Receipt-Based Price Comparison System for Customer Loyalty
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Solution Overview
Problem
Merchants face challenges in engaging customers and creating customer loyalty due to the inefficiency of traditional advertising methods, particularly in showcasing ongoing cost savings compared to competitors, and in providing tangible evidence of being the 'low cost leader' without requiring customers to physically compare prices across different stores.
Innovation Solution
A merchant-based system and method that allows customers to upload receipts for price comparison with competitors, providing a redeemable credit if the item was purchased at a higher price, thereby creating a convenient and psychological incentive for repeat business while neutralizing competitors' 'on sale' incentives.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If traditional advertising methods are used to showcase low prices, then customer awareness of sales is improved, but customer loyalty and engagement remain insufficient
Solution Approach 1:
The system implements feedback by automatically comparing customer receipts with competitor prices and providing actionable information about savings opportunities. This transforms one-way advertising into an interactive dialogue where customers receive personalized price comparison results and are empowered to make informed purchasing decisions, thereby building trust and loyalty.
Solution Approach 2:
The system enables self-service by allowing customers to upload their own receipts and automatically receive price comparisons without requiring merchant staff intervention. This empowers customers to independently verify price claims and discover savings opportunities, enhancing their engagement and confidence in the merchant's pricing integrity.
2Loss of information
If merchants advertise as 'low cost leader' or 'not being undersold
Solution Approach 1:
The system replaces the mechanical process of manual price comparison with an automated digital system. Customers no longer need to physically visit competitor stores or manually check price lists; instead, they simply upload their receipts and the system automatically performs the comparison, transforming a labor-intensive task into a simple digital operation.
Solution Approach 2:
The system acts as an intermediary between customers and competitor pricing information. Rather than requiring customers to directly engage with multiple merchants to verify prices, the system mediates by collecting, comparing, and presenting consolidated pricing data from multiple sources, simplifying the verification process for customers.
3Measurement precision
If customers manually compare prices across different stores, then price verification is achieved, but time and convenience are significantly reduced
Solution Approach 1:
The system performs preliminary action by proactively comparing prices and identifying savings opportunities before customers complete their shopping. By analyzing receipts after purchase, the system provides feedback on what customers could have saved, eliminating the need for customers to spend time comparing prices during their shopping trip and enabling them to make more informed future purchases.
4Reliability
If merchants provide tangible evidence of cost savings, then customer trust is improved, but system complexity increases
Solution Approach 1:
The system uses copying by creating digital replicas of paper receipts through mobile scanning or photo capture. This eliminates the need for complex physical document handling and verification systems while maintaining the integrity of the original receipt data. The digital copy can be easily stored, transmitted, and analyzed by the price comparison system without increasing overall complexity.
Data Source
AI summary
A method and system for providing a consumer comparative pricing data from at least two merchants is discussed. In one aspect of the invention a customer queries a database containing time and location specific pricing data for competitors of a first merchant. If the query shows that the customer could have purchased the same item or items for a lower price at a competitor, the first merchant awards the customer an on-line credit that is redeemable at the merchant. In another aspect, a consumer uploads an image of a competitor's receipt. The item specific data on the receipt is converted to UPC codes on an item-by-item basis. These UPC codes are then compared against the merchant's pricing database and the consumer is provided data set comparing the prices the consumer paid to the prices the consumer would have paid had the consumer shopped at the merchant.