AU2013276139A1 - A method of managing a rewards programme and a system therefor - Google Patents

Abstract

A method of managing a rewards programme includes defining a base reward amount and making the base reward amount available to an individual for checking during a predetermined period so that the individual is able to check the value of the base reward amount but is not yet able to access the base reward amount for use. Compliance data relating to the compliance of the individual with the programme is received and based on the compliance data, the base reward amount is adjusted by increasing or decreasing the amount and making the adjusted reward amount available to the individual for checking during the predetermined period. Finally, after the predetermined period, making the adjusted reward amount available for use to the individual.

Description

WO 2013/186727 PCT/IB2013/054833 -1 A METHOD OF MANAGING A REWARDS PROGRAMME AND A SYSTEM THEREFOR BACKGROUND OF THE INVENTION The present application relates to a method of managing a rewards programme and a system therefor. Various rewards programme have been implemented with varying success. The present invention provides an improved method of managing a rewards programme and a system therefor.

WO 2013/186727 PCT/IB2013/054833 -2 SUMMARY OF THE INVENTION According to one example embodiment, a method of managing a rewards programme, the method including: defining a base reward amount; making the base reward amount available to the individual for checking during a predetermined period so that the individual is able to check the value of the base reward amount but is not yet able to access the base reward amount for use; receiving compliance data relating to the compliance of the individual with the programme; based on the compliance data, adjusting the base reward amount by increasing or decreasing the amount and making the adjusted reward amount available to the individual for checking during the predetermined period; and after the predetermined period, making the adjusted reward amount available for use to the individual. The base reward amount may be an amount of funds in a financial transaction account wherein the amount of funds are increased or decreased depending on the individual's compliance with the programme and wherein the individual is only given access to use these funds after the predetermined period. The individual is issued with a financial transaction card that can be inserted into a financial transaction machine to view the base reward amount or adjusted reward amount during the predetermined period and to WO 2013/186727 PCT/IB2013/054833 -3 access the base reward amount or adjusted reward amount after the predetermined period. The financial transaction machine may be an automatic teller machine or a point of sale machine, for example. According to another example embodiment, a system for managing a rewards programme, the system including: a controller for: defining a base reward amount; based on the compliance of an individual with a programme, adjusting the base reward amount by increasing or decreasing the amount; and after a predetermined period, making the adjusted reward amount available for use to the individual; a communications module for: making the base reward amount andlor the adjusted reward amount available to the individual for checking during the predetermined period so that the individual is able to check the value of the reward amount but is not yet able to access the reward amount for use; and receiving compliance data relating to the compliance of the individual with the programme; and a database for storing data relating to the base reward amount, the adjusted reward amount and compliance data.

WO 2013/186727 PCT/IB2013/054833 -4 BRIEF DESCRIPTION OF THE DRAWINGS Figure 1 is a block diagram illustrating an example system to implement the methodologies described herein; Figure 2 is a block diagram illustrating an example server in more detail; and Figure 3 is a flow chart illustrating the methodology of an example embodiment. DESCRIPTION OF EMBODIMENTS The systems and methodology described herein relate to a method of managing a rewards programme and a system therefor. The programme could be any suitable behaviour improvement programme and include a reward for an individual that successfully engages with the programme. This will be described in more detail below. Referring to the accompanying Figures, an information processing system 10 may include a server 12 that includes a number of modules to implement the present invention. In one example embodiment, the modules described below may be implemented by a machine-readable medium embodying instructions which, when executed by a machine, cause the machine to perform any of the methods described above. In another example embodiment the modules may be implemented using firmware programmed specifically to execute the method described herein.

WO 2013/186727 PCT/IB2013/054833 -5 It will be appreciated that embodiments of the present invention are not limited to such architecture, and could equally well find application in a distributed, or peer-to-peer, architecture system. Thus the modules illustrated could be located on one or more servers operated by one or more institutions. It will also be appreciated that in any of these cases the modules form a physical apparatus with physical modules specifically for executing the steps of the method described herein. In the illustrated example embodiment, the server 12 includes a controller 14 (Figure 2) for defining a base reward amount. A communications module 16 makes the base reward amount available to the individual for checking during a predetermined period so that the individual is able to check the value of the base reward amount but is not yet able to access the base reward amount for use. This will be described in more detail below. Thus it will be appreciated that for the predetermined period, the individual knows what reward is due to them but are not able to access the reward yet. This assists in motivating the individual. In one preferred embodiment, the base reward amount is set and reduced for non-compliance with the programme. This is based on the psychology that an individual has more difficulty in giving up a reward that they know is due to them. The communications module 16 receives compliance data relating to the compliance of the individual with the programme. The source of the compliance data will vary depending on the programme and this will also be described in more detail below.

WO 2013/186727 PCT/IB2013/054833 -6 A calculation module 18 then, based on the compliance data, adjusts the base reward amount by increasing or decreasing the amount and making the adjusted reward amount available to the individual for checking during the predetermined period. After the predetermined period, the adjusted reward amount is made available by the controller 14 for use to the individual. The server 12 has a memory 20 associated therewith which is typically in the form of a database associated with the server 12. In one example embodiment, the programme implemented is for the driver of a motor vehicle where the driver is rewarded for not driving at a predetermined time of day. For example, the driver can be rewarded for not driving between the hours of midnight and 6 am. In this example embodiment, data is received from a telematics device 22 associated with a vehicle 24 which is the vehicle of the driver. It will be appreciated that in one example the telemetry device 22 will be installed in the motor vehicle either at the time of production or retro-fitted. The telemetry device 22 can be used to monitor a number of aspects of the use of the motor vehicle but for purposes of the present example will at least be able to monitor distance travelled by the vehicle and the time of day that the distance is travelled. The point of this will be explained below in more detail. In any event, the data from the device 22 is transmitted to the server 12 over a communication network 26 and received by the communications module 16. It will be appreciated that this could be accomplished in a number of ways. For example, the data could be transmitted via a communication network 26 as illustrated in the accompanying drawing. This communication WO 2013/186727 PCT/IB2013/054833 -7 network could be any suitable kind of communication network such as a mobile communication network, a wireless communication network, a satellite communication network or a combination of these to name but a few examples. Alternatively, the device 22 could be connected to another intermediate device which downloads the data and transmits the data via the communication network 26 to the server 12. One example of this could be connecting the device 22 to a USB port of a computer and downloading the data to the computer, which data is then transmitted to the server 12, In one example embodiment, the data is transmitted over a mobile phone network using the short message service (SMS) protocol. It will be appreciated that the data could be transmitted at any suitable time to the server. For example, the data could be transmitted in real time or near real time or could be transmitted periodically such as daily, weekly or monthly to name a few examples. Once the server 12 receives the data it will analyse the data to determine the manner in which the motor vehicle has been driven for a past predetermined period. The controller 14 will define at least a first and a second time period during a day. In one example embodiment a first time period may be day time and early night time and a second time period may be late night time to early morning. In one example embodiment the first time period is from 06:00 to 24:00 and the second time period is from 24:00 to 06:00 but it will be appreciated that these may be altered depending on the requirements of the insurer.

WO 2013/186727 PCT/IB2013/054833 -8 The communications module 16 then receives data relating to the distance driven by the individual during the second time period. This data is stored in the memory 20. In one example embodiment, the calculation module 18 deducts an amount from the base reward amount wherein the quantum of the deduction is related to the distance driven by the individual during the second time period. In one example embodiment the methodology will only be implemented for younger drivers, for example under the age of 25. Using a predetermined period of one year, for example, the individual is allocated a base reward amount of R5,500, for example. An amount of R10 per kilometer is deducted from the base reward amount per kilometer driven between midnight and 6am during the year. Variable deductions may be implemented so whereas an amount of R10 per kilometer is deducted for driving between 00:00 and 01:00 a different amount could be deducted between 01:00 and 03:00 and then another amount between 03:00 and 06:00, for example. Thus, if the individual drives 30km at 2 am one night, R300 is deducted from their base reward amount which now becomes an adjusted reward amount of R5,200. Where the driving is done by a third party driver, the reduction may not be imposed. This will require proof from the third party that they were driving. In one example, the third party may be a driver from a service that providers drivers for vehicles owners who have been drinking alcohol.

WO 2013/186727 PCT/IB2013/054833 -9 In this case, a monthly report from the third party service provider of usage of their services by the young driver will be obtained. The philosophy behind the methodology is that driving late at night is statistically much more dangerous, particularly for younger drivers. It follows that by reducing specifically identified risks of younger drivers, such as driving late at night, the insurer will be able to offer them more affordable premiums. Alternatively or in addition to the above, other driver behaviors may be taken into account as follows. On example of a driver behavior programme is implemented as follows. The communication module 16 receives compliance data containing information relating to the compliance of a driver in a plurality of programme areas related to motor vehicle driver behavior. The compliance data is stored in the database 20. An analysing module 28 analyses the compliance data to determine driver behavior. This will be described in more detail below. The calculation module 18 awards points to the driver wherein the points allocated are related to the compliance of the driver in one or more of the programme areas. An example of this is described below. Finally, the points allocated are used by the controller module 14 to determine a reward for the driver, The plurality of programme areas includes at least some of vehicle maintenance, driver education, vehicle insurance claims, premium payments, policy updates and driving performance.

WO 2013/186727 PCT/IB2013/054833 -10 In one example embodiment, the plurality of programme areas includes all of the abovementioned programme areas. The programme area of vehicle maintenance includes one or more of servicing the vehicle, checking the vehicle and checking the vehicles tyres. Describing these programme areas in more detail, servicing the vehicle means that the driver has taken the vehicle to a mechanical workshop for a periodic service to ensure that the vehicle is in good working order. Typically in such services oil and other lubricants are changed, brake pads are changed if required and any other mechanical faults that have arisen in the past period are fixed. The programme area of checking the vehicle entails taking the vehicle to an authorised centre were a number of checks on the different parts of the vehicle are conducted to ensure that the vehicle is in good working order. If anything is found to be not correct, the driver will be instructed to take the vehicle to a workshop for fixing and may be awarded further points for this step. New vehicles may be exempt from the service check for the first year and the insured person will be awarded these points on submission of proof that the vehicle is within its first year since its first registration. Checking the vehicle tyres entails either having the tyres checked as part of the above-mentioned checking of the vehicle or alternatively, taking the vehicle to a specialist tyre centre to have the tyres checked. In one example embodiment, an interface is created between the server 12 and checking centre via the communications network 24 so that the checking centre can confirm the results of the check.

WO 2013/186727 PCT/IB2013/054833 -11 In addition to the tyre check the steering, windscreen wipers, lights, seatbelts, hooter and shock absorbers can be checked at this time. Bonus Points can be awarded for all of these being in an acceptable condition, In all of these cases, the party doing the checking or servicing will capture data relating to the vehicle and/or driver and periodically transmit this data to the communications module 16. The programme area of driver education includes one or more of a driving course, a driver assessment, a periodic driver quiz and a carbon footprint calculation. Driving courses are attended by drivers to improve their driving skills and particularly to learn so-called defensive driving skills. A driver assessment is conducted in one example embodiment by an assessor taking the driver in the vehicle onto the road and assessing the driving skills and habits of the driver. Weaknesses in the skills or habits of the driver may be pointed out and the driver given the opportunity to correct these in the coming weeks or months before returning for an updated assessment. In one example, the driver is given an assessment score. In another example, the driver assessment is an online questionnaire designed to highlight certain risks relating to a driver. In this example, the questionnaire includes two sections namely. 'Driving habits' and 'State of Vehicle'. For example a question of whether one uses a cellular telephone to send messages while driving will be asked. At the WO 2013/186727 PCT/IB2013/054833 -12 end of the questionnaire (approximately 20 questions) the driver will receive feedback explaining their risk and suggesting ways to mitigate their risks. Based on the answers received a calculation will be performed to consider the driver's risk relative to an average driver. The results can be illustrated to the driver on two risk bars. One illustrates how risky the driver's habits are, and one illustrates risks relating to the state of the drivers vehicle. A third risk bar may also be included illustrating a combined risk score, In addition, the questionnaire may include educational information to address specific areas such as how to drive in wet weather or what to do in the event of an accident. The format will be a paragraph followed by a question relating to the paragraph In this example, the driver will typically use a user interface device in the form of a computer with a screen on which is displayed a template for the driver to capture answers to questions put to them. The answers are captured and transmitted to the server 12. Alternatively, the server 12 accesses driver information stored in the database 20 and obtains the driver's e-mail address. An e-mail is then sent to the retrieved e-mail address. When the driver opens the e-mail a template is displayed to them asking them the relevant questions with options to select various scores. A driver will send the e-mail back to the server 12 via a communications network and the communications module 16. These will be received and written to the database. The programme area of premium payments relates to the quantum and frequency with which the premium payments are made and if they are WO 2013/186727 PCT/IB2013/054833 -13 made on time or not and the programme area of policy updates relates to whether or not the insured person is updating their policy to accurately reflect what is being insured by the insured person. The programme area of vehicle insurance claims includes the number of claim free years. No fault claims where the driver was not at fault typically will not be calculated as a claim for this. The programme area of driving score includes monitoring the manner in which the motor vehicle is driven. In one example embodiment this is implemented using data received from the telematics device 22 associated with the vehicle 24. The telemetry device 22 is used to monitor a number of aspects of the use of the motor vehicle. For example, the device monitors the speed at which the vehicle is travelling and can therefore calculate average speed and maximum and minimum speeds, for example. Where the device includes GPS functionality, for example, the device is able to determine if speed limits on a particular road have been exceeded. The device is also able to determine braking habits of the driver either using the GPS functionality or by using an accelerometer or having one or more sensors connected to the vehicle or to a deceleration detection device, for example. The device is also typically able to detect the distance travelled and if the driver has driven the vehicle for a long time period without a break. In addition, the times of the day that the vehicle is being driven can be captured as night time driving is statistically more dangerous than day time WO 2013/186727 PCT/IB2013/054833 -14 driving, especially weekend late night driving, as has been described above, In addition to the above, the device will have the ability to detect the driver's use of the vehicle including braking, indicating, cornering and accelerating to name a few examples. Thus it could be determined when the vehicle turns without indicating, for example. In any event, the data from the device is transmitted to the server 12 over the communication network 26. It will be appreciated that this could be accomplished in a number of ways. For example, the data could be transmitted via a communication network 26 as illustrated in the accompanying drawing. This communication network could be any suitable kind of communication network such as a mobile communication network, a wireless communication network, a satellite communication network or a combination of these to name but a few examples. Alternatively, the device 22 could be connected to another intermediate device which downloads the data and transmits the data via the communication network 30 to the server 12. One example of this could be connecting the device 22 to a USB port of a computer and downloading the data to the computer, which data is then transmitted over the Internet to the server 12. In one example embodiment, the data is transmitted over a mobile phone network using the short message service (SMS) protocol. It will be appreciated that the data could be transmitted at any suitable time to the server. For example, the data could be transmitted in real time or near real time or could be transmitted periodically such as daily, weekly or monthly to name a few examples.

WO 2013/186727 PCT/IB2013/054833 -15 Once the server 12 receives the data it will analyse the data to determine the manner in which the motor vehicle has been driven for a past predetermined period. To do this the analysing module 28 accesses the memory 20 and retrieves the data stored therein. The retrieved data is then used to determine a driving score. For example, the driver starts on a higher number of points which is reduced for each driving infraction, such as each harsh braking, speeding or late night driving instance as can be predetermined by the system managers. An example of how the calculation module 18 then awards points is as follows: Driver Category Points Frequency No Star (no telematics device) 0 0 C) ** 100 Monthly Every 3 Defensive driving course 150 years t SDriver Assessment 50 Annual Quarterly quiz 75/vy | 2 50 Monthly WO 2013/186727 PCT/IB2013/054833 -16 3+ 100 Another example is as follows: Driver Category Points Frequency ving Driving Score 0 -750 Monthly Annual Service 50 Roadworthy Multi Point Check 100 RoadwrthyAnnual Multi point check bonus points 100 Every 3 Defensive driving course 150 years_ Driver Assessment 50 Annual Education Quartery uiz 75 %Iy 125 Claim Free Years 2 50 Monthly 3+ 100 It will be appreciated that the actual number of points allocated may change and other categories may be introduced. In one example embodiment the number of points is used to determine a driver status. An example driver status is as follows: Driver Status Red - 0 Amber - 300 WO 2013/186727 PCT/IB2013/054833 -17 Green - 600 Double Green - 1000 It will be appreciated that the way in which the points are allocated and driver status determined could be varied. However, in an example embodiment the status will be determined periodically, for example every month. At the beginning of every calendar month the driver's points are zeroed and drivers will then be awarded points for having done a multi-point check, annual service, driver assessment or carbon footprint calculation within the previous 12 months. Similarly quarterly quiz points will be awarded provided the questionnaire has been done for that quarter. Defensive driving courses need to be completed every 3 years or any other specified period to earn points and if a defensive driving course has been completed in the past 3 years then the relevant points will be added to the driver score for the present month. If confirmation of these point earning events are received midmonth then points will be awarded immediately therefore contributing to the driver status in that month. On the last day of each month the driver's telematic data or a telematic score will be received and points award points accordingly. If multiple vehicles are insured then one method of dealing with this is to use a weighted average to calculate a single score calculated. This will complete the driver's points for the month which will be added together to get the driver status for that month.

WO 2013/186727 PCT/IB2013/054833 -18 The driver status and individual driver telematic scores are communicated to the individual via the communication network 26. In addition, reminders are sent out when a roadworthy check or tyre check is required via the communication network 26. The above is then used to determine an adjustment to the base reward amount. For example, at the end of each month the amount of points earned by the individual could be used to determine an increase or decrease to the base reward amount, In this example, the monthly increases or decreases are accumulated for the year until the adjusted reward amount is made available to the individual. The quantum of the increase/decrease could be a percentage of the number of points or calculated in some other way, In one example, the amount of points earned by the individual are used to classify the individual as described above and then the base reward amount can be increased or decreased depending on the class. For example: Driver Status Monthly Adjustment Base (red) -R250 Neutral (amber) RO Engaged (green) +R50 Advanced (double green) +R1 50 Once the reward adjustment has been determined, the controller module 14 then effects the reward, In one example embodiment this could be done by communicating with a financial institution via the communications WO 2013/186727 PCT/IB2013/054833 -19 network 26 and instructing the financial institution to alter the reward amount and/or make this available to the individual. In this example, the individual is issued with a financial transaction card that can be inserted into a financial transaction machine to view the base reward amount or adjusted reward amount during the predetermined period and to access the base reward amount or adjusted reward amount after the predetermined period. The financial transaction machine may be an automatic teller machine or a point of sale machine, for example, Thus, in one example, the individual approaches the automatic teller machine with their financial transaction card and insert the card into the machine, The individual will typically be requested to enter a PIN which was issued to them at the time that the financial transaction card was issued to them. If they correctly enter the PIN they will be able to review their balance which will be either the base reward amount or the adjusted reward amount. If an amount of funds are available to be used (as the predetermined period has passed) they will then be able to withdraw this amount of funds in cash from the automatic teller machine. In this scenario, the automatic teller machine will also indicate to them the amount of funds that are currently available to be used. Alternatively, if the individual has funds available to be used they could accessed by using the financial transaction card at a point of sale device to pay for goods and/or services that the individual has purchased.

WO 2013/186727 PCT/IB2013/054833 -20 In one example embodiment, the user will also be able to ascertain their balance and available balance from the point of sale device. The balance will be the total balance amount including an amount currently available and an amount not currently available whilst the available balance will only be the amount currently available. In order to implement this, the server 12, in one example embodiment, transmits data to a server of the financial institution informing the server of the financial institution of at least some of: 1) The identity of the individual; 2) Their base reward amount; 3) Any adjustments to the base reward amount; and 4) The amount of funds available for use currently. As described above, in an example embodiment the behaviour improvement programme is a driver behaviour improvement programme. In another example embodiment, the behaviour improvement programme is a wellness programme whereby an individual is rewarded for engaging with the programme. An example wellness programme is the applicant's Vitality programme, an example of which is described in granted US Patent No 7,953,611 which is incorporated herein by reference. Thus it will be appreciated that the present invention plays on a psychology of showing the individual what their reward could be but not yet making the reward available to them unless they comply with the programme. Once they have complied the reward is made available to them and they WO 2013/186727 PCT/IB2013/054833 -21 are easily able to access the reward using their financial transaction card.

Claims (10)

1. A method of managing a rewards programme, the method including: defining a base reward amount; making the base reward amount available to the individual for checking during a predetermined period so that the individual is able to check the value of the base reward amount but is not yet able to access the base reward amount for use; receiving compliance data relating to the compliance of the individual with the programme; based on the compliance data, adjusting the base reward amount by increasing or decreasing the amount and making the adjusted reward amount available to the individual for checking during the predetermined period; and after the predetermined period, making the adjusted reward amount available for use to the individual.

2. A method according to claim 1 wherein the base reward amount is an amount of funds in a financial transaction account wherein the amount of funds are increased or decreased depending on the individual's compliance with the programme and wherein the individual is only given access to use these funds after the predetermined period.

3. A method according to claim 2 wherein the individual is issued with a financial transaction card that can be inserted into a financial transaction machine to view the base reward amount or adjusted reward amount during the predetermined period and to access the base reward amount or adjusted reward amount after the predetermined period. WO 2013/186727 PCT/IB2013/054833 -23

4. A method according to claim 3 wherein the financial transaction machine is an automatic teller machine or a point of sale machine.

5. A method according to claim 4 wherein the reward is a cash reward and wherein the cash can be withdrawn from the financial transaction machine after the predetermined period.

6. A system for managing a rewards programme, the system including: a controller for: defining a base reward amount; based on the compliance of an individual with a programme, adjusting the base reward amount by increasing or decreasing the amount; and after a predetermined period, making the adjusted reward amount available for use to the individual; a communications module for: making the base reward amount and/or the adjusted reward amount available to the individual for checking during the predetermined period so that the individual is able to check the value of the reward amount but is not yet able to access the reward amount for use; and receiving compliance data relating to the compliance of the individual with the programme; and a database for storing data relating to the base reward amount, the adjusted reward amount and compliance data. WO 2013/186727 PCT/IB2013/054833 -24

7. A system according to claim 6 wherein the base reward amount is an amount of funds in a financial transaction account wherein the amount of funds are increased or decreased depending on the individual's compliance with the programme and wherein the individual is only given access to use these funds after the predetermined period.

8. A system according to claim 7 wherein the individual is issued with a financial transaction card that can be inserted into a financial transaction machine which communicates with the communications module to view the base reward amount or adjusted reward amount during the predetermined period and to access the base reward amount or adjusted reward amount after the predetermined period.

9. A system according to claim 8 wherein the financial transaction machine is an automatic teller machine or a point of sale machine,

10. A system according to claim 9 wherein the reward is a cash reward and wherein the controller instructs the financial transaction machine to release the cash to be withdrawn from the financial transaction machine after the predetermined period.