Point Management System Linking Rewards to Stock Price
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Solution Overview
Problem
Existing point programs fail to enhance customer loyalty to specific companies, despite encouraging purchases and service usage by offering rewards.
Innovation Solution
A point management system that links user rewards with the stock price of a designated company, where points awarded are capitalized using the company's stock, allowing the balance to fluctuate with the stock price, thereby motivating users to support the company's stock performance.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a traditional point program is implemented to encourage purchases and service usage, then user willingness to purchase products or use services is improved, but customer loyalty to the specific company cannot be enhanced
Solution Approach 1:
The patent combines the point reward system with the company's stock by using stock as collateral for issuing points. This merging creates a dual-function system where points serve both as customer rewards and as a mechanism to build long-term loyalty, since users become indirect stakeholders in the company's financial performance.
Solution Approach 2:
The stock collateral serves multiple functions simultaneously: it acts as security for the point issuance, creates a link between user rewards and company performance, and establishes a long-term commitment mechanism. This multi-functionality resolves the contradiction by making the same asset serve both immediate reward purposes and long-term loyalty building.
2Device complexity
If points are awarded based on fixed rates without stock linkage, then the point program is simple to operate, but it fails to create emotional investment or loyalty to the company
Solution Approach 1:
The patent changes the fundamental parameter of point valuation from a fixed rate to a variable rate tied to stock performance. This parameter change transforms the nature of the point program from a simple transactional system to one that creates emotional investment, as users' rewards now fluctuate with company success, naturally fostering loyalty without complex structural changes.
3Reliability
If stock is used as collateral for points, then customer loyalty is improved through investment linkage, but the system complexity and financial risk management requirements increase
Solution Approach 1:
The patent introduces an intermediary mechanism where the company's stock serves as the mediating asset between the point issuance system and the user reward system. This intermediary structure allows loyalty building through financial linkage while maintaining operational simplicity, as the stock collateral automatically manages the connection without requiring complex active management of user-stock relationships.
Data Source
AI summary
A point management apparatus includes a storage device configured to store point information about points awarded to a user, the point information including a point ID for identifying the points, a point rate indicating an amount of money per unit point of the points, a stock price and the number of shares of a designated company of when purchased as capital for the points, a user ID for identifying the user, a balance of points owned by the user identified by the user ID, and stock information about a stock of the designated company, which is used to calculate the balance of the points, an arithmetic circuit configured to update the balance of the points owned by the user, which is stored in the storage device, by calculating, based on a new stock price of the designated company, the balance of the points owned by the user read out from the storage device, and the stock information read out from the storage device, the balance of the points owned by the user, and a terminal processing circuit configured to read out, in response to a request from the user, the balance of the points owned by the user from the storage device, and notify a terminal apparatus of the user of the balance via the communication network. Point management system and method are also disclosed.