Randomized Loyalty Reward Exchange System

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Solution Overview

Problem

Current user point reward systems face limitations in distributing rewards effectively, as the cost of enticing users with larger rewards is directly proportional to the number of points awarded, leading to significant expenses for entities offering these rewards.

Innovation Solution

A system utilizing a random number generator for a randomized reward distribution exchange, where loyalty points are converted into standardized points and users can enter a sweepstakes by generating or selecting a user ticket number, with prizes awarded based on matching numbers, allowing for increased reward distribution and user interaction without excessive cost.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If linear exchange reward systems are used where greater points awarded mean greater rewards, then user motivation and engagement improve, but entity cost increases significantly

Engineering Contradiction:

Improveuser motivationVSAvoidentity cost

Core Design Contradiction:

Ease of operationVSLoss of energy

Solution Approach 1:

The patent inverts the traditional linear reward model by implementing a lottery-based system where users purchase tickets with loyalty points and win rewards randomly. Instead of guaranteeing proportional rewards for points spent, the system offers a chance to win larger rewards while maintaining controlled entity costs through the lottery mechanism.

Inventive Principle:

Principle #13The other way round (Inversion)

Solution Approach 2:

The system changes the reward distribution parameter from a deterministic linear relationship to a probabilistic distribution model. By using random number generation and lottery mechanics, the entity can control expected costs while offering users the possibility of winning larger rewards, thus maintaining motivation without proportional cost increase.

Inventive Principle:

Principle #35Parameter changes

2Ease of operation

If standardized points system is implemented to unify multiple loyalty programs, then system complexity for users decreases, but implementation complexity for the system increases

Engineering Contradiction:

Improveuser experienceVSAvoidsystem implementation

Core Design Contradiction:

Ease of operationVSDevice complexity

Solution Approach 1:

The patent introduces a standardized points system as an intermediary layer between multiple external loyalty programs and the unified lottery platform. This intermediary standardized system simplifies user interactions by providing a common currency, while the backend handles the complexity of converting between different external loyalty programs and the standardized points.

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS10861036B2Systems and methods for randomized reward distribution exchange for loyalty points

Publication Date: 2020.12.08 RAYUDU RANGA

AI summary

Systems and methods for randomized reward distribution exchange for loyalty points are disclosed. Exemplary implementations may: register, by a computer device, loyalty points associated with a user; obtain a user ticket number; use a random number generator, generate a winning ticket number; award a prize to a user when it is determined that at least one number from the first set matches at least one number from the second set; and notify the user to go through a prize redemption process to obtain the prize.