Cross-Merchant Promotions via Transaction Data Analysis
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Solution Overview
Problem
Conventional promotion practices by merchants are limited in encouraging repeat visits from customers, as they often rely on paper advertisements and do not effectively facilitate cross-selling between different merchants, leading to inefficient use of promotional materials.
Innovation Solution
A system and method for generating and processing customized promotions that are geo-targeted and time-sensitive, allowing merchants to offer incentives for customers to visit other merchants based on their spending trends and geographical location, thereby increasing customer traffic and facilitating cross-selling.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional paper advertisement promotions are distributed to customers, then merchants can incentivize future visits, but customers may lose or forget about the promotion materials and do not have incentive to visit again immediately
Solution Approach 1:
The patent replaces the mechanical paper-based promotion distribution system with an electronic promotion system delivered through mobile devices. Promotions are sent via electronic messages (SMS, email, or push notifications) to customers' mobile devices, eliminating the physical paper coupons that get lost or forgotten. This substitution ensures promotions remain accessible and actionable on the customer's device.
Solution Approach 2:
The system implements feedback mechanisms by tracking customer responses to promotions, redemption rates, and engagement metrics. This feedback loop allows merchants to optimize promotion timing, content, and delivery methods to improve customer retention and prevent promotions from being overlooked or forgotten.
2Adaptability or versatility
If merchants limit promotions to their own inventory, then they can control promotion content, but they cannot take advantage of cross-selling opportunities with other merchants
Solution Approach 1:
The patent introduces a promotion management system as an intermediary platform that connects multiple merchants. This system handles the complexity of cross-merchant promotion coordination, matching customers with relevant promotions from partner merchants based on purchase history and preferences, without requiring direct complex relationships between individual merchants.
Solution Approach 2:
The promotion system serves multiple functions: it manages single-merchant promotions, coordinates cross-merchant cross-selling opportunities, tracks customer behavior across merchants, and optimizes promotion delivery. This multi-functional platform enables cross-selling capabilities while centralizing the management complexity.
3Reliability
If promotion materials are created based on limited merchant knowledge of customer purchase history, then merchants can create simple promotions, but the promotions are likely ineffective in incentivizing future visits
Solution Approach 1:
The patent merges purchase history data from multiple merchants into a unified customer profile within the promotion system. By combining data across merchants, the system creates a comprehensive view of customer behavior, enabling more accurate and effective promotion personalization that reflects the customer's full purchasing patterns rather than limited single-merchant knowledge.
Solution Approach 2:
The system dynamically adjusts promotion parameters (discount amount, timing, content) based on analyzed customer purchase history data. By changing these parameters according to inferred customer preferences and behavior patterns, the system optimizes promotion effectiveness and redemption rates while utilizing previously underused purchase history information.
Data Source
AI summary
In examples, a payment service can identify a first merchant and a second merchant as complementary merchants based on transaction data associated with a plurality of merchants. First transaction data for a first transaction between a first merchant is received, which includes a payment card number. A payment can be processed and apportioned between the first merchant and a second merchant based on an agreement between them. A receipt user interface can be generated that includes representations of the merchants and a promotion for a second transaction between the customer and a second merchant, based on a transaction history of the customer. The payment service can receive second transaction data from the second transaction and process a payment for the second transaction based on the promotion.