they have been slow
to react
2 5 to the on-line opportunity. The on-line advertising and transaction
markets are still
maturing. Robust solutions and business models have not yet emerged, although,
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given the changes discussed above, it is expected that they will emerge within
a
relatively short timescale.
Two start up companies, ImpulseBuy and Enliven, have announced early
versions of transaction enabled advertising software. These are still in early
test
versions, and are only aiming to provide a partial transaction service for
vendors. In
particular, ImpulseBuy and Enliven are merely order takers, which serve ads,
collect
customer details, and seek authorization for credit card payment, but then
pass the
order to the vendor, who is responsible for all the follow-up work including
processing the payment, arranging deliveries, and handling customer queries.
SUMMARY
An object of the invention is to develop a new electronic commerce business
with a major infrastructure service to deliver transaction enabled
advertising, an
opportunity which requires modest investment, with rapid payback, has
significant
profit potential, and carries relatively low risk.
Another object is to build a scaleable and defensible Transaction Enabled
Advertising infrastructure.
A further object is to develop a leading advertising and transaction
infrastructure service which supports:
2 0 purchasers buying goods on-line within the confines of a small
window on a webpage;
vendors selling products on-line with no or very limited up front
investment; and
website owners generating additional ad revenue whilst increasing the
2 5 retention of customers on their site.
Another object is to generate large transaction volumes.
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A further object is to gather, analyze and exploit the transaction and
customer
data which result from product sales.
The invention is directed to a leading edge, complete computer-based
electronic transaction outsource service system and method, which supports:
consumers buying goods and services, vendors selling goods and services on-
line,
websites generating ad revenue while retaining customers, an infrastructure
extensible into other types of applications, well-targeted ads with a high
conversion
rate to sales, rapidly produced and easy to understand management information,
topical and/or timely product offerings, and well-priced offerings.
The invention has advantages in that it significantly improves upon what is
currently available in the marketplace; provides a leading edge technology
infrastructure; improves upon process/technology over time; gets high volumes
quickly; leverages existing business relationships for ad space, e.g.
GEOCITIES,
LYCOS; builds an E-commerce brand through repeated exposure; provides topical
1 S and timely product offerings; provides high ease of use for consumers; has
the
ability to complete transaction without leaving a current webpage; provides
membership service for "one click" or "one- click + pIN" purchases; manages
the
fulfillment and return processes in a relatively painless manner; provides a
trusted
payment mechanism; offers a responsive help desk facility; and creates a
learning
2 0 system which tests and learns approaches for continuous improvement in
program
performance, and potentially leverages existing database technology including
the
ENGAGE database system.
Using the invention, a company can build strong distributor and vendor
relationships covering a wide range of products and services, and have the
ability to
2 5 narrowly target ads with a high conversion rate, and also have the
flexibility for
engaging vendors with the ability to change offers/pricing, as well as 24x7
infrastructure/quick response time to enhance site reputation/credibility. A
company
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is thus able to provide sites with accurate and timely information about how
much
the company is earning, provide strong consumer service to help build and
maintain
brand image, provide information on the progress of purchase available, and
support
strong relationship with fulfillment agent and vendors.
A new electronic commerce system is disclosed for providing transaction
processing services to the on-line marketplace, initially focusing on the
transaction
enabled advertising (TEA) market. Transaction processing can be thought of as
a
"buy button" service, which presents offers, processes orders, and handles
tracking
inquiries on behalf of a third party. Payment services through a third-party
merchant
service provider such as through NatWest Card Services is also provided.
The Transaction Enabled Advertising (TEA) business fits centrally within
electronic payment systems. It is an effective electronic commerce system in
its
own right, and establishes on-line payments relationships with major vendors.
In implementing the disclosed TEA system, the TEA system includes an
advertisement (ad) database for storing a plurality of ads, and a web server
operatively connected to a browser of a user for receiving user
characteristics data
from the browser, for causing a display of a first ad having graphic user
interface
(GUI) responsiveness, from the ad database corresponding to the user
characteristics
to provide targeted ad delivery, and for receiving user inputs to actuate the
GUI-
2 0 responsive ad to engage in and to complete an E-commerce transaction
corresponding to the ad.
The web server includes means, responsive to the user characteristics, for
dynamically targeting the first ad corresponding to the user characteristics
to be
displayed to the user through the browser, and the dynamic targeting means may
2 5 include a neural network, trained using a plurality of user
characteristics of a
plurality of registered users, including user buying histories and user
profiles and
interests, for selecting the corresponding first ad to be displayed to the
user. The
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web server displays the first ad on the browser whenever the user is viewing a
predetermined webpage associated with the first ad. The first ad may provide E-
commerce functionality associated with the content of the predetermined
webpage
regardless of the ability or inability of the predetermined webpage to offer
such E-
commerce functionality. The predetermined webpage may be an on-line catalog;
and the first ad is an entry displayed in the on-line catalog. The first ad
may also
correspond to a first product, and the predetermined webpage corresponds to a
second product, thereby co-branding the first and second products through the
pairing of the first ad and the predetermined webpage.
The web server includes means for receiving a currency selection from the
user; and means for engaging in and completing the E-commerce transaction
using
monetary values in the selected currency. The ad database includes promotional
offers, including a first offer associated with the first ad; and the web
server includes
E-mail means for generating E-mail messages to an entity associated with the
user to
convey the first offer thereto. The entity associated with the user may
actually be
the user, or may be a friend of the user specified by the user. The E-mail
messages
sent to the entity include information about the first offer for later review
by the
entity at the E-mail address to which the E-mail messages are sent.
The browser operates on any computing device executing application
2 0 software implementing the browser and connecting the browser to the web
server.
Supply-chain management modules may be operatively connected to the web
server for implementing and managing the E-commerce transactions executed
through the first ad displayed on the browser. A database of revenue values is
included and associated with the ads stored in the database, and the dynamic
2 5 targeting means includes means, responsive to the revenue value database,
for
selecting the first ad from the ad database to be displayed to the user, with
the first
ad corresponding to user characteristics with maximum revenue realization
potential.
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A real-time inventory management module is included for mirroring supplier
systems providing the product for the E-commerce transaction.
A product source database and means for tracking are included for tracking
the products purchased in the E-commerce transaction to follow product
sourcing
configurations for tiered supply pricing. A modular data structure is also
included
for storing data corresponding to different E-commerce partners in a supply
chain;
and means for revising the modular data structure is used to selectively
replace E-
commerce partners. Means is also included for dynamically generating pricing
for
offers provided through the first ad displayed to the user.
Reporting means is provided to track and report financial performance of the
ads in the ad database involved in the E-commerce transaction, and may include
an
extranet available to partners of the E-commerce system. A database of offers
is
used forming an outgoing portfolio, with the web server displaying only ads
corresponding to offers in the outgoing portfolio; and means is provided for
dynamically, in real-time, evaluating the offers in the offer database, and
for
removing offers from the outgoing portfolio of offers which fail to meet a
predetermined criteria.
The predetermined criteria includes a predetermined minimum threshold of
profitability of offers, and may include a threshold of available stock of
products
2 0 associated with offers. Also included is a database of prices associated
with
products corresponding to the ads in the ad database; and means for
dynamically
adjusting the pricing of products over time and for learning consumer pricing
sensitivity to such price adjustments.
A payment sub-system is provided for effecting payment of the completed E-
2 5 commerce transaction. The payment sub-system includes means for
dynamically
calculating respective monetary values accrued to each party in a supply chain
associated with the completed E-commerce transaction. The monetary values may
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be in multiple currencies. The payment sub-system includes automated
disbursement means for distributing the respective monetary values to each
party in
the supply chain. The respective monetary values are collated on an individual
transaction basis for each product associated with the completed E-commerce
transaction, and value distributed on a timely basis and delivered to each
user in the
E-commerce transaction. The respective monetary values may include
micropayments.
The payment sub-system includes revenue projection means for determining
anticipated revenue of the E-commerce transaction on a real-time basis, and
revenue
determining means for determining accruals on settlement of the completed E-
commerce transaction.
Using the disclosed system, a front-end offer targeting, delivery and buying
process is implemented with dynamic targeting using real-time smart targeting
via
neural nets etc., leveraging past buying behavior information and consumer
interests.
Benefits include a more effectively targeted offer which yields a better
response rate
and higher financial return. These benefits are shared amongst all parties in
the
supply chain. In use, pop-up ads do not leave the website, and banner ads lead
to
database-driven offers in a daughter window, so that the consumer does not
leave the
website. The advantage over affiliate programs as "venues" is that the
referring site
2 0 does not lose the consumer from that site in order to make the purchase.
Contextual selling delivery is provided, with the ability to offer E-commerce
functionality linked to the context, editorial content, or other text on a
webpage,
even without that site itself offering E-commerce functionality, that is, the
ability to
deliver transactional offers within third-party websites.
2 5 An on-line catalog/E-commerce enablement of sites is provided, with the
ability to enable transactions from a catalog site. The main benefit is that
no
commerce technology is required on the site that is promoting the commerce.
The
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unique value is therefore that it is a very easy way for a third party to get
involved in
web commerce.
The system has the ability to price in the preferred currency of a consumer,
and the ability to co-brand; that is, to leverage products across multiple
virtual
stores, and thereby decouple the retail branding from the product.
Functionality to
individualize pages, depending on retail partners selling goods, is provided,
as well
as the ability to E-mail offers to oneself and one's friends. Products offered
within
transaction enabled windows or in the context of editorial can be E-mailed to
be
reviewed later, and may be mailed to any E-mail address, which benefit in that
someone may wish to defer purchasing, and this E-mail ability allows the user
to
take the offer home, or to refer it to a friend.
The system may be device independent, supporting phones, pagers, web
devices, kiosks, digital TV, PDAs, handhelds, and/or any IP device. The
benefits of
device independence include avoiding predictions of market-successful devices,
and
instead to be poised to take advantage of market trends in technology and
device
usage.
Virtual supply chain management is also supported, with supply chain-driven
campaign management having the ability for the system to present orders with
data
of the highest revenue potential. Targeting from the ENGAGE software is
coupled
2 0 with propensity of customers to purchase and inherent product
profitability data.
Real-time inventory management mirrors supplier systems in microcosm, and the
system includes the ability to follow product sourcing configurations such
that tiered
supply pricing, such as for bulk purchasing, is accommodated.
Modular supply chain data structures are provided which enable different
2 5 parts of the supply chain to be replaced by the most competitive partners;
that is, the
ability is provided to decouple products from the product source.
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Dynamically generated pricing for fixed time offers is also provided, and
overall the benefits of such pricing include the ability to modularly include
supply
chain partners in various roles for later dynamic selection for the
fulfillment of
consumer orders in the most profitable way possible. Via dynamic multi-
sourcing,
the system can achieve the highest profit potential; for example, an offer is
accepted,
and there are various ways to supply it, so the system has the ability to run
the
scenarios and determine the best way to supply the system. The system is
flexible
enough to discontinue serving an offer if there is insufficient profit.
An integrated offer/inventory/transaction/reporting system is also provided
for effectively managing the incoming impression request portfolio, for
leveraging a
certain number of impression requests, and for deciding on the best way to
utilize
them. There is also the ability to tie financial performance to all outgoing
offers and
to maximize return on offers. There is integration of the different components
to
effect creative treatment of a specific offer at a specific price linked to a
customer
interest category.
The system also supports extranet reporting available to partners, and also
the ability to dynamically, in real-time, remove out-of stock or unprofitable
offers
from the outgoing portfolio of offers, which dynamically helps to maximize
profits
on the offer portfolio. Dynamically generated pricing provides the ability for
the
2 0 system to dynamically move pricing over time to learn consumer pricing
sensitivity.
The system has the ability to do this automatically, and so learns how to
maximize
profit/revenue on a particular product.
Payment and disbursement functionality is also provided to dynamically
calculate income accrued to each party in the supply chain, and to pay them to
bank
2 5 accounts through an automated disbursement function, including mufti-
currency
supply chain capability. On a real-time basis, the system pays per unit
delivered to a
consumer for the services and supplies rendered by all members of the supply
chain,
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and make this information available; that is, the ability to make
micropayments to all
supply chain members as revenue comes in from credit card settlements. The
system also shows the anticipated revenue on a real-time basis, and shows what
accrues on settlement.
BRIEF DESCRIPTION OF THE DRAWINGS
FIG. 1 illustrates the disclosed transaction enabled advertising (TEA) system;
FIG. 2 illustrates a portion the system of FIG. 1 with connections between
components;
FIG. 3 illustrates example hardware components of the system of FIG. 1;
FIG. 4 illustrates the operational flow between the system of FIG. 1 and
external entities;
FIG. 5 illustrates a webpage displaying a TEA associated with content;
FIG. 6 illustrates an alternative webpage displaying a TEA in an ad banner;
FIG. 7 illustrates the webpage of FIG. 6 with a pop-up menu for
implementing the TEA;
FIG. 8 illustrates a transaction completion screen;
FIG. 9 illustrates an electronic receipt;
FIG. 10 illustrates an AdManager control screen;
2 0 FIG. 11 illustrates a campaign input screen; and
FIG. 12 illustrates a system monitor screen.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
As shown in FIGS. 1-4, the disclosed transaction enabled advertising (TEA)
2 5 system 10 provides an outsourced transaction processing service for
vendors and
websites. The TEA system 10 acts as an intermediary for the purposes of
processing
and information services.
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TERMS AND DEFINITIONS
The following terms and definitions are used herein to describe examples of
the components, elements, and features of the disclosed TEA system 10.
An ad/advert/advertisement is an item or piece of content, for example,
information available on the Internet such as text, graphics, GIF, JPEG,
shockwave,
button, etc. which is delivered to a viewer in order to influence behavior,
specifically
buying behavior.
A campaign is an advertising initiative that the TEA system 10 runs for a
product, or a logical group of products, such as the New York Times Bestseller
list,
which places ads on venues, for example, transactional enabled in the TEA
system
10, and which selects various strategies and tracks success.
A Click-Through/Click-Into, Click-In, Click-Buy event is an event or
occurrence which happens and can be recorded when a visitor clicks or actuates
an
advertisement.
A consumer is an individual who has either clicked through, purchased or
registered in the system 10.
A cookie is a feature of web browsers which allows sites to place a data
structure on a user's computer to store various types of client state
information. This
2 0 feature enables ENGAGE tracking, for example.
The cost per thousand (CPM) refers to an amount which an advertiser is
willing to pay to achieve 1000 impressions with his/her advertisement. An
effective
CPM is a measure, in a shared profit or shared revenue model, in which the
advertising venue is paid based on the sales success of an advertisement. The
2 5 effective CPM is the amount which the venue receives statistically per
1000
impressions. For example, if 1,000 ads run, and there are five sales, and each
sale is
worth $ 100, assuming a venue cut of 2 %, the effective CPM is $ 10. This may
be
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the most important metric used in gauging campaign success and partner
willingness
to continue participation.
A fulfiller or fulfillment provider is a partner which has the capability of
accepting requests for fulfillment; that is, an order to be shipped to a
consumer. A
fulfiller "picks, packs and ships"; that is, it assembles products for an
order, puts
them in a box for shipment and hands them off to a shipper. In the TEA system
10
business model, fulfillers may have to take a feed of orders from the TEA
system 10
website and provide acknowledgments and other status messages, including
shipment tracking information.
An impression is an event which happens when a person browsing the web
views an advertisement. A venue counts impressions as "ads served". Note:
"impressions" is a general advertising term, also used in other media such as
television.
Ingram Micro is a wholesaler having the ability to supply a large number of
products as well as to self fulfill.
A member is a consumer who has registered with the TEA system 10, and is
then able to participate in any future loyalty programs, use the "One-Click"
features,
have an order information pre-populated or filled into an input window of a
GUI, use
self serve customer service without an order number, etc.
2 0 A merchant is an entity which sells the product and receives the credit
card
payment.
A partner is an entity which may be one or more of the following: payment
providers, venues, suppliers, fulfillment providers, shippers, wholesalers,
vendors,
etc. These are the outsourced business partners in the TEA system 10 value
chain.
2 5 A payment processor is an entity, usually a bank, which processes credit
card
charges for a merchant. In the TEA system 10 example, payment processors may
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have a live connection to the TEA system 10 transaction processing software in
order to execute approvals and charges in real-time.
A shipper is a partner which accepts individual shipments for consumers
from a fulfillment provider and delivers them to consumers, as well as
providing
tracking information.
A supplier is a general term for a partner which provides products to the TEA
system 10 supply chain.
A vendor is a product supplier which produces products and does not have
fulfillment capabilities.
A venue is entity, such as a website, which attracts visitors, by which
advertisements may be hosted, and venues also generate impressions. Venues
typically sell ad space. In the web example, the venue actually places a call
or other
messaging communications to the advertiser's ad in the content served to the
visitor.
A visitor identifier (VID) is an identifier which is used by ENGAGE to track
consumers anonymously from HTTP transaction to HTTP transaction. It is planted
in a cookie on the consumer's browser. A visitor is any person who sees
content
provided from the TEA system 10 through the TEAS. A wholesaler is supplier
which generally does not manufacture its own products, but rather aggregates
products from multiple suppliers. These entities may have their own
fulfillment
2 0 capability
ARCHITECTURE
The TEA system 10 shown in FIGS. 1-4 addresses different aspects of the E-
commerce business model, in which there is a different value proposition for
each
2 5 target audience. For example, consumers generally instantly buy with
confidence
those products which are delivered promptly. A benefit to customers through
the
system 10 is the consumers' ability to buy products and services with a simple
"one
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click" feature. The order process is not an arduous task requiring the input
of
repetitive information, such as name, address, etc. As shown in FIG. 1,
consumers
may have access to the system 10 through their browsers 12 and thence through
the
Internet 14 using a TEA website on the TEA web server 16, which is generally
available 24 hours a day, 7 days a week.
Through the TEA website, consumers may be able to check order status,
make changes to orders and registration information, and browse an available
product catalog at each individual consumer's respective convenience.
Accordingly,
the consumers are less dependent on the time and knowledge of a customer
service
representative.
Through the system 10, consumers may receive advertisements tailored to
their interests, and so consumers are no longer inundated with advertisements
that
are of no value to them. Rather, consumers may perceive the banner ads as
"relevant
information" and not merely "annoying banner ads".
In turn, through the system 10, vendors may engage in selling incremental
stock through a well-integrated E-commerce system provided by the system 10,
so
vendors have an additional channel to sell products and services to targeted
consumers. Venues may sell advertising space and generate increasing revenues
from product sales, and so benefit by being able to profit from banner space
that
2 0 would have gone unsold via a revenue sharing model.
Refernng to FIG. 1, a general system architecture of the TEA system 10 is
shown, in which users or consumers utilizing their web browsers 12 to access
websites through the Internet 14, including websites 18 corresponding to
specific
venue sites of venue partners of the system 10. Webpages served by venue sites
18
2 5 contain TEAS that in turn are served by the ad site 20 stored in the web
server 16 of
the system 10 and accessible through the Internet 14. Consumers view both
sites 18,
through their browsers, while click-throughs and other transaction processing
are
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directed to the transaction site 22 of the web server 16, resulting in an on-
line
transaction session. In addition, a catalog and service site 24 of the web
server 16
provides on-line customer service to consumers, and also serves webpages with
TEAS.
The components 20-24 included in the TEA system 10 collaborate with the
venue sites 18, consumers' browsers 12, and external systems described herein
such
as payment processors, fulfillment systems, etc., as well as each other to
provide the
TEA services and functions described herein, and to maintain the information
necessary to support the E-commerce business for conducting E-commerce
transactions and TEA processing.
The TEA system web server 16 includes web/application servers 26,
functionality servers 28, database servers 30, and other servers and databases
32.
The TEA system 10 integrates multiple software applications, including
Accipiter's
AdManager application as ad-serving software; TRANSACT application software
commercially available from Open Market, a Massachusetts company for capturing
user information, for verifying credit card transactions, and for passing
secure
information between entities; and ENGAGE application software commercially
available from the CMGI Group, for tracking the behavior of computers, and
anonymously building a profile of a user using the computer and browsers 12.
2 0 In particular, AdManager, or AdServer, serves a banner ad onto the
webpage,
pulling the graphics across, etc. AdManager has ads parked and available to be
accessed to run on various sites. Each ad has certain parameters, such as to
only run
on travel sites, implemented by rules controlled by and programmed by the
system
administrator. In addition, ENGAGE is used to track users at websites for ad
2 5 targeting by AdManager, in which cookie technology is used to serve
specific
banners to browsers according to which offers the user would be likely to
respond to.
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The first major function of the system 10 is to display or serve an ad to the
consumer who is browsing a venue website 18. The determination of what ad to
be
served is based on one or more factors/criteria of the user profile, including
criteria
such as who the consumer is, what s/he is doing, where s/he is and/or when
s/he is
browsing the World Wide Web and other Internet sites. There is substantial
processing from the time the web browser 12 requests an ad while loading a
page to
the time the ad is served. AdManager supports this functionality. Additionally
supported is the customizing of some components such as writing C/C++ wrappers
around the existing API library supplied with AdManager.
The second major function is processing a transaction after a consumer clicks
an ad through the browser 12 to buy an offered product, and submitting the
order.
TRANSACT handles this functionality, which can be more than processing an
order;
for example, it can include maintaining the user profile and
changing/validating user
names and passwords.
The TEA system 10 supports the delivery of advertisements on venues
webpages and sites 18, including AdEngine 34 including an Accipiter API
library 36
which serves ads, manages visitor ad sessions, and also controls the number of
clicks, and impressions served on the webpage. Based on the load requirements,
multiple AdEngines may be used. In addition, an AdManager user interface (UI)
tool 38 enables the user to configure the AdManager and its corresponding Ad
web
server 40 to schedule campaigns and to view reports of all ad-related
statistics.
AdManager Tables database 42 stores data about the scheduled ads, about
visitors, and about target information related to the AdManager, and may
include or
may be independent of the ad database 43. AdManager filters may be included in
2 5 Ad content tools 44 and are optional to the CGI clients to make the web
server more
efficient in dealing with the AdEngine.
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ENGAGE utilizes the data generated by any website to realize the full
potential of that website. Engage.Knowledge is a product that provides access
to the
world's largest database 46 of behavior-based profiles of anonymous website
visitors. By accessing this database 46, companies such as the TEA system 10
can
use mufti-site interest profiles of their website visitors for use in real-
time
personalization applications and targeted ad serving.
This large database of anonymous user profiles, which may also be accessed
by a consumer profile tool 50 through the web, delivers information about
anonymous users. This product helps in marketing across a broad range of
consumers. First time visitors profiles can be created using Engage.Knowledge.
Visitor profiles can be leveraged on a single website. It can support up to 70
million
individual page views per day. Web visitors can also maintain anonymous
profiles.
OpenMarket's TRANSACT is widely used for transaction processing, and
order management, and as customer service software for Internet commerce.
TRANSACT is used for handling the transaction web server 48 of the TEA system
10. The main features/functionality of TRANSACT include: buyer authentication,
real-time authorization and payment processing, secure order processing,
automated
tax and shipment cost calculation, fulfillment APIs, buyer self service, on-
line
customer service, and reporting, proofing and analysis. These operations may
be
2 0 implemented using a transaction server, a settlement server, a
subscription server, a
log server, and other database servers.
The transaction, settlement, and subscription servers use HTTP as the
protocol for communicating with each other, and so provide interfaces that
comply
with a speed optimized version of the common gateway interface (CGI)
standards,
2 5 called FastCGI 52. Therefore, any server can communicate with any other
server
using the usual HTTP methods such as GET and POST.
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These three servers include HTTP client functionality similar to the core
functionality in a browser, and are able to invoke each other, but depend on a
general
purpose web server for HTTP server functionality. Therefore, any host on which
one
of these servers resides is also running a webserver. Specifically, Open
Market's
"TRANSACT 4", a product designed to work with the Netscape Enterprise Server.
The log server provides communications using TCP/IP to create a process
that listens to a socket to which the three other servers send records of
relevant
events and the log server stores these records as it receives them.
The database server does not communicate with other servers using HTTP.
Implemented by Oracle or Sybase, the database server is provided with its own
communications protocols for being invoked locally or across a LAN by the four
other distributed servers.
The advertising and ordering process involves the venue sites 18, the
AdServer 40 through the Ad site 20, the Transaction Server 48, as well as a
Payment
Processor interface 54 and a Supply Chain Interface 56, in addition to the
consumer's web browser 12. Venue sites 18 serve pages with content and direct
the
browser to request TEAs from the Ad Server 40. The Ad Server 40 then uses
information in the Ad Campaign database 58, a Consumer Profiles database 50,
and
Patterns database 60 to select the appropriate ad, which the Ad Server 40 then
2 0 retrieves from the Ad Content database 62.
Other tools providing including campaign management tools 64, customer
server center functions 66, management information tools 68, and stored
transactions
70.
Click-throughs on TEAs direct a browser 12 to contact the Transaction
2 5 Server 48 which responds with an appropriate form such as a login form, a
registration form, an order form, etc. When an order is placed, the
Transaction
Server 48 utilizes the services of the Payment Processor Interface 54 to
authorize
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payment, and the Supply Chain Interface 56 to begin the fulfillment process.
Orders
are recorded in the Transaction database 70.
To support and manage the advertising and ordering process, Ad Content
Tools 44 are used to create the content 62 of the ads, including text,
graphics,
ordering/pricing and related information. Ad Campaign tools are employed to
setup
campaigns and define parameters for scheduling, targeting and rotating ads.
This
information resides in the Ad Campaigns database 58 and Ad Content database
62.
After an order is placed, consumers visit the Catalog and Service Site 24 to
review their orders, inquire about their status, and, if desired, to cancel.
The
Customer Service Center 66 provides the relevant information from the
Transaction
database 70. Cancellations are directed to the Transaction Server 48.
Consumers
can also browse and buy from the catalog site 24 and associated server. For
this
functionality, the Catalog Server 24 operates like the venue sites 18.
Management information tools 68 provide information and statistics from all
of the databases to personnel at the TEA system 10, and to its partners such
as
venues, suppliers/fulfillers, and shippers. Web servers perform their standard
functions, including the use of extensions such as CGI, NSAPI, etc. to export
the
services of the site's components to the World Wide Web.
In the web/application server layer, there are web servers 40, 48,
2 0 respectively, for the ad site 20 and the transaction site 22, as well as
mechanisms
which enable the components in this layer to inter-operate with the
functionality
servers 28. These mechanisms are NS/ISAPI plug-ins 72 for Ad Manager 42, and
FastCGI 52 for TRANSACT 74.
FIG. 2 illustrates how the main components inter-operate in the flow of an
2 5 on-line transaction. There may be a separation between the ad site 20 and
the
transaction site 22, and connections between components within each. The
external
interfaces to the Payment Processor and the Supply Chain partners are also
depicted.
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FIG. 3 illustrates one possible hardware configuration of the system 10, in
which web servers, application servers and databases reside on UNIX systems,
preferably Sun Solaris. Campaign and Ad Content Management tools are deployed
on a Windows NT workstation or on a Macintosh, which can be acquired from any
of the major vendors. The Ad Content database, which may be a file server, can
reside on either a UNIX or Windows NT server system.
A communication link is to be provided between the TEA system 10 and its
fulfillment partners. Each individual order fulfillment for physical goods
flows
through the communication link, with a fulfillment engine or manager 76 for
the
TEA system 10 which fundamentally takes into account that different
fulfillment
providers fulfill different products, and thus can intrinsically communicate
with the
APIs of multiple fulfillment providers.
The TEA system 10 is enabled by integrating technologies from Accipiter
and Open Market, in which Accipiter AdManager includes the digital offer in
its
concept of a "campaign". Secondly, Open Market TRANSACT, as part of the
fulfillment process, notifies Accipiter of the transaction so Accipiter may
track the
transactional success of impressions served.
Multiple instances of the Accipiter AdManager can be installed on multiple
UNIX machines, which is also possible for the ad web server 40, transaction
web
2 0 server 48 and TRANSACT 74, which has an advantage in sharing the ad
serving
load and volume, to significantly increase with future business requirements
and
needs. Another advantage is the handling of any hardware failure of one or
more
AdManager engines.
Table 1 illustrates the performance of one possible scalable system
2 5 architecture of the system 10 with multiple Sun Microsystem servers
running
multiple instances of web servers, ad engines, and TRANSACT.
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TABLE 1
mpressions ay m mi
per ions
Transactionsday 1 /l,~UUyy,UUU14Z,ZUU
per ~,SUU
SECURITY
Open Market TRANSACT uses the industry standard Secure Sockets Layer
(SSL) protocol to insure that transactional information is communicated
privately
between consumers and the TEA system 10. SSL provides data encryption, server
authentication, and message integrity for a TCP/IP connection between the
client
and the server. SSL provides a security "handshake" used to initiate the
TCP/IP
connection. This handshake results in the client and server agreeing on the
level of
security to use and fulfills any authentication requirements for the
connection.
Thereafter, SSL's only role is to encrypt and decrypting the data stream of
the
application protocol being used, such as HTTP. Accordingly, all information in
both
the HTTP request and the HTTP response is fully encrypted, including the URL
which the client is requesting, any submitted form contents such as consumer's
credit card number, any HTTP access authorization information such as
usernames
and passwords, and all data returned from the server to the client. SSL is
easy to use
and requires no effort on the client side if a browser such as Internet
Explorer or
Netscape is used.
The order form appears on the browser 12 on the consumer's desktop and is
2 0 an HTTP/HTML webpage, which is transferred securely to and from the
transaction
web server 48. This is accomplished with the use of cryptographic technology
embedded in the web servers and browsers. In addition, the country in which a
browser or a server is located may determine the strength of the cryptographic
technology employed.
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For data being intercepted on the network as it is transmitted between the
client and the server, an example embodiment may include encrypting the data
at the
point of transmission, and decrypting it at the point of reception, in
addition to
authenticating the server. Widely adopted methods are known and in use
typically
for achieving these security aims, and such methods are typically provided
free with
virtually all web servers and browsers.
Within the transactions stored in its database, TRANSACT encrypts the
credit card information using a method that employs both RSA public key and
DES
secret key cryptography.
In addition, the TEA system 10 utilizes technology called Commerce Objects
from OpenMarket. One such object, the Digital Offer, enables consumers to view
product offerings, including pricing, while their browsers maintain the
information
necessary to communicate the acceptance of an offer, such as a purchase, to
the TEA
system 10. Upon receipt of an offer, the systems at the TEA system 10 must be
certain that the offer was in fact created by the TEA system 10, and that once
created
it has not been modified by anyone.
This is accomplished with the use of a Message Authentication Code (MAC).
A MAC is a cryptographic element that in turn employs a secret key and a
message
digest to ensure authentication, and to detect tampering, respectively.
2 0 Application level security is also implemented to control access to the
system
10, such as to prevent users from accessing certain functionality or areas of
the
overall system 10, based on a security-type profile. Application level
security may
be implemented at the page level. If a user group does not have access to a
particular page or area of the system 10, all functionality and data
associated with
2 5 that page or window is inaccessible. The system 10 accounts for this
granularity of
security according to the characteristics of the user groups. As business
requirements change, it is quite easy to alter access rights for a particular
group by
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modifying the security data in the database; therefore, application level
security may
be stored in tables in an Oracle relational database.
The prevention of unauthorized access to computers connected to the Internet
is an imperative. Commercial websites are especially vulnerable because they
contain financial information, such as credit card numbers, and because they
are
easily identifiable by their presence on the World Wide Web. Security measures
including firewalls, network zoning and general system security practices,
such as
passwords, access logs, and event monitoring, are employed to keep systems
secure.
In the TEA system 10, systems with web servers are protected by firewalls,
which restrict to web protocols the network traffic destined for these hosts.
In
addition, commerce applications such as AdManager's Ad Engine and
TRANSACT's Transaction and Settlement Servers, reside on separate systems
connected to the web server systems, rather than directly connected to the
Internet
14. There may also be additional firewalls between these system, to restrict
network
traffic appropriately. All systems are also monitored for intrusion.
The TEA system 10 has interfaces, such as communication links, to external
systems, including the credit card payment processor and any fulfillment
system.
Each requires an appropriate level of security. Open Market TRANSACT, which
conducts the communications with the payment processor, as part of its core
2 0 functionality, in a very secure manner. However the mechanisms used
depends on
the particular payment processor, such as the NatWest payment processor.
Together
with a fulfillment entity, the TEA system 10 may implement an appropriate
level of
security for a common interface.
2 5 EXAMPLE HARDWARE AND SOFTWARE EMBODIMENTS
Operating systems for supporting the TEA system 10 may include Hewlett-
Packard HP-UX, Silicon Graphics IRIX, or Sun Solaris. Programming languages
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may include C++ for the applications and subsystems, HTML with embedded
server-side JavaScript for the user interfaces, and utilities written in
either Sun
Microsystems Tool Command Language or standard UNIX shell scripting language
such as csh.
The databases may be Oracle-based or Sybase-based systems, and the web
server may be the Netscape Enterprise Server. Remote invocation may be
performed using HTTP with FastCGI 52. Note that for database calls, the
database
vendors' own invocation protocols may also be used.
AdManager may operate using the Sun Solaris 2.5.1 or 2.6 operating system,
or the Microsoft Windows NT Server 4.0, and using their client libraries, or
alternatively the client libraries of the DEC Alpha NT or DEC Alpha UNIX
systems.
For the AdManager, the web servers may include Direct Server (DS), which acts
as
a web server, and/or Microsoft IIS, Netscape Commerce, Netscape Enterprise, or
Netscape FastTrack
The usable web server plug-ins may include those of Apache 1.2.5, ISAPI
(IIS 2.0, 3.0, 4.0), and/or NSAPI (Netscape FastTrack 3.0, Netscape Enterprise
3.01 ). The databases used may include those of Infomix, Microsoft SQL Server,
Oracle, or Sybase SQL Server. Supported browsers include Netscape Navigator
4.03 or higher, and/or Microsoft Internet Explorer 4.0 or higher.
2 0 The ENGAGE software may be performed using web servers such as
Netscape Enterprise Server and/or Microsoft Internet Information Server 3.0 on
Windows NT 4.0, and running as operating systems either Sun Solaris 2.51
and/or
Microsoft NT 4Ø ENGAGE may also store and use databases on an Oracle Server
7.3, a Microsoft SQL Server 6.5, and/or an Infomix V7.2 server.
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OPERATION
As shown in FIG. 4, the system 10 is central to the activities involving
vendors and wholesalers, websites, consumers, fulfillment and shipping
entities, and
payment providers.
From the consumer's perspective, the system 10 provides TEAS on websites
visited by the consumer, as shown in FIGS. 5-6. In one embodiment shown in
FIG.
5, the TEA 78 is positioned substantially adjacent to content 80 already
displayed at
the webpage 82 of, for example, the Internet Movie Database. Accordingly, the
TEA 78 is related to the content of the website 82, for example, the movie
genre.
The content 80 may be graphics and/or text for a specific product, such as a
videotape or DVD of an available and purchasable movie. The TEA 78 associated
with the content 80 may be merely a distinct icon associated with the system
10,
such as a trademark, slogan, or other information such as "Cybuy it!",
indicating to
the consumer that the system 10 provides TEA functionality to purchase the
movie
corresponding to the content 80 adjacent to the TEA 78.
In an alternative embodiment shown in FIG. 6, the website 82 may also have
an ad banner 84 displayed therewith, with the ad banner 84 being a TEA with
content 86 related to the content of the website 82 and/or targeting the
consumer, for
example, by the consumer's interest in movies by accessing the website.
2 0 Alternatively, the TEA of the ad banner 84 may be unrelated to the content
of the
website 82 but may still target the consumer according to a user profile of
the
consumer processed by the system 10 using, for example, a neural network
implemented in one embodiment as a component in the ad web server 40 in
conjunction with and/or including or included in the AdEngine 34 of AdManager.
2 5 As shown in FIG. 6, the content 86 may refer to a purchasable movie, which
is apropos to the content of the underlying website 82 which, in this example,
is the
Internet Movie Database. The use of a trademark 88, slogan, or other
indicators
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convey to the viewing consumer that the system 10 is available to process a
purchase
transaction of the product corresponding to the content 86. The entire ad
banner 84
may be an actuatable GUI icon for initiating an E-commerce transaction for the
product of the content 86.
Referring to both FIGS. 5-6, once the icon 78 in FIG. 5 or the ad banner 84
in FIG. 6 are actuated by the interested consumer, a pop-up window 90 is
generated
by the system 10 and displayed over the webpage 82, as shown in FIG. 7. For
example, the pop-up window 90 may be generated corresponding to actuation of
the
ad banner 84 in FIG. 6 to overlay the underlying webpage 82. The window 90 may
include a logo 92 or other information which may identify the product supplier
for
the product of the content 86, or may include additional information such as
content
or a trademark of another company to co-brand the content 86 with another
entity.
Alternatively, the logo 92 may be another TEA capable of actuation for
additional
inquiry and purchasing of products.
The consumer is provided with selectable inputs 94, 96 to access pull-down
menus to choose versions of products, to select mode of shipping, and to
specify
other purchase parameters. Additional information 98 may be provided to inform
the consumer as to what s/he is purchasing, as well as the price, which may be
in any
default currency, including a currency selected by the consumer, as described
herein.
2 0 Upon inputting the purchase information by the inputs 94, 96 and upon
review of
the information 98, including price, the consumer may complete an E-commerce
transaction to purchase the product of the content 86 by entering a
transaction
completion command, such as by actuation of an icon 100.
The system 10 then generates a transaction completion screen 102, shown in
2 5 FIG. 8, which sets forth the purchasing parameters such as the quantity, a
product
description, and price in any chosen currency. The screen 102 allows the user
to
enter additional information such as name, address, and credit card
information in
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available input fields 104, 106, as well as to change the purchase parameters
such as
quantity before completion of the transaction. For registered users, some or
all of
the fields may be filled-in, based on the user's pre-entered information
stored upon
registration.
The user may then complete the E-commerce purchase by entering a
confirmation command, such as by actuating the icon 108. The system 10 then
generates an electronic receipt 110, as shown in FIG. 9, which the user can
refer to
and print.
The system 10 may address diverse situations to service and enhance a user's
browsing and on-line purchasing.
User Scenario One: the system can handle the task in which a user browses
the CNN website for news and make an unplanned order for a compact disk (CD).
Bob is on the CNN site reviewing news information. Bob sees an ad banner for a
new Dave Matthews Band album. He had heard people talking about the album at
the soda machine. He clicks on the banner. The banner expands/drops down, but
does not take Bob away from CNN, since the website is still visible in the
background. He sees a good price, and clear information about how/when the CD
is
to be sent to him. He sees that he could go to the TEA system 10 to get an
understanding of who the company is, but decides that he doesn't need to. Bob
sees
2 0 that he has the option to listen to a track from the CD by actuating a
displayed icon
to play, for example, an AVI file. He chooses to listen to the music. He likes
the
music, and clicks on the "Buy Now" button. Bob fills in relevant info. Bob
gets
confirmation and a thank-you message for his order. He also gets a special
offer for
a cross-sell opportunity, and decides that he indeed wants to purchase a Bare
Naked
2 5 Ladies CD and a Madonna CD as well. Though he notices a box that offers a
loyalty
program, he decides not sign up. After completing the transaction, he goes
back to
reading CNN.com by simply clicking on one of the CNN Headlines.
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User Scenario Two: E-mail from the TEA system 10 through a loyalty
program. Bob receives an E-mail from the TEA system 10. He opens and reads it,
and it confirms that his order has been sent, and lets him know when he should
expect to see it. The E-mail provides the TEA system tracking number for his
purchase. The E-mail also provides a URL for the TEA system customer service,
and may provide a customer service telephone number such as an 800 number. Bob
is a little anxious, and clicks on the URL, opening his browser. He gets the
status of
his order, and optionally if Bob is a registered user of the TEA system 10,
the page
may be personalized. On the tracking status page, Bob sees standard navigation
options, including links to a loyalty program, special offers, and a homepage
of the
TEA system 10. Bob clicks on the loyalty program link. When he arrives in the
sign-up area, much of his relevant info is pre-filled into the form. There is
information about what kinds of services the loyalty program offers. Bob
answers a
few questions about his interests, and selects a password.
User Scenario Three: one-click purchase of a magazine. Bob is on-line,
checking out his 401 (k) on Quote.com. He sees a banner ad for Mountain Bike
Magazine. He sees the TEA system 10 logo and/or an "Express Buy" button or
icon. He remembers how easy it was to get his Dave Matthews CD, and decides
that
he wants to order the magazine. He clicks on the Express Buy button, enters
his
2 0 password, and gets a confirmation that his order has been placed. He
returns to
Quote.com.
User Scenario Four: the unregistered, reluctant user engaging in a first
visit.
Karl is on AOL, and goes to ESPN.com to check tennis scores. He sees a TEA
system banner ad selling tickets to the U.S. Open. Karl clicks on the banner
to get
2 5 more information. The banner opens up to display an offer window, and Karl
is
reassured when he sees that ESPN is still on screen. Karl clicks on a
displayed
"About the TEA system" button. A new browser window opens up with info about
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the company. Karl clicks on the "Send me a Return to this Offer" E-mail button
about this offer. Karl is prompted to enter his E-mail address and assured
that his E-
mail address and information are not to be sold to marketing lists. He is
advised that
there is no guarantee that the offer is still available when he gets back to
it. He
submits the form, the banner closes up, and he returns to ESPN.com.
User Scenario Five: a "Return to this Offer" E-mail arrives. Karl receives
the E-mail from the TEA system 10 about the U.S. Open tickets. He checks his
Daytimer and confirms that he and his wife are free on the day that tickets
are
available. He clicks on the "U.S. Open" link on his E-mail, and is brought to
the
"U.S. Open" offer window that he had been on before. Karl reviews the security
features and return to the "About the TEA system" area. He feels comfortable,
and
decides to purchase the tickets. He goes through registration process, as in
the first
user scenario.
FUNCTIONS
The system 10 implements numerous functions described herein facilitate
set-up and use of the system 10 by administrators to generate TEAS, to target
users,
etc. FIG. 10 illustrates an example of the AdManager control screen for
allowing a
system administrator to select and specify targets, to operate with the ENGAGE
2 0 software and database, to specify areas for the ad targeting such as
geographic
regions, and to use tags and other components such as templates and ad
creation
tools to modify ad sizes and ad formats. Additional functions of the system 10
for
ad management are described herein.
Through Accipiter's AdManager, campaigns may be created as shown in
2 5 FIG. 11 to specify and store pertinent information, such as a name for a
campaign,
the advertisers involved, their contacts, etc. Similarly, through AdManager, a
system administrator can monitor the activities of the system 10, for example,
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through the screen shown in FIG. 12. The additional functions of the system 10
related to the generation and use of the screens shown in FIGS. 1 I-12 are
described
herein.
The system 10 includes a plurality of software applications, modules, and/or
sub-systems for providing at least the following functions and features
described in
greater detail herein, and implemented with the disclosed architecture, the
disclosed
application software, and third-party and off the-shelf software known in the
art.
AD TARGETING AND SERVING FUNCTIONS
The system 10 provides an Ad Delivery function, which is the ability to
deliver ad content, banners or other forms of advertisements, as requested by
venue
sites. AdManager handles simple image-based ads very easily, and the system 10
also supports rich content such as multimedia. Such ad delivery is compatible
with a
substantial number of browsers using known methods such as "ACTIVEX"
technology, to support a number of ad types such as animation and audio-based
ads.
The ad delivery function is compatible with ad management software located at
the
venue of the browser, and is able to fit into new platforms, such as digital
TV, as
well as extensible to future applications using S8 platform extensibility.
Another function of the system is a Define Basic Rule Set function, which
2 0 allows for the creation and maintenance of the rules used by the ad
targeting and
delivery engine to select which ad is served to whom. A tight linkage with
campaign targeting functions of the system may also be provided. These
features
are supported directly by AdManager. Accipiter's AdManager has the
infrastructure
to handle the Defme Basic Rule Set functionality. Rules are defined and then
built
2 5 into the infrastructure provided. To support the definition of basic rule
sets,
administrators of the system 10 may create, delete, and/or modify ad targeting
and
delivery rules. Administrators may also use logical operand and connectors,
such as
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AND, OR, <, >, _, etc., to perform logical operations for setting targeting
criteria
and exclusion criteria. For example, targeting criteria may include the time,
date,
operating system, website, page group, domain, geographic location, interest
categories, etc. of the users of the browsers. Exclusion criteria may include
family
filtering and other rules for keeping certain ads off of certain websites and
webpages.
Another function of the system 10 is Ad Selection by a Rules Based
Technique, in which the mechanism of ad rotation and exclusion is performed in
order to tightly target ads to consumers without repetition. In use, such ad
selection
insures that competitor's ads are not served right after one another to a
single
consumer, or a competitor's ad on a venue. Such functions included in
Accipiter
implement rules-based rotation, rules-based exclusion, and access from
Accipiter to
purchase history in usable form maintained by Open Market.
The system 10 also performs Data Tracking functions, in which the system
10 accurately records the number of impressions served and the environments
into
which they are served. Through tracking the activity and information of
potential
and established customers and customers, the system 10 gets smarter and learns
about what ads to target to whom. In addition by tracking where in the
ordering
experience the potential customers drop out, the system 10 is able to spot
potential
process issues that cause people not to purchase through the TEA system 10.
The
2 0 system 10 supports served environments specified by the corresponding
browsers,
URLs, webpages, users, and time spent on specific webpages.
Date tracking utilizes visitor identification (VID) numbers to anonymously
track a specific user, and may also utilize a member ID of the user, to
collect
information on the impressions, click-throughs, and transactions of each user.
Such
2 5 tracked information is then usable for cross-selling and consumer
information
management functions. The prior art suffers from the general inability to
monitor
activities across the de-coupled systems connected to the Internet, in
addition to the
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complexity of being able to track visitors' transactional success out from the
"back"
of the transactional component. This functionality is handled by Accipiter.
The system 10 also supports Push E-mail and direct selling functions, in
order to serve offers proactively to targeted customers. Studies have shown
that the
conversion rates with direct mailing customers that have requested direct
mailing are
significantly higher than unsolicited mailings. This function gives the TEA
system
another channel to increase potential sales as well as to build brand loyalty.
The
amount of E-mail solicitation activity is driven by the availability of the
TEA system
staff to drive this process. E-mail packages selected by the TEA system 10 may
also
10 deliver mailing lists generated by member database queries.
To perform such push and direct selling, the system 10 allows for the
targeting of self selected members to receive such E-mails and notices, and
for
utilizing third-party mailing lists. The push/direct selling functions may
vary a
given offer according to customer identity and preferences, and may also have
broadcast capabilities to groups or all users of the system 10. The messaging
involved may be text and/or HTML-based. Also, the push/direct selling features
are
preferably linked to the rain check function described herein, and an
unsubscribe
function is also provided. Through the push/direct selling feature, the system
10
may capture customer interests, and also monitor response and conversion
rates.
2 0 The system 10 also supports Fixed Offer arrangements, which allow the TEA
system 10 to place a specific, non-banner offer statically on a webpage
without the
necessity for the ad to be served. Fixed offers provide a large number of
impressions without requiring AdManager to target and serve an ad. Fixed Ads
are
closely tied to the page they are resident on and therefore have a high
percentage of
2 5 conversions. This requires the construction of ad content without
references to the
ad server, but which can be incorporated into the content creation process
relatively
easily. The only complexity lies in the area of sites which are too small,
such as
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personal websites, to be treated as venues. The system also distributes ad
content
directly to venues, and such ad content may be identical to the ad content
which is
dynamically provided.
To implement such fixed offers, the system 10 may provide the pairing of an
image and a click-through sequence to represent a specific offer. The fixed
offer
may have distinctive characteristics compared to standard banner ads, such as
different shapes, graphical borders and/or colors of the ad, etc.
The system 10 also performs Ad Inventory functions to maintain a logical
inventory of ads which have been committed by venues, as well as the ability
to
forecast availability across date ranges and various other dimensions. This
function
allows for the ability to proactively manage the ad inventory and to forecast
potential revenue. Having the ability to see the effects of adding or removing
a large
campaign gives sales and operations a useful planning tool. The value of
providing
this information supplements the ability to use manual techniques to track
inventory,
so that the manual inventory can then be compared with campaign actuals.
In implementing the ad inventory functions, the system 10 may allow for the
selection of a date range, may specify a history to be analyzed forward, and
other
factors of existing campaigns to indicate availability. The ad inventory
function
may perform one-dimensional projections, such as based either on a time-period
or
URL activity, or may perform mufti-dimensional projections based on multiple
factors at once, such as both time-periods and URL activity. The ad inventory
functions permit the system 10 and its administrators to reserve inventory and
to
account for buying impressions.
The system 10 also performs Dynamic Assembly functions, to allow for the
2 5 construction of advertisements from components based on ad targeting rules
with the
aim of putting the ad which is most likely to convert to a transaction in
front of the
prospective customer.
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Dynamic assembly of ads provides the ability to tailor ads very specifically
to users by constructing them from components as they are requested. Colors,
images; information, and international components such as language and
currency
can be adjusted on-the-fly to target customers more specifically and therefore
increase the conversion rate.
Ad Manager's function is to select ads that are appropriate to a given
context,
to retrieve them from a static data store, and to serve them. Dynamic assembly
uses
a complex rules-based infrastructure integrated with the Ad Engine. By
implementing rules linking to or excluding components depending on pre-stored
component identifications and definitions, the dynamic assembly can tailor the
ads
to the prospective customers.
The system 10 also provides Ad Selection using neural networks or nets for
improving the current ad selection engine provided by Accipiter AdManager by
adding additional variables and dimensions, as well as leveraging existing
variables
and dimensions as input to a neural net based targeting engine. It is intended
for this
function to be more robust over time as the system 10 learns about the
targeting
criteria and add to its database of user information. This function drives a
long-term
competitive edge for the TEA system 10. The ability to target ads with a
higher
potential of converting to a transaction is a key differentiator for the TEA
system 10.
2 0 Any commercially available neural net-based decision support product known
in the
art may be used is required to provide these features. This capability may
also be
provided as a discrete plug-in to AdManager.
Using a neural network, the system 10 is capable of learning more about
users to make ad recommendations with strength and also to provide a
continuous
2 5 advantage of the system 10 over time. Generally, the neural network
considers ads
which Accipiter and its rules do not already exclude; that is, the neural
network
preferably does not override the exclusion rules. The system 10 may support
and
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run multiple neural net engines; for example, with a single neural net
focussing on a
predetermined geographic region for sales and ad placement.
ENGINE LEARNING AND OPTIMIZATION FUNCTIONS
Another function of the system 10 is to provide a Decision Support System
(DSS), which is an ad hoc query system/infrastructure of the TEA system 10
information and history to improve the targeting and other business practices
of the
TEA system 10. The business benefit of this group being able to ask questions
is
potentially very high. The long term competitive advantage is dependent on
high
CPM systems, that is, the best selling.
Based on information that resides in local databases, applications can query
through and present such information optimize the selling process. That is, ad
targeting, campaign strategy, etc. involves individuals who spend time
figuring out
the right questions to ask, rather than asking a group of previously developed
questions. As a result this functionality is actually more of an
infrastructure for ad-
hoc database querying and report/analysis design. The system is able to track
and
analyze performance metrics as well as to use a tool set that allows the
system
administrator to build and expand the system 10 in future.
Thus, the system 10 can tie into and use the available data tables and data
2 0 bases and capture metadata, and access a report writing tool for
generating reports
for administrators, such as reportage of statistics of usage determined
according to
venue.
The system 10 also performs functions to set up and maintain variables and
algorithm for ad targeting, to provide the ability to create and modify the
parameters
2 5 used for ad targeting, which augments the current functionality of
AdManager for ad
targeting, for example, using purchase history. This feature allows the TEA
system
10 to enhance the ad targeting functionality included within Accipiter
AdManager.
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It is a key differentiator over time, as other E-commerce systems and
competitors
enter the TEA market, that the TEA system 10 has a higher effective CPM
because
of an excellent conversion rate on impressions. Administrators can create
variables
for entry of data, and can test and modify ad targeting algorithms.
The system 10 also performs functions to access external data sources, and to
improve the targeting of advertisements, and hence the conversion rate,
through
importing external data that adds to our ability to understand the buying
predilection
of a potential customer. The ability to leverage external data sources having
appropriate information helps the TEA system 10 to target ads more
effectively,
based on socio-demographic databases, direct marketing lists, and market
watching
organizations, which increases conversions and use.
Neural net testing is another function of the system 10, to provide the
ability
to run two or more neural nets in parallel in order to see the effects of
changes in
variables used in the targeting algorithms. Neural Net testing provides the
ability to
see the results of modifying the variables in the targeting algorithms. With
this
information the targeting feature becomes more robust, increasing the
conversion
rate of impressions to transactions. Comparisons between targeting algorithms
may
be used to test categorizations of products and venues.
2 0 TRANSACTION PROCESSING FUNCTIONS
The system 10 also supports functions using a Present Order Taking
Template, in which the system 10, based on the advertisement that has been
served,
selects and presents the correct order form. The basic order form process
allows the
TEA system 10 to collect revenue, as well as to provide the ability to cross-
sell for
2 5 increasing revenue and effective CPM, in addition to providing the ability
to let the
customer know product volume constraints.
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The core functions are provided by TRANSACT, with additional functions
invoking custom content, for example, in the case of "Let customer know
product
volume constraints" to provide access to supply chain information as well. The
templates themselves also are designed and tied to the appropriate parts of
campaigns in Accipiter.
Through the present order taking template, a user may specify a country for
shipping and for tax purposes, and optionally may specify a preferred currency
for
the E-commerce transaction. Also, pre-registered users may receive different
forms
from anonymous users, in which pre-registered users have pre-filled fields in
their
orders, since the one-click registration and usage streamlines the ordering
process.
The order taking template may have a style of appearances of the form
corresponding to the look and feel of the actuated ad banner or other ads
selected by
the user upon display by the system 10. Information in the fields of the
template is
generated by the system 10, for example, using a component integration
application
such as a supply chain information system (SCIS) module and using the offer
windows initially, and may specify product information as well as the physical
delivery information, size, quantity, etc. of the product. Available fields
displayed
in the template may vary based on the product and/or the types of products. In
addition, security information may be displayed and highlighted, and available
2 0 return policy information may also be displayed and highlighted.
The present order taking template may let a customer know of any product
volume constraints, and may support cross-selling as part of the order taking
form
and process. To implement the template, Open Market TRANSACT functionality
and digital offers are used to provide pop-up order forms that sell the
advertised
2 5 product. The TEA system 10 can potentially use variable cursors over the
ad banner
to generate interest. The use of "bubbles"; that is, graphical drawings of a
text in a
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bubble, as a method of information distribution through ad banner may keep
customer in the order form area.
The system 10 also includes functions to collect complete order information
to ensure that all required fields are filled in completely as well as checks
that the
information entered in those fields are valid entries. Transactional
functionality is
built upon Open Market TRANSACT, allowing the system 10 to validate a
specified
country for delivery, as well as customer name, address, telephone, and other
information. Shipping and export restrictions are displayed, and a customer's
selected delivery date and other information is obtained, such as
authorization from
the consumer on how E-mail to the consumer may be used in the future, such as
promotional communications, product and order problem contacts, etc. Through
the
collection of complete order information, the system 10 may also permit the
user to
register as a member and to sign up for one-click functionality.
The system 10 also implements an Authorize Payment function, in which
credit or charge card details and total purchase amount are communicated to a
credit
card authorization center for approval of purchase. Credit Card authorization
is used
in the order taking process, implemented by existing Open Market TRANSACT
functionality, with an interface to a predetermined banking institution, such
as
NatWest. The order is taken regardless of how the fulfillment request is
queued in
2 0 order to provide a cooling off period for the customer. The system 10
recognizes the
credit card scheme rules, including expiration of authorizations after, for
example,
five days, in the design of the fulfillment communication process.
The system 10 implements the authorize payment functions by processing a
card number, expiration date, user name on the card, amount and currency of
the
2 5 transaction, and type of card such as VISA, MASTERCARD, etc., as well as
corporate purchasing cards for business-to-business transactions. The system
10
may thus return real-time authorization instead of batch authorization
processing, to
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return an authorization number or to decline the transaction, and may also
support
alternative credit card data for authorization if a first credit card is
declined. The
system 10 may use the predetermined and/or preferred banking institution, or
may
support alternative authorization and banking providers. The system 10 may
also
support contingencies, for example, to provide flexibility to wait on
authorization to
capture payment, by queuing the authorizations, due to the performance or
availability of the authorization systems, or lack thereof.
The system 10 also provides a Check/Reserve Inventory function, which
performs a check that the amount of product the customer wants to purchase is
available for sale. This feature provides value by preventing the overselling
of a
product, and also by preventing the selling of a product which cannot be
fulfilled in
a timely manner. In particular, the system never places an ad if the system 10
determines that no stock is available, and so avoids an out-of stock
condition. In
addition, the remaining quantity of products available and/or a minimum
threshold
of stock in reserve may control the display of corresponding ads; that is, if
the
system 10 cannot fulfill a particular order for a specified quantity, no
corresponding
ad is displayed.
If quantity is available, the system 10 apprises the customer of the remaining
volume. Alternatively, the system 10 may employ a no-limit or a bottomless
2 0 inventory strategy with contingency plans for fulfillment. On-line
inventory queues
up until fulfillment and on-line item reservations with fulfillment are also
supported.
The system 10 also performs Capture Payment functions, which charge the
consumers' charge card, and credit the merchant's account, while also
diverting
appropriate amounts to individual supply chain business partners. This allows
the
2 5 system 10 to automatically calculate how much of the purchase amount
belongs to
each of the non-customer partners and send the amount thereto. The TEA system
10
is not intended to be a bank and this function ensures that it does not have
to be.
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Credit card payment processors have no knowledge of parties involved beyond
consumers and merchants. The splits therefore may use a secondary interface to
the
merchant bank. These may be either aggregate calculations or transaction-by-
transaction, for example, using micropayments. This functionality is based on
Open
Market functionality with an interface to a predetermined banking
institutions, such
as NatWest.
Contingency interfaces may also be provided, for example, to alternative
payment providers, and payment may be triggered by a fulfillment shipment
confirmation, either received or shipped by fulfillment.
The system 10 may also support Virtual Point of Sale functions, includes
software that accepts the user's sale and converts it into an order, an order
acknowledgement, fulfillment requests, payment requests, etc., by using the
functionality of Open Market TRANSACT. The system 10 accordingly calculates
totals, taxes, shipping, etc. to present to the user for approval, and returns
to the user
an order confirmation number. The user may be presented with a change order
and/or a cancel order option, as well as an option to register as a member
user.
Links to customer service websites may also be provided.
The system 10 also supports E-mail Confirmation/Rejection functions, to
send E-mail to the consumer indicating order status, which is generally sent
2 0 immediately on receipt of the order from the consumer. The order is placed
on hold
for a short time as a "cooling off period" to provide some cooling off time
for the
consumer, allowing the consumer to cancel the purchase after ordering on
impulse if
the consumer changes his/her mind. After the cooling-off time without
cancellation
by the consumer, the order is automatically confirmed and the confirmation E-
mail
2 5 is sent. The E-mail may include a link to the self serve consumer service
site.
Implemented as part of the Fulfillment daemon with Open Market TRANSACT, the
TEA system 10 uses a predetermined E-mail infrastructure or provider.
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The confirmation E-mail is always sent upon confirmation by the system 10,
and the confirmation E-mail may include information on where the consumer may
go for more information, and optionally to prompt the consumer to register as
a
member of the system 10. The confirmation E-mail includes a URL link to other
sites such as the customer service website, and also includes a block of text
and/or
graphics providing additional promos or ads. The confirmation E-mail may
further
include a delivery update and/or a message whether there is a problem on the
delivery side, such as an out-of stock situation.
Alternatively, when the system 10 does not confirm the order and/or the
credit card of the consumer, a rejection E-mail is sent which includes a
declined
credit card message, and optionally a message to the consumer to return to the
website to rectify any credit card information and/or to use another credit
card.
The system 10 also maintains functions for Order Communication with
Fulfillment, for processing of electronic communication between the TEA system
10
systems and fulfillment systems. This interface allows the business to scale
to large
volumes, and to be implemented as a fulfillment daemon utilizing Open Market
API's, which monitors pending orders and sends them to the appropriate
fulfillment
partner at the end of the cooling off period, or a requested delivery date
delay period.
The order communication with fulfillment function obtains information
2 0 through messaging on available reserve stock and release stock, and checks
on-line
with a fulfiller that stock levels are adequate before confirming with a
customer that
a transaction is completed. Order numbers and shipping details may also be
exchanged with fulfillers, and conformation of an order with a fulfiller is
obtained
by the system 10. Backup communications such as confirmatory E-mails may also
2 5 be implemented. Using this function, the system 10 may establish automatic
links to
lead wholesalers as well as multiple suppliers through, for example, the
Internet
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using the TCP/IP and HTTP protocols, and alternatively may use low-tech links
to
multiple suppliers, such as hard copy mailings of order information.
The system 10 also supports a rain check function to provide buy-later
capability to customers. This option may assist in overcoming barriers to
purchase,
and is thus very important to support of the impulse-purchasing model. A rain
check
may be implemented by the system 10 in the form of an E-mail with a link such
as
an active URL listing to the Open Market Transact digital offer. Upon receipt
of the
E-mail message with the rain check message, the customer may actuate an icon
or
other commands such as clicking a mouse button to defer his/her decision to
buy the
selected but unavailable product. Alternatively, the customer may be required
to
redo the order if there are errors in the processing such as a bad CC number.
In
addition, the system 10 may maintain the goodwill of the customer by
providing, in
the rain check E-mail, referral information to other suppliers of like or
comparable
products.
The system 10 also facilitates cross selling using a cross-selling function to
offer the ability to a customer to purchase related products as part of a
primary
transaction. Once the psychological barrier has been crossed and the customer
has
made the buy decision, s/he may have a less difficult decision to make
regarding
purchasing other related products. Multiple product purchases increase revenue
and
2 0 increase the effective CPM. Cross-selling involves both the mechanisms to
deliver
the content and conduct the transactions, and to integrate products into the
ad
selection software. To enable cross selling at the simplest level, a TEA may
be
provided on the confirmation page or E-mail of the primary transaction.
The system 10 implements cross selling by determining a simple link
2 5 between products, such as product links stored and accessed in a table. In
addition,
rules and other logic may be implemented to select an incremental product
beyond
the primary transaction to be offered to the customer and having the best
chance of
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being purchased as a cross sale. Furthermore, special promotions may be
provided
with two or more products, allowing the user to select one or more products.
Alternatively, with the primary transaction, the system 10 may attempt to sell
other
promo items to the user with a "just add on" option provided to the user
and/or a
"more like this one" button, icon, or a link to obtain information about
related
products available as cross-sales.
The system 10 also performs functions for calculating splits using a known
split algorithm to calculate the amount of the transaction price to be
allocated to each
supply chain entity. The TEA system 10 is able to allocate funds for each
supply
chain partner. Such split calculations use database application software to
store
pertinent split information, such as simple percentages or flat rates among
supply
chain partners. In addition, aggregate approaches and value floors or ceilings
may
be used to split transaction prices and proceeds. A history of such splitting
of
transactions may be stored in a split history database of the system 10 for
further
operations, such as taxes, reporting functions, etc.
TAXATION, CHARGES, AND FEE FUNCTIONS
The system 10 also includes a tax calculation function for determining the
appropriate sales taxes in the context of consumer transactions. Although the
TEA
2 0 system 10 may not be required to collect taxes in actual practice, by
including this
functionality, the TEA system 10 is prepared for both collecting and non-
collecting
configurations. This function is handled by TRANSACT for the U.S. market, and
other known software applications may be used for tax calculations in
international
orders. Alternatively, the burden of calculating and paying the applicable
2 5 international tax may also fall to the consumer. Accordingly, the system
10 may
store information which is continually updated on current tax laws for
different
taxation jurisdictions.
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Similarly, the system 10 provides functions for calculating shipping charges
based on shipping parameters corresponding to the consumer or to the purchased
product. The ability to calculate for multiple shippers and/or multiple
shipping
methods adds an element of choice that is attractive to many potential
customers.
Dynamic calculations and/or the use of real-time information employ Open
Market
Transact functionality. It can verify that the flat rate charges can handle
the different
shipping options, for example, for volume shipments. Accordingly, the system
10
maintains and stores information on flat rate charges, for example, in a
static pricing
grid, as well as information on multiple shipping-type options and multiple
shippers.
Dynamic price calculations may be performed to provide real-time comparison by
customers for best prices. Also, queries may be processed in real-time for
fulfillment of shipping costs.
The system 10 also implements a currencies function, using appropriate
software and infrastructure for the quotation of product pricing and payments
for
products in currencies including and/or other than the U.S. dollar. Quoting in
mufti
currencies increases conversion rates significantly with non-US customers.
These
potential customers are more likely to purchase on impulse if they are not
required to
make a currency calculation in their head, or look up the currency conversion
if they
are not familiar with the exchange rate. The ability to tailor the banner
price to a
2 0 country of origin of the consumer gives a very high business benefit.
Accordingly, the system 10 stores currency exchange rates in a database
which is continually updated, for displaying to the customer in an order form
the
total price in a selected currency, and optionally along with the equivalent
in U.S.
dollars. The selected currency may be user-selected, or may be determined by
the
2 5 currency local to the product supplier, local to the country of the
consumer receiving
the ad banner, or local to the product displayed in the ad banner having a
predetermined currency setting regardless of the supplier.
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PRODUCT CATALOG FUNCTIONS
The system 10 may also implement a browse catalog function, in which an
on-line catalog is displayable having available product offerings structured
by
product category type. The ability of a user to browse acts as basic
transaction
enabled ads in the form of static offers, and also enhances the customer's
information for all transactions, offers, and ads. Accordingly, the system 10
stores a
static collection of offers of products, 'and provides full catalog
functionality with
pricing tied to ad pricing. The catalog may be tailored by membership
information
of the browsing user to highlight products and promotions; for example, with
distinctive colors and/or flashing animations, which the user may be disposed
to
purchase.
In addition, the system 10 provides a Search Catalog function, providing the
user with the ability to target products based on criteria chosen by consumer.
The
ability for users to perform simple searches of the catalog conveys the
perception of
a credible website and business. Consumers are given the option of different
navigation styles, as well as keyword searching and advanced searching, such
as
Boolean operations.
The system 10 also performs a Transaction Capability function for
2 0 supporting product ordering through any TEA link, such that the user
should
experience no difference between ordering a product from a venue site or the
TEA
system 10 accessing the venue site, or from an on-line catalog of available
products.
The system 10 also provides Shopping Cart functions for storing multiple
products for single purchases and manipulating the order, using known off the-
shelf
2 5 software which can be deployed in a catalog site and which can drive more
traffic to
the site to make multiple purchases. Using the shopping cart function, users
of the
system 10 may add and delete items from a personal shopping cart, such as a
stored
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list of products selected by a user, and users may view the contents of a
cart, change
a quantity of items therein, and view a running subtotal of the costs of the
currently
selected and carted items.
CONSUMER SELF-SERVICE FUNCTIONS
The system 10 also implements a Registration function to offer the consumer
the ability to register for membership with the TEA system 10 in order to take
advantage of one-click and direct E-mail offering features. Registration is
advantageous for the TEA system 10 and allows the user to easily order items
via a
single click. In addition, registration allows for the collection of user
information
such as hobbies, interests, etc., to allow the TEA system 10 to refine the
user's
profile so that they can target the users with products that are more likely
to be
ordered. These features are provided by Open Market TRANSACT. Registration of
members, facilitating one click purchasing and direct E-mail campaigns,
includes
interest questionnaires and interest-gathering games, and uses Open Market
Transact
to provide PIN/password-based product selection and purchase, and to give
permission to the system 10 to use the registered member's information for
receiving
product promotions. For registered users, the system 10 sends options for
offers,
and allows multiple registrations of different users who may use the same
computer
2 0 or network.
The system 10 also implements a Check Order Status function which allows
a consumer to use the TEA system website to track the progress of the order.
Simplistic order tracking functionality is provided, including the ability for
customers to reference the shipper's tracking number and to get approximate
arrival
2 5 times once the product has been shipped, as well as customer visibility to
the other
links in the supply chain. The status of the order as pending or shipped, as
well as
whether the order was approved, declined, or cancelled. The order information
may
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also indicate where the shipment is, and may access and display a UPS or FEDEX
status form.
The system 10 also includes a Cancel Order function to give the consumer
the ability to change his/her mind and cancel an order. Given the nature of
impulse
orders, consumers must feel secure that they have the ability to cancel an
order
within an acceptable period of time. Offering this feature increases the
consumer's
sense of trust with the TEA system 10, using a "cooling off period" purchasing
model in which the customer has a time period, such as an hour, to cancel the
order.
An API may also be implemented which, in response to a user cancellation
command, cancels the order with the fulfillment house. Accordingly, the system
10
supports delayed fulfillment by a predetermined time period, such as one hour.
The system 10 also supports a Change Order function which offers the ability
for a customer to change an order during the cooling off period. Consumers
must
perceive the TEA system 10 as a flexible site that does not prohibit them from
making alterations to their orders. - For example, tickets to sports or
cultural events
require a greater deal of perceived flexibility due to time and value
considerations,
while CDs require less flexibility as being time-independent goods. The system
10
allows the user to change the quantity for purchasing more or less of a
selected
product, as well as characteristics of the products, such as size, features,
etc. Other
2 0 information capable of being modified includes delivery address, payment
method,
and shipping/delivery date.
Similarly, the system 10 provides a Returns/Exchanges function to offer the
ability to the consumer to return a product into the supply chain and for the
supply
chain partners to be treated correctly in this instance. Consumers must have
the
2 5 ability to exchange and return goods, within standard legal obligations.
During use
of the TEA system 10, it is critical that consumers do not perceive their
actions as
irreversible. Accordingly, the system 10 provides the ability of fulfillment
to update
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the order history, to implement unwinding payments, and to deny returns or
exchanges to specific product-driven purchases, such as special purchases,
perishables, and intellectual capital-type products such as copyable software.
Other
aspects of the returns/exchange function include the ability to provide return
labels
on boxes on products sent from a fulfillment center.
The system 10 also includes a Consumer Inquiries function, to offer the
ability to the consumer to communicate with the TEA system 10 and to send an E-
mail to human service personnel for further action. Consumers need to feel
that
there is a person behind the machine and that they always have the option of
speaking to a human. All inquiries may be captured via forms and then
forwarded
internally via E-mail for personal processing by service personnel.
Accordingly, the
system 10 processes the form or note from the customer to be routed into a
queue for
further processing. Some, but not total, automation may be implemented based
on
the type and subject of the consumer inquiry. The system 10 may also track the
number and types of problems with specific products, as well as the responses
to the
customers and the outcomes of the inquiries.
The system 10 also performs Account History functions, in which the system
10 has the ability to capture order history from registered members, and to
display
the information to the consumer. The ability of consumers to see their history
of
2 0 transactions with the TEA system 10 adds to a sense of stability and trust
of the
brand. The system 10 uses existing TRANSACT functionality to keep an order
history of individual registered members.
In addition, the system 10 provides a Lost Password function, to allow a
consumer to change his/her password on-line or via the call center, in order
to reset a
2 5 forgotten password, or to merely change a password in a secure and
verified manner.
The system 10 provides a TEA system information function to display,
except for password information, other relevant static inforr~nation, such as
terms,
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liability, phone numbers, contacts, etc. It is especially important that
consumers
have an easy way to find information about the TEA system 10. The information
is
presented in a clear manner and is relatively easily accessible to facilitate
ease-of use
of the system 10 by the user.
The system 10 may optionally provide an Interactive Telephone Voice
Response (IVR) function, using known IVR systems to allow the consumer to
access
order information via the telephone, so that consumers are not limited to on-
line use
of their computers to check order status. Consumers order from the TEA system
10
using a computer, but order status and other information may be supplemented
with
telephone functions through IVR. Such IVR functions utilize consumer voice
recognition and order status and information read-back.
CONSUMER SERVICE CENTER FUNCTIONS
For consumer service center processing, the system 10 also performs a
Registration function, to provide the ability for the Call Center to register
consumers
for ongoing membership with the TEA system 10. Registering users provides a
large benefit to the TEA system 10 as it can build brand loyalty and allow for
targeted campaigns. Allowing for registration via the call center provides the
system
10 with another channel to register users using Open Market TRANSACT. This
2 0 enables users to perform quick buying by relying on a pre-entered PIN or
password,
and so to perform one-click transactions. Users may also be offered options
such as
to automatically receive offers, to have user information automatically used
for
receiving such offers and promotional information, and to select and/or enter
credit
card information for default payment processing. The registration settings may
2 5 facilitate and/or drive the use of order-taking templates for faster use
and
transactions by users.
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The system 10 also implements a Check Order Status function, to permit a
call center using a TEA system extranet site to check individual consumer
orders,
and to allow the consumer to check orders via the World Wide Web if there is a
problem or the consumer is unable to access the TEA system website. This
implementation is based on Open Market TRANSACT to provide the users with
order status, such as the order being okay, declined, or cancelled, as well as
to check
where a shipment is.
The system 10 also implements a Cancel Order function to give the ability
for the call center to cancel an order per a consumer's request. This function
may be
handled by the one-hour fulfillment delay, and might include the ability to
cancel the
order through an API with the fulfillment house.
Similarly, the system 10 provides a Change Order function to allow the call
center to change various attributes of customer's order. All features that are
available through the TEA system self service are accessible via the service
center.
This function will be simplified by the one-hour fulfillment delay, and may
include
the ability to modify the order through and API with the fulfillment house,
such as
changes in quantity, address, size, features, payment method, and shipping
date.
Similarly, the system 10 provides Returns/Exchanges functions to the call
center to authorize returns and exchanges. The customer has the ability to
2 0 return/exchange products and services. This feature offers an enhancement
over the
self service site since the service center is able to authorize changes and
provide
additional information to the consumer. The returns/exchanges function is
handled
by the inclusion of a return label on all packaging, allowing a customer to
simply
place the label on the package and place the product back in the mail. No pre-
2 5 authorization may required, but certain exclusions may apply such as
product-driven
restrictions including perishables, and returns may include money-back
guarantees
as well as identical or equivalent replacements.
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The system 10 also includes a Consumer Inquiries function to allow a user to
communicate with the TEA system 10 and to forward such inquiries to human
personnel for handling. Customer service has a major effect on how customers
view
the experience of interacting with the TEA system 10. Good customer service
can
create extremely loyal customers while bad customer service can cause
customers to
never use the service again. The Consumer Inquiries function includes a
mechanism
for E-mailing issues and matters such as complaints, as well as an issues-
tracking
mechanism, which may also be included in the E-mail system.
The system 10 also provides a Telephone Order Completion function to give
the ability to a customer to call into the call center and provide the final
order
information, such as credit card info that the customer is not comfortable
sending
over the Internet. Some customers may still be unwilling to finalize credit
card
transactions over the Internet. By giving these late adopters the ability to
finalize the
transaction over the telephone, the number of potential customers may be
increased.
The call completion information may be stored in a front-end order database,
which
may employ known third-party software and/or hardware.
With other call center functions, the system 10 provides a Change Password
function to give a consumer the ability to call the call center to change
and/or look-
up a forgotten password. The Change Password feature may be available through
2 0 the service center.
SYSTEM EXTRANET FUNCTIONS
Through an extranet, the system 10 supports a Campaign Reporting function,
which may be a password-protected representation of campaign information over
the
2 5 extranet. Partners as well as suppliers, venues, and agents have the
ability to access
campaign information so they can evaluate the success of the campaign.
Campaign
statistics may be gathered and calculated relative to the numbers of
impressions,
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click-throughs, and transactions tallied by product, by creative
characteristics or
source, by day, by time period, by webpage, by transaction values, by
demographics,
etc. The statistics may also measure fulfillment performance, quality of
information,
and other marketing and shipping statistics.
Such campaign reports may be downloadable and/or exportable, and so the
system 10 has the ability to support franchise partners by allowing them
oversight
through permissible and competitor-secure views of the performance and use of
the
system 10.
The system 10 also performs Statement of Account functions to give the
ability of supply chain partners to see their current account status as well
as some
trends that allow them to forecast in the very near term. For example, account
history with a product-by-product breakdown as well as over different time
periods
may be stored and reported. The income pipeline and any charge-backs may be
tracked. Such reports may be downloadable, extractable for export, and
password
protected, for example, on multiple levels of security such as company over
company/subsidiary or inter-company security.
The system 10 also performs a Tracking Queries function to provide the
ability to supply chain partners to check product status within the delivery
cycle, to
give supply chain partners the ability to see exactly where the product is in
the
2 0 fulfillment lifecycle. The system 10 may utilize and/or incorporate a lead
wholesaler
and therefore the need to communicate product status through multiple supply
chain
partners may not be required. Details for each component of a supply chain may
be
monitored, and alarms or status messages may be generated to proactively
address
problems in the supply chain prior to dates for shipping of products.
2 5 The system 10 also implements a Stock Queries function, such that time and
effort is saved for the TEA system employees if suppliers make their own
adjustments on stock levels. Forecasts, histories, and income rates such as
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added effects may be monitored and visually graphed to monitor and decide on
the
granting of more stock by suppliers in open-ended supply arrangement, as well
as to
monitor the changing stock levels of fulfillers and other stock management
functions, such as tracking and changing of product availability levels.
SALES MANAGEMENT FUNCTIONS
The system 10 also provides reporting functions and demo/prototyping
functions to permit sales managers to generate reports and to demonstrate and
test
new features of the system.
SUPPLY CHAIN SETUP AND MAINTENANCE FUNCTIONS
The system 10 also includes a setup/maintain partner function to perform the
basic operations of setup and maintenance of partner information in addition
to and
beyond the information that is stored for operation of the system. For
example, the
roles, contacts, names, and addresses of partners may be maintained to provide
the
ability to store and track basic information on partners.
Similarly, the system 10 includes a vendor set-up and maintenance function
to perform the setup and maintenance of supplier information and parameters of
business relationship, including supplier information, bank and payment
details,
2 0 supplier ID numbers, contacts, location, addressees, product set, and
supply chain
partners.
In addition, the system 10 includes a vendor agreement set-up and maintain
function to perform the setup and maintenance of specific supplier agreements
encompassing one or more campaigns, including information on bank and payment
2 5 details, contacts, supply chain information, configuration selection,
campaign links,
products, locations, addresses, timing of payments, and expiration of
agreements.
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The system 10 also includes a fulfillment set-up and maintenance function to
facilitate the creation and maintenance of fulfillment partner information,
such as
name, contact information, address, bank and payment details, SLAs of
products,
suppliers, shippers, geographic regions, and technical communication details.
Similarly, the system 10 performs a Fulfillment Agreement Maintenance
function to perform the setup and maintenance of parameters for working with a
fulfiller over a given time period and/or campaign, such as SLA turnaround
time
shrinkage, and quality such as breakage information. Geographic restrictions
and
pricing may be specified, as well as packing information, such as company
labeling,
invoices, and return slips. Technical communication details and return
procedures
and parameters may be stored and maintained.
The system 10 also performs Shipper Set Up and Maintenance functions, to
perform the set up and maintenance of shipper relationship information, such
as
entry and maintenance of shipping tables, bank account and payment
information,
payment terms, SLA information, addresses, contact information, geographic
scope,
timing, technical communication details, and return procedures and parameters.
The system 10 includes Franchise grouping functions for the setup and
maintenance of Franchise/Franchisee groups of Vendors/Venues to simplify the
job
of management, to give better reports, etc.
VENUE SETUP AND MAINTENANCE FUNCTIONS
The system 10 includes a Venue set-up and maintenance function to perform
the set-up and maintenance of venue specific information including and above
the
information that is stored in the selected packages, such as campaign specific-
buying
2 5 information, URLs, ad types, ad restrictions, names, contacts, bank
accounts or
payment information, target CPM, and categorization of the venues.
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Further, the system includes a Venue Agreements Maintenance function to
perform the setup and maintenance of umbrella understandings and agreements
under which campaigns can be booked. The ability to monitor key data around
venue agreements, such as the number of impressions, timeframe, location of
where
in a website or webpage an ad is served, the effective CPM, and timeslots are
specified, in order for the TEA system 10 to function as a business.
The system 10 also includes Venue Media Buying functions to provide the
ability to "purchase" or allot within the system 10 chunks or groups of media
against
agreements. For such allotments, volumes of impressions, specifications of
websites, timeframes, transfer of pre-purchased media, and identification of
brokers
involved, if any, are employed.
CONTENT MANAGEMENT FUNCTIONS
The system 10 includes an ad style template management function to
facilitate the creation and maintenance of ad templates, such as sizing,
color, and
other attributes, as well as to create, update, and delete ads, to store links
of such ads,
and to store metadata about the ads.
Similarly, the system 10 may provide a Construct Ad function to pull
together ad and order information from templates with graphics to create ads
through
2 0 and for transactions. The construction of ads includes basic graphics and
text set up
in components that may be pulled together in completed ads, as well as
multimedia
support. Variable components in a fixed ad model, such as the price of a
product,
may be specified, and the ads may be constructed from multimedia, multiple
form
factors, links to digital offers, and links to other websites.
2 5 The system 10 also provides an order form template function for accessing
and maintaining a library of templates which have been pre-built.
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The system 10 includes a Product Information function to permit the creation
and maintenance of product specific information to be displayed on ads using
AdManager functionality. Thus, ad copy, ad graphics, and ad multimedia are
interwoven as TEAS.
The system 10 also performs a Workflow function for routing raw templates
through final ads and through steps in the creative process and campaign
management. An automated workflow system improves speed, efficiency, and
reliability of the content creation process. Accordingly, hard or soft blocks
between
steps in the creative process and hard or soft approvals between blocks may be
supported, for example, to require the ad or campaign administrator to either
sign off
for an ad which is stored in memory, or merely actuate an approval command.
The system 10 may also include a Version Control function to perform the
attachment of version information to ads, allowing for auditability, and for
the
security of having standard procedures in place that give a sense of comfort
over the
development and use of ads. The version control may require that, once a
version of
an ad is set, it cannot be changed, and the version information may include
date
sensitivity, ad author/creator information, and approval of the particular
version of
the ad.
2 0 CAMPAIGN MANAGEMENT FUNCTIONS
The system 10 also provides a Pricing Strategy function to perform the setup
and maintenance of flat pricing and the set up and maintenance of dynamic
price
optimization parameters, to be able to set up pricing for products. Dynamic
price
optimization improves the conversion rate of impressions into transactions,
thereby
2 5 increasing revenue and income. A known product called Macromedia Generator
may be used for dynamic pricing. The information needed to make a pricing
decision must be available real-time in terms of on-line reports. Thus, flat
or
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dynamic pricing or life-cycle pricing may be supported, as well as system-
specified
or supplier-specified changes in prices. Other information identifying
perishable
goods, available quantities of products, and responses to offers may tracked,
and
prices may be adjusted based on the number or quality of responses to offers.
The system 10 may also support Partner Splits Set-up and Maintenance
functions for the setup and maintenance of the rules by which revenue is
distributed
to the TEA system lOlpartners after a transaction, for example, using flat
rates,
percentage rates, hurdles or sales targets, or scaling of splits.
The system 10 also supports a Venues for Ads function, performed by
Accipiter to allow for the selection and de-selection of venues where ads can
be
served. Logic and rules may be implemented to determine where or not where ads
are to be displayed, as well as to specify specific venues only where a
particular ad
may be displayed, and so venue of ads is controlled by categories of ads or
venues,
or by types or specified websites.
The system 10 also supports functions for the set-up of cross-selling
strategies, for identifying product sets for cross/up-sell and setting up
triggers based
on user information or other information. Setting up product sets for cross-
selling
allows for quick presentation of related products, increasing the chance of
higher
revenue per transaction. Promotional cross-selling pricing increases the
chance of
2 0 conversion by offering a price incentive for multiple product purchases.
The system
10 manages cross-selling, such as what products to link with what, etc.
Generally
consumers are attracted to the "quick and easy" transaction, but are also
amenable to
cross-selling. Accordingly, the system 10 supports product linkage, such as
always
linking two or more products together, as well as linking multiple products
specified
2 5 on a list or table. The neural net functions may also be used to learn
preferable
linkages between two or more products, and so to link corresponding ads
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automatically. In addition, the system 10 may track and enforce supply chain
restrictions, as well as promotional cross-sale pricing.
The system 10 also implements a Selection of Ads/Rotation Strategy
function using the Accipiter AdManager component for the selection and de-
selection of ads that can be served, and the development of the strategy
driving
which ads are to be placed where and when.
The system 10 also performs an Effective CPM Tracking function for
calculating the effective CPM rate and for analysis of the effective CPM
versus a
targeted CPM. The effective CPM may be calculated by campaign, by product, by
venue, and/or by supplier using the number of impressions and/or the number of
clicks or actuations of ads, which may be implemented by the known Matchlogic
software.
The system 10 also performs a campaign set-up and maintenance function for
the creation and maintenance of campaigns using Accipiter, for example, to
specify
the name, product, timing, and supply chain partners of a campaign.
PRODUCT MANAGEMENT FUNCTIONS
The system 10 also performs a set-up and maintain product function to
specify product information necessary to manage products with supply chain
2 0 partners. This involves the storage and management of several variables,
and
customization in order to act on their changing values properly. Known
inventory
systems may be used for maintaining the informational requirements of product,
such as supplier information, pricing, stock level maximums, current stock
amounts,
trigger stock levels, product name, product samples, product information,
shipping
2 5 parameters, metadata, identified product managers, supplier contacts,
fulfillment
contacts, shipper information, and lead time to restock products.
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The system also includes a setup and maintain product group function to
create and update product information based on supplier price, with such
information including product names, group names, group information, group
managers, and metadata about products and groups of products.
The system 10 further includes a Dynamic Supplier Comparison function to
provide the ability in a mufti-supplier model to rate suppliers and choose the
best
supplier to provide a product. In a mufti-supplier model, this provides the
value of
an automatic comparison and selection of the proper product by supplier.
SUPPLY CHAIN MANAGEMENT FUNCTIONS
The system 10 also implements a Low Inventory Alert function, to determine
once inventory falls to or below a designated level, and to generate a warning
message sent from the TEA system 10 to supplier/fulfiller or to an internal
supplier
manager, which helps to automate the TEA system 10 operations. In addition,
EDI
re-ordering may be performed.
The system 10 also implements a Request More Inventory function to
facilitate increases in a current allocated inventory, for example, by sending
an EDI
message to reorder the inventory in response to any changes in inventory
level. In
addition, the system 10 may allow a supplier or fulfiller to log onto the
extranet
2 0 website of the system 10 to change the inventory levels.
The system 10 also includes a setup and maintain supply chain function,
which connects together possible supply chains for selection to be used in
campaigns. In a high volume mufti-supplier environment, this functionality
significantly eases operational burden by associating entities with roles in
the supply
2 5 chain.
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FINANCIAL TRACKING FUNCTIONS
The system 10 includes a Regulatory Reporting function for tracking
accounting information in order to produce financial accounts including taxes,
accruals, pre-payments, and cost classifications.
The system 10 also includes a Statement of Accounts function for tracking
accounting information in order to produce financial accounts by supply chain
entity
and venue, including reports indicating revenue with details, costs with
details, total
transaction details, forecasts, bad debts, percentages paid or generated, and
status of
payments paid by a specific time.
MANAGEMENT REPORTING AND INFORMATION FUNCTIONS
The system 10 includes a shipper management information (MI) function to
provide information to the TEA system 10 to facilitate shipper management, and
so
the ability to provide information on hand that shows the quality and volumes
of
shipper interactions as part of the supply chain adds large value to the
shipper
management process. Returns, fees analysis, timing, quantities, and use of a
shipper's tracking system for complaints may be processed and reported.
Similarly, the system 10 provides a supplier MI function to provide
information to the TEA system 10 to facilitate supplier management and so to
have
2 0 information on hand that shows the quality and volumes of supplier
interactions as
part of the supply chain, which adds large value to the supplier management
process.
Returns, cost analysis, stock levels, delivery time to fulfillment,
complaints, and
performance may then be processed and reported.
In addition, the system 10 may provide a venue MI function to provide
2 5 information to the TEA system 10 to facilitate venue management and so to
have
information on hand that shows effective CPM, volumes and number of
impressions
served, site performance click-throughs, transactions, arid other usage
analysis, as
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well as consumer profiling, which adds significant value to the venue
management
and sales process.
Similarly, the system 10 provides a product MI function to provide
information to the TEA system 10 to facilitate management of products, and
thus to
have information on hand that shows pricing, stock levels, effective CPM, and
performance by product, including graphical reporting such as demand curve
generation, which is an invaluable tool for the TEA system product managers.
The system 10 also provides a fulfillment MI function to provide information
to the TEA system 10 to facilitate fulfillment management, and thus to have
information on hand that shows the quality and volumes of fulfillment
interactions
as part of the supply chain, which adds large value to the fulfillment
management
process. Fees analysis, timing, complaints, and returns may be monitored and
reported.
The system 10 may also provide system MI functions to provide information
to the TEA system 10 to facilitate the TEA system management aggregate
information, and so to monitor the "health of the business" such as overall
CPM and
performance of sub-systems and components of the system 10 such as downtime,
average ad service time, etc. Volumes of click-throughs, transactions,
product,
number of suppliers, vendors, and venues may be monitored and reported.
2 0 The system 10 may also provide consumer MI functions to facilitate
consumer management by providing an aggregation of information that assists in
the
targeting of ads and feedback on the transaction experience. Information may
be
monitored and reported, such as membership information, frequency of visits,
preferences in categories, repeat business, tendency to cross-buy, geographic
2 5 profiles, and usage such as click-throughs, transactions, and rain checks.
The system 10 also performs a Time Period function to provide information
to assess seasonal and timing impact to the TEA system 10. Time Period MI
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aggregates transaction experience to give insight as to conversion rates
during times
of day/month etc. which helps in the improvement of the targeting of ads. The
assess information may include time of day, date/month, holidays, weekends
versus
weekday activities, and work versus non-work hours, including time zone
issues.
The system 10 may also provide sales MI functions to generate and report
information to the TEA system 10 to facilitate sales management "aggregate
information" for tracking and evaluating the effectiveness of sales
activities, such as
by the number of calls, amount of collateral given out, number of hits on a
website,
and number of visits.
In addition, the system 10 has a geography function to manage information
involving the geographical spread of the TEA system 10 for evaluating the TEA
system performance across geographical areas according to country, region, and
performance of ads by region.
ALARM SYSTEMS FUNCTIONS
The system 10 includes Alarm Systems functions for providing the ability to
detect and suspend abnormal activity, and notify relevant parties, to monitor
and
detect abnormal activity. For example, an unusually high order rate may
indicate a
false price, which could put the company at financial risk. An alarm system is
used
2 0 which aborts a banner ad in such alarm circumstances. It is essential to
maintaining
a strong, service-oriented brand that the TEA system 10 never presents an
offer that
cannot be fulfilled. Accordingly, the system 10 provides rules-based
monitoring of
ad activity, and suspension of ad serving for a particular product, as well as
transaction blocking and notification to consumers. Notifications of
abnormality
2 5 and subsequent blocking are provided to appropriate partners and to
operations/product managers, for example, by E-mail.
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SYSTEM FUNCTIONS
The system 10 also includes an auditability function to track by whom, what
and when changes are made in the system 10, including complying with legal
requirements for storing data such as carbon copy (CC) transactions, as well
as
storing transaction details for customer audits.
The system 10 also includes Security functions for maintaining a secure
environment protecting the systems and the data, such as defenses against
unauthorized changes to data and the system 10, to control access for secure
connections for transactions, data encryption of transactions and in
databases, and
maintenance of on-line and off line user IDs and authentication/authorization
mechanisms.
The system 10 also provides performance functions for establishing
acceptable time levels for serving and transaction processing, such as ad
targeting
and serving to manage access burdens on webpages and websites, as well as
providing sufficient transaction performance to avoid discouraging customers
from
completing transactions.
The system 10 also provides a scalability function to increase scope of
operations to levels set in business requirement documents, such as
specifications for
volume, digital media including overhead and bandwidth, and mirror sites.
2 0 The system 10 also operates a high availability function to engage in
operations substantially at 100 % 24/7 availability, relative to cost trade-
offs.
The system 10 provides Disaster Recovery functions including contingency
considerations for unforeseen events, such as fire, flood, disk crashes, etc.,
to
implement operations plans and hot/active stand-by machines or systems.
2 5 The system 10 also includes a Learning Systems function to provide
continued refinement-of approach enabled by systems and components, such as
the
neural net usage and the rule-set usage.
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INTERNATIONALIZATION FUNCTIONS
The system 10 also performs a Shipping Charges function to calculate
charges based on shipping destination and fulfillment location. The ability to
calculate for multiple shippers and/or multiple shipping methods adds an
element of
choice that is attractive to many potential customers. Flat rate charges,
dynamic
pricing calculations, multiple shipping-type options, multiple shippers and
types of
shipping, query fulfillment for shipping and cost in real-time, and/or the use
of real-
time information, for example, to perform real-time comparison for determining
best
prices, are performed using Open Market's TRANSACT.
The system 10 also includes an address function to support differing address
formats. To ensure timely shipping, the system must capture accurate addresses
including all relevant fields, including the handling of varying fields by
country.
The system 10 also include a tax calculation function to provide the ability
to
calculate appropriate tax rates according to shipping destination and/or
fulfillment
location. The tax calculation function is handled by TRANSACT within the U.S.
and by other known systems for internationalization of taxes.
The system 10 also includes a product differences function to serve the
appropriate products in the appropriate locations. Providing products that are
2 0 appropriate to the geographic location of the consumer, in terms of
cultural as well
as usability issues, reinforces the TEA system 10 as a service-oriented,
customer-
focused brand. AdManager is capable of identifying the visitors' ISP and using
an
ISP lookup table to determine geographic origin of the customer and to
identify
different international and local standards of the customers such voltage and
wattage
2 5 requirements of appliances, date/time/calendar formats, and controversial
products
to avoid marketing fiascoes.
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The system 10 also performs a language function to support multiple
languages on-line and off line, for reinforcing the TEA system 10 as an
international
service-oriented, customer-focused brand. Sub-systems or sub-phases of the TEA
system 10 may be created according to country and/or to language spoken, and
so to
provide on-line mufti-language ads and transactions, on-line customer service,
mirror sites, extranets, and the ability of customers to select a specific
language for
engaging the system 10 in transactions. Off line support may be provided by
the
system 10 including a mufti-lingual help desk, and packing slips and brochures
in
different languages.
The system 10 also includes an Operations Service Center function to
establish "mirror" operation centers where appropriate, to provide all
serviced
countries with a consistent level of service.
The system 10 also includes Currency functions to allow a consumer to make
purchases and vendors to make sales in appropriate currency, as described
herein.
Quoting in mufti-currencies increases conversion rates significantly with
customers
who are resident in countries other than the US. These users are more likely
to
purchase on an impulse basis if they are not required to make a currency
calculation
in their head, or look up the currency conversion if they are not familiar
with the
exchange rate. The ability to tailor the banner price to country of origin
gives a very
2 0 high business benefit.
The system 10 also includes a Multiculturalism function for performing a
tailored approach according to cultural idiosyncrasies, such as colors,
language, and
preferred products, and so to reinforce the TEA system 10 as an international
service-oriented, customer-focused brand.
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NUMEROUS ADVANTAGES AND USES
The TEA system 10 controls the offers made to customers. Product stock
and order fulfillment are completed by establishing relationships with one or
more
large wholesalers across a range of popular products, such as videos, books,
and
shrink-wrapped software. Ad space is obtained from several large websites in
exchange for a share of any resulting revenue. The TEA system 10 controls the
details of product offers made to customers from the short list of product
options
agreed with the wholesaler.
By working proactively, using the real-time information from day-to-day
operations to amend and refocus product offers, marketing success may be built
much more rapidly, and with less risk, than if reliance is made upon selling
the
outsourced service to individual vendors.
The TEA system 10 is proactive in agreeing with the wholesaler on the
products to offer, and in amending the product offers based on operational
experience and a mix over time. The TEA system 10 is also capable of an
outsourced processing role, to act as an outsourced service provider to
vendors,
advertising agency intermediaries and websites. The vendor may control the
offers
within the context of the TEA system brand values, with the TEA system 10
providing transaction processing and information services in exchange for a
share of
2 0 revenue. Ad space may normally be obtained by vendors or intermediaries.
Using the system 10, there are further opportunities to establish
collaboration
partnerships with other companies to help promotion and sales of the TEA
system
services. The types of company which may be approached include:
significant mail order catalog companies;
2 5 on-line ad agencies and networks; and
software service providers such as Computacenter in the UK, who may offer
the "buy button" service of the system 10 to their customer base.
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The services of the system 10 are targeting a market of active interest to
potential customers, and the infrastructure can support many other potential
services,
generating additional revenue for limited additional investment in the future.
Using the system 10, an integrated service is provided which enables the
consumer to interact within the confines of an advertisement window to
complete a
purchase, rather than just obtain information about a product.
Using the system 10, the website owner gains additional advertising revenue,
while increasing the retention of customers on his/her website, unlike in the
prior art
in which on-line advertising forces customers to exit the venue site and "hot
link" to
the vendors own site in order to make a purchase.
In the system 10, the vendor gains additional sales, through using advertising
spend to generate direct sales revenue, using an outsourced service which
requires
very limited effort on the part of the vendor. The customer gains immediate
access
to product offers without having to go and find them on different webpages,
and the
TEA system 10 thus generates revenue.
The service is particularly attractive for:
impulse purchases: gifts, items sold at a discount to normal high
street prices, offers set in a relevant context; for example, a CD for sale on
a music
site;
2 0 perishable items such as tickets, where the owner needs to sell goods
by a certain date, including the desire to reduce price as deadlines approach;
and
items in which there is limited stock availability, as sales are only
generated by putting an offer in front of a consumer.
The system 10 utilizes the data capabilities and the global extent of the
2 5 Internet as a preferred communications medium, but the system 10 may also
be used
in other interactive digital media. In particular, advertising on digital
interactive TV
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services, which are likely to attract significant mass market audiences over
the next
few years, provide a very attractive marketplace for the system 10.
Ad serving software is the software that enables adverts to be served across a
range of sites, with results monitored in terms of customer response or click-
throughs. High volume ad serving is a specialized market, since the big IT
companies have generally chosen to buy such specialized software in, rather
than
build their own; for example, MICROSOFT uses Accipiter software across its
websites.
There are a wide range of companies offering transaction software, including
many of the big IT companies such as IBM and MICROSOFT, as well as smaller
specialists such as Open Market. There are also a wide number of companies
offering outsourced transaction processing services.
The TEA system 10 is ideally placed to provide the disclosed service and to
meet the market demand from commercial websites, distributors and vendors who
are actively seeking ways to exploit the revenue potential offered by on-line
transactions, and using a payment processing system having payments
capability, in
particular, for the ability to handle mufti-currency acquisition.
TEA represents an opportunity to establish a significant technological and
operational infrastructure in one of the pivotal E-commerce marketplaces, to
ensure
2 0 the technological and international linkages to compete in the future of
electronic
commerce and international markets, since the TEA system 10 acts as both a
distribution intermediary and international payments provider. With TEA, the
TEA
system 10 operates as a product integrator, bringing together a selection of
services
on behalf of a buyer and building on existing competencies.
2 5 In addition, the system 10 and its infrastructure can support many other
potential applications, generating incremental revenue from limited additional
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investment. Two examples are market research and other consumer response
seances.
The system 10 serves adverts; take orders including receiving details of
goods, customer, payment, etc; manages virtual stock levels, i.e. to be
capable of
selling up to the available number of items and no more; managing the
processing of
orders and passing details through to the vendor or distributor, or their
agent, for
fulfillment, as well as a bank to process payments; handling inquiries, either
on an
automated basis through a website or through a customer service agent; and
monitoring the performance of campaigns.
The TEA system 10 offers a fully outsourced service. Using the service, a
vendor trades on-line with almost no incremental investment. The TEA system 10
can also compete directly with competitors by offering a menu selection from
the
full service offering if some vendors prefer to provide some elements
themselves.
In addition, during operation, the TEA system 10 generates additional assets:
a transaction database, a customer database, and branding.
The transaction database is a significant driver of revenue in facilitating
better targeting through knowledge of: customer buying patterns;
identification of
which products maximize revenue by site and by type of customer;
identification of
what makes advertising effective; and the impact of price changes on demand.
This
2 0 knowledge is applied dynamically, with extensive automation, to maximize
value.
As orders are taken, a customer database is created, which may be done
proactively by inviting customers to register with the TEA system 10 by
entering
their name, address and credit card details for orders. Repeat purchasers may
then
only have to enter a PIN or password to complete a transaction. Loyalty
schemes
2 5 may then be used with registered customers, and product offers can be E-
mailed to
customers, reducing the reliance on advertising over time.
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Over time, branding of the TEA system 10 is achieved by on-going exposure
to consumers and by association with established brand names of vendors and
branded goods on the many adverts served. The branding represents good value
product offers, convenient services, and secure and reliable transactions.
The TEA system 10, through the Internet and/or other communication media,
is a global business system, with multiple channels of distribution. A first
channel
to market for the TEA system 10 reduces the reliance on vendors in the first
instance. This first channel primarily focuses on selling services to major
websites,
thus building a market position rapidly, and gaining expertise and transaction
knowledge. In the first channel, the TEA system 10 may use contracts with
distributors for supply of popular product lines such as PC software, books,
CDs,
and flowers. The TEA system 10 may then market these products directly to
customers through on-line advertisements delivered on targeted websites.
The TEA system 10 operates as an agent, enabling trade to take place
between a distributor and end consumer, and contracts may be established
between
the consumer and the manufacturer/distributor, enabling the TEA system 10 to
avoid
primary liability for bad debts or faulty goods. The TEA system 10 may also
pay
both distributors and websites a percentage share of transaction value,
ensuring that
costs vary in proportion to revenue. With the TEA system 10 controlling the
rate at
2 0 which adverts are served, through direct deals for advertising space with
websites,
the transaction database may be built rapidly. The TEA system 10 may also
experiment to identify which products sell most effectively on impulse,
optimum
pricing, advertising execution, etc.
A second channel to market includes providing the system 10 on an
2 5 outsourced basis to vendors and websites. As well as providing an
integrated
service, requiring little from the vendor, learning from the transaction
database
enables the TEA system 10 to add value through advice on which products sell
well,
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on which websites, and to which customers. The vendors may themselves contract
either directly or through an agency with the website, and through either TEA
system introductions or the vendor's existing contacts to the payments
provider and
shipping/fulfillment services.
The vendor may also contract with the TEA system 10, which may charge
fees to the vendors based on a percentage of transaction value, with a floor
limit for
small value items, to ensure revenue is in line with costs. There may be
additional
charges to the vendor for serving adverts, to ensure costs are covered.
Premium
service rates may also be charged for increased levels of advisory services
such as
price optimization advice.
This second channel to market enables the TEA system 10 to focus its efforts
on the core transaction processing service, build volume quickly, obtain
additional
margin based revenue, and leverage the value in the transaction database.
Franchising may also be used with the system 10 through collaboration
agreements negotiated and involving selling the TEA system 10 services to
franchisee websites. Thus, the system 10 may provide an outsourced transaction
enabled website service for small or medium sized businesses, as well as
performing
operating market research and other customer response services, retailing
directly
from the TEA system website, and operating other advertising network services,
2 0 such as website networks, making it easier for vendors to acquire space.
In addition,
arbitrage services may be engaged through the system 10 to implement the block-
buying of ad space from websites for use by the TEA system 10 or on-sale to
vendors.
Additional opportunities outside the Internet include the expansion of the
2 5 TEA system 10 into other digital interactive media such as digital TV, the
use with
advertising advisory services by extrapolating on-line results to off line
media, and
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packaged expert services for new product development, since the system 10 is
able
to test market propositions with small quantities of stock.
The TEA system 10 may be thought of as providing a "click here to buy"
service. An important component of this is an integrated easy, automatic
payments
service, which may use NatWest as a default or preferred payments provider for
all
channels to market.
The TEA system 10 outsources operations to leverage other companies
experience in operating many of their existing businesses on this basis. There
are a
number of advantages: the cost base is largely variable with volume; rapid
development of the TEA service is possible, and hence time to market is short;
and
there is a relatively low requirement for directly employed staff.
In keeping with the "virtual company" approach of the system 10, IT
development may be outsourced using a "plug and play" philosophy to use
standard
software components, with systems integration to provide the overall
integrated
TEA service.
The revenue from the distributor model of the TEA system 10 comes from
the margin the TEA system 10 makes on goods sold. Through introduction of
significant volumes of orders, the TEA system 10 can use negotiated prices for
supply at a significant discount, for example, about 40 %, to a typical sale
price.
2 0 This discount may be spread across: the venue, in return for ad space; the
consumers, in the form of a discount, to encourage them to buy; and
fulfillment,
with shipping being an extra charge to the consumer.
The nature of the TEA system 10 permits experimentation with different
pricing options, trading off margin for transaction volume, and so to optimize
the
2 5 revenue received.
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