Interactive Value Generator for Dynamic Loyalty Rewards
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Solution Overview
Problem
Existing loyalty rewards programs in electronic transaction processing systems fail to continuously engage and encourage consumers to use their payment accounts beyond the initial incentivization, lacking dynamic and interactive elements to promote ongoing usage.
Innovation Solution
A system and method that incorporates an interactive value generator at transaction computing devices, allowing consumers to interact with a pseudo-random reward value generator, which calculates and provides a variable reward amount based on user interactions, enhancing the transaction experience and encouraging desired consumer behavior.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If fixed percentage rewards are provided in traditional loyalty programs, then consumers are incentivized to use transaction accounts initially, but consumer engagement and usage are not continuously driven at the point-of-sale
Solution Approach 1:
The patent transforms static fixed percentage rewards into dynamic variable value rewards that change based on consumer interactions with the interactive value generator. The reward value is no longer fixed but varies according to consumer choices, game outcomes, or random generation, making the loyalty program adaptive and continuously engaging while maintaining manageable system complexity through standardized interaction protocols.
Solution Approach 2:
The interactive value generator enables consumers to actively participate in determining their own reward values through interactions such as spinning a wheel, playing a game, or making choices. This self-service element increases engagement by giving consumers control and excitement over their rewards, while the system automatically processes these interactions without requiring complex manual intervention.
2Ease of operation
If traditional loyalty rewards programs are implemented, then consumers receive incentives for account usage, but the programs lack interactive elements to promote ongoing usage
Solution Approach 1:
The patent separates the reward determination process into distinct phases: the interactive value generation phase (consumer interaction) and the transaction processing phase (system processing). This segmentation allows consumers to engage with the interactive value generator without disrupting the core transaction processing workflow, maintaining efficiency while enhancing interaction.
Solution Approach 2:
The interactive value generator is integrated into the transaction flow such that consumer interactions and reward value generation occur during the transaction process itself, rather than as a separate post-transaction step. This preliminary action ensures that engagement happens naturally during the purchase experience without adding significant time or complexity to the overall transaction.
3Adaptability or versatility
If variable reward values are generated through consumer interaction, then consumer engagement and loyalty are increased, but the system complexity and computational requirements increase
Solution Approach 1:
The patent uses pseudo-random number generation to simulate variable reward outcomes, rather than requiring complex real-time calculation of optimal reward values. The system generates reward values that appear random and variable to consumers but are computationally efficient to produce, maintaining reward variability while controlling system complexity through standardized algorithms.
Data Source
AI summary
Systems and methods are provided for implementing an interactive loyalty reward program for transactions conducted at transaction terminals, for instance, consumer purchase transactions conducted at a point-of-sale terminal. The system includes a server configured to monitor and identify qualifying transactions under the reward program. The server also coordinates operation of consumer-facing devices accessible to the consumer at the point-of-sale. The consumer-facing devices include an interactive value generator (IVG), which is configured to provide a game-like experience to consumers and interactively generates unspecified reward values for qualifying transactions. A loyalty reward application executing on the transaction terminal is also provided to guide consumer interaction with the IVG and communicate the generated reward values to the server. The server is further configured to calculate loyalty reward amounts for respective transactions based on the generated reward values and prescribed terms of corresponding loyalty reward programs.