Value Management System for Loyalty Point Exchange
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Solution Overview
Problem
Current loyalty programs offer limited ways for customers to redeem and use their loyalty points, restricting their value and utility.
Innovation Solution
A value management system that acts as an intermediary between loyalty members and loyalty systems, enabling users to store login information, determine loyalty values, perform transactions, and exchange points for other forms of value while charging fees, facilitating broader redemption options through a network of connected computers and software.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a traditional loyalty system is used, then points can be stored and tracked, but the number of ways to redeem and use points is limited
Solution Approach 1:
The patent introduces an exchange computer as an intermediary between the loyalty system and members. This exchange computer provides multiple redemption pathways (cashback, gift cards, donations, product purchases) that the original loyalty system did not offer, thereby increasing versatility without requiring the loyalty system itself to become more complex.
Solution Approach 2:
The exchange computer serves multiple functions: it acts as a redemption platform, a transaction processor, a fee collection mechanism, and a value conversion hub. By consolidating these diverse functions into a single intermediary system, the patent enables versatile point redemption while maintaining a relatively simple core loyalty system structure.
2Adaptability or versatility
If an exchange computer is introduced to enable multiple redemption options, then versatility of point usage increases, but system complexity increases
Solution Approach 1:
The exchange computer serves as a dedicated intermediary layer between the loyalty system and various redemption channels. This architecture allows the core loyalty system to remain simple while the exchange computer handles the complexity of multiple redemption options, fee calculations, and transactions with different merchants and platforms.
Solution Approach 2:
The system is segmented into distinct functional components: the loyalty system for point accumulation and the exchange computer for point redemption. This segmentation isolates complexity to the exchange computer, allowing the core loyalty system to remain simple and manageable while still providing versatile redemption options through the exchange layer.
Data Source
AI summary
A value management system which facilitates substantially real-time exchange of loyalty value during transactions. The value management system includes an exchange computer for acting as an intermediary between a loyalty member computer and a loyalty system on behalf of a loyalty member. The exchange computer is for storing login information of the loyalty member, for accessing a loyalty account of the loyalty member within the loyalty system using the login information, for determining a loyalty value associated with the loyalty account, for performing a transaction with the loyalty member involving a change in the loyalty value in exchange for other value, and for charging a fee from the loyalty member in return for the transaction.