Universal Redemption Vehicle for Loyalty Points
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Solution Overview
Problem
Current loyalty programs restrict redemption of rewards to specific industry verticals, limiting users' flexibility in using accumulated points across different merchants within the same industry vertical.
Innovation Solution
A reward point system that includes an industry vertical reception unit for receiving monetary value, a point collection unit for accumulating points, a redemption vehicle profile creation unit, and a redemption vehicle generation unit, allowing points to be redeemed at any merchant within the selected industry vertical, with options to add points if the balance is insufficient.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If loyalty programs restrict redemption to specific industry verticals, then program structure and control are maintained, but user flexibility and redemption versatility are limited
Solution Approach 1:
The patent creates a universal redemption vehicle that can function across multiple industry verticals (lodging, retail, airlines, car rentals, entertainment, sporting events, cruises, and travel packages). Instead of creating separate loyalty programs for each industry vertical, the system uses a single redemption vehicle that can be loaded with points from any merchant within the selected industry vertical, making the system multi-functional and versatile while maintaining a unified program structure
2Adaptability or versatility
If points are restricted to specific merchants within an industry vertical, then merchant partnerships are simplified, but user choice and redemption options are reduced
Solution Approach 1:
The patent segments the redemption capability by industry vertical rather than by individual merchant. Users select an industry vertical (e.g., lodging, retail, airlines), and within that vertical, they can redeem at any merchant. This segmentation approach maintains simplicity in program implementation while dramatically expanding merchant selection flexibility within each vertical category
3Ease of operation
If minimum point balances are required for redemption, then program integrity and merchant value protection are maintained, but user accessibility and ease of redemption are reduced
Solution Approach 1:
The system performs preliminary validation by determining if a user's point balance meets the minimum balance required before allowing redemption. If the balance is insufficient, the system proactively offers the user the option to add points to meet the minimum requirement. This preliminary action maintains program integrity by ensuring minimum balances are met while improving ease of operation by guiding users through the process before redemption occurs
Data Source
AI summary
A reward point system comprising an industry vertical reception unit for receiving a user selected monetary value in a selected industry vertical, a point collection unit for receiving a quantity of points associated with the monetary value in the selected industry vertical, a redemption vehicle profile creation unit for generating a profile, and a redemption vehicle generation unit for loading the profile onto a redemption vehicle wherein the points on the redemption vehicle can be redeemed at any merchant in the selected industry vertical. Also provided are methods for utilizing said system.