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Method and system for accumulating marginal discounts and applying an associated incentive upon achieving threshold

Inactive Publication Date: 2013-10-15
KIOBA PROCESSING LLC
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  • Summary
  • Abstract
  • Description
  • Claims
  • Application Information

AI Technical Summary

Benefits of technology

[0009]Embodiments of the present invention provides numerous technical advantages. For example in one embodiment, accumulation of marginal discounts and application of the accumulated discount produces the appearance of the customer receiving a discount on a particular item. Because any given transaction likely will include the customer's preferred products, over time it may appear to the customer as if discounts are being provided for the customer's preferred items. Providing discounts for a customer's preferred items likely induces customers to return to the store providing such discounts. Additionally, a method of customer promotion does not suffer from disadvantages associated with redeemable coupons. Furthermore, such a method of customer promotion can be implemented without identification of the customer. In addition, differential customer promotion is effected in a shopping context not amenable to redeemable coupons.

Problems solved by technology

In addition, differential customer promotion is effected in a shopping context not amenable to redeemable coupons.

Method used

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Examples

Experimental program
Comparison scheme
Effect test

example 1

[0712]A store wishes to test redemption rates for varying “dollar off” coupons for Coupon “A” shoppers. A “Grab Bag” is set up to choose one incentive on a 1:1 ratio (every time) from the following five coupons in a grab bag:[0713]Grab Bag Coupon #1—$1.00 off with a minimum purchase of $25.00[0714]Grab Bag Coupon #2—$2.00 off with a minimum purchase of $25.00[0715]Grab Bag Coupon #3—$3.00 off with a minimum purchase of $25.00[0716]Grab Bag Coupon #4 —$4.00 off with a minimum purchase of $25.00[0717]Grab Bag Coupon #5—$5.00 off with a minimum purchase of $25.00

[0718]Once this “Grab Bag” is activated, the first Coupon “A” shopper receives a $1.00 off coupon and that coupon's database record is updated to reflect one issuance. The second Coupon “A” shopper receives a $2.00 off coupon, the third a $3.00 off coupon, the fourth a $4.00 off coupon, and the fifth a $5.00 off coupon with each coupon's database record updated to reflect an issuance. The sixth Coupon “A” shopper receives a $1....

example 2

[0719]A store has been allowed 15,000 promotional items by the manufacturer to give away in their NOW-Coupon system. These promotional items are made up of 3,000 each of five different flavors of edible widgets. A decision is made to direct 1,000 of each flavor as Coupon “A” incentives and direct 500 of each flavor to the B,C,D, and E categories. Since less edible widgets are allotted to the primary shopper categories, a “Grab Bag” is set up for each with a random ratio to control the rate at which the coupons are dispersed. The following is the configuration for Coupon “B's”.

[0720]

Coupon category:Coupon “B”Random ratio:1:5[0721]Grab Bag Coupon #1—Free Box of Edible Widgets—Grape (Issue: 500)[0722]Grab Bag Coupon #2—Free Box of Edible Widgets—Cherry (Issue: 500)[0723]Grab Bag Coupon #3—Free Box of Edible Widgets—Strawberry (Issue: 500)[0724]Grab Bag Coupon #4—Free Box of Edible Widgets—Lemon (Issue: 500)[0725]Grab Bag Coupon #5—Free Box of Edible Widgets—Orange (Issue: 500)

[0726]Onc...

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PUM

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Abstract

A method for customer promotion includes sequentially processing each of a plurality of items in a customer order. The price of each item is accumulated after processing. A marginal discount associated with each item processed is generated. This marginal discount is generated in response to a signal that indicates the accumulated price exceeds a predetermined threshold. Unapplied marginal discounts are accumulated for application to the customer order. A discount is applied to the customer order in response to a signal that is generated that indicates the accumulated discounts exceeds a predetermined minimum.

Description

RELATED APPLICATIONS[0001]This application is a continuation of U.S. patent application Ser. No. 09 / 320,114 filed May 26, 1999, entitled Method and System for Providing Customer Incentives Utilizing Dual Customer Identifications. This application also claims the benefit under 35 U.S.C. §119(e) of U.S. Provisional Application Ser. No. 60 / 136,130 filed May 26, 1999 entitled Customer Incentives.TECHNICAL FIELD OF THE INVENTION[0002]This invention relates to marketing and more particularly to a method and system for differentiated customer promotion.BACKGROUND OF THE INVENTION[0003]Coupon distribution is widely used as a method for marketing products. However, the distribution of coupons is not without disadvantages. For example, coupon distribution is logistically complex. Much effort is extended by stores in receiving, verifying, and submitting coupons for reimbursement. As a method of targeted marketing, coupons are also somewhat deficient. Coupons may be exchanged or sold, reducing ...

Claims

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Application Information

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Patent Type & Authority Patents(United States)
IPC IPC(8): G06Q30/00
Inventor DEATON, DAVID W.GABRIEL, RODNEY G.
Owner KIOBA PROCESSING LLC