Dynamic Payment Options in Loyalty Program Systems
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Solution Overview
Problem
Current customer loyalty programs are limited in offering multiple payment options, restricting members' choices to predefined and static combinations of loyalty units and monetary currencies, which hampers airlines' ability to reward members effectively and achieve Customer Relationship Management (CRM) objectives.
Innovation Solution
A method and system that enable members to choose from multiple loyalty units, monetary currencies, and combinations thereof, by dynamically selecting price lists and linking them to provide flexible payment options, allowing members to pay partially in loyalty units and partially in monetary currency, and displaying feasible payment options based on pricing attributes.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If multiple payment options are enabled with dynamic pricing, then member flexibility and payment choice are improved, but system complexity increases
Solution Approach 1:
The system transitions from static predefined pricing combinations to dynamic pricing that automatically adapts based on member attributes, product characteristics, and real-time conditions. The pricing engine dynamically generates multiple payment options (loyalty units only, monetary currency only, or combinations) based on member balance, preferences, and product availability, enabling flexible payment choices without manual configuration of each scenario.
Solution Approach 2:
The system creates a universal pricing mechanism that handles multiple payment scenarios through a single integrated framework. Instead of separate systems for points-only redemption, cash-only redemption, and hybrid redemption, the system uses one unified pricing engine that can generate all payment option combinations based on member attributes, product type, and available loyalty units, simplifying system architecture while increasing versatility.
2Adaptability or versatility
If dynamic pricing with multiple payment options is implemented, then customer relationship management objectives are improved, but pricing variability complexity increases
Solution Approach 1:
The pricing system incorporates feedback mechanisms that continuously monitor member attributes, transaction history, and product characteristics to dynamically adjust pricing options. The system uses member-specific feedback (balance, preferences, spending patterns) and product feedback (availability, type, category) to automatically generate appropriate payment combinations, enabling personalized CRM experiences while managing pricing complexity through automated decision rules.
Solution Approach 2:
The system manages pricing variability by changing key parameters dynamically rather than creating complex fixed structures. Instead of predefined rigid pricing tables, the system adjusts parameters such as loyalty unit conversion rates, monetary currency amounts, and payment option availability based on real-time conditions like member balance, product type, and market conditions, simplifying the management of pricing diversity.
3Device complexity
If static predefined pricing is used, then system simplicity is maintained, but member choice and payment flexibility are limited
Solution Approach 1:
The system replaces static predefined pricing with dynamic pricing that automatically adapts to member-specific conditions. Instead of fixed pricing tables that require manual updates for each scenario, the system uses real-time member attributes (balance, preferences), product characteristics, and available loyalty units to dynamically generate payment options, maintaining system simplicity through automation while dramatically increasing payment choice flexibility.
Data Source
AI summary
The present invention discloses a method and system for enabling multiple payment options for members in a loyalty program. The method according to the present invention includes the steps of receiving a request for a loyalty service and capturing service information and payment options of interest from the members, and processing the service information and payment options and displaying a set of feasible payment options to the members. The present invention enables members to exercise any payment option of choice, which includes loyalty units, monetary currencies and a combination of loyalty units and monetary currencies.