AU2016100273A4 - A Customer Loyalty Program - Google Patents

Abstract

Abstract A customer loyalty program including the steps of a program administrator offering membership to the program to business members; customer members joining the program; providing each customer member with at least one progress recording means to record the value of goods and/or services purchased by the customer member from the business member; setting a predetermined dollar value of purchases from the business member to qualify the customer member to a prepaid value means having a face value, the prepaid value means awarded to the customer member by the program administrator, upon presentation of a progress recording means establishing the predetermined amount spent, and a currency amount less than the face value of the prepaid value means. Figure I Figure 2 --------------------------- 'SS5''04 ------ Ga- --- -94' -- ------------- 5390 45 a> 590 s msw p;!' pi ; ss u' s;n ysx --------- 4-------------' zm455 pu14 5:t3i&9Si x3n4S -543 ----------- -~ -------- --- ------ -- I t4.A40 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ - ---s' ----- -559400454 0 S059555ZA -------- ------- ----------- -----------S-------"- 359034 " ~ ~ ~ ~ ~ ~ ~ ~ -- -- - -- -- ------ )5 5 7 9 4 .w c 3 5 ?) 54 5>4 ' 5 53 4 3 5 2 BU~i-------A-TA-CA --) ----- ---- --------------$------ Roness i NA;PRpU -a.vj cpm np;3p-qo Phon+4 A dd.sp n .,nV o.3. , re s s.~nz 59 u5q :z ---------------- ---- --- Co--d--Ser-ice -- -- -- -- - -------d----- ------ ----:. --- --- --- -- --- --- -- --- --- -- -a l--S-- --- --- - -uhrie Sin - ---------- ------e . ---- ------- ---- -------------- -------------------- iXJ5 3 -------------- -------4>4 30'539S53 5 12--5--------35-------- ------ --- ',{23 ------- (4 -S- ----------- T ------------- ----------------- 5------------"-------- ---------------------------- sS~iSjS~v (353335439 914). 51400051455455 4--------------- Aw k%4S~s4xtur B0553TeO(f54ol349ps4 43> 4 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ - --------------55559 3303555 595315555309'5 sSFgur 5A'O5954954 UCd(3 Figure 43 935955 -od / ss v e - - Ite 55USdnjt ol ExIpA (. n .N"Xsl o--------;----------------.---- Asqstorise S i n a u r : ___---------- *---------

Description

1 A CUSTOMER LOYALTY PROGRAM FIELD OF THE INVENTION [0001] The present invention relates to customer loyalty programs and in particular, to customer loyalty programs which offer a customer increased benefit or ease of use with decreased costs. BACKGROUND ART [0002] One of the biggest challenges for a business (that is a provider of goods and/or services) is to promote customer loyalty. In the absence of customer loyalty, a business can survive only by providing goods and/or services at the cheapest possible price (which reduces profit) or by being able to provide a unique product. In the vast majority of cases, a business is not able to provide a unique product as most products can be copied or imitated. This includes tangible products such as goods but can also include service products. [0003] One way to promote a business presence in the local community is through advertising. While advertising is effective, a difficulty with it is its cost and that most consumers are not loyal to a business merely because the business advertises. [0004] All businesses are aware that most consumers, after dealing with a business for the first time, will usually continue to deal with that business unless the business provides extremely poor service. For this reason, it is essential that some mechanism or means is developed to guide a consumer to a preferred business in the first instance. It is found that once a consumer has an initial dealing with a business (electrician, plumber etc), the consumer will often continue to deal with that business notwithstanding that other businesses may advertise slightly cheaper rates. [0005] One of the most common ways of building customer loyalty is by offering the customer access to a rewards program under which a customer may be rewarded for shopping consistently or often at a particular provider's business. Rewards programs are also used to increase sales, strengthen customer relationships, reinforce profitable behaviour, reward your best customers, increase the life-time value of a customer, move customers up the value chain, and erect barriers to switching brands.

2 [0006] There are many types of customer rewards systems currently used, the most common type being those where collectible points are offered. Programs for redeeming collectible points for goods are common product promotional vehicles used by manufacturers and promoters in the retail industry and are particularly associated with credit card companies and airline travel. Typically, a consumer purchases a product having attached to it a particular number of points that can be collected and redeemed for promotional goods or services, usually collectively referred to as promotional "items." The consumer collects points by purchasing products at particular stores, either as part of the product package or contained within the product package. [0007] Others in the retail and service industries credit consumers with promotional points on the basis of purchases or other consumer actions that are tracked by the retailer or service provider. Promotional items can be obtained by redeeming a set number of collected points for a specific item offered. Frequently, the promotional items that are offered are tailored to attract a specific market segment of consumers in order to encourage that market segment to purchase the product and reward brand loyalty. [0008] These rewards programs are directed towards a provider of goods or services, rewarding their own customers by offering discounts or value-added products from their own product range. For example, frequent flyer points can be used to redeem free or reduced fare flights or products from the airlines own support product range. The same system is frequently applied to store credit cards. [0009] Other programs exist in which a customer may acquire points or rewards by purchasing at a variety of businesses that are each a member of the program provider's network. The customer may then redeem products or services from the program provider. This type of system is used by American Express@ and other credit card companies. [0010] These programs are all centralised and the record of points earned and those redeemed are tracked by the program provider. A customer may join the program at a satellite service or product provider generally based on their income, and the program provider is responsible for the administration of the system including providing a clearing house function to receive information about the transactions which occur in each of the authorized facilities, to collate points for the transactions and to apply the points to the customer's account. By acting as 3 a counterparty to each transaction, the clearing house offers a central balancing and reconciliation service. [0011] These systems create a great deal of administrative pressure on the program provider and a large amount of constant upkeep over the lifetime of the program. They are also relatively complex and require advanced record keeping systems, usually computerised systems, in order to keep track of the large number of members and the large number of businesses at which they can earn points. [0012] It would be a significant contribution to a rewards system if, instead of a central program co-ordinator being required to perform all of the administrative functions centrally, a system was used that decentralises the record keeping and administrative functions. [0013] It will be clearly understood that, if a prior art publication is referred to herein, this reference does not constitute an admission that the publication forms part of the common general knowledge in the art in Australia or in any other country. SUMMARY OF THE INVENTION [0014] The present invention is directed to a customer loyalty program, which may at least partially overcome at least one of the abovementioned disadvantages or provide the consumer with a useful or commercial choice. [0015] In one form, the invention resides in a customer loyalty program including the steps of a program administrator offering membership to the program to business members, customer members joining the program; providing each customer member at least one progress recording means to record the value of goods and/or services purchased by the customer member from the business member; providing each customer member a receipt with a receipt with each at least one progress recording means to prove the value of the at least one progress recording means, the 4 receipt issued by the program administrator and collected by a business member with whom the customer member wishes to do business; setting a predetermined dollar value of purchases from the business member to qualify the customer member to a prepaid value means having a face value, the prepaid value means awarded to the customer member by the program administrator, upon presentation of a progress recording means establishing the predetermined amount spent, and a currency amount less than the face value of the prepaid value means; and providing each business member who has redeemed a predetermined number of receipts with an equal number of prepaid value means and with one or more bonus prepaid value means to create value for the business member. [0016] There will typically be at least two categories of membership of the program, namely business members and customer members. There will typically be a plurality of members in each category of membership. Membership of the business member category may be controlled strictly and/or limited by the program administrator. Membership of the customer member category may be provided by the member businesses or by the program administrator. Importantly, business members of the program may be customer members of the program as well. [0017] The program administrator will typically offer membership to the program member businesses. The membership may require a subscription. Member businesses may generally pay an annual subscription fee which will allow them access to the program or a single membership fee may be payable. The member businesses may be provided with a unique identification number and password for identification purposes. The member businesses may receive regular bulletins and updates about the program, as well as results of data analysis performed on the information relating to the program. These bulletins may be prepared by the program administrator. Typically, information such as this will relate to the program and its benefits, advertising of the program or the like. The program administrator may compile a database containing the details of the member businesses and any other information that the program administrator desires.

5 [0018] The member businesses will typically collect and/or update information on the customer members of the program that visit the business members and their shopping habits. This information may be communicated to the program administrator and may be stored on a database. The customer information database may be the same database as the business member database or may be different and/or separate therefrom. [0019] Upon joining the program, each business member will typically provide the program administrator with at least one prepaid value means which the respective business member will then honour. Each prepaid value means will typically be in the form of a card or similar. Each card will have an obverse face, containing salient information about the initial and progressive value of the prepaid value means and a reverse face which may contain advertising material and conditions of use. [0020] Each prepaid value means will typically have a particular face value equal to an amount of currency. There will typically be a variety of values of prepaid value means available or used in the program, for example, $50 or $100 face value prepaid value means may be used. The face value of a prepaid value means will typically correspond to the value of goods or services that are redeemable using the prepaid value means, from the appropriate business member. [0021] Each prepaid value means will typically relate to a particular business member which issued the prepaid value means. The prepaid value means may be valid or redeemable at that business only. Alternatively, there may be a class of prepaid value means that may be valid or redeemable at any business member of the program. The issuing business member may be identified on the prepaid value means. Typically, the prepaid value means may be valid for a period of time only and any difference between the face value and the accumulated value of the prepaid value means not redeemed within that period, may be void. [0022] The prepaid value means is typically not redeemable by the customer member for cash from the business member, but rather only for goods or services of equal or lesser value. The prepaid value means will typically only be useable for goods which are in stock. Typically, the prepaid value means may be transferable to third parties and whoever bears the prepaid value means may be entitled to the remaining value.

6 [0023] In its simplest form, the obverse face of the prepaid value card will preferably be divided into a table having a plurality rows and columns. It is also anticipated that more technologically-advanced forms of the card may be available such as a personal data storage device. A portable data storage (PDS) device may be capable of recording or transmitting data. The PDS device may suitably be a card with a data storage strip, an integrated circuit memory or microchip or other type of computer chip. The PDS device may suitably be a key or other portable device that is adapted to be inserted or swiped through a data reader device. According to a particularly preferred embodiment, the card may be a contactless card and may not require insertion or swiping. [0024] The storage means on the PDS device may be digital, electrical or magnetic in nature. It may also be a simple bar code. Any type of storage means is envisaged as long as it has the basic function of storing information and being at least partially updatable. [0025] The data may typically be stored on the PDS device or it may be stored in an associated central processing unit or computer system which is accessed using the data stored on the PDS device. In this way, a large amount of stored information may be available to the user of the system upon access using the card. [0026] According to the previously mentioned, most simple form of a card with a table printed thereon, it is preferred that the header row of the table contains identification of columns such as "date", "bearer signature", "price" (of goods of services), and "Balance". [0027] The prepaid value means will typically be valid for value corresponding to the face value of the prepaid value means. If the value of the goods/services requested by the customer member exceeds the balance available on the prepaid value means, the customer member will typically use cash to make up the difference. The "balance" of the prepaid value means may be calculated as the face value less the value of any goods/services purchased using the prepaid value means, from issue. The balance may be recorded in this manner as well, as the face value less any purchases. [0028] Upon joining the program, the business member will typically assign a predetermined number of prepaid value means to the program administrator. The program administrator can then issue these to the customer members according to the rules of the program, upon satisfaction of certain conditions.

7 [0029] The program also includes progress recording means or "scrip" means to record the value of goods and/or services purchased by the customer member from the business member. In the present specification and claims (if any), the word "scrip" and its derivatives is used to indicate a certificate whose value is recognized by the business member and the customer member; scrip value is not currency but may be equal to an amount of currency. [0030] The scrip means will generally be provided to the customer members of the program by one or more business members or the program administrator or agent. As with the prepaid value means, each scrip means will typically be in the form of a card or similar. Each card will have an obverse face containing salient information about the initial and progressive value of the scrip means and a reverse face which may contain advertising material and conditions of use. [0031] Each scrip means will typically have a particular face value equal to an amount of currency. There will typically be a variety of values of scrip means available or used in the program, for example, $50 or $100 face value scrip means may be used. The face value of scrip means will typically correspond to the value of goods or services that are purchased from a business member and the total value of purchases will generally be recorded on the scrip means with the object of reaching the face value of the scrip means. [0032] Each scrip means will typically relate to a particular business member which issued the scrip means. The scrip means may be valid or useable at that business only. Alternatively, there may be a class of scrip means that may be valid or useable at any business member of the program. The issuing business member may be identified on the scrip means. Typically, the scrip means may be valid for a period of time only and only scrip means where the face value has been reached may be valid for redemption purposes. [0033] Typically, the scrip means may be transferable to third parties and whoever bears the scrip means may be entitled to the remaining value. The scrip means may be used to record purchases of any goods or services, whether in stock or not. [0034] In its simplest form, the obverse face of the scrip card will preferably be divided into a table having a plurality rows and columns. It is also anticipated that more technologically advanced forms of the card may be available such as a personal data storage device. A portable data storage (PDS) device may be capable of recording or transmitting data. The PDS device may suitably be a card with a data storage strip, an integrated circuit memory or microchip or 8 other type of computer chip. The PDS device may suitably be a key or other portable device that is adapted to be inserted or swiped through a data reader device. According to a particularly preferred embodiment, the card may be a contactless card and may not require insertion or swiping. [0035] The storage means on the PDS device may be digital, electrical or magnetic in nature. It may also be a simple bar code. Any type of storage means is envisaged as long as it has the basic function of storing information and being at least partially updatable. [0036] The data may typically be stored on the PDS device or it may be stored in an associated central processing unit or computer system which is accessed using the data stored on the PDS device. In this way, a large amount of stored information may be available to the user of the system upon access using the card. [0037] According to the previously mentioned, most simple form of a card with a table printed thereon, it is preferred that the header row of the table contains identification of columns such as "date", "bearer signature", "price" (of goods of services), and "Balance". [0038] The scrip means will typically be redeemable when a customer member has purchased goods or services and recorded the value of the purchases corresponding to the face value of the scrip means. If the value of the goods/services requested by the customer member exceeds the balance remaining on the scrip means, the business member will typically begin recording the difference on a new scrip means. The "balance" of the scrip means will generally be the running total of goods or services purchased and recorded on the scrip means. The balance of the scrip means will typically start at zero and increase toward the face value. [0039] The predetermined dollar value of purchases from the business member to qualify the customer member to a prepaid value means will generally be set by the program administrator. This amount will typically be the face value of the scrip means. [0040] Once the face value of a scrip means is reached, meaning that a business member has been paid the face value of the scrip means by a customer member, the business member may authorise the redemption of a prepaid value means. Redemption will normally occur through the program administrator.

9 [0041] The prepaid value means will be awarded to the customer member by the program administrator, upon presentation of a progress recording means establishing the predetermined amount spent, and a currency amount less than the face value of the prepaid value means, making the award or redemption process a two-stage process. The two stages will typically be firstly qualification for the award by spending the predetermined amount with the business member and recording same on a scrip means, and secondly, a redemption step including presenting the "full" scrip means and an amount of currency less than the face value of the prepaid value means to the program administrator. [0042] The qualifying step includes the purchasing of goods and services by the customer member from a business member. The business member will normally record the total of the purchases on the scrip means. Once the scrip means is "full", that is, the total of purchases equals the face value, the business member may then endorse the scrip means for redemption. This endorsement will normally be required from an authorised representative of the business. [0043] The redemption step will typically be accomplished with the program administrator. The program administrator will typically maintain records regarding the number of prepaid value means that a customer member has been issued. The amount of currency required to redeem a prepaid value means in addition to the presentation of a "full" scrip means will preferably decrease each time a "full" scrip means is presented. According to a preferred embodiment, the first redeemed prepaid value means with a face value of $100 for example may require a $70 currency amount, the second may require a $65 amount, the third $60, the fourth $55, and the fifth $50. When five progressive prepaid value cards have been purchased, the sixth prepaid value means may be presented without requiring a currency amount but merely the presentation of a "full" scrip means. [0044] The customer member may then use the prepaid value means to purchase goods or services from a business member in lieu of cash. The customer member may purchase goods or services up to the value of the balance showing on the prepaid value means. When a prepaid value means is "full", namely the customer has purchased goods or services equalling or exceeding the value of the prepaid value means, the business member will preferably retain the prepaid value means. Once a business member has honoured and retained a number of prepaid value means, normally three, the business member may be awarded a prepaid value means for the 10 use of the business member within the program. In this manner, the business member may also be a customer member of the program and sees benefits from the program. [0045] The business member will typically retain any prepaid value means presented to them once fully honoured and when a predetermined number are presented to the program administrator, these are exchangeable for a lesser number (or the same number of lesser face value) of prepaid value means. [0046] Business members may find themselves in a position where they may be required to honour a prepaid value means when they have not yet received any cash from a customer shopping using a scrip means. When a prepaid value means is presented at a business member, particularly in situations where the business member has not yet redeemed any value from the sale of goods relating to the scrip means, the business member may offer the customer member a discount scrip means, with a face value obtainable at a discount or a percentage discount applied to each spend recorded on the discount progress recording means. [0047] The face value of the discount scrip means may be accumulated by a customer member purchasing goods or services at a discounted rate, but the full cost may be recorded on the discount scrip means. The discount rate will normally be approximately 20%. [0048] Once a business member has fully honoured a discount scrip means by providing a customer with goods or services of the face value for an amount equalling the face value less the discount, the business member will typically retain the discount value means, or a portion thereof. Once a business member has honoured and retained a predetermined number of discount scrip means, normally 5, the business member may be awarded a prepaid value means for the use of the business member within the program, increasing the value of the program to the business member. [0049] Typically, the number of honoured discount value means needed by a business member to qualify for a prepaid value means will be greater than the number of honoured prepaid value means. [0050] Business members, when redeeming prepaid value means from the program administrator, on the basis of honoured discount value means or honoured prepaid value means, are generally not required to pay the currency amount in addition to presenting the predetermined 11 number of honoured discount value means or honoured prepaid value means, respectively. The presentation of the requisite number of honoured value means is generally enough for the business member to redeem the prepaid value means. [0051] The prepaid value means, the progress recording means and the discount progress recording means are all suitably cards or similar on which the value of purchases can be recorded and will generally also contain identification indicia so they cannot be copied such as sequential numbering, barcoding or watermarking. [0052] The system administrator may purchase excess scrip cards from business members at a discounted rate. [0053] According to an alternative embodiment, the system of the present invention may also allow for the introduction of a loan system utilising the value means which instead of being prepaid (that is the cash injected prior to issue of the prepaid value means) are post paid. In other words the system administrator may issue prepaid value means, usable within the system according to the same parameters as those explained above, but collect the cash later rather than upfront. In this way, the prepaid value means can effectively operate as a loan to the holder with the payment for the prepaid value means to be provided at a later date. [0054] The prepaid value means in this embodiment may be provided in a stepwise manner such as for example an initial $50 value prepaid value means, then a $100 value prepaid value means, then a $150 value prepaid value means, then a $250 value prepaid value means and then a $250 value prepaid value means (or according to other values or combinations, preferred amounts are $250, $250 and $300) and is preferably capped at an appropriate amount which is preferably between $500 and $1000, typically about $800. [0055] It may be that the different prepaid value means are provided in increments with payment for the first issued prepaid value means qualifying the holder for issuance of the second prepaid value means and payment for the second prepaid value means qualifying the holder for issuance of the third and so on. [0056] In this way, further value can be moved around the system without requiring upfront cash but with the upfront cash provided in due course and within a time in which the cash is 12 required. The period will generally be quite short in order that the stability of the system is maintained with an adequate cash balance and normally is approximately 3 months. [0057] The benefits of the program to the customer members are that they receive a prepaid value means entitling them to a face value at an amount less than the face value, merely by conducting their normal shopping practice. The cost to the customer member reduces the more that they shop. The benefits to the business members is that they see increased purchases from their business and more loyalty from their existing customers. They see further advantages as they may be customer members of the program as well. BRIEF DESCRIPTION OF THE DRAWINGS [0058] Various embodiments of the invention will be described with reference to the following drawings, in which: [0059] Figure 1 is an illustration of the obverse side of a $100 scrip progress card according to a preferred embodiment of the present invention. [0060] Figure 2 is an illustration of the reverse side of the scrip progress card illustrated in Figure 1. [0061] Figure 3 is an illustration of the obverse side of a $100 value card according to a preferred embodiment of the present invention. [0062] Figure 4 is an illustration of the reverse side of the value card illustrated in Figure 3. [0063] Figure 5 is an illustration of the obverse side of a $50 scrip progress card according to a preferred embodiment of the present invention. [0064] Figure 6 is an illustration of the reverse side of the scrip progress card illustrated in Figure 5. [0065] Figure 7 is an illustration of the obverse side of the discount progress card according to a preferred embodiment of the present invention. [0066] Figure 8 is an illustration of the reverse side of a $100 scrip progress card illustrated in Figure 7.

13 DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT [0067] According to a preferred embodiment of the present invention, a customer loyalty program is provided. [0068] According to a preferred embodiment, the customer loyalty program includes the steps of a program administrator offering membership to the program to business members conditional upon each business member providing the program administrator with prepaid value cards; customer members joining the program; providing each customer member with scrip cards to record the value of goods and/or services purchased by the customer member from the business member; setting a predetermined dollar value of purchases from the business member to qualify the customer member to a prepaid card having a face value, the prepaid cards awarded to the customer member by the program administrator, upon presentation of a scrip card establishing the predetermined amount spent, and a currency amount less than the face value of the prepaid card. [0069] There are two categories of membership of the program, namely business members and customer members. Membership of the business member category will be controlled strictly and/or limited by the program administrator. Membership of the customer member category can be provided by the member businesses or by the program administrator. Importantly, business members of the program will normally be customer members of the program as well. [0070] The program administrator offers membership to the program member businesses. The membership requires a subscription. [0071] Upon joining the program, each business member provides the program administrator with a plurality of prepaid cards which the respective business member will then honour. Each prepaid card has an obverse face containing salient information about the initial and progressive value of the prepaid card and a reverse face which contains advertising material and conditions of use. [0072] Each prepaid card has a particular face value equal to an amount of currency. Cards of a variety of values will be available or used in the program, for example, $100 face value prepaid cards as illustrated in Figures 3 and 4. The face value of a prepaid card corresponds to 14 the value of goods or services that are redeemable using the prepaid card from the appropriate business member. [0073] Each prepaid card relates to a particular business member which issued the prepaid card and the prepaid card is valid or redeemable at that business only. The issuing business member is identified on the prepaid card. The prepaid card is valid for a period of time only and any difference between the face value and the accumulated value of the prepaid card not redeemed within that period, will be void. [0074] The prepaid card value is not redeemable by the customer member for cash from the business member, but rather only for goods or services of equal or lesser value. The prepaid card is only useable for goods which are in stock. The prepaid card is transferable to third parties and whoever bears the prepaid card is entitled to the remaining value. [0075] In its simplest form, the obverse face of the prepaid card is divided into a table having a plurality of rows and columns. The prepaid card has a table printed thereon and the header row of the table contains identification of columns such as "date", "bearer signature", "price" (of goods of services), and "Balance", as seen in Figure 4. [0076] The prepaid card is valid for value corresponding to the face value of the prepaid card. If the value of the goods/services requested by the customer member exceeds the balance available on the prepaid cards, the customer member will then use cash to make up the difference. The "balance" of the prepaid card is calculated as the face value less the value of any goods/services purchased using the prepaid card, from issue. The balance may be recorded in this manner as well, as the face value less any purchases. [0077] Upon joining the program, the business member assigns a predetermined number of prepaid cards to the program administrator. The program administrator can then issue these to the customer members according to the rules of the program, upon satisfaction of certain conditions. [0078] The program also includes scrip cards to record the value of goods and/or services purchased by the customer member from the business member. [0079] The scrip cards are provided to the customer members of the program by the business members. Each scrip card has an obverse face containing salient information about the initial 15 and progressive value of the scrip card and a reverse face which contains advertising material and conditions of use. [0080] Each scrip card has a particular face value equal to an amount of currency. There are a variety of values of scrip means available or used in the program, for example, $50, as illustrated in Figures 5 and 6 or $100 face value scrip cards, as illustrated in Figures 1 and 2. The face value of the scrip card corresponds to the value of goods or services that are purchased from a business member and the total value of purchases will be recorded on the scrip card with the object of reaching the face value of the scrip card. [0081] Each scrip card relates to a particular business member which issued the scrip means and the scrip card is valid or useable at that business only. The issuing business member is identified on the scrip card. The scrip card is valid for a period of time only and only scrip cards where the face value has been reached are valid for redemption purposes. [0082] The scrip card is transferable to third parties and whoever bears the scrip card is entitled to the remaining value. The scrip card can be used to record purchases of any goods or services, whether in stock or not. [0083] In its simplest form, the obverse face of the scrip card is be divided into a table having a plurality of rows and columns and the header row of the table contains identification of columns such as "date", "bearer signature", "price" (of goods of services), and "Balance". [0084] The scrip cards are redeemable when a customer member has purchased goods or services and recorded the value of the purchases corresponding to the face value of the scrip card. If the value of the goods/services requested by the customer member exceeds the balance remaining on the scrip card, the business member then begins recording the difference on a new scrip card. The "balance" of the scrip card is a running total of goods or services purchased and recorded on the scrip card. The balance of the scrip card starts at zero and increases toward the face value. [0085] The predetermined dollar value of purchases from the business member to qualify the customer member to a prepaid card is set by the program administrator and is the face value of the scrip card.

16 [0086] Once the face value of a scrip card is reached, meaning that a business member has been paid the face value of the scrip card by a customer member, the business member authorises the redemption of a prepaid card from the program administrator. [0087] The prepaid card is awarded to the customer member by the program administrator upon presentation of a "full" scrip card and a cash amount less than the face value of the prepaid card, making the award or redemption process a two-stage process. The two stages are firstly, qualification for the award by spending the predetermined amount with the business member and recording same on a scrip card, and secondly, a redemption step including presenting the "full" scrip card and an amount of cash less than the face value of the prepaid value card to the program administrator. [0088] Once the scrip card is "full", that is, the total of purchases equals the face value, the business member endorses the scrip card for redemption. This endorsement will normally be required from an authorised representative of the business member. [0089] The redemption step is accomplished with the program administrator. The program administrator maintains records regarding the number of prepaid cards that a customer member has been issued. The amount of currency required to redeem a prepaid card in addition to the presentation of a "full" scrip card decreases each time a "full" scrip card is presented. According to the preferred embodiment, the first redeemed prepaid card with a face value of $100, for example, requires a $70 cash amount, the second requires a $65 amount, the third $60, the fourth $55, and the fifth $50. When five progressive prepaid value cards have been purchased, the sixth prepaid card is awarded without requiring a cash amount but merely the presentation of a "full" scrip card. [0090] The customer member can use the prepaid card to purchase goods or services from a business member in lieu of cash. The customer member can purchase goods or services up to the value of the balance showing on the prepaid card. When a prepaid card is "full", namely the customer has purchased goods or services equalling or exceeding the value of the prepaid card, the business member retains the prepaid card. Once a business member has honoured and retained a number of prepaid cards, normally three, the business member is awarded a prepaid card for the use of the business member within the program. In this manner, the business member is also a customer member of the program and sees benefits from the program.

17 [0091] Business members may find themselves in a position where they are required to honour a prepaid value card when they have not yet received any cash from a customer shopping using a scrip card. When a prepaid card is presented at a business member, particularly in situations where the business member has not yet redeemed any value from the sale of goods relating to the scrip card, the business member can offer the customer member a discount scrip card, with a face value obtainable at a discount or a percentage discount applied to each spend recorded on the discount scrip card. An example of this card is illustrated in Figures 7 and 8. [0092] The face value of the discount scrip card is accumulated by a customer member purchasing goods or services at a discounted rate but the full cost is recorded on the discount scrip card at a discount rate of 20%. [0093] Once a business member has fully honoured a discount scrip card by providing a customer with goods or services of the face value for an amount equalling the face value less the discount, the business member retains a tear-off portion of the discount value card, which is separable from the remainder of the card via a line of perforations. Once a business member has honoured and retained a predetermined number of discount scrip cards, normally 5, the business member is awarded a prepaid card for the use of the business member within the program, increasing the value of the program to the business member. [0094] Business members, when redeeming prepaid cards from the program administrator, on the basis of honoured discount cards or honoured prepaid cards, are not required to pay the currency amount in addition to presenting the predetermined number of honoured discount cards or honoured prepaid cards respectively. [0095] The prepaid cards, the scrip cards and the discount scrip cards all include identification indicia so they cannot be copied. [0096] According to an alternative embodiment, a customer spends cash at a business and in return they are given a $50 scrip progress card on which the business notes the spent amount each time, until the business member has received $50 cash. The business member must 'sign and receipt' that card (as the business member's protection against bogus consumers). This process is repeated this each time a customer member spends cash with the business. [0097] The customer member may then show the completed card as a discount to purchase a 18 $50 pre-paid card from the system administrator outlet according to the rules of the system at a discounted value. [0098] When the business member receives a $50 pre-paid scrip card to be honoured at the business, the pre-paid card will also have a receipt associated. -The business member retains) the attached receipt with which the business member can immediately exchange for any $50 pre-paid card at system administrator outlet; that is, even before the customer's card is fully honoured. Alternatively, the business member may wait to redeem multiple 'receipts' in order to get bonus cards. One example is to collect 5 cards and receive the 6th pre-paid card free. This gives the business member an extra $10 value for every $50 pre-paid card honoured. [0099] A fee of $5 applies to every $50 pre-paid card 'receipt' that a business member redeems. [0100] If after the business has retained a pre-paid card 'receipt', the customer's card becomes lost, badly damaged, or expires, such unredeemed amount becomes the business member's benefit as the customer will have to present the card to claim the amount. [0101] A sale, or purchase in excess of $50 is done by using the business member's $50 pre paid cards and half, or part cash. This is done to benefit the business member and the customer still receives scrip progress cards for every $50 cash amount, or part thereof paid or, redeem any excessive (pre-paid card) 'receipts' for cash back and repurchase when needed. [0102] An honour fee of $500 is paid to join the system by the business member, however, $500 of pre-paid cards could be issued to business members to initially offset that cost, providing that the initial $500 is repaid within a three month period. [0103] For the customer members, a customer member shops as normal and at point of sale the customer member is given a $50 scrip progress card. The purchase(s) are then noted on the card and each time the customer spends with that business member, until the customer's card totals a predetermined value say $50 spent. If a customer spends in excess of $50, that amount is added to new card/s. [0104] The business member signs and receipts the card once the face value has been reached.

19 [0105] That card is then returned to the system administrator outlet and for 30% discount, or $35 cash the customer receives a pre-paid, guaranteed, $50 card which is fully honored only with that business member that the customer chooses. This card can then be used until the$50 card has been redeemed. This process is repeated repeat this each time the customer requires their next $50 discount card and show previous card for a further discount. [0106] That next $50 card the customer member purchases at the system administrator outlet would cost only $32.50, and for the next, $30, then $27.50, then $25. [0107] A record is kept on all cards purchased at the system administrator outlet, so when the customer member has purchased their 5th. card at $25, the customer can choose a 6th. $50 pre-paid card, free. [0108] Example:- A shopper has $85 but needs clothes for $50 & shoes for $50. Shopper goes to a business member's clothes store, buys clothes for $50, receives a 'signed' $50 scrip progress card. Shopper presents that card at a system administrator outlet, pays $35 and is given a $50 pre-paid card which to buy those new shoes, then keeps used $50 card for added discount on next card purchased. [0109] Example 2:- Shopper needs bed costing $250 & sundry items for $300 but, only has $400. The shopper goes to a business member furniture store, pays $250 for bed and also receives 5 'signed' $50 scrip progress cards. The shopper then goes to a b2b outlet, shows the 5 cards, pays remaining $150 and is given:- 6 x $50 = $300 in pre-paid scrip cards to buy other, needed items; result:- by shopping according to the system of the present invention, $150 was saved! [0110] Example 3:- for those wanting immediate cash savings, a customer can buy 'single' $50 pre-paid card/s @ $35 ----this way the customer saves 30% on those intended purchases. [0111] The system administrator would also likely introduce its own credit card with a monthly fee of zero which would give consumers 'added' discounted spending power. [0112] According to an alternative embodiment, the system of the present invention may also allow for the introduction of a loan system utilising the value means which instead of being prepaid (that is the cash injected prior to issue of the prepaid value means) are post paid. In other words the system administrator may issue prepaid value means, usable within the system 20 according to the same parameters as those explained above, but collect the cash later rather than upfront. In this way, the prepaid value means can effectively operate as a loan to the holder with the payment for the prepaid value means to be provided at a later date. [0113] The prepaid value means in this embodiment may be provided in a stepwise manner such as for example an initial $50 value prepaid value means, then a $100 value prepaid value means, then a $150 value prepaid value means, then a $250 value prepaid value means and then a $250 value prepaid value means (or according to other values or combinations, preferred amounts are $250, $250 and $300) and is preferably capped at an appropriate amount which is preferably between $500 and $1000, typically about $800. [0114] It may be that the different prepaid value means are provided in increments with payment for the first issued prepaid value means qualifying the holder for issuance of the second prepaid value means and payment for the second prepaid value means qualifying the holder for issuance of the third and so on. [0115] In this way, further value can be moved around the system without requiring upfront cash but with the upfront cash provided in due course and within a time in which the cash is required. The period will generally be quite short in order that the stability of the system is maintained with an adequate cash balance and normally is approximately 3 months. [0116] In the present specification and claims (if any), the word "comprising" and its derivatives including "comprises" and "comprise" include each of the stated integers but does not exclude the inclusion of one or more further integers. [0117] Reference throughout this specification to "one embodiment" or "an embodiment" means that a particular feature, structure, or characteristic described in connection with the embodiment is included in at least one embodiment of the present invention. Thus, the appearance of the phrases "in one embodiment" or "in an embodiment" in various places throughout this specification are not necessarily all referring to the same embodiment. Furthermore, the particular features, structures, or characteristics may be combined in any suitable manner in one or more combinations. [0118] In compliance with the statute, the invention has been described in language more or less specific to structural or methodical features. It is to be understood that the invention is not 21 limited to specific features shown or described since the means herein described comprises preferred forms of putting the invention into effect. The invention is, therefore, claimed in any of its forms or modifications within the proper scope of the appended claims (if any) appropriately interpreted by those skilled in the art.

Claims (5)

1. A customer loyalty program including the steps of a program administrator offering membership to the program to business members conditional upon each business member, customer members joining the program, providing each customer member at least one progress recording means to record the value of goods and/or services purchased by the customer member from the business member, providing each customer member a receipt with a receipt with each at least one progress recording means to prove the value of the at least one progress recording means, the receipt issued by the program administrator and collected by a business member with whom the customer member wishes to do business, setting a predetermined dollar value of purchases from the business member to qualify the customer member to a prepaid value means having a face value, the prepaid value means awarded to the customer member by the program administrator, upon presentation of a progress recording means establishing the predetermined amount spent, and a currency amount less than the face value of the prepaid value means, providing each business member who has redeemed a predetermined number of receipts with an equal number of prepaid value means and with one or more bonus prepaid value means to create value for the business member.

2. A customer loyalty program according to claim 1 wherein business members are also customer members of the program.

3. A customer loyalty program according to either claim 1 or claim 2 wherein the awarding of prepaid value means occurs through the program administrator who also controls entry to the loyalty program by members.

4. A customer loyalty program according to any one of the preceding claims wherein the program administrator maintains at least one database containing information relating to the program, the customer members and the business members.

5. A customer loyalty program including the steps of: i. a program administrator offering membership to the program to business members, ii. customer members joining the program; 23 iii. providing each customer member at least one progress recording means to record the value of goods and/or services purchased by the customer member from the business member; iv. providing each customer member a receipt with a receipt with each at least one progress recording means to prove the value of the at least one progress recording means, the receipt issued by the program administrator and collected by a business member with whom the customer member wishes to do business; v. setting a predetermined dollar value of purchases from the business member to qualify the customer member to a prepaid value means having a face value, the prepaid value means awarded to the customer member by the program administrator, upon presentation of: a. a progress recording means establishing the predetermined amount spent, and b. a currency amount less than the face value of the prepaid value means; and the each business member providing prepaid value means to a customer in response to a customer clearing debts with the business member.