Commission-Based Agent System for Direct Customer Data Acquisition
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Solution Overview
Problem
Product providers in industries like airlines, hotels, and car rentals face challenges such as reduced name recognition, loss of customer data, and revenue loss due to intermediaries like travel agencies offering discounted products, which can divert customers away from direct purchase and deprive providers of detailed customer information.
Innovation Solution
A system and method that assists customers in obtaining the best available prices by surveying market offers from agents and negotiating with product providers to match these prices, ensuring customers purchase directly from providers, thereby increasing recognition, customer base, and revenue for providers.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Quantity of substance
If agents offer discounted products, then customers can obtain lower prices, but product providers lose name recognition and customer data
Solution Approach 1:
The patent introduces a commission-based agent system where agents act as intermediaries between product providers and customers. Instead of agents directly discounting products (which would reduce provider revenue and control), agents earn commissions on sales they facilitate. This maintains price integrity while still enabling customer access to products through preferred channels, and crucially, ensures customer data flows to the product provider rather than the agent.
2Productivity
If agents sell products at reduced prices, then customers are attracted to agents, but product providers experience revenue loss
Solution Approach 1:
The patent fundamentally changes the pricing parameter structure by eliminating direct price discounts and replacing them with a commission-based compensation model. Agents are compensated through commissions (a percentage of the full product price) rather than through reduced pricing. This maintains the full price point for products while still providing economic incentive to agents, thereby preserving provider revenue while achieving sales volume goals.
3Ease of operation
If customers book through agents, then agents can provide service, but product providers lose direct customer contact and database access
Solution Approach 1:
The patent implements a feedback mechanism where customer booking information flows back to the product provider through the agent system. The commission-based model incentivizes agents to accurately transmit customer data to providers, as their compensation depends on successful sales. This creates a feedback loop where customer information is captured by agents during service interaction, then systematically reported to the provider, ensuring the provider maintains its customer database while agents continue to provide service.
Data Source
AI summary
Product providers offer matched prices for the products to the customers through a platform surveying the available prices from sale agents. The platform can determine lowest prices from the sale agents, and use this information to have an agreement with the product providers to sell the products at compatible prices.