Location-Based Coupon-Less Offer System for Card Member Rewards
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Solution Overview
Problem
Traditional loyalty and reward programs face issues such as 'leakage' where merchants do not fully report sales resulting from promotions, and they lack the ability to provide location-based, coupon-less rewards to transaction account holders, making administration costly and inefficient.
Innovation Solution
Systems and methods are developed to provide location-based coupon-less offers to registered card members by determining their location through travel itineraries, GPS signals, or proximity to cellular base stations, allowing merchants to transmit offers directly to their mobile devices, which can be matched to transaction accounts and redeemed based on specified criteria.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional coupon-based loyalty programs are used, then merchants can offer discounts to customers, but the system experiences leakage where merchants do not fully report sales and administration becomes costly
Solution Approach 1:
The patent extracts the coupon redemption process from traditional physical coupon systems and integrates it directly into the point-of-sale transaction system. The loyalty program provider's system automatically identifies eligible transactions and applies rewards without requiring separate coupon handling, thereby eliminating sales leakage and reducing administrative complexity.
Solution Approach 2:
The patent merges the loyalty program reward application with the existing point-of-sale transaction processing. By combining these functions, the system automatically tracks and reports sales accurately while simplifying administration, as the same system that processes transactions also manages loyalty rewards without requiring separate administrative overhead.
2Ease of operation
If physical coupons are used for loyalty programs, then customers can receive discounts, but the system requires manual administration and training which increases costs
Solution Approach 1:
The patent implements self-service by allowing the loyalty program system to automatically identify eligible transactions and apply rewards without requiring manual intervention. The system autonomously processes reward application, eliminating the need for merchant staff training and administration while maintaining ease of operation for customers.
Solution Approach 2:
The patent replaces the mechanical manual administration system with an automated electronic system. Instead of requiring human administrators to manually process rewards, the system uses computer-based automation to handle reward application, thereby reducing administrative requirements and costs while maintaining operational ease.
3Adaptability or versatility
If location-based offers are implemented, then dynamic and mobile viewing of offers is enabled, but the system requires determination of customer location through multiple methods
Solution Approach 1:
The patent applies universality by implementing a location determination system that can utilize multiple methods (GPS, cellular tower triangulation, Wi-Fi positioning) depending on availability and accuracy requirements. This multi-functional approach enables mobile offer delivery while managing system complexity through selective use of appropriate location methods.
Data Source
AI summary
The system provides location based coupon-less offers based upon a location of a card member (CM). A location of a CM may be determined based upon one or more of a travel itinerary, a GPS signal, a proximity of a mobile communication device to a cellular base station, and/or a zip code. An offer from a merchant registered to provide coupon-less offers may be transmitted to a mobile communication device based upon the location. An offer, once accepted by a CM, may be matched to a record of charge associated with a transaction account held by the CM. A credit may be applied to the CM's transaction account and a debit may be applied to a transaction account of the registered merchant. One or more offer categories and/or one or more offer category classes may be transmitted to the mobile communication device based upon the CM's location.