Electronic Customer Management System for Retail Fraud Reduction
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Solution Overview
Problem
Retail businesses face challenges in managing customer loyalty programs, reducing waiting times, and preventing fraud, as traditional methods are inconvenient for customers, resource-intensive for merchants, and prone to fraud due to the use of physical instruments like credit cards and coupons.
Innovation Solution
A computer system and mobile app that allows customers to remotely register for waitlists and manage transactions on personal communication devices, eliminating the need for physical instruments, promoting products, and managing customer loyalty programs securely, while also reducing waiting times and fraud risks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If traditional membership cards and paper coupons are used for customer loyalty programs, then customer identification and reward tracking can be implemented, but customers face inconvenience of carrying multiple cards and coupons, and merchants incur high costs for printing and managing physical instruments
Solution Approach 1:
The patent replaces physical membership cards and paper coupons with electronic copies stored in a database. Each customer receives a unique identifier (such as a mobile phone number or email address) that serves as an electronic membership card. The system maintains electronic records of customer profiles, purchase history, and reward balances, eliminating the need for customers to carry multiple physical cards and coupons.
Solution Approach 2:
The patent substitutes the mechanical system of physical cards and paper coupons with an automated computer-based system. The system uses electronic databases to store customer information and process transactions automatically. When a customer makes a purchase, the system electronically updates their balance and reward status without requiring manual handling of physical instruments.
2Productivity
If paper-based promotional materials are mailed to customers, then merchants can conduct promotional campaigns, but the process is expensive, time-consuming, and results in most materials being discarded without being read
Solution Approach 1:
The patent replaces the mechanical mailing process with an automated electronic communication system. Promotional materials are delivered instantly via email or mobile notifications to customers' electronic devices. The system can automatically send targeted promotions based on customer purchase history and preferences, eliminating the weeks-long mailing process and achieving immediate delivery and measurably higher engagement rates.
3Reliability
If traditional payment instruments like credit cards are used, then transactions can be processed, but the system is prone to fraud due to easy theft and fabrication of physical cards
Solution Approach 1:
The patent replaces physical payment instruments with an automated electronic payment system. Customer payment information is securely stored in encrypted database records associated with their unique identifier. During transactions, the system electronically verifies customer identity and processes payments without requiring physical cards, thereby eliminating fraud related to card theft, skimming, and counterfeiting.
Solution Approach 2:
The system implements real-time verification and monitoring of transactions. Each transaction is electronically recorded and verified against the customer's profile and available balance in the database. The system provides immediate feedback on transaction status and updates customer accounts automatically, creating a secure auditable trail that prevents fraudulent activities.
Data Source
AI summary
A method for managing customers for a store includes generating first account identification information from stored account information of a customer. The method also includes transmitting a list of candidate payees within a predefined distance of a current geolocation of a personal communication device of the customer and identifying the store as a party to a transaction with the customer based on feedback. The method still further includes receiving, from the store, a transaction message indicating the customer is a counterparty to the transaction, the transaction message comprising second account identification information received at the communication device of the store from the customer. The method also includes determining the first account identification information matches the second account identification information. The method further includes approving the transaction between the customer and the store in response to determining the first account identification information matches the second account identification information and identifying the store as the party to the transaction.