AU2004101071A4 - Membership Loyalty Business System - Google Patents

Description

20/12/2004 22:56 +61-2-95522894 WALSH AND ASSOCIATES PAGE 05/20

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o MEMBERSHIP LOYALTY BUSINESS SYSTEM C) BACKGROUND SThe present invention relates to consumer loyalty systems and more particularly relates to a loyalty system in which a predetermined number of goods and service providers confer loyalty rewards on a potentially unlimited number of subscribers to a common interest consumer group.

More particularly the present invention relates to a method for rewarding o consumer loyalty in a system in which a predetermined number of goods and service providers confer loyalty rewards on a potentially unlimited 0 number of subscribers to a common interest consumer group.

Although the invention will be described with reference to its application as a student consumer loyalty scheme it will be appreciated that there are other applications for he scheme to be described below.

PRIOR ART Product marketing rewards, rebates and the like are well-known to consumers and are established marketing techniques and methods to entice a consumer to buy a product. Traditionally, manufacturers have individually offered rebates of a predetermined cash value to consumers who buy a particular product and mail in a rebate claim that meets certain criteria.

Typically, this criteria includes filling out a specific rebate form with the name and address of the consumer, enclosing a cash register receipt showing where and when the item was purchased, and sometimes enclosing the Universal Product Code (UPC) or other designated portion of the product packaging to show that the product was actually consumed. After 6-12 weeks, the consumer then receives a cheque in the mail from the manufacturer or from a "fulfillment house" contracted by the manufacturer to administer the rebate program.

1 COMS ID No: SBMI-0104113 RceivCed by IPAuslra' TT;nc 23:25 DatC (Y M-d) 2004-12 20/12/20884 22:56 +61-2-95522894 WALSH AND ASSOCIATES PAGE 06/20

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o The process of redeeming a rebate is one that can be time consuming for the o consumer, requiring the consumer to keep track of register receipts and UPCs for each product, fill out forms, mail each form to a different manufacturer and cash each cheque that returns from the manufacturer.

C 5 Because of the aggravation and work required to take advantage of rebates, many consumers choose not to participate in such rebate offers at all. The purchasing decisions of such reluctant consumers are therefore not 0 influenced by rebates causing losses to product marketers.

0 Also known in the prior art is a regime whereby retailers have offered to Sconsumers the opprtunity to bundle all their rebate claims in a single, easy- CA to-use form that can be sent to the retailer to obtain rebates for all qualified items purchased at that retailer. The rules of such consolidated rebate programs typically limit the customer to only one submission within a certain time period. Each submission generally requires the consumer to send in a retailer's pre-printed form, which identifies all the rebate offers by a specific number, along with the original cash register receipt.

According to the rebate system described above, the consumer makes a purchase from the retailer at the point of sale (POS). Next, the consumer checks the appropriate boxes on the pre-printed form, writes in the consumers name and address, circles the appropriate entries on the cash register receipt, hand writes the rebate offer numbers next to those entries, and mails in the form and attached receipts to the designated address.

Thus, after data entry, the computer database now holds such data as the name and address of the consumer, the offer numbers for which the consumer qualifies, and information relating to the number and types of items purchased.

The information provided by the consumers who claim rebates can be used by the retailer, if desired. For instance, the database of consumers claiming rebates indicates the names and address of that retailers customers who buy the type of items for which rebates were requested. Thus, the retailer can optionally use the database of names and addresses compiled to target 7 COMS ID No: SBMI 01048113 RececivcJ i, 'P ALs:tlia: Tiin (lH Im) 23:58 Date _-04-12-20 20/12/2004 22:56 +61-2-95522894 WALSH AND ASSOCIATES PAGE 07/20 0 0 directed advertising to these consumers. The retailer can conduct this directed advertising itself and/or can sell the names and preferences of these C) consumers to other marketers, advertisers, and manufacturers who may wish to target those consumers.

CN The gathering, selling, and processing of marketing information about consumers is a very profitable industry that is only partially tapped by such Srebate programs.

The prior art also teaches a system for gathering information about every Spurchase that a consumer makes. For example, many retailers have adopted C' "loyalty cards". Loyalty cards are typically a credit-card-sized card that the consumer or cash register attendant swipes or scans into the POS cash register system prior to or during the checkout process. The loyalty card typically contains a magnetic or UPC marking that identifies the individual associated with that card, generally by a serial number contained on the card that matches to a specific customer record in a separate customer database.

As a condition for receiving a card from the retailer, the consumer usually must provide their name and address, as well as other demographic information (age group, household income, family size, etc.), so that a record of personal information can be stored in a database and matched to the card serial number. To entice the user to supply the loyalty card at the POS each time the consumer purchases goods at the retailer, the retailer usually offers special discounts or offers only to card users. Through the use of a loyalty card, therefore, retailers can keep a frequently updated data record of every purchase made by a particular consumer over time.

By analysing the data collected through the loyalty card system, not only can the retailer identify individual consumers to be targeted for special offers, but the retailer can also analyse general demographic trends among large groups of purchasers to provide feedback on how pricing or other incentives affect consumer purchasing decisions. A drawback of loyalty cards is that not every consumer is willing to participate, nor do the consumers always remember their card. In fact, many consumers know that even if they have 3 COMS ID Nro: SBMI-OD43113 Rccivcd b, P Ahsi;sa!r T'me 23: Dat (Y ~J 200"2-12 20/12/2004 22:56 +61-2-95522894 WALSH AND ASSOCIATES PAGE 08/20 0 0 forgotten their card, they may request a temporary card at the service desk O for the purposes of receiving the special offers that day, thus bypassing the Sretailefs system of tying purchases to individual consumers.

C 5 Certain retailers have begun to tie rebate offers to their loyalty cards such that every qualified purchase ("qualified" meaning that the purchase has a rebate associated with it) by a consumer using the loyalty card is tracked 0 automatically by the retailer.

10 The loyalty card-certificate system provides several advantages over the Sconsolidated rebate system in the form of less paperwork for the consumer CI and for the retailer who coordinates the program, one of the drawbacks is that such a system relies on a loyalty card. Although consumers have come to expect that they need to carry a loyalty card to, for example, their grocery store, if every type of retailer were to require a loyalty card, the consumers wallet or pocketbook would soon be bulging with loyalty cards for every retailer they patronize-drug store, office supply store, toy store, computer store, department store, shoppers club, and so forth.

There is already in existence, a method for redeeming product marketing rebates in a fast, cost-effective, consumer-friendly manner, and for allowing retailers to gather more information about their customer's purchasing habits, without requiring a separate loyalty card to be entered as part of the transaction.

United States Patent 6,748,365 discloses a system and method for processing product marketing rebate claims submitted by a consumer in satisfaction of a rebate offer, the consumer having purchased designated products in a qualified transaction recorded by a point-of-sale data processing and storage system that issues a receipt containing a corresponding transaction serial number. The method comprises providing a designated site of a computer information network and accessible by the consumer, and receiving a rebate claim on the designated site.

4 COMS ID tL.: SBMI 0148113 Receivd b, 1 P Aust;a. Tmc 23:5S Date (Y-M d) 2004 12-20 20/12/2004 22:56 +61-2-95522894 WALSH AND ASSOCIATES PAGE 09/20 0 o In another example of a known loyalty scheme, United States Patent ci o 6,813,609 discloses a fuel dispensing system for enhancing cash transactions, which includes a fuel dispenser associated with a control o system and a receiver adapted to receive signals, including identification C 5 indicia from a remote communications unit associated with a customer when a cash transaction is indicated. A cash transaction indicator is adapted to signal the control system that a cash transaction is taking place, and may be o selectable by the customer or an operator of the system at the beginning of o the transaction. The system may also include a transmitter adapted to trainsmit the customer-related information to the remote communication unit S associated with the customer, or may include memory for stori g the c'i customer-related information in association with the identification indicia The system may store credit for change based on a cash transaction, or may provide and store loyalty points on or in association with a transponder Although the prior art teaches a number of loyalty type schernes there is a need to provide a scheme which targets a specific class of consumer rather than the general public.

INVENTION

The present invention provides an alternative to the known consumer loyalty systems and mare particularly provides a loyalty system in which a predetermined nmnber of goods and service providers confer loyalty rewards on a potentially unlimited number of subscribers to a common interest consumer group.

The invention further provides a loyalty type schemes ther is a need to provide a scheme which targets a specific class of consumer rather than the general public.

The present invention also provides a method for rewarding consumer loyalty in a system in which a predetomined number of goods and services providers confer loyalty rewards on a potentially unlimited number of subscribers from a oommon interest consumer group.

COMS ID No: CSMI1042' 12 Re:civcd by P Au~twIia: TThc m) 22 5~ DJc 2004-12-22 20/12/2004 22:56 +61-2-95522894 WALSH AND ASSOCIATES PAGE 10/20 0 o It is, therefore, a primary object of the present invention to provide a loyalty O scheme tailored to a predetermined participant group of consumers.

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SIt is also an object of the present invention to provide a loyalty scheme tailored C to a group of students.

5 In one broad form the present invention comprises: 0 a student loyalty scheme for students of a potentially unlimited number of Sinstitutions; Swherein the loyalty scheme comprises; a host provider, a plurality of goods and /or services providers; a t least one student; a website accessible to said at least one student which allows advertising by said plurality of goods and /or services providers of said goods and services; means for said at least one student to make application for membership of a loyalty group of participants; wherein, said at least one student is able to obtain rewards from said host or from said plurality of goods and /or services providers for consumer loyalty.

Preferably an application for membership on the scheme is made via the Internet, advertising, mailouts or the like.

According to a preferred embodiment, the system includes the preliminary step of establishing a group of participant goods and services suppliers for participation in the loyalty scheme. The participant goods and services suppliers provide reward which are preferably discounts for loyal consumer participants.

Preferably a participant makes application for the loyalty scheme by submitting an application form for participation either direct to a host or via a third party.

6 COMS 1" NO: SMI 0D10S113 Rccivcd by IP Austra'a Tirme H:m;i) 2221 Datc )'01-2-2 20/12/2004 22:56 +61-2-95522894 WALSH AND ASSOCIATES PAGE 11/20 0 oIn another broad form of a method aspect the present invention comprises: a method of conducting a consumer loyalty scheme for students of a potentially unlimited number of institutions; 0 wherein the method comprises the steps of a) selecting a potentially unlimited number of participant goods and oservices providers; b) establishing a web site for advertisement of said goods and services of osaid potentially unJimited number of participant goods and services providers; c) inviting students from said potentially unlimited number of institutions to become a member of said loyalty scheme and providing each student with a membership card capable of use in conducting commercial transactions; d) marketing goods and services of said potentially unlimited number of participant goods and services providers to said students via either said web site or alternative advertising media; e) inviting said students to consume goods and /or services from said participant goods and services providers; d) providing rewards to said students from said participant goods and services providers in return for loyalty purchases.

The method further comprises the further step of providing rewards based on a size or frequency of a purchase by each said students from one ore more said participant goods and services providers.

The method preferably comprises the preliminary step of inviting each said students to make application for membership of a loyalty group of participants; wherein, said at least one student is able to obtain rewards by participation in the loyalty scheme.

7 COMS :D ZZMN 1D43113 Rc-civcd b, PAuta!. a Tirc 22:S0 Datc',Y M 20/12/2004 22:56 +61-2-95522894 WALSH AND ASSOCIATES PAGE 12/20 0 0 The method comprises the additional preliminary step of inviting said students to participate in membership by application via the Internet, advertising, mailouts or the like.

o The method provides the further step of providing a reward each time a member of the loyalty scheme engages in a purchase.

In another broad form the present invention comprises: 0 an interactive consumer loyalty scheme conducted between a group of student consumers and participant goods and services providers; 0 the loyalty scheme comprising; at least one group of participant goods and services providers; at least one group of student consumers; a website for advertising the goods and services of the participant goods and services providers, a host provider to allow said students to participate in the loyalty scheme a student card for membership in the scheme; means to enable a goods and services provider to determine purchasing habits of the student According to one embodiment, each loyalty participant may gain access to said host provider and to one or more web sites associated with said goods and service suppliers thereby gaining eligibility for reward Preferably the goods and services providers include retailers, wholesalers, traders, providers of professional and trade services. According to one embodiment incentives may be provided to the student participants to access a web site of said at least one provider directly or via said host web site, thereby establishing a link between said student consumer and said providers r CCS D Nec SDMI-010-1113 Pc.eijvd b, !P A.ttakia: Time 23:58 Date M 2004 1220C 20/12/2004 22:56 +61-2-95522994 WALSH AND ASSOCIATES PAGE 13/20

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0 DETABRIEF DESCRIPTION OF THE DRAWNGS The present invention will now be described in more detail according to a ac preferred but non liiting emb odiment and with reference to the accompanying illup tration g to the follow Figure shows a s chematic layout of the loyalty scheme according to one embodiment of the invention.

DETAILED DESCRIPTION The present invention will be described with reference to a loyalty system according to a preferred embodiment of the invention.

The system is set up according to the following regime described with reference to figure P The loyalty scheme may be established according to the following steps.

STEP 1 which is indicated by numeral I of figure 1 involves the establishment of a supplier group of goods and services prof those retaiiders such as but not limited to National Retailers, wholesalers and other goods and services providers such as professionals, trades and the like. A preferred but non limiting size of the participant group would be about 30. Members of this group would provide rewards such as discounts to student consumers who puithase Plus" membership card.

STEP 2 which is indicated by numeral 2 may optionally involve the construction of a website to advertise goods and services of those retailers wholesalers and general services providers in the supplier group. This web 4; COMS ID No: SSMI C30 41"3 '2 by I' Australia. Tin-m 23.53 d, ac _.04 12-2C 20/12/2004 22:56 22/1/204 2256 61-2-95522694 WALSH AND ASSOCIATES PG 42 PAGE 14/20 o site may also function to provide facilities to allow consumers to join the loyalty scheme allowing prouessing of applications and renewal of existing membershrpa.

Ci 5 STEP 3 which is indicated by numeral 3 sets out that part of the scheme in which goods and service providers market and advertise their goods, wares and services student members via website advertising, mail outs and the o like.

STEP 4 which is indicated by numeral 4 is a promotional step to provide an incentive to a third party to encourage new members in return for a third Ci party reward, According to one embodiment an Application form may be included in a Brochure Distributed on behalf of a goods and services provider who is a mrnember of the supplier group. The third party distribute would be provided with an incentive to engage in this distribution for some for of incentive payment STEP 5 which is indicated by numeral 5, allows a student wishing to become a member of the loyalty scheme to apply by means such as but not limited to the Internet, facsimile or mail.. Student may then identify who referred the student to the scheme so the referring party can be rewarded.

STEP 6 which is indicated by numeral 6 allows for the establishment of a consumer Membership database whereby each member receives a membership card which may be issued by maiL A 12 months membership would be a typical membership period.

STEP 7 which is indicated by numeral 7 is the final stage in the process and provides renewal facilities Card Expires. The participant member will be invited to renew shortly before the expiry of the existing membership.

The aforesaid steps are not necessarly limited by the order in which they are described above and in figure 1.

i n COMS 0 Nc~ 01212113 Rcccivcd ~y 15 AL.stWia, Timz (H 22 53 Oak (YM-d( 2004-12-25 20/12/2004 22:56 +61-2-95522894 WALSH AND ASSOCIATES PAGE 15/20

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(i 0 It will be recognised by persons skilled in the art that numerous variations and modifications may be made to the invention as broadly described S 5 herein without departing from the overall spirit and scope of the invention.

11 COMS !D tNc SBM!-010401 3 Rc-cived bi IP Austh;:T. 23.53 Date 200-112-20