AU2001100484A4 - Incentive scheme - Google Patents

Description

'ent By: WALLINGTON-DUMMER; 61 2 9 6 3 8 4

A

7 9 3 61 296384793 29-Dec-00 9:20PM; Page 3 0 P/00/009 Regulation 3.2

AUSTRALIA

Patents Act 1990 PROVISIONAL

SPECIFICATION

Invention Title: INCENTIVE

SYSTEM

The invention is described in the following statement: Our Ref: 001023 RECEIVED TIME 29, DEC. 20:04 PRINT TIME 2. uAN, 7:39 3ent By: WALLINGT0N-DUMMER; 61 2 9 6 3 8 4 179 3 29-Dec-00 9:20PM; Page 4 61 2 96384793 -2- INCENTIVE

SYSTEM

The present inventiol :.tldtes to all in1centive system and, more particularly, such a system based on the u.se o.f a proprietary currency.

BACKGROUND

RZeward systems for consumers clarrently exisqt in1 various forms. Perhaps the most prevalent at this time involves the iSsue of redee-mahl e poi nt, th poi nts~ he]ng issue[d to a consumer in respect of a qualifying transaction, the number of points being issued propo]rtional to the dollar or currency vaiue of the trans-action. The idea with these systems is that the consumer may subsequently purchase goods and services in exchanqc for these points rather than by use of actual dollars or currency.

One prubltmr with this kind of incentive arrangement is that it is difficult for the consumer to judge at the time of transaction the real value or worth of the points obtained for any given transaction and, as such, it is submitted that consumers are not particularly motivated to purchase goods or services on the basis that they will also obtain incentive points for so doing. The pursuit of accumulation of such points effectively amounts to an RECEIVED TIME 29. DEC. 20:04 PRINT TIME PR~TTIE 2. JAN 7 :3 9 'ent By: WALLINGTON-DUMMER; 61 2 9 6 3 8 4 1 7 9 3 29-Dec-00 9:20PM; Page 61 2 96384793 -3after thought rather than a primary driver of any given consumer transaction.

Allied to this problem is that the redeemable points schemes usually rely on periodical statements to inform the consumer of his or her current point tally. These statements arrive monthly at best. Hence there is a real disconnection between the point of sale where reward points are "earned" and the receipt of a statement or reward point summary giving the consumer some idea of their. total point tally and, in conjunction with this, what rewards might be redeemable on the basis of the tally.

Finally, it is frequently the case that it takes months and tens of thousands of dollars of spending by the consumer before enough points are earned to afford even the most basic incentive/reward, which also adds to the "disconnection" between actual spend by a consumer at point of sale and any reward which might ultimately come the consumer's way as a consequence of that spend.

IL is an object of the present invention to address or ameliorate the abovementioned disadvantages or at least provide a useful alLernaLive.

RECEIVED TIME 29 DEC. 20:04 PRINT TIME 2, JAN. 7:39 Sent By: WALLINGTON-DUMMER; 61 2 96384 A7 93 29-Dec-00 9:20PM; Page 6 61 2 96384793 -4- BRIEF DESCRIPTION OF INVENTION Definitions In this specification the terms "normal currency", "legal tender" are used to denote cash issued by or with the approval of the central banking authority of a particular country or governmcntal region. So, for example, the Australian dollar is "leqal tender" or "normal currency" within Australia. Similarly, in the United States, the US dollar is legal tender or normal currency in that country and goods and services available for sale in that country have values attributed to them in that currency.

In this specification "proprietary currency" denotes a currency which is not issued by the central banking authority but is usable within a network of participating merchants in the same way as normal currency in that it can be exchanged for or otherwise accepted as payment for goods and services available from those merchants. In at least a preferred form of the prcscnt invention the proprietary currency is denominated in the same units as legal tender. So, for example, within Australia the unit of legal tender is the "dollar". In one form proprietary currency available for circulation amongst participating merchants within Australia is denominated also in the unit of the dollar.

RECEIVED TIME 29. DEC. 20:04 FRINT TIME 2, JAN. 7:39 ent By: WALLINGTON-DUMMER; 61 2 96384 7 93 29-Dec-00 9:20PM; Page 7 61 2 96384793 Accordingly, in one broad form of the invention there is provided a method of providing customer incentives; said method comprising placing into circulation within a network of participating business a proprietary currency having a face value which in the hands of consumers/customers is redeemable for goods and services of said participating businesses at a conversion value directly linked to that of legal tender.

Preferably said proprietary currency is denominated in the same units as legal tender.

Preferably there is a 1:1 conversion value between proprietary currency and legal tender.

Preferably said commercial use cycle comprises distribution by a first business of said proprietary currency to a consumer/customer as an incentive.

Preferably said commercial use cycle furLher comprises acceptance by a second business of said proprietary currency from said consumer/customer as an incenLive.

Preferably said proprietary currency is purchased for valuable consideration by said first business from a proprietary currency issuing authority.

Preferably said commercial use cycle includes said propr:ietary currency being returned by said second RECEIVED TIME 29. DEC, 20:04 PRINT TIME 2. JAN 7:39 kent By: WALLINGTON-DUMMER; 61 2 96 38 4 793; 29-Dec-00 9:21PM; Page 8 61 2 96384793 -6- Sbusiness to said issuing authority after acceptance by said second business of said proprietary currency from said consumer/customer.

In a further broad torm of the invention there is provided a proprietary currency adapted for use in at least one commercial use cycle; said commercial use cycle including: distribution by a first merchant of said proprietary currency to a consumer/customer as an incentive; and acceptance by a second merchant of said proprietary currency from said consumer/customer as at least part payment for goods or services available from said second merchant.

Preferably there is a 1:1 correspondence between the face value of the proprietary currency and legal tender.

Preferably said proprietary currency is denominated in the same units as legal tender- In a further broad form of the invention there is provided a method of leverage marketing wherein a redeemer organization assists an issuer organization by making commercial offers of an issuer attractive to a consumer.

RECEIVED TIME 29, DEC. 20:04 PRINT TIME 2. JAN. 7:39 ent By: WALLINGTON-DUMMER; 61 2 963841793; 29-Dec-00 9:21PM; Page 9 61 2 96384793 7- BRIEF DESCRIPTION OF DRAWINGS Embodiments of the present invention will now be described with reference to the accompanying drawings wherein: Pig. 1 is a diagram of a commercial use cycle of a proprietary currency accordinq to a first embodiment of the present invention; Fig. 2A illustrates the front face of an exemplary form of proprietary currency according to an embodiment of the present invention; Fig. 2B illustrates a reverse face of the currency of Fig. 2A; 1Fig. 3 illustrates a first example of a commercial use cycle of the system of Fig. 1.

Fig 4 is a diagram of a commercial use cycle of a proprietary currency implemented in electronic form according to a second embodiment of the present invention; and Fig 5 illustrates a first examplc of a second example of a commercial use cycle of the system of Fig. 4.

RECEIVED TIME 29, DEC, 20:04 PRINT TIME 2. JAN. 7:39 Sent By: WALLINGTON-DUMMER; 61 2 96384793; 29-Dec-00 9:21PM; Page 61 2 96384793 -8- 0 DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS With reference to Fig. 1 there is illustrated a commercial use cycle 11 of an incentive system according to a first preferred embodiment of the present invention.

In this instance the commercial use cycle 11 commences with a currency controller 12 issuing tokens in the form of a proprietary currency 13 which can, in this instance, take the form of the proprietary currency illustrated in Figs. 2A, 2B.

The proprietary currency 13 is issued by the currency controller 12 for valuable consideration to an issuer 14.

In most instances the issuer 14 will be a commercial entity which offers goods and/or services for valuable consideration to consumers or other purchasing entities.

in this instance issuer 14 offers proprietary currency 13 in at least partial settlement of transactions or a= least selected transactions, entered into by consumer 15 with issuer 14 in its normal course of business.

As part of the proprietary currency commercial use cycle 11 a further organization acts as a redeemer 16 of proprietary currency 13. Redeemer 16, in most instances, RECEIVED TIME 29 DEC. 20:04 PRINT TIME 2. JAN. 7:39 ;ent By: WALLINGTON-DUMMER; 61 2 96384*793; 29-Dec-00 9:21PM; Page 11 61 2 96384793 -9will be a commercial organization which, in the normal course of business, also offers goods and/or services for purchase for valuable consideration.

For at least selected transactions with consumer redeemer 16 will accept proprietary currency 13 as at least partial payment for at least selected ones of its goods/services in the normal course of business.

Proprietary currency 13 thus redeemed by redeemer 16 is returned to currency controller 12 thereby completing the commercial use cycle 11. In this instance the return of the (used) proprietary currency 13 is performed for no valuable consideration.

With reference to Fig. 3 a first example of actual use of the proprietary currency commercial use cycle 11 of Fig. 1 will now be described.

In this example the currency control1er 12 operates under the trade name "Power Mark" and issues currency to three issuers 14, namely "Easy Banking", "Telstra" and "Medicare".

-n turn the issuers 14 issue the currency to their customers 15 typically in proportion to bills paid by the customers 15 to the issuers 14 and, in this example, on a clear dollar for dollar basis. So, for example, if a RECEIVED TIME 29 DEC. 20:04 PRINT TIME 2, JAN. 7:39 3ent By: WALLINGTON-DUMMER; 61 2 96384793; 29-Dec-00 9:21PM; Pag 61 2 96384793 customer 15 owes Telstra as issuer 14 the sum of $100, Telstra can make it known thaL it will issue 10% of the paid bill in proprietary currency which is to say, in this examIple, $10 of proprietary currency will be issued for the payment of a $100 bill by customer 15 to issuer 14 (Telstra).

In practise it will be up to the issuer 14 to determine the amount of proprietary currency it will issue in respect of any particular transaction with its customers 15. So, in an alternative form, Telstra may elect to rebate the full amount of the $100 bill and so, in return for the customer paying the $100 bill, Telstra issues $100 of proprietary currency.

As yet a further non-limiting example an issuer 14 may elect to rebate more than 100% of a bill and so, for example, could elect to rebate to a customer $150 of proprietary currency for payment of a $100 bill due to the issuer 14 from the customer The customers/consumers 15 now armed with proprietary currency 13 can pay for goods/services available from participating businesses (redeemers) 16, at least in part with the proprietary currency 13. In Lhis examLple a redeeming organization might be a clothes store which advertises that it will accept 10% of the marked price of e 12 RECEIVED TIME 29. DEC. 20:04 PRINT TIME 2. JAN, 7:38 Sent By: WA LLINGTON-DUMMER; 61 2 96384A793; 29-Dec-00 9:22PM; Pag 61 2 96384793 -11an item of clothing by payment in proprietary currency 13.

So, for example, a $100 item can be paid for by $90 of normal currency and $10 of proprietary currency 13. It will be noted in this example that, once again, in the consumer's eyes, the face value of $1 of proprietary currency is honored by reduction in price of a purchased item by $1 in real currency thereby maintaining the dollar for dollar equivalence of value in the customer's eyes.

In the detailed examples given thus far and with reterence, for example, to the embodiments illustrated in Fig. 2A, 2B a clear 1:1 equivalence has been maintained in the eyes of the consumer between units in which legal tender is denominated and units in which the proprietary currency is denominated, in this instance by use in descriptive fields of the proprietary currency of identical denomination units as used for legal tender, in this case "dollars". The adoption of this approach ensures that the consumer, on receipt of the proprietary currency, is able to make a direcL ad clear association between the purchasing power of the proprietary currency in the consumer's hands as compared with legal tender. In the examples given thus far there is a direct 1:1 equivalence borne out in this instance by the use of a common unit descriptor.

e 13 RECEIVED TIME 29. DEC. 20:04 PRINVT TIME 2- JAN. 7:38 3ent By WALLINGTON-DUMMER; 61 2 96384793; 29-Dec-00 9:22PM; Pag 61 2 96384793 12- 0 When a redeemer receives and honors a proprietary currency note it endorses the note with the identity of the redeemer in redeemer box 18 (refer Fig. 2B) and inserts the details of the customer in the customer details box 19 (refer Fig. 2n) Typically the issuer 14 (Telstra in this example) will have inserted its identity in the4 issued by box 17 (refer Fig. 2B).

The redeeming organization then returns the used proprietary currency 13 to the currency controller 12 thereby removing the used currency from circulation and permitting the currency controller 12 to enter the history and transaction details of the used currency in a database for analysis purposes.

With reference to Fig. 4, according to a second embodiment of the present invention, and wherein like components are numbered as for the first embodiment but prefixed with the numeral 1 so, for example, the incentive system 10 of the first embodiment becomes incentive system 110 of the second embodiment.

in this second embodiment the proprietary currency 13 of the first embodiment is replaced by an electronic version maintained and accounted for by way of smart card Smart card 20 incorporates within it memory 21 and information and transmission means 22 whereby proprietary e 14 RECEIVED TIME 29, DEC. 20:04 PRINT TIME 2. JAN. 7:38 pent By: WALLINGTON-DUMMER; 61 2 96384A793; 29-Dec-00 9:22PM; Pag 61 2 96384793 -13currency values can be communicated to memory 21 by information reception and transmission means 22 and can be communicated from card 20 to an appropriate reading device also by information reception and transmission means 22.

In this second embodiment, incorporating use of smart card 20, the controller 112 for the system 110 takes a less direct role than for the first embodiment.

En this embodiment controller 112 is responsible for the creation and initial issue of smart cards 20 to issuers 114. The issuers 114 can be authorized to charge the cards 20 by communication of a stored value of proprietary currency 1.13 into memory 21. Tn the alternative controller 112 can issue new smart cards 20 to issuers 1.14 with pre-charged amounts of proprietary currency 113 already stored in memory 21.

As before issuer 114 can issue the smart card complete with a currency credit stored on it to a consumer 115 as a reward or encouragement for the payment of goods/services received from issuer 114 by consumer 115.

Typically the reward will be a proportion of the amount paid and so, for example, may amount to 10% of the bill paid, which is to say $10 of proprietary currency for every $100 of real currency bill paid. Again, in the eyes of the consumer, there is a clear dollar for dollar e RECEIVED TIME 29, DEC. 20:04 PRINT TIME 2. JAN. 7 3 ient By: WALLINGTON-DUMMER; 61 2 96384 17 93 29-Dec-00 9:22PM; Pag 61 2 96384793 -14equivalence between real dollars and the proprietary currency dollars stored on the smart card Consumer 115 can then spend the proprietary currency 113 at redeeming organizations 116, typically up to an agreed percentage of the marked real currency value of an item. Again, in the consumer's eyes, there is a clear dollar for dollar equivalence. So, for example, a $100 item can be paid for in up to 10% of proprietary currency dollars so a customer 115 can pay for the $100 dollar item with $90 of real currency and a debit of $10 of proprietary currency from smart card 20 by an appropriate reading device adapted to communicate via information reception and transmission means 22 with memory 21 of smart card Zn this example the flexibility of a stored value electronic card such as smart card 20 allows for recirculation of what would otherwise be considered "used" proprietary currency provided appropriate communication of the electronic transactions is made by the issuers 114 and redeemers 116 to controller 112.

The flexibility of this arrangement is such that, as illustrated in Fig. 5, a smart card 20 issued by currency controller 112 and charged with an initial predetermined amount of proprietary currency 113 will be released to e 16 RECEIVED TIME 29, DEC. 20:04 PRINT TIME 2A AN. 7:38 Sent By: WALLINGTON-DUMMER; 61 2 96384A793; 29-Dec-00 9:22PM; Page 17 61 2 96384793 S issuers 114 who, in turn, provide the smart cards complete with agreed pre-chargcd amounts as rewards for payments to customers 115.

Customers 115 can Lhenr at least part pay for items or services available from redeeming organizations 1.16 by electronic debit from smart cards 20. In this instance the redeeming organizations 116 may also adopts the role of issuers 114 by, as a separate transaction, agreeing to re-charge smart cards 20 in return for payment for other goods/services available from the redeemer 116.

Similarly the issuers 114 may also act in the capacity of redeemers 116 when, as separate transactions, they deduct proprietary currency 113 from smart cards in return for receipt of goods/services by the consumers 115.

Further the role of consumer can be taken on by the issuers 114 and redeemers 116 again, as separate transactions.

In this example, as illustrated in Fig. 5, an audit trail 23, 24, 25, 2G, 27 is maintained electronically as each transaction comprising either a credit or a debit on the smart cards 20 takes place and reporting electronically back to currency controller 112.

RECEIVED TIME 29 DEC. 20:04 PRINT TIME 2. JAN. 7:38 'ent By: WALLINGTON-DUMMER; 61 2 96384A?93; 29-Dec-00 9:23PM; Pag 61 296384793 LEVERAGE MARKETING SYSTEM The arrangement described thus far in respect of both the first and second embodiments can be viewed as a leverage marketing system wherein participating businesses broadly divide themselves up as redeemer organizations and issuer organizations and wherein the fact that the redeem-er organizations are prepared to redeem the proprietary currency in exchange for goods and services renders the proprietary currency of value in thc cycs of consumers thereby making the customer receptive to receipt of the proprietary currency from an issucr which, in turn, assislts the issuer organisation's marketing efforts of the proprietary currency specifically and the marketing efforts of the issuer organization generally.

Ultimately this system promotes the marketing efforts of bot h t he i ssuer organizations and redeemer organiLzations.

-he system can be further enhanced by providing information generally and statistics specifically on usage of the proprietary currency by use of a database which receives, logs and collates such usage information either at poiLnt of sale or via other tracking mechanisms.

The above describes only some embodiments of the present invention and modifications, obvious to those e 1 RECEIVED TIME 29. DEC. 20:04 ITTME 2JA. 13 PRINT TIME 2-JAN. 7:38 sent By: WALLINGTON-DUMMER; 61 2 96384A793; 61 2 96384793 29-Dec-00 9:23PM; Page 19 -17- 0 skilled in the art, can be made thereto without departing from the scope and spirit of the present invention.

RECEIVED TIME 29. DEC. 20:04 PITTM .JM 13 PRINT TIME 2-JAN. 7:38

Claims (8)

1. 2. The method of Claim 1 wherein said proprietary currency is denominated in the same units as legal tender.
2. 3. The method of Claim 1 wherein there is a 1:1 conversion value between proprietary currency and lcgal tender.
3. 4. The method of Claim 1 wherein said commercial use cycle comprises distribution by a first business of said proprietary currency to a consumer/customer as an incentive. The method of Claim 1 or Claim 2 wherein said commercial use cycle further comprises acceptance by a second business of said proprietary currency from said consumer/customer as an incentive. RECEIVED TIME 29. DEC. 20:04 PRINT TIME 2- JAN. 7:38 3ent By WALLINGTON-DUMMER; 61 2 96384793; 29-Dec-00 9:23PM; Page 2 61 2 96384793 19
4. 6. The method of any of Claims 1 to 3 wherein said proprietary currency is purchased for valuable consideration by said first business from a proprietary currency issuing authority.
5. 7. The method of any one of Claims 1 to 4 wherein said commercial use cycle includes said proprietary currency being returned by said second business to said issuing authority after acceptance by said sccond business of said proprietary currency from said consumer/customer.
6. 8. Proprietary currency adapted for use in at least one commercial use cycle; said commercial use cycle including: distribution by a first merchant of said proprietary currency to a consumer/customer as an incentive; and acccptance by a second merchant of said proprietary currency from said consumer/customer as at least part payment for goods or services available from said second merchant.
7. 9. The proprietary currency of Claim 8 wherein there is a 1:1 correspondence between the face value of the proprietary currency and legal tender. RECEIVED TIME 29.DEC. 20:04 PRINT TIME 2. JAN. 7:38 !1 'ent By: WALLINGTON-DUMMER; 61 2963841793; 29-Dec-00 9:23PM; Page The proprietary currency of Claim a or Claim 9 wherein said proprietary currency is denominated in the same units as legal tender.
8. 11. A method of leverage marketing wherein a redeemer organization assists an issuer organization by making commercial offers of an issuer attractive to a consumer. Dated 29 December 2000 Joseph Raad By His Patent Attorneys Wallington-Dummer ~2/27 RECEIVED TIME 29. DEC. 20:04 ITTIE 2JA. :3 PRINT TIME 2-JAN. 7:37