Loyalty Reward Environment System for Consumer Engagement
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Solution Overview
Problem
Existing loyalty reward programs struggle to effectively engage consumers and increase loyalty through incentives, as they often rely on manual efforts and lack interactive and gamified experiences that leverage consumer behavior and location-based interactions.
Innovation Solution
A loyalty reward environment system that utilizes a loyalty engine to integrate incentives from multiple merchants, allowing consumers to interact and navigate through a network-based application to earn rewards, incorporating gamification and social media integration, with incentives that can be saved, combined, and converted for more valuable redemptions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If traditional manual loyalty reward programs are used, then implementation is simple, but consumer engagement and loyalty effectiveness are insufficient
Solution Approach 1:
The patent replaces manual loyalty program operations with an automated system that uses mobile devices, GPS location tracking, and electronic communication to deliver rewards. The system automatically monitors consumer locations, identifies when consumers are near participating merchants, and sends push notifications with reward information, eliminating the need for manual program management while significantly enhancing consumer engagement through real-time, location-based interactions.
2Productivity
If location-based gamified interactions are implemented, then consumer engagement increases, but system complexity increases
Solution Approach 1:
The patent employs a mobile device that serves multiple functions: it acts as a loyalty account storage device, a location tracker using GPS, a communication device for receiving push notifications, and a display device for showing reward information. By consolidating these functions into a single universal device that consumers already possess, the system achieves sophisticated location-based gamified interactions without requiring consumers to carry or interact with multiple separate systems.
Solution Approach 2:
The system automatically performs location tracking, reward eligibility determination, and push notification delivery without requiring manual intervention from consumers or program administrators. The mobile device continuously provides location data, and the system automatically processes this information to determine when and what rewards to offer, creating a self-service mechanism that enhances engagement while minimizing operational complexity.
3Productivity
If real-time push notifications are sent to consumers, then reward redemption rates increase, but communication resource usage increases
Solution Approach 1:
The system pre-loads reward information into the consumer's mobile device through prior communications or by making reward catalogs available in advance. When a consumer enters a geofenced area near a participating merchant, the system sends a targeted push notification that references already-known reward options. This approach maintains high redemption rates by providing timely reminders while reducing communication resource usage by avoiding the need to transmit complete reward catalogs repeatedly.
Data Source
AI summary
Systems and methods are provided for offering loyalty rewards for transactions. One exemplary method includes associating, by a computing device, a merchant with a group of reward offerors, and associating, by the computing device, a consumer payment account with a group of reward offerees. The method also includes receiving, by the computing device, and advertising to the reward offerees, a reward offer from the merchant; receiving a transaction associated with the merchant and with the consumer payment account, and identifying, in a data structure, the merchant as a member of the group of reward offerors and the consumer payment account as associated with the group of reward offerees. The method then further includes, based on the advertised reward offer and on the identified merchant, updating, by the computing device, a loyalty reward account associated with the consumer payment account.