INTERNET LOYALTY PROGRAM
BACKGROUND
FIELD OF THE INVENTION This invention pertains in general to business marketing on the Internet and in particular to a customer loyalty program.
BACKGROUND ART
Internet service providers (ISPs) provide Internet access to customers. The Internet access is usually one of two categories of service: dialup or broadband. For dialup access, the customer uses an analog modem to connect to the ISP via analog telephone lines. For broadband, the customer connects to the ISP using a faster connection technology such as DSL modems, cable modems, or satellite broadcasting/receiving.
The network "quality of service" (QoS) varies depending upon the access technology and the service provided by the ISP. As used herein, "network QoS" refers to one or more parameters describing the network connection and may include: minimum guaranteed bandwidth; average expected bandwidth; maximum bandwidth; maximum total aggregate information downloadable in a month (i.e., a "bit cap"); maximum network latency; maximum network jitter; and/or a queuing priority. Bandwidth, defined herein as the amount of data passed along a communications channel in a given period of time, is probably the most important and noticeable parameter in network QoS. Since broadband access has a much higher potential maximum bandwidth than dialup access, customers generally prefer broadband access because it provides a superior user experience, such as shorter download times and higher performance when viewing and/or listening to multimedia content, playing network games, or engaging in real-time communications (e.g., Internet-based telephony).
However, not all customers are willing, or can afford, to pay for the high network QoS provided by broadband access. Delivery of high-speed Internet access via broadband technologies is relatively expensive for the ISP when compared to dialup technologies. The ISPs pass at least part of these costs to customers in the form of higher startup and fixed recurring costs. As a result, many customers have lower network QoS than the customers would prefer.
As an alternative, some ISPs offer a variable level of network QoS for a variable cost. As a customer uses more network resources, the customer pays more in either stepwise or
ttinuous increments. For example, the customer can pay a variable price each month ^ ending upon the amount of network resources (e.g., data downloaded, time spent online etc.) consumed during the month. However, this alternative is less desirable than fixed fees because the customers are discouraged from using the Internet connection due to the increasing fees. Thus, there are two current pricing models: 1) fixed, and relatively high, recurring costs in return for high network QoS; and 2) variable recurring costs depending upon the network QoS resources utilized by the customer. In each of these models, the customer obtains higher network QoS by paying higher costs.
Another problem suffered by ISPs is "churning," which occurs when a customer abandons an account. The ISP may suffer high costs in signing up a customer, only to have the customer leave after several months for another ISP that provides higher network QoS and/or a lower fee. To combat this problem, the ISPs often require long subscription periods, such as 12 months, and expensive penalties for early cancellation. However, the ISPs cannot make these terms too onerous or the customers will be reluctant to subscribe. Therefore, there is a need in the art for a way to attract customers to a particular ISP by offering a relatively high network QoS, such the QoS provided by broadband access, for a relatively low cost. There is a further need to reduce churn by keeping customers loyal to the ISP.
DISCLOSURE OF THE INVENTION
The above needs are met by a customer loyalty program where the customer earns loyalty points through engaging in loyalty activities with an Internet service provider (ISP) or one of its partners and where the customer can redeem the loyalty points at the ISP in return for increased network quality of service (QoS). As used herein, "network QoS" refers to one or more parameters which may include: minimum guaranteed bandwidth; average expected bandwidth; maximum bandwidth; maximum total aggregate information downloadable in a month (i.e., a "bit cap"); maximum network latency; maximum network jitter; and/or a queuing priority. A preferred embodiment ofthe present invention increases the maximum bandwidth when the customer redeems enough points. The customer preferably pays a relatively low and fixed recurring amount to the ISP for the Internet access. The Internet access can be, for example, via a digital subscriber line (DSL) connection, a cable modem connection, a wireless connection, or any other connection technology. The ISP controls the network QoS available over the Internet connection. In one embodiment, for example, the default maximum bandwidth is a relatively low 128 Kbps.
The partner enters into a loyalty program relationship with the ISP. A partner can be, for cΛαmple, an advertising agency/provider, retail store, brokerage, car dealership, credit card company or issuing bank, or mortgage broker. In its most basic form, the partner and the ISP preferably enter into an agreement wherein the ISP provides the partner with "points," or grants the partner the right to distribute points, in exchange for some form of payment to the ISP. The payment to the ISP may take the form of bartered services or goods.
The partner awards points to the customer when the customer engages in specific loyalty activities with the partner. The specific loyalty activities designated by the partner depend on the type of business conducted by the partner but generally include: 1) view-oriented; 2) transaction/money-oriented; and 3) initiation-oriented activities. A view-oriented loyalty activity occurs when the customer is rewarded with points for viewing a message. A transaction/money-oriented loyalty activity occurs when the customer is rewarded with points for purchasing a product or service or otherwise engaging in a specified transaction, such as filling out a survey. An initiation-oriented loyalty activity occurs when the customer is rewarded with points for initiating a relationship with an entity.
The partner assigns a point value to each loyalty activity and awards the point(s) to the customer upon the customer's completion ofthe activity. Preferably, the ISP holds the customer's points. Thus, when the partner awards points to the customer, the partner notifies the ISP ofthe customer and number of points. The ISP informs the customer ofthe customer's current loyalty point total by, for example, sending the customer an email message specifying the number.
The customer can redeem the points at the ISP in exchange for increased network QoS for a specified duration. One exemplary embodiment ofthe present invention offers four levels of network QoS, each having a different maximum downstream bandwidth: 128 Kbps, 256 Kbps, 512 Kbps, and 1.5 megabits per second (Mbps). If the customer redeems enough points, the customer's maximum bandwidth is increased to a higher level. Preferably, the ISP publishes a schedule setting forth the exact relationship between points, network QoS, and the duration of any upgrade.
Since the customer does not always readily perceive bandwidth and other network QoS increases, a preferred embodiment ofthe present invention provides the customer with a graphical indication ofthe customer's network QoS. In one embodiment ofthe present invention, a speed meter showing the customer's maximum downstream bandwidth is integrated into the customer's browser. The speed meter may also indicate the customer's future network QoS, e.g., the bandwidth that the customer will have after redeeming loyalty points.
■V EF DESCRIPTION OF THE DRAWINGS
FIGURE 1 is a high-level block diagram illustrating communications between a customer, Internet Service Provider (ISP), and partner according to an embodiment ofthe present invention;
FIGURE 2 is a flow diagram illustrating exemplary transactions between the customer, ISP, and partner according to an embodiment ofthe present invention; and
FIGURE 3 is an illustration of a representative customer computer display showing a graphical representation of network quality of service.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
FIG. 1 is a high-level block diagram illustrating communications between various parties according to an embodiment ofthe present invention. A customer 110 receives Internet access (represented by arrow 116) from an Internet service provider (ISP) 112. The ISP 112, in turn, establishes a loyalty program (represented by arrow 118) with at least one partner 114. The customer 110 engages in loyalty activities (represented by arrow 120) with the partner 114 and, in return, obtains higher network quality of service (QoS) Internet access 116 from the ISP 112.
In one embodiment ofthe present invention, the customer 110 is a person, household, business, or other entity that obtains broadband Internet access 116 from the ISP 112. The customer 110 preferably subscribes to the Internet access 116 and pays a fixed recurring fee, such as a monthly subscription fee. However, other business relationships and terms, such as rentals, sales, or yearlong subscriptions and/or variable or non-periodic subscription fees are within the scope ofthe present invention. The fixed recurring fee is preferably relatively low compared to typical fees for broadband access, and can be zero. The broadband Internet access 116 can be, for example, a digital subscriber line (DSL) connection, a cable modem connection, a wireless connection, or any other connection technology that provides the customer 110 with Internet access. The ISP 112 has the ability to control the network QoS in both the upstream (from the customer 110 to the ISP) and downstream (from the ISP to the customer) directions. Network QoS refers to one or more parameters that affect network performance for the customer 110. In one embodiment ofthe present invention, network QoS includes parameters such as: minimum guaranteed bandwidth — the minimum upstream and/or downstream bandwidth over the customer's Internet connection;
average expected bandwidth ~ the average bandwidth in the upstream and/or uu nstream direction that the customer can expect to receive;
maximum bandwidth — the maximum upstream and/or downstream bandwidth over the customer's Internet connection;
maximum total aggregate information downloadable in a time period — a limit, or "bit cap," on the amount of data that the customer can download in a given time period;
maximum network latency — a guaranteed maximum amount of latency that will be suffered by Internet protocol (IP) data packets heading to/from the customer's computer;
maximum network jitter — a guaranteed maximum amount of jitter that will be suffered by IP data packets heading to/from the customer's computer; and/or
queuing priority— a priority level used by network routers when routing the customer's IP packets.
Alternative embodiments ofthe present invention can have different and/or additional network QoS parameters.
The parameters relating to bandwidth are probably the most important and noticeable to the customer 110. In one embodiment, the maximum bandwidth is initially set to 128 Kbps in both the upstream and downstream directions, which equates to a relatively low network QoS for broadband access. As is understood in the art, the customer 110 uses the Internet access to browse the
World Wide Web (the "Web" or "WWW") or perform other Internet-related activities. The customer uses browsing software to browse the Web and select, or "click" links to other pages. By so browsing, the customer can engage in electronic commerce activities such as purchasing a product or service, reading a Web page containing an embedded advertisement, sending a greeting card or an email, etc.
The ISP 112 provides Internet access 116 to the customer 110. Although shown as a single entity in FIG. 1, the ISP 112 may actually be comprised of multiple entities working together. For example, a network provider may partner with a multiple systems operator (MSO), such as a cable television company, or a local exchange carrier (LEC), such as a
φhone company, in order to provide the Internet access 116. In a typical arrangement, the ±vjL O/LEC provides the network infrastructure to the customer's location, and the network provider manages the customer's account and a network backbone that provides the Internet connectivity. In any event, as used herein the term "ISP" refers to any or all ofthe entities providing the functionality and services ascribed herein to the ISP.
The partner 114 can be any entity that enters into a loyalty program 118 with the ISP. There are preferably many different partners enrolled in the program 118. A partner 114 can be, for example, an advertising agency/provider, retail store, brokerage, car dealership, credit card company or issuing bank, or mortgage broker. The ISP 112 itself can also be a partner. The partner 114 can be located on a private network reachable by only customers ofthe ISP 112 or can be located on the Internet at-large. A partner 114 preferably engages in online commerce. However, traditional (i.e., not Internet-based) partners 114 are also within the scope ofthe present invention.
FIG. 2 is a flow diagram illustrating exemplary transactions between the customer 110, ISP 112, and partner 114 accordmg to an embodiment ofthe present invention. In FIG. 2, the customer 110, partner 114, and ISP 112 are listed across the top. Beneath each entity is a vertical arrow, representing the passage of time. The horizontal arrows between the vertical arrows represent transactions between the associated entities. FIG. 2 illustrates transactions in only one embodiment of the present invention and the order ofthe transactions can vary in practice. Moreover, not every transaction is shown in FIG. 2. As is known in the art, the transactions illustrated in FIG. 2 can be performed automatically by one or more computer systems executing on behalf of the customer 110, ISP 112, and/or partner 114. The computer systems typically include processors, memories, and computer-readable media holding software modules as is known in the art. The communications between the customer 110, ISP 112, and partner 114 are preferably transmitted electronically using known transmission formats and media.
Initially, the partner 114 and ISP 112 enter 210 into a loyalty program relationship. The partner 114 may seek to enter the relationship with the ISP 112 or the ISP may seek to enter the relationship with the partner. The specific terms ofthe loyalty program can vary depending upon negotiations between the parties 112, 114 and the type of business conducted by the partner. In its most basic form, the partner 114 and the ISP 112 preferably enter into an agreement wherein the ISP provides the partner with "points," or grants the partner the right to distribute points, in exchange for some form of payment to the ISP. The payment to the ISP 112 can be cash, a bartered good and/or service, or anything else of value to the ISP. Points are
intermediate currency equivalent to tokens or scrip and carry a value with respect to the ISP ι x , partner 114, and/or customer 110. The value is preferably non-monetary and the points are preferably non-transferable except as described herein.
There are many different distribution models by which the ISP 112 can allocate points to the partner 114 and by which the partner can grant points to the customer 110. In one embodiment, the ISP 112 sells the partner 114 a predetermined amount of points for a fixed fee. In another embodiment, the ISP 112 grants the partner 114 permission to grant points to customers with the requirement that the partner account for the points and pay the ISP 112 for each granted point. In yet another embodiment, the ISP 112 charges the partner 114 a fixed fee for entry into the loyalty program and then charges the partner additional fees for points distributed by the partner.
Obviously, if the ISP 112 and partner 114 are the same entity, then there does not need to be a negotiated business relationship between the two parties. Instead, the loyalty program can be solely administered by the ISP/Partner. As such, any allocation of costs and benefits with respect to granting and redeeming of points can be handled internally by the ISP/Partner. The partner 114 awards 214 points to the customer 110 when the customer engages 212 in specific loyalty activities with the partner (or with another entity having an agreement with the partner). A loyalty activity is any fonn of electronic commerce activity designated by the partner 114 as entitling the customer 110 to points. The specific loyalty activities designated by the partner 114 depend on the type of business conducted by the partner. In general, loyalty activities are divided into three categories: 1) view-oriented; 2) transaction/money-oriented; and 3) initiation-oriented. However, the distinctions between the categories are blurred and certain activities may fall into more than one category.
A view-oriented loyalty activity occurs when the customer 110 is rewarded with points for viewing a message. The message can be textual or graphical. In addition, the points can be awarded after the customer 110 performs an action with respect to the message. For example, the loyalty activity can award points when the customer 110 clicks on a banner ad, clicks through a series of pages advertising a product, sends, receives, or reads an email or online greeting card, agrees to keep a window containing advertisements open while browsing, etc. A transaction/money-oriented loyalty activity occurs when the customer 110 is rewarded with points for purchasing a product or service or otherwise engaging in a specified transaction. The customer 110, for example, can be rewarded with points for using a specific credit card when making an online (or offline) purchase. Alternatively, the customer 110 can be rewarded
: purchasing a specific product or service, or for responding to an online survey or 4uestionnaire.
An initiation-oriented loyalty activity occurs when the customer 110 is rewarded with points for initiating a relationship with an entity. For example, the customer 110 can be rewarded for signing up for a brokerage account, filling out a credit card application, signing up for long-distance telephone service, or trying out a new feature, such as web-based email or instant messaging, provided by the partner. Likewise, the customer 110 can be rewarded for referring another customer into the loyalty program.
The partner 114 assigns a point value to each loyalty activity and awards 214 the point(s) to the customer 110 upon the customer's completion ofthe activity. Preferably, the amount of points held by each customer are stored by the ISP 112 in a points database 222. Thus, when the partner 114 awards 214 points to the customer 110, the partner notifies the ISP 112 ofthe customer and number of points. Depending upon the embodiment and loyalty activity, the partner 114 can also inform the customer 110 that points were awarded. In one embodiment of the present invention, loyalty activities performed by the customer 110 pass through an ISP 112 computer system. Accordingly, the ISP 112 automatically knows when the customer 110 has engaged in a loyalty activity and can award the points without partner 114 input. Additional information about the customer 110, ISP 112, and/or partner 114, such as the loyalty activities performed by the customer or details ofthe loyalty program, can also be held in the points database or in additional databases.
The ISP 112 informs 216 the customer 110 ofthe number of points currently held by the customer. The ISP 112 can accomplish this step by, for example, sending the customer 110 an email message specifying the point total or making available a web page from which the customer can view his/her account. The ISP 112 also preferably sends 218 the partner 114 periodic statements accounting for the points awarded by the partner.
The points held by the customer 110 are periodically redeemed 220 at the ISP 112 in exchange for increased network QoS for the customer for a specified time period. The relationship between points, network QoS, and duration is preferably set by the ISP 112. In a preferred embodiment ofthe present invention, the maximum bandwidth is the network QoS parameter increased when the customer 110 redeems points. The ISP 112 preferably determines whether the point redemption affects the upstream bandwidth, downstream bandwidth, or both. The granularity of available bandwidth increases depends on the technology available to the ISP 112; in one embodiment of the present invention the ISP can regulate bandwidth to within approximately 10-30Kbps. However, research shows that customers generally have difficulty
ceiving bandwidth changes of that size. Therefore, an embodiment ofthe present invention sjxx τs several distinct bandwidth levels. For example, one embodiment might offer four levels of downstream bandwidth: 128 Kbps, 256 Kbps, 512 Kbps, and 1.5 megabits per second (Mbps). It is also possible for the ISP 112 to offer "unthrottled" bandwidth wherein the customer 110 is able to download data at the maximum rate supported by the ISP 112.
Alternative embodiments ofthe present invention can also increase one or more ofthe other network QoS parameters. For example, the ISP 112 can increase the customer's maximum total aggregate information downloadable in a time period or queue priority in combination with or instead of increasing the maximum bandwidth parameter. The ISP 112 also preferably sets the duration ofthe network QoS increase. In one embodiment, the ISP 112 adjusts the bandwidth of all of its customers at a given time and/or date. For example, the ISP 112 can adjust bandwidths weekly at 2:00 AM Monday. In such an embodiment, the ISP 112 preferably sets the duration ofthe bandwidth increase to coincide with the adjustment period. In one embodiment, the customer 110 can exchange points for a persistent increase in that customer ' s minimum and/or maximum bandwidth.
The ISP 112 also preferably sets the redemption model. The ISP 112 can allow a customer 110 to specify the time and number of points to redeem. For example, the customer 110 can save up points for two months and redeem the points in a third month. Alternatively, the ISP 112 can automatically redeem points on behalf of the customer 110 after a specified time period or upon the occurrence of an event.
Preferably, the ISP 112 publishes to the customer 110 a redemption schedule, chart, or some other information indicating the relationship between points and network QoS. In one embodiment, the schedule indicates the number of points required to earn a specified increase in bandwidth for a specified time period. For example, the schedule can state that 10 points are worth an increase from 128 Kbps to 256 Kbps for one week. In general, the redemption terms are designed to encourage the customer 112 to engage in loyalty activities. Tlie exact nature of the terms can vary.
In an alternative embodiment ofthe present invention, there are no points or other form of intermediate currency, but rather a direct connection between a loyalty activity and an increase in tlie customer's network QoS. For example, the customer 110 can be rewarded with an automatic increase in network QoS in return for purchasing a product or enrolling in a service. This embodiment ofthe invention is logically equivalent to awarding some number of points X for a particular loyalty activity and automatically increasing the network QoS of a customer 110 by an amount and duration equivalent to redeeming X points as prescribed by a
eruption award schedule. In this embodiment, the relationship between the ISP 112 and the 114 is simplified because it is less resource intensive to award, track, and redeem points.
As mentioned above, some network QoS increases are not readily perceived by the customer 110. Accordingly, a preferred embodiment ofthe present invention provides the customer 110 with a graphical indication ofthe customer's current bandwidth or other network QoS parameters. FIG. 3 illustrates a representative customer 110 computer display showing the graphical indicator. FIG. 3 illustrates a web browser 300 having an integrated network QoS meter 310. The browser 300 is, for example, a customized version of MICROSOFT EXPLORER or NETSCAPE NAVIGATOR. As is understood by those in the art, the browser 300 has a control area 312, an address area 314, and a content area 316. The control area 312 is used to navigate among the web pages, the address area 314 identifies a current web page by its hypertext transport protocol (HTTP) address, and the content area 316 displays the contents of the web pages.
In one embodiment ofthe present invention, the network QoS meter 310 is integrated into the control area 312 ofthe browser. However, alternative embodiments can locate the meter in a different area or even in a separate window on the computer system display.
In the illustrated embodiment, the network QoS meter 310 contains a bar graph 318 illustrating the current bandwidth available to the customer 110. Indicators 320 along the side ofthe bar indicate the available bandwidth levels and the length ofthe bar indicates the current bandwidth. In one embodiment ofthe present invention, a second indicator, such as the illustrated dashed bar 322 indicates the future bandwidth. The future bandwidth bar 322 can illustrate, for example, the bandwidth that the customer 110 will have after the next update cycle. Alternatively, the future bandwidth bar can indicate the bandwidth the customer 110 would have if the customer redeemed all ofthe customer's points. Alternative embodiments can use network QoS meters having different shapes and/or functions than the illustrated meter. For example, the meter could simply be a numeric value or a speedometer. Moreover, the meter can be integrated with another meter showing, for example, the current bandwidth being utilized by the customer 110 (i.e., the customer has 512 Kbps of bandwidth available next week but data is currently reaching the customer at a rate of 256 Kbps). Alternatively, tlie aforementioned bandwidth meter can be modified to indicate other network QoS parameters such as bit cap, queue priority, etc.
The loyalty program according to the present invention has at least two related primary benefits: 1) the loyalty program allows the ISP to use revenues from the loyalty program to subsidize the network infrastructure costs and lower the recurring costs paid by the customers;
12) the combination of high network QoS (at least compared to dialup) for a low recurring jju β and the chance to obtain higher network QoS through loyalty points encourages customer loyalty to the ISP.
The above description is included to illustrate the operation ofthe preferred embodiments and is not meant to limit the scope ofthe invention. The scope ofthe invention is to be limited only by the following claims. From the above discussion, many variations will be apparent to one skilled in the relevant art that would yet be encompassed by Hie spirit and scope of the invention.