Classifications

• • G—PHYSICS
  • G06—COMPUTING; CALCULATING OR COUNTING
  • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
  • G06Q30/00—Commerce
  • G06Q30/02—Marketing; Price estimation or determination; Fundraising

Definitions

• the present invention relates to systems and methods for allocating and distributing ownership interest in a company that supplies goods and services, where the ownership interests are allocated and distributed to customers based on an accumulated value of goods and services that the customers purchase through the business entity.
• a well-known problem with modern commerce, and especially with Internet based commerce is a lack of customer loyalty to the companies through which the customers purchase goods and services.
• e-commerce Internet based commerce
• the growing number of Web sites through which companies offer goods and services has dramatically increased competition among companies engaging in e-commerce. This has resulted in an environment of fierce competition, where the company offering the lowest price at any given time typically prevails.
• customers are better able to shop around each time they seek to purchase certain goods or services, many businesses are finding it increasingly difficult to build ongoing relationships with customers. Consequently, many businesses - both small and large - are fast becoming unable to compete and to sustain themselves for the future.
• UPC Universal Product Code
• a computer at the processing center maintains a file for each consumer, and for each participating manufacturer and its products.
• Each UPC label read adds a credit to the consumer's file for that manufacturer.
• the computer also maintains files of current stock prices for the participating manufacturers. When the consumer has accumulated enough credits to equal or exceed the current stock price for that manufacturer, the system issues a buy order to purchase one or more shares of the manufacturing company's stock.
• Ayyoubi discloses manual processes that require customers to clip UPC labels and mail them to a central processing location. Many customers are unwilling to participate in such a manual process because, in many cases, the equity interest that the customer is it is likely to receive does not justify the time and energy it would take to cut the labels and submit them to the processor. Additionally, the costs associated with maintaining the computer system and manually authenticating the labels could significantly reduce the value of equity interests that customers could obtain.
• the systems and methods of Ayyoubi are used to purchase shares in a manufacturing company, that is, the company that manufactures the product or supplies the service that the customer purchases.
• the processing center is a third party that merely collects UPC labels from, and purchases shares of stock for, the customer.
• Ayyoubi does not disclose a company allocating shares of its own stock based on purchases made by a customer of goods or services provided by the company.
• Ayyoubi also does not disclose purchasing stock in the company that provides the processing center, that is, the company the practices the methods that Ayyoubi discloses.
• Ayyoubi also does not contemplate that customers may purchase stock in the merchandising company, that is, the company through which the customer can purchase goods or services manufactured or supplied by others. Ayyoubi also does not contemplate how such systems could be adapted for use in a network-based system such as the Internet.
• the present invention satisfies these needs in the art by providing apparatus and methods for allocating and distributing ownership interest in the company based on customer purchases, thereby providing a strong incentive for customers to return to the company for further purchase.
• a method according to the invention includes allocating to the customer a purchase rebate having a purchase rebate value based on purchases of goods or services by the customer from the company.
• the company can offer the goods or services for purchase via an Internet site, or in a more conventional fashion.
• the customer is provided with one or more distribution options such as an option to acquire an ownership interest in the company, to designate a charity to receive a donation, or to receive a cash distribution.
• the customer can elect one or more of these options. If the customer elects the option to acquire the ownership interest in the company, an ownership interest in the company is allocated and distributed to the customer.
• the inventive method also includes maintaining, at a central processing server, a customer information file that includes customer profile data corresponding to the customer.
• the central processing server also receives, from a point of sale, purchase data including a purchase value of a purchase made by the customer of goods or services from the company.
• the customer is provided with an option to acquire an ownership interest in the company based on a purchase rebate that is calculated based on the purchase value.
• the company provides a Web site that the customer can access to purchase goods or services from the company.
• the central processing server is a Web server
• the server receives the purchase data from the point of sale via the Internet.
• the purchase data can be sent from the point of sale via a network access device such as a personal computer or an Internet appliance.
• the server can also receive customer profile data from the point of sale, and store the customer profile data in the customer information file.
• the server maintains in the customer information file, an accumulated purchase value based on the purchase value, and calculates the purchase rebate value based on the accumulated purchase value.
• the server receives from the customer an election indicating which of the distribution options the customer elects, and updates the customer information file to reflect the customer's election.
• a distribution is made to the customer based on the purchase credit rebate value allocated to the customer.
• the server determines from the customer information file whether the customer has elected to acquire an ownership interest in the company and, if so, the customer is notified that the customer has acquired the ownership interest.
• the customer's acquired ownership interest can also be reported to a government agency, such as the IRS or SEC, if necessary.
• Apparatus includes a central processor and a system database coupled to the central processor.
• the central processor receives purchase data from a point of sale including a purchase value of a purchase made by the customer of goods or services from the company, calculates a purchase rebate having a purchase rebate value based on the purchase value, and provides the customer with an option to acquire an ownership interest in the company based on the purchase rebate value.
• the system database stores customer profile data corresponding to the customer, transaction data representative of transactions made by the customer with the company, redemption data indicating which of a plurality of redemption options the customer has elected, credit allocation data reflecting purchase credits that have been allocated to the customer, and distribution data reflecting distributions made to the customer based on the purchase credits.
• Figure 1 is a block diagram of a system according to the present invention.
• Figure 2 is a flowchart of a method according to the present invention.
• Figure 3 is a flowchart of a customer registration and maintenance method.
• Figure 4 is a flowchart of a method for allocating purchase credits to a customer based on customer purchases.
• Figure 5 is a flowchart of a method for distributing purchase rebates based on allocated purchase credits.
• Figure 6 is a flowchart of a method for reporting and auditing allocations and distributions of ownership in a company based on customer purchases.
• Figures 7A-7E depict exemplary information tables.
• the present invention provides systems and methods for allocating and distributing purchase credits accumulated for purchasing goods or services from a company.
• the inventive methods enable the customer to receive the value of the credits in an ownership interest in the company, an equivalent charitable deduction, or a cash rebate.
• the present invention is adapted for implementation, at least in part, on a standalone computer system, or on a network-based system such as on the Internet.
• the customer when a customer purchases goods or services from a participating merchant, the customer receives information evidencing the value of the purchase, and the number of credits they are due based on a formulation of sales price, margin, and the merchant's discretion. Because different products may have various levels of cost and profit associated with them, the discretion is afforded the merchant to designate the credit values by any means the merchant sees fit. This will usually be done either on a product-by-product basis, or can be done as a specific percentage of the total price. Whatever the formula, the credits granted by the merchant are of value to the customer as either a direct or indirect reflection of the price actually paid for the goods or services. Thus, the purchase credits have a value based on the purchase value of the goods or services that the customer has purchased.
• a process is initiated to tally all accumulated credits for each customer, and to redeem the credits in one of the available forms. It is anticipated that this processing will occur about once a quarter, although it can be scheduled at any interval that the merchant desires.
• the customer In the event that the customer has elected to redeem the purchase credits for an equity interest in the company (e.g., stock), the customer will receive documents evidencing share price conversion, and the number of shares purchased by their redeemed credits. If charitable deductions are selected, the customer will receive a statement that evidences the distribution of their credits to certified and authorized organizations that are eligible to receive the proceeds. In the absence of an equity or charity designation, the customer will receive a check from the merchant in an amount equal to the credits accrued for the period. In all cases, the customer's account balance is reduced accordingly, and thorough and reliable audit records are created and maintained.
• a system 100 includes a central processing server 102 that includes a system processor 104, and a system database 106.
• central processing server 102 is a Web server maintained by the company that supplies goods or services via a Web site.
• Server 102 can also be a server on any network, such as a local area network (LAN), a wide area network (WAN), or an Intranet.
• Server 102 can also be a standalone computer located, for example, at a small retail store taking advantage of the methods of the present invention.
• System processor 104 interfaces with system database 106 to read data from and write data to system database 106.
• System database 106 can be a single database or, preferably, can include a plurality of databases, such as a customer information database 106A, a redemption information database 106B, a transaction information database 106C, and a credit allocations and distributions tracking information database 106D. The purpose for each of these databases, as well as the types of data that can be stored therein, will be described in detail below.
• System processor 104 can also interface with any of a number of external processes.
• system processor 104 can receive and process customer orders 108 from a point of sale 103.
• Point of sale 103 can be a remote sales point (i.e., the sales point can be at a physically different location from server 102), or a local sales point (i.e., the sale can take place at the same location at which server 102 is located).
• a remote sales point can be where a customer shops via the Internet (e.g., the customer's home or office).
• the company maintains a central processing server 102 at a first location, and provides a Web site via which a customer can purchase goods or services through the company.
• the customer accesses the Web site via a personal computer or an Internet appliance (such as a wireless phone, personal digital assistant, digital set-top box, etc.) located at the remote sales point (e.g., the customer's home or office).
• the remote sales point could also be a retail store where the company maintains a central processing server at a first location and deploys a sales terminal at each of a plurality of remote locations where the customer would actually make the transaction.
• a local sales point can exist, for example, where a merchant owns a single store and has a standalone computer system that includes the central processor and a keyboard and terminal or other human/machine interface through which the merchant conducts sales transactions.
• System processor 104 can also be used to perform credit card processing 1 10 for customers paying by credit card.
• System processor 104 also receives external customer data 112 and external transaction data 114 from point of sale 103.
• External customer data 112 can include data about a particular customer such as, for example, the customer's name, address, telephone number, preferred customer ID number, or any other such data that enables the company to create and maintain a meaningful customer profile about the customer.
• External transaction data 114 can include data about a particular transaction such as, for example, identification of goods or services purchased, the date of the transaction, the value of the purchase, the method of payment, or any other such data that enables the company to track customer purchases to allocate purchase credits to the customer based on the value of goods and services that the customer has purchased from the company.
• external customer data 112 can be stored in customer information database
• transaction information database 106C can be stored in transaction information database 106C.
• Processor 104 can be programmed to output reports or other documents to provide permanent records for the customer, the company, or any third party, such as a governmental or regulatory entity.
• processor 104 can be programmed to generate customer/transaction reports 116 to provide the customer with a confirmation recording certain customer or transaction data.
• Processor 104 can also provide regulatory or tax reports or other documents 118 to governmental or regulatory entities that require such information concerning the customer's acquisition of ownership interest in the company or charitable donations.
• These "documents" can be hard copy documents printed via a local or remote printer that interfaces with processor 104, or they can be electronic documents that are provided via email, for example, or made available to the appropriate parties via secure access to the company's Web site.
• Figure 2 provides a flowchart of a method 200 according to the present invention for allocating and distributing to a customer an ownership interest in a company based on the value of purchases that the customer has made from the company.
• Method 200 can be implemented in any computer system, standalone or network based, although method 200 is preferably implemented in a Web server for an Internet based system.
• the inventive methods will be /84422
• a customer registers with the company at step 202 by accessing the company's Web site from a remote sales point.
• the Web site provides an option for the customer to register by entering certain requested data.
• the server then creates (or maintains) a customer profile for the customer based on data that the customer has entered.
• a customer registration and maintenance method is described in greater detail below in connection with Figure 3.
• the customer uses the Web site to purchase goods and/or services from the company.
• the server tracks the customer's purchases and maintains a transaction file for the customer that includes purchase information about all purchases that the customer has made from the company.
• purchase credits can be allocated to the customer based on the accumulated value of goods or services that the customer has purchased through the company. A method for allocating purchase credits to a customer based on customer purchases is described in greater detail below in connection with Figure 4.
• the customer's accumulated purchase credits are redeemed automatically.
• the server schedules this redemption process periodically (e.g., quarterly).
• the customer can elect to redeem purchase credits in the form of an ownership interest in the company.
• the customer can elect to redeem purchase credits to purchase shares of stock or other such ownership interest in the company in proportion to the value of the purchase credits.
• the customer can also elect to redeem purchase credits by designating a charitable interest to receive a donation. The amount of the donation would be based on the value of the purchase credits.
• the customer can elect to receive a cash rebate having a value based on the value of the accumulated purchase credits.
• a method for distributing purchase rebates based on allocated purchase credits is described in greater detail below in connection with Figure 5.
• the company permits the customer to acquire an ownership interest in a number of forms.
• the customer can acquire an ownership interest in the company by redeeming accumulated purchase credits for shares of stock.
• the number of shares that the customer receives is based on the accumulated value of the purchase credits.
• the company can also offer ownership interest in the form of stock options, convertible bonds, ordinary bonds, or any other form in which the customer acquires an ownership interest in the company, and thereby, acquires an interest in remaining loyal to the company through repeat purchases.
• any required regulatory/tax reporting and auditing functions are performed. A method for reporting and auditing allocations and distributions of ownership in a company based on customer purchases is described in greater detail below in connection with Figure 6.
• FIG 3 is a flowchart of a customer registration and maintenance method of step 202.
• a customer accesses a Web site or other shopping location provided by a company that offers the option to acquire an ownership interest in the company based on purchases of goods and services made by the customer through the company.
• the customer registers with the company by providing certain requested information that enables the company to create (or maintain) a customer profile.
• a customer information profile is created (or updated) to include information about the customer that the customer entered at step 210.
• Customer profile data is stored in a customer information file in customer information database 106A.
• Figure 7A depicts an exemplary customer information file that can be included in customer information database 106A.
• redemption option information is created and maintained in a redemption option information file stored in redemption information database 106B, and provided to the customer via the Web site.
• the redemption option information file typically includes data necessary to provide the user with options to redeem purchase credits as ownership interest, a charitable donation, or a cash rebate.
• Figure 7B depicts an exemplary redemption option information file that can be included in redemption information database 106B.
• the customer can then elect whether to redeem accumulated purchase credits as ownership interest in the company, to make a charitable donation having a value based on the value of the purchase credits, or to receive the purchase credits as a cash rebate.
• a customer redemption profile is created (or updated) to include redemption information corresponding to the customer, including the election data that the customer entered to indicate which form of redemption the customer has elected.
• the redemption data is stored in a customer redemption information file in customer redemption information database 106B.
• Figure 7C depicts an exemplary customer redemption information file that can be included in redemption information database 106B.
• a copy of the customer's newly created or updated customer profile, or changes made thereto can be provided to the customer for the customer's permanent records.
• the copy can be a hard copy report that is printed and handed or mailed to the customer, or it can be a soft copy that is communicated to the customer via electronic mail, or made available via the company's Web site, etc.
• FIG. 4 is a flowchart of a method of step 204 for allocating purchase credits to a customer based on customer purchases.
• the customer accesses the company's Web site or other shopping location to purchase goods or services from the company.
• the customer is provided with access to the Web pages that display the goods or services that the company provides.
• the customer is permitted to browse these Web pages, and to shop for goods or services.
• Information about the goods or services that the company provides can be stored in an external product information database 113.
• Database 113 can include such data as the product's name, ID, sizes, styles, price, etc.
• the customer is identified by secure authorization.
• the customer is required to enter a logon ID and a password.
• the customer information file in customer information database 106A is scanned to determine whether the entered logon ID and password correspond to a registered customer. If the entered logon ID and password correspond to a registered customer then the customer and transaction information files are updated to reflect information about the transaction.
• Figure 7D depicts an exemplary transaction information file that can be included in transaction information database 106C. If the customer is not registered with the company, the customer is given an option to register as described above, and then the purchases are totaled and the appropriate files are updated to reflect the transaction.
• customer purchase rebate credits are calculated based on the value of the goods and services purchased.
• the customer is presented with the calculation results for verification, and provided with an opportunity to confirm that the purchase rebate is calculated correctly for the goods or services purchased.
• the customer can be an individual, or a member of a group, such as a corporation. Accordingly, a group ID corresponding to the customer is also stored in the customer information file.
• the customer can access the company's Web site to make a purchase as an individual. In that case, the purchase credits accrue in his or her individual account.
• the customer can make a purchase on behalf of an employer, a civic organization, or any other group to which the individual belongs.
• the customer could enter a group ID number corresponding to the employer, and the employer would receive the allocation of purchase credits, rather than the individual.
• the customer could be purchasing from the company as a fundraiser for the civic organization or other group. In this case, the customer would enter the group ID corresponding to the civic organization or other group, and the civic organization or other group would accumulate the purchase credits, rather than the individual.
• a copy of the transaction information can be provided to the customer for the customer's permanent records.
• the copy can be a hard copy report that is printed and handed or mailed to the customer, or it can be a soft copy that is communicated to the customer via electronic mail, or made available via the company's Web site, etc.
• FIG. 5 is a flowchart of a method of step 206 for distributing purchase rebates based on allocated purchase credits.
• the purchase credits are distributed in the form of ownership in the company, charitable donations, and/or cash rebates.
• Credit redemption processing is scheduled to occur periodically at step 228.
• distributions are made quarterly, although, as discussed above, distributions can be made or scheduled at any time that suits the needs of the company and its "CUSTOWNERS" (i.e., its customer-owners).
• the central processing server conducts a search of the customer and transaction information files to determine which customers, if any, are entitled to a distribution during the current distribution period.
• a threshold number of customer purchase rebate credits can be required to accumulate before a customer is entitled to a distribution. For example, if a customer has elected to redeem the customer's purchase rebate in the form of stock, but has accumulated only a relatively small number of purchase rebate credits, it might not be cost-effective for the company to distribute so small an ownership interest. In such circumstances, the rebate value will continue to accumulate into the next distribution period.
• the credit allocations and distributions tracking file is updated to reflect the distribution.
• Figure 7E depicts an exemplary credit allocations and distributions tracking file that can be included in credit allocations and distributions tracking database 106D.
• Redemption documents are distributed at step 234. Notifications can be mailed to the customers that elected to redeem some or all of their purchase credits as an ownership interest in the company. These notifications can be mailed either electronically or via regular mail. For those customers that elected to redeem some or all of their purchase credits as charitable donations, the company can send payments to the designated charitable organizations, and send notifications of the payments to the customers that requested them. Also, the company can send cash rebates directly to those customers that have elected to redeem some or all of their purchase credits as a cash rebate. This can be accomplished either by mailing a check, or by electronically transferring the money into an account that the customer has designated for that purpose. On the other hand, the company may offer stock options for the purchase of stock at specified times and rates, to facilitate the redemption of purchase credits by many customers at about the same time in an efficient manner.
• FIG. 6 is a flowchart of a method of step 208 for reporting and auditing allocations and distributions of ownership in a company based on customer purchases.
• the regulatory and auditing functions are scheduled. As with distributions, it is preferred that these functions are scheduled periodically, e.g., once per quarter.
• the scheduled regulatory processing is performed.
• the required regulatory reports are generated and dispatched to the appropriate governmental or regulatory entities.
• the company may be required to notify the SEC of all distributions of ownership interest during the last reporting period, and to identify to whom the distributions were made.
• the company may be required to notify the IRS of all distributions, whether the distribution is in the form of ownership interest, charitable contributions, or cash rebates.
• customer reporting information 123 is distributed to each customer that received a distribution during the reporting period.
• the customer reporting information provides notification to the customer that the distribution has been reported, and identifies the agencies to which a report has been made.
• the company distributes company reporting information 125 to itself (to keep track of the customers' ownership interests), as well as to any organizations that have received charitable donations.
• audit and archive processing is performed.
• the company performs an internal audit periodically to ensure that purchase credits are being allocated and distributed properly, and to ensure that all required reports are being made.
• the audit information 127 is then archived, that is, stored in a database for later retrieval, if necessary.

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• 2001
  • 2001-04-24 AU AU5559201A patent/AU5559201A/xx active Pending
  • 2001-04-24 WO PCT/US2001/013054 patent/WO2001084422A2/fr active Search and Examination

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