WO2004097561A2

WO2004097561A2 - Membership token loyalty program

Info

Publication number: WO2004097561A2
Application number: PCT/US2004/012658
Authority: WO
Inventors: Kevin P. Wren; William W. Wagner
Original assignee: Mbna America Bank, N.A.
Priority date: 2003-04-24
Filing date: 2004-04-22
Publication date: 2004-11-11
Also published as: WO2004097561A3

Abstract

A system and method for building customer loyalty includes a membership identifier (106) associated with a member (108), where the member (108) is uniquely identified by said membership identifier (106); a plurality of unrelated merchants (104); a social artifact (112) provided to the member (108), where the social artifact (112) includes data to associate the member (108) to the membership identifier (106); an associator (114) to associate the membership identifier (106) with a purchase made using any form of payment at a merchant (104) by the member (108), to obtain associated purchase data; and a data repository (102) to store the associated purchase data.

Description

Membership Token Loyalty Program

Background of the Invention Field of the Invention

The present invention relates generally to shopping systems, and more particularly to customer reward programs.

Related AH

A number of different businesses have customer loyalty-building programs. One example is a credit card that allows the user to earn airline mileage points with each purchase made with the credit card. Some credit card institutions offer more general points that can be redeemed for items or services of the user's choice, although only purchases made with that credit card can generate the points for the customer. Another example is a rental car club, where the customer joins the club, sometimes by paying a fee, and enjoys privileges such as discounts or service upgrades that non-club members do not receive. Some chain stores offer club card programs where members can join for free, membership is not restricted, and members receive discounts or rewards for purchases made in one of the chain's stores. Other companies provide privileges to their customers when the customer registers the product.

In exchange for offering their customers special privileges, the companies that run these loyalty programs often receive valuable marketing data about their customers' purchasing decisions that can allow the companies to improve their marketing strategies and sell more products and services.

There are many potential disadvantages to current loyalty programs, which have been identified by the inventors and are not yet appreciated by those skilled in the art. Many loyalty programs are tied to a specific credit card or a single payment form. These programs automatically exclude customers who are either not eligible for credit or have simply chosen not to apply for a particular credit card. Business "club" memberships, such as rental car clubs and grocery store membership clubs, can. only offer the member privileges based on purchases made at that particular business or participating merchants or locations. Further, any marketing data about that customer is limited to the customer's behavior within the limited confines of the membership and its relationship to participating merchants, e.g. type of rental car, frequency of rentals, etc. Programs that rely on customer product registration may only receive information on a small fraction of their customer base.

What is needed then is a membership loyalty program that overcomes shortcomings of conventional solutions. Summary of the Invention

The invention may be embodied in various manners, such as a system, a method, an article, and others.

In an exemplary embodiment, the present invention may be a membership token loyalty system, comprising: a membership identifier associated with a member, wherein the member is uniquely identified by said membership identifier; a plurality of unrelated merchants; a social artifact provided to the member, where the social artifact includes data to associate the member to the membership identifier; an associator to associate the membership identifier with a purchase made using any form of payment at a merchant by the member, to obtain associated purchase data; and a data repository to store the associated purchase data.

In another exemplary embodiment, the present invention may be a method of building membership loyalty, comprising: providing a member with a membership identifier; associating a purchase made using any form of payment by the member at any one of a plurality of unrelated merchants with the membership identifier; and updating a member profile associated with the membership identifier in a data repository when the purchase is made.

In another exemplary embodiment, the present invention may be a system

I that includes a membership identifier associated with a member, the member uniquely identified with the membership identifier; a plurality of unrelated merchants; means for associating a purchase made using any form of payment at any of the merchants by the member with the membership identifier to obtain associated purchase data; and means for storing the associated purchase data.

Further features and advantages of the invention, as well as the structure and operation of various embodiments of the invention, are described in detail below with reference to the accompanying drawings. Brief Description of the Drawings

The foregoing and other features and advantages of the invention will be apparent from the following, more particular description of exemplary embodiments of the invention, as illustrated in the accompanying drawings wherein like reference numbers generally indicate identical, functionally similar, and/or structurally similar elements. The left most digits in the corresponding reference number indicate the drawing in which an element first appears.

FIG. 1 is a block diagram illustrating an exemplary embodiment of the system of the present invention; FIGS. 2A-2C depict social artifacts according to exemplary embodiments of the present invention;

FIG. 3 depicts an exemplary embodiment of a method of building membership loyalty according to the present invention;

FIG. 4 depicts an exemplary embodiment of membership data stored in a data repository according to an exemplary embodiment of the present invention;

FIG. 5 depicts an exemplary embodiment of purchase data stored in a data repository according to an exemplary embodiment of the present invention; and

FIG. 6 depicts an exemplary embodiment of marketing data stored in a data repository according to an exemplary embodiment of the present invention. Definitions

A "computer" refers to any apparatus that is capable of accepting a structured input, processing the structured input according to prescribed rules, and producing results of the processing as output. The computer can include, for example, any apparatus that accepts data, processes the data in accordance with one or more stored software programs, generates results, and typically includes input, output, storage, arithmetic, logic, and control units. Examples of a computer include: a computer; a general purpose computer; a supercomputer; a mainframe; a super mini-computer; a mini-computer; a workstation; a microcomputer; a server; an interactive television; a web appliance; a telecommunications device with internet access; a hybrid combination of a computer and an interactive television; a portable computer; a personal digital assistant (PDA); a portable telephone; a pager; an RFID chip or other transmission device; and application-specific hardware to emulate a computer and/or software. A computer can be stationary or portable. A computer can have a single processor or multiple processors, which can operate in parallel and/or not in parallel. A computer also refers to two or more computers connected together via a network for transmitting or receiving information between the computers in real time or as a batch. An example of such a computer includes a distributed computer system for processing information via computers linked by a network.

A "computer-accessible medium" refers to any storage device used for storing data accessible by a computer. Examples of a computer-accessible medium include: a magnetic hard disk; a floppy disk; an optical disk, such as a compact disk-read only memory (CD-ROM) and a digital versatile disk (DND); a magnetic tape; a memory chip; and a carrier wave used to carry computer- accessible electronic data, such as those used in transmitting and receiving e-mail or in accessing a network.

"Software" refers to prescribed rules to operate a computer. Examples of software include: software; code segments; instructions; software programs; computer programs; and programmed logic.

A "computer system" refers to a system having a computer, where the computer comprises a computer-readable medium embodying software to operate the computer. A "network" refers to a number of computers and associated devices that are connected by communication facilities. A network involves permanent connections such as cables or temporary connections such as those made through telephone, wireless, or other communication links. Examples of a network include: an internet; an intranet; a local area network (LAN); a wide area network (WAN); and a combination of networks, such as an internet and an intranet.

An "information storage device" refers to an article of manufacture used to store information. An information storage device has different forms, for example, paper form and electronic form. In paper form, the information storage device includes paper printed with the information. In electronic form, the information storage device includes a computer-readable medium storing the information as software, for example, as data. Detailed Description of Embodiments of the Present Invention

An exemplary embodiment of the invention is discussed in detail below. While specific exemplary embodiments are discussed, it should be understood that this is done for illustration purposes only. A person skilled in the relevant art will recognize that other components and configurations can be used without parting from the spirit and scope of the invention.

In an exemplary embodiment of the present invention, a system and method for building customer loyalty includes a plurality of unrelated merchants, some of whom may be program partners, a data repository, and a unique membership identifier for each member. Members make purchases at the merchants and earn rewards for the purchases, regardless of the payment method. The rewards can be redeemed for goods and services offered by any of the program partners. Membership is open to all individuals and is not restricted to credit- worthy applicants. In an exemplary embodiment, the present invention is a membership loyalty program that allows its members to earn loyalty points for any purchase at any merchant whether or not a program partner, regardless of the payment method or merchandise purchased. Additionally, membership is available to any person, regardless of credit history. The loyalty points earned can be redeemed by the member for merchandise and services provided by any of the program partners.

FIG. 1 is a block diagram illustrating an exemplary embodiment of the system 100 of the present invention. The system 100 may comprise a data repository 102. Data repository 102 may be stored, for example, on a machine- accessible medium, a computer, or a computer system. Data repository 102 may accept, store, and distribute data related to one or more members 108 of the program, or related to purchases made by members 108 of the program. Data repository 102 may maintain and update information on member 108. For example, data repository 102 may record the goods or services purchased, the amount paid, and the loyalty rewards earned by the purchase. Additionally, data repository 102 may store records as to the balance of points accrued by members

108, and for what goods or services the points of members 108 have been redeemed. The system 100 may further comprise a plurality of merchants 104a, 104b, 104c (collectively 104). Each merchant 104 may be any business or person offering a good or service to customers. A merchant 104 may be, for example, a grocery store chain, a bank, a department store, a sports team, a movie theater chain, or a beauty salon. There is no specific relationship required between the merchants 104, that is, the merchants 104 may be unrelated. For example, some merchants 104 may be direct competitors with each other, while other merchants 104 may be in a parent-subsidiary relationship, while still others may be completely independent of each other. Although only three merchants 104 are shown in FIG. 1, any number of merchants 104 may be a part of the system 100.

Additional merchants 104 may be added to the system 100 at any time.

The system 100 may further comprise one or more program partners 105. A program partner 105 may be a merchant 104 who has agreed to participate in the membership loyalty program. Participation in the membership loyalty program may include providing membership rewards to members 108 and/or receiving data from data repository 102. Although only one program partner 105 is shown in FIG. 1, any number of program partners 105 may be a part of the system 100. Additional program partners 105 may be added to the system 100 at any time. The system 100 may further comprise a unique membership identifier 106 associated with each individual member 108. Unique membership identifier 106 may be, for example, a unique sequence of numbers, a unique image or pictograph, a unique sequence of letters, or a unique sequence of letters and numbers. Unique membership identifier 106 serves to identify member 108 to the system 100 and associate data generated by the activities of member 108 within the system to member 108.

Member 108 may earn loyalty rewards 110, for example, by purchasing goods or services from any merchant 104 including a program partner 105. In one embodiment, the system 100 may award loyalty points 118 at the time a purchase is made. Member 108 may then redeem the loyalty points 118 for other goods or services 120 offered by any of the program partners 105.

Social artifact 112 may contain membership identifier 106 directly, or a code that links member 108 to the member's membership identifier 106. Social artifact 112 may act as a vehicle to capture, store and transmit information regarding transactions of member 108. The identification on the exterior surface of the membership token and the identification stored in the technical component may be the same or different, but both identifications may uniquely identify member 108. The social artifact 106 may also be used for informational and marketing purposes by the program partners 105 to transmit bonuses, offers, pertinent consumer information or rewards to members 108 in real time, even at point of sale, or to track consumer preferences in purchase of both items and venues. In order to facilitate the awarding and redemption of loyalty rewards 110, membership identifier 106 may be encoded on a social artifact 112, such as a key fob, a smart card or a plastic card with a magnetic strip or may be a part of any easily carried device, such as a cell phone, pager, or personal digital assistant (PDA). The social artifact 112 may be designed to engender brand loyalty to a product, membership organization, or program partner 105. For example, social artifact 112 may be a key fob shaped like a football helmet that displays a team logo.

As seen, for example, in FIG. 2A, a social artifact 112a may be a card that contains a unique member identifier 202 of member 108 visible from the exterior of social artifact 112a, for example, a sticker, an imprint, an image, a hologram, liquid crystal display (LCD), a label on an exterior surface, or a label or the like embedded in a transparent social artifact 112a. The member identifier 202 may include the unique membership identifier 106 of the member 108. Social artifact 112a may also have a magnetic strip 204. As seen, for example, in FIG. 2B, a social artifact 112b may be a card that contains a technical component 206b integral with social artifact 112b. The technical component 206b may be, for example, an embedded microchip, raised surface, a radio-frequency device (RFID), or a barcode embedded in social artifact 112b. The technical component 20bc may include the unique membership identifier 106 of the member 108 and may store loyalty information for redemption purposes.

As seen, for example, in FIG. 2C, a social artifact 112c may be a key fob 208 that contains a technical component 206c. The technical component 206c may be, for example, an embedded microchip, a radio-frequency device (RFID), raised surface or a barcode embedded in social artifact 112c. The technical component 206c may include the unique membership identifier 106 of the member 108 and may store loyalty information for redemption purposes. In addition, social artifact 112 may be any combination of a card, a key fob, or a portable object, and an external unique identification, a magnetic strip, or a technical component.

The system 100 may further comprise an associator 114. Associator 114 may be associated with a merchant 104, a program partner 105, or a program administrator 116. Associator 114 may read, scan, or otherwise extract data from social artifact 112 to identify member 108. Associator 114 may also receive input about a purchase made by member 108. Associator 114 may be in communication with data repository 102. For example, associator 114 may be coupled to data repository 102 via a network.

Associator 114 may associate data about the purchase with membership identifier 106 of member 108. The associated data may then be transmitted to data repository 102, or may be downloaded through other means on a scheduled basis. Alternatively, associator 114 may transmit the purchase data to data repository 102, where program administrator 116 associates the purchase data to member 108. In one embodiment, a separate associator 114 may be situated at each point of sale of a merchant 104 including any program partner 105. In another embodiment, associator 114 may be a web site where member 108 may enter information about a purchase. In another embodiment, associator 114 may be at a publicly accessible membership kiosk, telephone, e-mail, mail, survey, or any other means where member 108 may have the member's social artifact 112 scanned, or may enter information about a purchase manually.

Data repository 102 may be administered by a program administrator 116. For example, program administrator 116 may create new data, delete obsolete data, update existing data, and control access to the data in data repository 102. Program administrator 116 may be one of the program partners 105. The program administrator 116 maybe a program-managing entity, for example, a credit card company, in partnership with the program partners 105. FIG. 3 depicts a method of building membership loyalty according to an exemplary embodiment of the present invention. In block 302, a person joins the membership loyalty program to become a member of the membership loyalty program. A person may be a single human being, or a group of human beings, such as a family or a business. The membership loyalty program can be joined, for example, by filling out a paper form or an online form, or telephoning a membership service. The member may provide marketing information such as, for example, interests, hobbies, household income, level of education, age, sex, marital status, and shopping categories. Becoming a member may coincide with an application for credit but is not dependent upon applying for credit, being approved for credit, or paying a fee. Membership is also not restricted to particular groups, such as employees of one company, or members of some other organization. Any person may join the membership loyalty program. When the person becomes a member 108, the member 108 may receive a social artifact 112. When a person becomes a member of the membership loyalty program, a member profile is created and stored in data repository 102. As seen, for example, in FIG. 4, the member profile 402 may include the marketing information provided by the member in block 302. The member profile 402 may also include, for example, the name, address, e-mail address, telephone number, or other information provided by the member. Member profile 402 may also include membership identifier 106, or may be otherwise associated with membership identifier 106, and may include points 118.

In block 304, the member may then make payment-neutral purchases at merchants 104. To make payment-neutral purchases, the member may use any form of payment, such as, for example, a credit or debit card 306, cash 308, a check 310, or an electronic fund transfer 312. Additionally, the member 108 may pay with other payment techniques 314, such as barter, a gift certificate, coupon, online payment services, traveler's check, or any other form of payment accepted by the merchant 104. In block 316, regardless of the payment used, the purchase data may be associated with the member 108. The association may take place, for example, by the associator 114 reading, listening, or scanning the social artifact 112 at the time of purchase. As seen in FIG. 5, for example, the purchase data 502 may include the good or service purchased by the member 108, the amount paid, the number of reward points 118 earned, and other information about the purchase. Purchase data 502 may also include membership identifier 106, or may be otherwise associated with membership identifier 106. In block 318, the points 118 in member profile 402 of member 108 stored in data repository 102 are updated according to the points earned by the purchase from block 316.

In block 320, member 108 can redeem loyalty point 118 for goods and/or services 120 offered by program partners 105. hi block 322, member 108 may receive a summary of all recorded purchases, for example, to use for budgeting and tax preparation purposes, based upon actual spending behavior from all sources of payment.

In block 324, the program partner 105 may access data repository 102 and obtain the purchase data 502. Merchants 104 who are not program partners 105 cannot access data repository 102. Program partners 105 may also access or receive marketing data from the system. As seen in FIG. 6, for example, marketing data 602 may be purchase data 502 that is consolidated over many members. Marketing data 602 may also be consolidated member profile 402 data, or a combination of member profile 402 and purchase data 502, or other data of interest to the program partners 105 or program administrator 116. Consolidated data may be, for example, averaged data, totaled data, sorted data, or statistically analyzed data. The program partner 105 may use the marketing data 602, for example, to improve its marketing strategy, improve the goods or services it provides, communicate with its or a merchant's customers, or to make other business decisions.

In an exemplary embodiment, the program administrator 116 may offer promotions co-branded with one or more of the program partners 105 to the member 108 based on the purchase data 402 and/or marketing data 502. The program administrator 116 may also develop a relationship with the member 108, who may not have a previous relationship with the program administrator 116.

For example, if the program administrator 116 is a bank or credit card company, based on the purchase data 502 and/or marketing data 602, the program administrator 116 may offer the member 108 a credit card from the program administrator 116. The program administrator 116 may offer other services and products to member 108, such as, for example, consumer finance, insurance, mortgage, and other membership programs.

In addition to earning membership loyalty reward points 118, member 108 may also receive privileges not extended to non-members. To access these privileges, member 108 may or may not need to redeem points earned in the program. Such privileges may include, for example, preferred parking at events, faster admission to events, backstage access, limited edition autographs, special discounts, and other limited availability privileges. Groups of individuals, such as families, households, and organizations, may also consolidate their loyalty rewards 110 for redemption at higher levels. This allows members 108 to earn more points 118 more quickly, and/or to receive goods and/or services 120 of greater value than an individual member might be able to earn. While various embodiments of the present invention have been described above, it should be understood that they have been presented by way of example only, and not limitation. Thus, the breadth and scope of the present invention should not be limited by any of the above-described exemplary embodiments, but should instead be defined only in accordance with the following claims and their equivalents.

Claims

WE CLAIM:

1. A membership token loyalty system, comprising: a membership identifier associated with a member, wherein the member is uniquely identified by said membership identifier; a plurality of unrelated merchants; a social artifact provided to the member, wherein said social artifact comprises data to associate the member to said membership identifier; an associator to associate said membership identifier with a purchase made using any form of payment at one of said merchants by the member, to obtain associated purchase data; and a data repository to store said associated purchase data.

2. The system of claim 1, further comprising: a program partner; and loyalty rewards to reward the member for purchases made at any merchant, wherein said loyalty rewards are redeemed from said program partner.

3. The system of claim 2, wherein said loyalty rewards comprise: loyalty points awarded to the member for a purchase made at any merchant; and at least one of goods or services from said program partner for which said loyalty points are redeemed by the member.

4. The system of claim 3, wherein said associated purchase data comprises at least one of: a product or service purchased, an amount paid, or loyalty points earned from said purchase.

5. The system of claim 1, wherein a social artifact is at least one of a key fob, a radio-frequency device, or a membership card.

6. The system of claim 1 , further comprising a program administrator to administer said data repository.

7. The system of claim 2, further comprising a program administrator to administer said data repository, wherein said program administrator is one of said program partners.

8. The system of claim 1, wherein said social artifact is designed to engender brand loyalty to one of a product, a membership organization, or a program partner.

9. A method of building membership loyalty, comprising:

(a) providing a member with a membership identifier;

(b) associating a purchase made using any form of payment by the member at any one of a plurality of unrelated merchants with said membership identifier; and

(c) updating a member profile associated with said membership identifier in a data repository when said purchase is made.

10. The method of claim 9, wherein (b) comprises:

(i) extracting membership data at said purchase from a social artifact that comprises membership data of the member;

(ii) forwarding purchase data regarding said purchase to said data repository; and

(iii) associating said purchase data with said membership identifier based on said membership data of said social artifact.

11. The method of claim 10, wherein (i) comprises at least one of: scanning a bar code; entering said membership data into a register or point of sale device; detecting a radio-frequency identification device; communicating with an embedded microchip; entering said membership data into a web site; entering said membership data manually; entering said membership data into a kiosk; or transmitting said membership data from said social artifact.

12. The method of claim 9, wherein said member profile comprises loyalty points and (c) comprises: adding loyalty points to said loyalty points in said member profile associated with said membership identifier.

13. The method of claim 12, further comprising:

(d) receiving a redemption of loyalty points from the member in exchange for at least one of goods or services from a program partner.

14. The method of claim 12, wherein (c) comprises: storing data regarding said purchase in said data repository.

15. The method of claim 14, wherein (c) further comprises storing at least one of: a product or service purchased, an amount paid, or loyalty points earned from said purchase.

16. The method of claim 15, further comprising:

(d) providing said data about said purchase to a program partner.

17. The method of claim 14, further comprising:

(d) consolidating said data about said purchase into marketing data; and

(e) providing said marketing data to a program partner.

18. The method of claim 9, further comprising: (d) providing special privileges to the member.

19. The method of claim 18, wherein (d) comprises providing at least one of: preferred parking at an event, express admission at an event, autographed merchandise, backstage access at an event, discounted service, or discounted merchandise.

20. A computer system for performing the method of claim 9.

21. A computer for performing the method of claim 9.

22. A computer-accessible medium having software for performing the method of claim 9.

23. A system for building membership loyalty, comprising: a membership identifier associated with a member, the member uniquely identified with said membership identifier; a plurality of unrelated merchants; means for associating a purchase made using any form of payment at any of said merchants by the member with said membership identifier, to obtain associated purchase data; and means for storing said associated purchase data.

24. The system of claim 23, further comprising: means for rewarding the member for said purchase.

25. The system of claim 23, wherein said means for associating comprises: a social artifact provided to the member, wherein said social artifact comprises data to associate the member to said membership identifier; and means for collecting purchase data from said purchase and associating said purchase data with said extracted data.

26. The system of claim 23, wherein said means for storing comprises: a data repository coupled to said means for associating.

27. The system of claim 24, wherein said means for rewarding comprises: means for awarding points to the member; and means for redeeming said points for goods or services from a program partner.