Unified Loyalty Network Data Aggregation via Intermediary
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Solution Overview
Problem
Existing loyalty reward systems face challenges in tracking purchasing behavior across multiple merchants independently of the payment method, making it difficult to aggregate data for marketers, especially for niche segments and emerging groups, and lack a unified branded product for customers.
Innovation Solution
A computer-implemented method and system that allows customers to participate in a loyalty rewards network using a single card product, enabling merchants to provide loyalty rewards at the point of sale through an existing financial services electronic payment network, regardless of the payment method, and manages a database to track purchasing behavior across multiple merchants.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If loyalty reward data is gathered by various groups or chains of merchant outlets separately and independently, then each merchant can track its own customers, but it becomes difficult to aggregate data across multiple merchants and create a unified customer base
Solution Approach 1:
The patent combines multiple independent merchant loyalty systems into a single unified network operated by a network operator. Individual merchant systems are merged into the network infrastructure, allowing centralized data aggregation while maintaining participant independence. This resolves the contradiction by enabling data aggregation (improving reliability) while the network operator manages the integration complexity rather than requiring direct merchant-to-merchant integration.
Solution Approach 2:
The network operator acts as an intermediary between merchants and customers, centralizing data aggregation and management functions. This intermediary handles the complexity of integrating data from multiple merchants, providing a unified view of customer behavior across the network while merchants maintain their individual operations. The intermediary resolves the contradiction by absorbing the integration complexity while enabling comprehensive data aggregation.
2Adaptability or versatility
If a unified branded product is created for all participating customers, then customers can use a single card across multiple merchants, but the system complexity increases to manage multiple merchants and payment methods
Solution Approach 1:
The patent creates a universal loyalty card that functions across multiple merchants and payment methods within the network. The single card provides universal access to loyalty programs regardless of which merchant is being visited or what payment method is used. This resolves the contradiction by providing customer flexibility (improving adaptability) while the network operator manages the underlying complexity of making the system work across diverse participants.
Solution Approach 2:
The system segments functionality between the universal card interface (customer-facing) and the network operator's management system (back-office). Customers interact with a simple unified card, while the complex management of multiple merchants and payment methods is segmented into the network operator's infrastructure. This segmentation allows the card to be simple for customers while the backend handles the necessary complexity.
3Quantity of substance
If data aggregation is done on a retailer-by-retailer basis, then each retailer maintains control of its data, but it becomes cumbersome to aggregate participating locations and create a large pool of users for reliable database analysis
Solution Approach 1:
The network operator performs preliminary data aggregation and standardization work before analysis is needed. By continuously collecting and organizing data from all network participants in a unified format, the system eliminates the need for time-consuming assembly when analysis is required. This resolves the contradiction by investing time upfront in data aggregation infrastructure, enabling rapid access to large customer databases when needed.
Solution Approach 2:
The system implements continuous data collection and aggregation across all network participants rather than periodic or on-demand assembly. Data flows continuously into the network operator's centralized database, maintaining an up-to-date pool of customer information. This continuous action resolves the contradiction by keeping the database large and current (improving quantity) while eliminating repeated assembly efforts (reducing time loss).
Data Source
AI summary
Machines, computer program products, and computer-implemented methods to manage and control a loyalty rewards network and to provide customer loyalty rewards to a customer for purchasing goods or services. Computer program product can determine if a customer is one of the plurality of member customers enrolled in the loyalty rewards network. If the customer is not a member, the computer program product can enroll the customer in the loyalty rewards network. As a purchase are made by member customers thereafter, the member customer swipes or otherwise enters a loyalty reward card number and the computer accumulates and stores loyalty rewards network data representative of the member customer's purchasing behavior. Upon accumulating sufficient loyalty rewards pursuant to collection parameters, the member customers can select one or more of the available loyalty reward actions and the computer program product can implement the selected one or more loyalty rewards action.