Loyalty Program System with Cross-Retailer Competition

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Solution Overview

Problem

Customer loyalty programs face challenges in maintaining and increasing member participation, as customers often forget to identify themselves as program members, and organizations lack effective ways to engage participants beyond basic rewards.

Innovation Solution

Implementing a system that allows customers to opt into loyalty programs across multiple retailers, providing insights into their own and other participants' participation, and enabling the creation of competitions or groups within the program to foster engagement and motivation.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Loss of information

If customers are required to remember to identify themselves as loyalty program members during transactions, then the organization can gather customer buying habit information, but customers may forget to participate and lose out on benefits

Engineering Contradiction:

Improvecustomer buying habit informationVSAvoidcustomer participation convenience

Core Design Contradiction:

Loss of informationVSEase of operation

Solution Approach 1:

The system automatically identifies customers through their shopping patterns and transaction data without requiring manual identification. The loyalty program system self-updates customer profiles based on observed purchasing behavior, eliminating the need for customers to actively remember or declare their membership status.

Inventive Principle:

Principle #25Self-service

2Loss of energy

If organizations provide limited communication about the loyalty program to customers, then communication costs are reduced, but the loyalty program does not stay at the front of the customer's mind

Engineering Contradiction:

Improvecommunication resourcesVSAvoidprogram recall by customers

Core Design Contradiction:

Loss of energyVSReliability

Solution Approach 1:

The system continuously provides feedback to customers about their loyalty status, points accumulation, and competitive standing relative to others. This automatic feedback loop keeps the program top-of-mind for customers without requiring extensive external communication campaigns, as the system itself constantly reminds participants of their progress and status.

Inventive Principle:

Principle #23Feedback

3Quantity of substance

If basic rewards are provided for loyalty program participation, then customers receive incentives, but engagement and motivation remain insufficient

Engineering Contradiction:

Improvereward valueVSAvoidmember engagement level

Core Design Contradiction:

Quantity of substanceVSReliability

Solution Approach 1:

The system transforms the reward structure from static basic rewards to dynamic competitive rewards that change based on customer performance parameters. Rewards are adjusted according to customers' ranking positions, purchase frequency, and competitive achievements, creating a more engaging and motivating reward system that adapts to individual customer behaviors.

Inventive Principle:

Principle #35Parameter changes

Solution Approach 2:

The system introduces temporary, time-limited competitive challenges and milestones that create urgency and excitement. These short-term competitive objectives complement the ongoing basic rewards, providing frequent engagement opportunities that maintain high member participation levels without requiring continuous increases in reward value.

Inventive Principle:

Principle #27Cheap short-living objects (Disposable)

4Device complexity

If a loyalty program is implemented within one retailer, then program management is simplified, but participation across multiple retailers is limited

Engineering Contradiction:

Improveprogram management structureVSAvoidmulti-retailer participation

Core Design Contradiction:

Device complexityVSAdaptability or versatility

Solution Approach 1:

The loyalty program system is designed with universal functionality that allows it to operate across multiple retailers while maintaining a unified program structure. The system can aggregate data from various retailers, enable cross-retailer rewards, and facilitate competitive comparisons across different retail environments, all while managing the program through a centralized platform that handles the complexity behind the scenes.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentUS10740768B2Customer loyalty program with shared data and sub-programs

Publication Date: 2020.08.11 FIRST DATA CORP

AI summary

Embodiments of the present disclosure provide systems and methods for increasing participation in loyalty programs. In embodiments, the customer opts into a loyalty program. The customer is then provided with information about his or her loyalty participation and also is provided with information about one or more other customer's participation in the loyalty program. In another embodiment, one or more loyalty members can form their own competition or group within the loyalty program. The members can create loyalty sub-program rules for a competition and allow fellow loyalty members to participate in the competition. The customizable loyalty sub-program competitions further enhance member participation.