Multi-Connection POS Terminal for Real-Time Reward Tracking
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Solution Overview
Problem
Existing reward programs fail to effectively encourage repeat purchases from consumers, as they do not leverage the existing payment infrastructure to transform it into a reward acquisition infrastructure that incentivizes continued patronage of merchants.
Innovation Solution
A hybrid reward system integrated with a multi-channel point of sale terminal that receives and analyzes reward program information and transaction data to award points in real-time, tracking purchase frequency and modifying databases accordingly, while authorizing transactions and providing notifications to users.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a traditional punch card or point loyalty program is used, then customers can be rewarded for repeat purchases, but the system does not effectively encourage continued patronage and fails to leverage existing payment infrastructure
Solution Approach 1:
The patent merges the reward program functionality with the existing payment processing infrastructure by integrating a reward engine into the point-of-sale terminal. The system combines transaction authorization, reward point calculation, and database updating into a unified process that occurs during normal payment transactions, eliminating the need for separate punch card systems or manual tracking mechanisms.
Solution Approach 2:
The point-of-sale terminal is enhanced to perform multiple functions: it processes traditional payment transactions while simultaneously executing reward program logic, tracking purchase frequency, calculating reward points, and updating both transaction and reward databases. This multi-functional approach allows the existing payment infrastructure to serve dual purposes without requiring entirely separate systems.
2Productivity
If deal site reward programs are used to gain consumer exposure, then merchants can attract new customers, but the programs do not necessarily encourage repeat purchases
Solution Approach 1:
The system implements real-time feedback mechanisms where customers immediately receive reward points updates during their transactions. The purchase tracking engine monitors transaction frequency and provides ongoing feedback through notifications when customers approach reward thresholds, creating a continuous reinforcement loop that encourages repeat visits and purchases rather than one-time deals.
Solution Approach 2:
The reward program is pre-configured with purchase frequency thresholds and reward point structures that automatically trigger as customers make repeated purchases. The system proactively identifies when customers are approaching reward milestones and can send notifications in advance, preparing customers for upcoming rewards before they complete the final qualifying purchase.
3Ease of operation
If reward points are calculated and databases are updated in real-time during transactions, then customer engagement is enhanced, but processing time and system complexity increase
Solution Approach 1:
The reward engine operates continuously during the transaction process without interrupting the payment flow. As transaction data is processed and authorized, the reward engine simultaneously calculates reward points and updates databases in an uninterrupted sequence, ensuring that reward calculations are performed as a natural continuation of the payment process rather than as a separate post-transaction step.
Solution Approach 2:
Reward calculation rules, purchase frequency thresholds, and point values are pre-configured in the reward engine before transactions occur. This allows the system to quickly retrieve and apply predefined rules during transactions without requiring complex real-time decision-making, significantly reducing processing time while maintaining accurate reward calculations.
Data Source
AI summary
The system is configured to monitor and operate a hybrid reward system with a multi-channel point of sale terminal. The system may perform operations including receiving, by a computer based system and via a first connection from a point of sale terminal, reward program information and transaction information in response to a reward program instrument being presented at the point of sale terminal. A transaction authorization request associated with the reward program information may be provided by the point of sale terminal, via a second connection from the point of sale terminal, to a transaction authorization system to authorize a transaction. The transaction may be initiated by a transaction instrument. The reward program instrument is at least one of a transaction instrument and a reward program indicia.