Method and apparatus for determining a subscription to a product in a retail environment

• US 6,415,262 B1
• Filed: 12/28/1998
• Issued: 07/02/2002
• Est. Priority Date: 07/08/1997
• Status: Expired due to Term

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: Walker Digital LLC (Walker Innovation Inc. (f/k/a Patent Properties, Inc.))
• Inventors: O'Shea, Deirdre, Mik, Magdalena, Walker, Jay S., Van Luchene, Andrew S.
• Primary Examiner(s): Stamber, Eric W.
• Assistant Examiner(s): Myhre, James W.
• Application Number:
  US09/221,457
• Time in Patent Office: 1,282 Days
• Field of Search: 705/14, 705/26
• US Class Current: 705/14.25
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0224 based on user history
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 30/0236 Incentive or reward received by requiring registration or ID from user
• CPC Class Codes: G06Q 30/0239 Online discounts or incentives
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions

Abstract

A method and apparatus for managing a subscription to a product in a retail environment, wherein the product for which a subscription is offered is selected based on the customer'"'"'s historical purchases. The subscription defines a price for the selected product, wherein the subscription price is lower than the retail price of the product. The subscription specifies conditions which the customer has to meet in order to remain entitled to receive the subscription price for purchases of the product. Such conditions typically include a required frequency of purchases for a required period of time. The conditions of the subscription are selected so as to maximize the customer'"'"'s visits to the business offering the subscription without unnecessarily eroding the profits of the business.

Claims

1. A method for establishing a subscription to a product wherein a customer purchases each unit of a product defined by the subscription at a retailer, comprising the steps of:

receiving a customer identifier that identifies a customer;

evaluating data regarding at least one previous purchase of the customer;

determining, based on the data regarding the at least one previous purchase, a frequency with which the customer purchased a first product;

selecting a second product based on the determined frequency;

defining a subscription to the second product by;

setting a minimum number of the second product to be bought within a duration of the subscription;

setting a minimum number of transactions within which the minimum number of the second product is to be bought; and

setting a maximum time within which the minimum number of transactions are to occur; and

outputting an offer for a subscription to the second product.

2. The method of claim 1, in which the offer for a subscription defines at least one condition of the subscription.

3. The method of claim 2, in which the at least one condition of the subscription defines a subscription frequency.

4. The method of claim 2, in which the at least one condition of the subscription defines a duration of the subscription.

5. The method of claim 1, in which the step of outputting comprises:

outputting an offer for subscription if the frequency exceeds a predetermined threshold.

6. The method of claim 5, in which the step of outputting comprises:

outputting a first offer if the frequency exceeds a first predetermined threshold; and

outputting a second offer if the frequency exceeds a second predetermined threshold that is greater than the first predetermined threshold.

7. The method of claim 1, in which the first product is equivalent to the second product.

8. The method of claim 1, wherein the determining step comprises:

determining a time interval between a first purchase of the first product and a second purchase of the first product, thereby determining a frequency with which the customer purchased the first product.

9. The method of claim 1, in which the step of determining at least one previous purchase of the customer comprises:

retrieving the data regarding the at least one previous purchase from a database of previous purchases, the data being retrieved based on the customer identifier.

10. The method of claim 1, further comprising:

retrieving, based on the customer identifier, a subscription to which the customer is currently subscribed; and

wherein the step of outputting comprises;

outputting an offer for a subscription to a second product based on the determined frequency and the retrieved subscription.

11. The method of claim 10, further comprising:

looking up in a database a first entry, the first entry corresponding to a product defined by the existing subscription; and

looking up in a database a second entry, the second entry corresponding to a second product that is associated with the first product in the database.

12. The method of claim 1, further comprising:

receiving a response to the offer, the response indicating one of an acceptance and a rejection.

13. The method of claim 12, further comprising:

storing the response in memory.

14. The method of claim 12, further comprising:

initiating a subscription to the product if the response indicates an acceptance.

15. The method of claim 12, wherein the offer defines a subscription deposit.

16. The method of claim 12, further comprising:

charging the subscription deposit to the customer if the response indicates an acceptance.

17. The method of claim 12, further comprising:

returning the subscription deposit to the customer if the subscription is completed successfully.

18. The method of claim 1, wherein the offer includes a penalty to be applied and further comprising:

applying the penalty to the customer if the subscription is not completed successfully.

19. The method of claim 18, wherein applying the penalty comprises retaining a deposit that is paid by the customer at a time of initiating the subscription.

20. The method of claim 18, wherein the penalty is a predetermined amount that is charged to an account associated with the customer.

21. The method of claim 18, wherein the penalty is based on an unfulfilled condition of the subscription.

22. The method of claim 21, wherein the condition is a minimum number of products to be bought within a duration of the subscription.

23. The method of claim 1 wherein the transaction data is received through at least one of a point-of-sale terminal, a Web site, and a telephone.

24. The method of claim 1, wherein the customer identifier is at least one of a frequent shopper identifier, a credit card identifier, a telephone number, a social security number, a coupon identifier, and a license plate identifier.

25. The method of claim 1, wherein the customer identifier is a biometric identifier.

26. The method of claim 25, further comprising generating the biometric identifier by at least one of a retinal scan, a facial scan, and a fingerprint scan.

27. The method of claim 1, in which the step of evaluating data comprises:

retrieving data regarding at least one previous purchase of the customer from a database.

28. The method of claim 1, in which the step of determining a frequency comprises:

determining a frequency with which the customer purchased a first product based on the data regarding the at least one previous purchase and a current purchase.

29. A method for determining a subscription to a product wherein a customer purchases each unit of a product defined by the subscription at a retailer, comprising the steps of:

receiving a customer identifier that identifies a customer;

determining a current purchase of a first product by a customer;

determining a subscription to a second product based on the current purchase by;

setting a minimum number of the second product to be bought within a duration of the subscription;

setting a minimum number of transactions within which the minimum number of the second product is to be bought; and

setting a maximum time within which the minimum number of transactions are to occur; and

outputting an offer for a subscription to a second product.

30. The method of claim 29, further comprising:

looking up in a database a first entry, the first entry corresponding to the first product; and

looking up in a database a second entry, the second entry corresponding to a second product that is associated with the first product in the database.

31. The method of claim 29 in which the first product is equivalent to the second product.

32. The method of claim 31, wherein the offer for the subscription includes a subscription product price to be charged to the customer for a purchase of the second product.

33. The method of claim 32, wherein the subscription product price is applied to a current total price of the customer.

34. The method of claim 29, wherein the second product is complementary to the first product.

35. The method of claim 29, further comprising:

determining, based on the customer identifier, an existing subscription to which the customer is currently subscribed; and

wherein the step of outputting comprises;

outputting an offer for a subscription to a second product based on the data regarding the current purchase of the first product and the existing subscription.

36. The method of claim 29, further comprising:

receiving a response to the offer, the response indicating one of an acceptance and a rejection.

37. The method of claim 36, further comprising:

storing the response in memory.

38. The method of claim 36, further comprising:

initiating a subscription to the product if the response indicates an acceptance.

39. The method of claim 36, wherein the offer includes a subscription fee.

40. The method of claim 39, further comprising:

charging the subscription fee to the customer if the response indicates an acceptance.

41. The method of claim 29, in which the offer for a subscription defines at least one condition of the subscription.

42. The method of claim 41, wherein the at least one term for a subscription includes a price to be charged to the customer for a purchase of the second product.

43. A method for applying a subscription to a product wherein a customer purchases each unit of a product defined by the subscription at a retailer, comprising the steps of:

receiving a customer identifier that identifies a customer;

receiving a product identifier of a product being purchased by the customer;

determining whether the customer has a subscription to the product;

determining a required frequency for purchasing the product defined by the subscription, wherein the required frequency comprises a maximum time period between purchases of the product by the customer;

determining a time of a previous purchase of the product by the customer;

determining a current time;

calculating whether a time period between the time of the previous purchase and the current time is not greater than the maximum time period between purchases;

determining an end time for the subscription;

calculating whether the current time is past the end time; and

adjusting a purchase total based on whether the customer has a subscription to the product, if the time period between the time of the previous purchase and the current time is not greater than the maximum time period between purchases and the current time is not past the end time.

44. The method of claim 43, wherein the step of adjusting comprises:

adding a first price to the purchase total if the customer has a subscription to the product; and

adding a second price to the purchase total if the customer does not have a subscription to the product.

45. The method of claim 43, further comprising:

determining a current time.

46. The method of claim 45, wherein the step of adjusting comprises:

adding a first product price to a purchase total of the customer if the current time is before a predetermined time; and

adding a second product price to a purchase total of the customer if the current time is not before a predetermined time.

47. The method of claim 46, wherein the first product price is a subscription product price.

48. A method for controlling a subscription to a product wherein a customer purchases each unit of a product defined by the subscription at a retailer, comprising the steps of:

receiving a customer identifier that identifies a customer;

determining a successful completion, by the customer, of a first subscription to a first product, wherein the first subscription defines a first minimum number of the first product to be bought and a first minimum number of transactions within which the first minimum number of the first product is to be bought;

outputting an offer for a second subscription to a second product, wherein the second subscription defines a second minimum number of the second product to be bought and a second minimum number of transactions within which the second minimum number of the second product is to be bought and wherein a condition of the second subscription is based on a condition of the first subscription; and

receiving a response to the offer, the response indicating one of an acceptance and a rejection.

49. The method of claim 48, wherein the first subscription has an associated first deposit that was paid by the customer at a time of initiating the first subscription, and

wherein the offer for the second subscription includes a second deposit required to initiate the second subscription.

50. The method of claim 49, wherein the second deposit is greater than the first deposit.

51. The method of claim 50, wherein the first deposit is applied as the second deposit if the response indicates an acceptance.

52. The method of claim 50, further comprising:

outputting a monetary amount to the customer if the response indicates a rejection, wherein the monetary amount is greater than the first deposit.

53. The method of claim 49, further comprising:

outputting a monetary amount to the customer if the response indicates a rejection, wherein the monetary amount is equal to the first deposit.

54. The method of claim 48, wherein the first product is the second product.

55. The method of claim 54, wherein the first product has an associated first price and the second product has an associated second price, and

the first price is greater than the second price.

56. An apparatus for providing a subscription to a product wherein a customer purchases each unit of a product defined by the subscription at a retailer, comprising:

a processor, and

a storage device that stores a program for directing the processor;

the processor being operative with the program to;

receive a customer identifier that identifies a customer;

evaluate data regarding at least one previous purchase of the customer;

determine, based on the data regarding the at least one previous purchase, a frequency with which the customer purchased a first product;

select a second product based on the determined frequency;

define a subscription to the second product by;

setting a minimum number of the second product to be bought within a duration of the subscription;

setting a minimum number of transactions within which the minimum number of the second product is to be bought; and

setting a maximum time within which the minimum number of transactions are to occur; and

output an offer for a subscription to the second product.

57. An apparatus for providing a subscription to a product wherein a customer purchases each unit of a product defined by the subscription at a retailer, comprising:

a processor, and

a storage device that stores a program for directing the processor;

the processor being operative with the program to;

receive a customer identifier that identifies a customer;

determine a current purchase of a first product by a customer;

determine a subscription to a second product based on the current purchase by;

setting a minimum number of the second product to be bought within a duration of the subscription;

setting a minimum number of transactions within which the minimum number of the second product is to be bought; and

setting a maximum time within which the minimum number of transactions are to occur; and

output an offer for a subscription to a second product, the offer being based on the current purchase.

58. An apparatus for providing a subscription to a product wherein a customer purchases each unit of a product defined by the subscription at a retailer, comprising:

a processor, and

a storage device that stores a program for directing the processor;

the processor being operative with the program to;

receive a customer identifier that identifies a customer;

receive a product identifier of a product being purchased by the customer;

determine whether the customer has a subscription to the product;

determine a required frequency for purchasing the product defined by the subscription, wherein the required frequency comprises a maximum time period between purchases of the product by the customer;

determine a time of a previous purchase of the product by the customer;

determining a current time;

calculate whether a time period between the time of the previous purchase and the current time is not greater than the maximum time period between purchases;

determine an end time for the subscription;

calculate whether the current time is past the end time; and

adjust a purchase total based on whether the customer has a subscription to the product, if the time period between the time of the previous purchase and the current time is not greater than the maximum time period between purchases and the current time is not past the end time.

59. An apparatus for providing a subscription to a product wherein a customer purchases each unit of a product defined by the subscription at a retailer, comprising:

a processor, and

a storage device that stores a program for directing the processor;

the processor being operative with the program to;

receive a customer identifier that identifies a customer;

determine a successful completion, by the customer, of a first subscription to a first product, wherein the first subscription defines a first minimum number of the first product to be bought and a first minimum number of transactions within which the first minimum number of the first product is to be bought;

output an offer for a second subscription to a second product, wherein the second subscription defines a second minimum number of the second product to be bought and a second minimum number of transactions within which the second minimum number of the second product is to be bought and wherein a condition of the second subscription is based on a condition of the first subscription; and

receive a response to the offer, the response indicating one of an acceptance and a rejection.

60. A computer readable medium encoded with instructions for directing a processor to:

receive a customer identifier that identifies a customer;

evaluate data regarding at least one previous purchase of the customer;

determine, based on the data regarding the at least one previous purchase, a frequency with which the customer purchased a first product;

select a second product based on the determined frequency;

define a subscription to the second product by;

setting a minimum number of the second product to be bought within a duration of the subscription;

setting a minimum number of transactions within which the minimum number of the second product is to be bought; and

setting a maximum time within which the minimum number of transactions are to occur; and

output an offer for a subscription to the second product, wherein the customer purchases each unit of a product defined by the subscription at a retailer.

61. A computer readable medium encoded with instructions for directing a processor to:

receive a customer identifier that identifies a customer;

determine a current purchase of a first product by a customer;

determine a subscription to a second product based on the current purchase by;

setting a minimum number of the second product to be bought within a duration of the subscription;

setting a minimum number of transactions within which the minimum number of the second product is to be bought; and

setting a maximum time within which the minimum number of transactions are to occur; and

output an offer for a subscription to a second product, wherein the customer purchases each unit of a product defined by the first and second subscription at a retailer.

62. A computer readable medium encoded with instructions for directing a processor to:

receive a customer identifier that identifies a customer;

receive a product identifier of a product being purchased by the customer;

determine whether the customer has a subscription to the product, wherein the customer purchases each unit of a product defined by the subscription at a retailer;

determine a required frequency for purchasing the product defined by the subscription, wherein the required frequency comprises a maximum time period between purchases of the product by the customer;

determine a time of a previous purchase of the product by the customer;

determining a current time;

calculate whether a time period between the time of the previous purchase and the current time is not greater than the maximum time period between purchases;

determine an end time for the subscription;

calculate whether the current time is past the end time; and

adjust a purchase total based on whether the customer has a subscription to the product, if the time period between the time of the previous purchase and the current time is not greater than the maximum time period between purchases and the current time is not past the end time.

63. A computer readable medium encoded with instructions for directing a processor to:

receive a customer identifier that identifies a customer;

determine a successful completion, by the customer, of a first subscription to a first product, wherein the first subscription defines a first minimum number of the first product to be bought and a first minimum number of transactions within which the first minimum number of the first product is to be bought;

output an offer for a second subscription to a second product, wherein the second subscription defines a second minimum number of the second product to be bought and a second minimum number of transactions within which the second minimum number of the second product is to be bought and wherein a condition of the second subscription is based on a condition of the first subscription;

receive a response to the offer, the response indicating one of an acceptance and a rejection; and

wherein a customer purchases each unit of a product defined by the first and second subscription at a retailer.