METHOD OF ADMINISTERING AN ELECTRONIC TRANSACTION INCORPORATING LOTTERY TICKETS
This application claims the benefit of U.S. Application Serial No. 09/320,354 5 filed May 26, 1999, which is hereby incorporated herein by reference in its entirety.
BACKGROUND OF THE INVENTION
1. Field of the Invention 0
The present invention relates to electronic commerce and, more specifically, to a method for administering electronic commerce-based transactions.
2. Description of the Prior Art 5
Incentive-based sales programs are frequently employed by businesses to drive product trial, build brand loyalty and increase brand exposure. An example of such a program includes a system that gives customers stamps that are redeemable for products or services once the customer collects a sufficient number of stamps. In recent 0 years, such programs have also been employed to provide businesses with demographic information regarding customers and to facilitate targeted advertising. For example, an incentive card, that a customer uses to receive redeemable points upon being presented to a merchant when purchasing a product, will typically include a magnetic stripe containing information regarding the customer that is transferred to the merchant at the 5 point of sale.
Other incentive-based sales programs require the customer to provide demographic and personal preference information that may be used to tailor a business' advertising programs. Such programs reward the customer for providing the business 0 with information (usually by filling out a survey) about such things as the customer's spending habits, groups with which the customer identifies and the types of products
that the customer is likely to buy. The disadvantages of existing incentive-based sales programs include: (1) they require the customer to spend time in qualifying for benefits, thereby making the customer less likely to participate; (2) they add overhead to the administration of the program (e.g., they require typists to transcribe the data collected into a database); (3) because they are typically administered through the mail, the delay involved distances the product from the benefit received by the customer, thereby reducing the advertising effect of the program; and (4) because they typically require sophisticated data processing systems to award and track earned incentives, many companies cannot take advantage of such programs.
The Internet has made possible massive direct and immediate contact between businesses and consumers. Examples of existing commercial uses of the Internet include fee-based information services, direct purchasing services and advertising. Generally, these systems fall under the category of electronic commerce (also referred to as "e-commerce"). Even though the Internet provides a powerful tool for customer contact, use of the Internet in incentive-based sales programs has been under exploited. Existing Internet incentive-based sales programs provide discounts to customers, but have the disadvantage of not tying the benefit provided to the customer directly to the purchase of a product, particularly when the product is purchased at retail locations.
Furthermore, many companies use their own web sites to provide advertising. However, many consumers will not access a web site without an incentive to do so. Some web sites provide an incentive to log on by allowing the user to participate in a contest. However, such incentives have a disadvantage in that consumers are becoming less enthusiastic about contests as they have proliferated throughout the Internet as they offer only a limited chance of conferring a benefit. Furthermore, currently there are a limited number of ways to take advantage of promotional tools commonly used by retail-based businesses, particularly in the area of product discount offers via direct mail.
SUMMARY OF THE INVENTION
The disadvantages of the prior art are overcome by the present invention which, in one aspect, is a method of administering an electronic commerce program. A unique identifier is printed on a substrate, a benefit is associated with the unique identifier, and the substrate is issued to an end-user. An electronic communication, which includes a recitation of the unique identifier, is received from the end-user. A benefit due to the end-user is determined based on the unique identifier and the benefit is conferred on the end-user. Upon receiving the electronic communication from the end-user, a record of the unique identifier is updated to show that the unique identifier is no longer valid, thereby preventing reuse of the unique identifier.
Another aspect of the invention is a ticket for use in an electronic commerce program that includes a substrate with a unique identifier printed thereon. Also printed on the substrate is a set of instructions that indicate to an end-user how to effect an electronic communication of the unique identifier to a controlling authority so as to enable the user to receive a benefit from the controlling authority.
Yet another aspect of the invention is a system for administering an electronic commerce incentive program that includes a mechanism that distributes a plurality of substrates to a plurality of end-users, wherein each substrate includes a unique identifier. The system also includes a computer programmed to maintain an identifier record for each unique identifier, the identifier record including an indication of whether each unique identifier is valid. The computer is also programmed to receive an electronic communication of at least one unique identifier from at least one end-user and to access the identifier record corresponding to the unique identifier communicated from the end-user to verify that the unique identifier communicated by the end-user is a valid unique identifier. If a unique identifier communicated by the end-user is a valid unique identifier, then the computer is programmed to modify the record to indicate that the unique identifier communicated by the end-user is no longer valid and to confer a benefit upon the end-user.
The invention has the advantage of providing an incentive to the user to access the controlling authority's Internet web site. Thus, the invention increases the probability that product users regularly become exposed to the controlling authority's advertising. The invention also provides the advantage of reducing the cost of administering an incentive program, as much of the administration of an incentive program is done by computer. Certain embodiments of the invention provide the further advantage of encouraging brand loyalty, as the user is likely to continue purchasing a given brand in order eventually to receive a benefit.
These and other aspects of the invention will become apparent from the following description of the preferred embodiments taken in conjunction with the following drawings. As would be obvious to one skilled in the art, many variations and modifications of the invention may be effected without departing from the spirit and scope of the novel concepts of the disclosure.
BRIEF DESCRIPTION OF THE FIGURES OF THE DRAWINGS
FIG. 1 is a flow chart depicting the method of one embodiment of the invention.
FIG. 2 A is a schematic diagram of a product coupon issued in accordance with the invention.
FIG. 2B is a schematic diagram of the product coupon shown if FIG. 2 A, in which the registration number is revealed.
FIG. 3 A is a schematic diagram of a discount coupon issued in accordance with the invention.
FIG. 3B is a schematic diagram of the discount coupon shown if FIG. 3 A, in which the registration number is revealed.
FIG. 4A is a schematic diagram of a product label issued in accordance with the invention.
FIG. 4B is a schematic diagram of the product label shown if FIG. 4A, in which the registration number and the point indicator are revealed.
FIG. 5 A is a schematic diagram of an electronic coupon bond issued in accordance with the invention.
FIG. 5B is a schematic diagram of the electronic coupon bond shown if FIG. 5A, in which the registration number and the coupons are revealed.
FIG. 6 is a schematic diagram of a package insert embodiment of the invention.
FIG. 7A is a schematic diagram of a lottery ticket including a point coupon issued in accordance with the invention.
FIG. 7B is a schematic diagram of the lottery ticket shown if FIG. 7 A, in which the registration number and the point indicator are revealed.
DETAILED DESCRIPTION OF THE INVENTION
A preferred embodiment of the invention is now described in detail. Referring to the drawings, like numbers indicate like parts throughout the views. As used in the description herein and throughout the claims, the following terms take the meanings explicitly associated herein, unless the context clearly dictates otherwise: the meaning of "a," "an," and "the" includes plural reference, the meaning of "in" includes "in" and on.
The figures referred to herein include examples of embodiments of the invention that contain depictions that may resemble trademarks, trade names or web sites. It is the intention of the inventor that such depictions represent only the idea of such an identifier being used in association with the embodiment, and that such depictions do not resemble any actual trademarks, trade names or web sites. Any resemblance of any of the depictions in the figures to any actual trademark, trade name or web site is completely unintentional and merely coincidental. Therefore, none of the depictions in the figures should be interpreted as showing any affiliation with any actual source of goods or services.
As shown in FIG. 1, the steps 100 followed in the method of the invention start with a controlling authority creating a record 110 of the unique identifier and printing a unique identifier (such as a registration number) on a substrate 111, such as a ticket or a label, and. A benefit is also associated with the unique identifier. In this way, the controlling authority issues a plurality of substrates. For example, all unique identifiers within a preselected range may be associated with a discount of a preselected amount that is applied to the subsequent purchase of a product. Examples of controlling authorities include companies that sell products, Internet companies that provide electronic commerce services, and an incentive clearing houses that administer incentive programs for other companies. The substrate is then issued to an end-user, such as a customer or potential customer.
The end user, when ready to activate the substrate, communicates electronically (e.g. , by accessing an Internet Web site or by telephoning) with the controlling authority. The controlling authority receives the electronic communication 112 from the end-user, in which the end user communicates the unique identifier to the controlling authority. Then, the controlling authority accesses 114 a record of the unique identifier. The record includes an indicator, such as a flag, that indicates if the unique identifier is valid. For example, the unique identifier could be flagged invalid if it has already been used, or if it has not yet been issued. The controlling authority determines 116 if the unique identifier is valid. If it is not, then the controlling
authority requests 118 reentry of the unique identifier, or the controlling authority may discontinue the communication in alternate embodiments. The controlling authority may also allow the end user to retry sending the unique identifier several times before discontinuing the communication.
If the unique identifier is valid, then the controlling authority will determine 120 the benefit due to the end-user based on the unique identifier and will then confer 122 the benefit on the end-user. Next, the controlling authority will update the record of the unique identifier to show that the unique identifier is no longer valid 124, thereby preventing its reuse.
The benefit may be conferred in several ways. For example, the controlling authority could confer a benefit by crediting a point value to the end user's account. In another example, the controlling authority would send the end user a product or a cash payment.
As will be explained more fully below, the unique identifier could include a registration number that is combined with each of a plurality of transaction numbers. For example, the substrate could include one registration number and six different transaction numbers and, thus, the substrate would include six different unique identifiers.
As shown in FIGS. 2 A and 2B, one embodiment of the invention, includes a substrate 200 that is used as an e-commerce coupon 210, such as one issued by an Internet product ordering service. Identifying information 212, such as a company logo or trademark, is printed on the substrate 200, along with information 214 explaining the nature of the coupon. Also printed on the substrate 200 is information 216 explaining how to receive the benefit conferred by the coupon. A registration number 218, which serves as the unique identifier in this embodiment, is also printed on the substrate. FIG. 2A shows the registration number covered with a removable covering 218a that may be provided for added security, whereas FIG. 2B shows the uncovered registration number
218b. Examples of a removable covering include a scratchable latex covering, a peel- off label and a removable tab. The coupon 210 shown in FIGS. 2A and 2B confers a benefit by crediting the end user with a free product upon the subsequent purchase of a similar product.
To use the coupon 210, the end user accesses the controlling authority's web site at the Internet address provided in the explaining information 216. (The system may also provide for users that do not have Internet access by allowing them to call the controlling authority on the telephone). The user scratches off the removable covering 218a on the registration number 218b and enters it in response to a query presented on the controlling authority's web page. The controlling authority then determines if the registration number 218b is valid and, if so, credits the user's account. The controlling authority also invalidates the registration number 218b, disabling its further use. If the coupon 210 included an expiration date 230, the controlling authority would maintain a record of the expiration date 230 and determine if the expiration date 230 has been passed, thereby rendering the coupon 210 invalid.
FIGS. 3 A and 3B show an embodiment of the invention in which the substrate 300 is a coupon 310 that is styled after a bank draft and in which the benefit conferred is a discount on a subsequent purchase from an Internet product ordering service. On the coupon 310 is printed the logo 312 of the service and a face value 322 of the coupon 310. The name 324 of the authorized end user may also be printed on the coupon 310. This embodiment could be single user specific (i.e., including only one authorized user's name) or it could allow one of several users to benefit from the coupon 310 (such as by printing the name of the user "or current resident" as shown in item 324). This coupon 310 also includes information 316 on how to receive the benefit and a registration number 318a and 318b.
As shown in FIGS. 4A and 4B, in one embodiment of the invention, the substrate 400 is a label 410 that is applied to a product, or to packaging therefore. As in the previously discussed embodiments, the label 410 includes the mark associated with
the product 412, information 416 on how to receive the benefit and a registration number 418a (covered) and 418b (uncovered). However, this example also includes a point value 420a (covered) and 420b (uncovered) associated with each substrate 400. The point value 420 is accumulated in a user's account and the user is able to claim a prize once a predetermined number of points have been accumulated. For example, the controlling authority may offer a catalog of prizes from which a user my choose different prizes, depending on the accumulated point in his or her account.
In another embodiment of the invention, as shown in FIGS. 5A and 5B, the substrate 500 is an e-commerce coupon bond 512 that may be used in the electronic administration of securities. The bond 510 includes an identification 512 of the bond 510, information 516 on how to redeem the bond 510 and a registration number 518a (covered) and 518b (uncovered). However, this example also includes a plurality of transaction numbers 520a (covered) and 520b (uncovered) that, in this example, serve as coupons 522 for the bond 510. Each coupon 522 may be redeemed at a different time by accessing the controlling authority's web site (or telephone number) and communicating both the registration number 518b and the coupon number 528, which together form a unique identifier. The bond 510 may also include a removable covering 524 that covers each coupon 522a and the each uncovered coupon 522b could include a redemption value 526 associated with the coupon. Although an example of a security is presented with this embodiment, this embodiment could be used merely to imitate a bond in conjunction with promotional activities, or it could be used in other ways that are not related to securities. Therefore, it is intended that the scope of the invention, as described in this paragraph, extend to any embodiment that employs a single registration number associated with a plurality of transaction numbers.
In yet another embodiment of the invention, as shown in FIG. 6, the substrate 600 is a package insert 610, which could include a flier inserted in the product package or the substrate 600 could even be printed on the inside of a jar lid or a bottle cap. This example includes identification of the product 612, information on how to redeem points 616, a registration number 618 and a point value 620.
If the package insert 610 is embodied in the inside of a lid or cap, it may be unnecessary, for security reasons, to add a removable covering over the registration number 618 or the point value 620 because the inside of a lid or bottle cap is not usually viewable until the jar or bottle has been opened. If there is not enough room inside a bottle cap for all of the necessary information, then additional information on how to redeem the points may be printed on the bottle (not shown, but would be part of a typical bottle label as is known in the bottling industry) or its packaging (also not shown, but which could include a carton of several bottles as is known in the packaging industry), which will then be considered part of the substrate 600 when distributed with the bottle cap.
As shown in FIGS. 7 A and 7B, in another embodiment of the invention the substrate 700 comprises a lottery ticket 710 having a ticket portion 730 and a second portion 740. The ticket portion 730 may be separated from the second portion 740 by a perforation 742, thereby forming a stub. The perforation 742 may be useful when it is intended that the user keep the stub portion 740 after discarding the ticket portion 730.
The ticket portion 730, used in association with a lottery or other game of chance, may include a lottery identification 712 and a plurality of play spots 732a and 732b. In FIG. 7A, the play spots 732a are covered with a removable covering, e.g., a latex covering or a peel-off label. In FIG. 7B, the removable covering has been removed from the play spots 732b to show play values 734 printed on the substrate 700. Such play values 734 could comprise a prize value, such as a cash amount.
The second portion 740 includes a registration number 718a and 718b and a point value 720a and 720b associated with each substrate 700. The point value 720 may be accumulated in a user's account so that the user is able to claim a prize, or other benefit, once a predetermined number of points have been accumulated. Such prizes could include a free lottery ticket, entry into a drawing or a product (e.g., a ball cap bearing a lottery logo). The stub portion 740 also includes information 716 on how to receive the benefit. This embodiment has the advantage of making the lottery ticket
710 more attractive to the user because the user is certain to receive some benefit upon accumulating a sufficient number of points.
It should be noted that although FIGS. 7 A and 7B disclose this embodiment as an instant win scratch-and-play lottery game ticket, this embodiment could also be offered on an on-line lottery game ticket, such as a lotto ticket of the type issued in connection with a drawing. Such a ticket would include drawing numbers, a registration number and a point indicator printed on a substrate, typically without a removable covering. The drawing numbers are the numbers that would have to be drawn in the drawing for the user to win a prize. Even if the user does not win a prize, the user may realize a benefit by logging onto the lottery's Internet site and entering the registration number and the point value.
In the embodiments disclosed above that include the ability to accumulate points, the controlling authority will issue an account number, or other unique user identification, to each user so that the controlling authority can maintain a record of the number of points accumulated for each user. Alternately, the controlling authority may access the user's record based on an existing unique user identification, such as social security number, telephone number or combination of name and address.
The above described embodiments are given as illustrative examples only. It will be readily appreciated that many deviations may be made from the specific embodiments disclosed in this specification without departing from the invention. Accordingly, the scope of the invention is to be determined by the claims below rather than being limited to the specifically described embodiments above.