Method and apparatus for determining a progressive discount for a customer based on the frequency of the customer's transactions

• US 7,194,423 B2
• Filed: 12/04/2003
• Issued: 03/20/2007
• Est. Priority Date: 03/27/1998
• Status: Expired due to Fees

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: Walker Digital LLC (Walker Innovation Inc. (f/k/a Patent Properties, Inc.))
• Inventors: Walker, Jay S., Van Luchene, Andrew S., Mik, Magdalena, Alderucci, Dean P.
• Primary Examiner(s): Bayat, Bradley B.
• Application Number:
  US10/728,226
• Publication Number:
  US 20040117261A1
• Time in Patent Office: 1,202 Days
• Field of Search: 705/14, 705/26, 705/27, 705/16, 705/41, 235/375, 235/380
• US Class Current: 705/14.35
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0211 Determining the effectiveness of discounts or incentives
• CPC Class Codes: G06Q 30/0235 constrained by time limit or expiration date
• CPC Class Codes: G06Q 30/0236 Incentive or reward received by requiring registration or ID from user
• CPC Class Codes: G06Q 30/0238 at point-of-sale [POS]
• CPC Class Codes: G06Q 30/0269 based on user profile or attribute
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]

Abstract

A system and method are disclosed for determining and applying a discount to a customer'"'"'s transaction. The discount is of a progressive nature, wherein the value of a customer'"'"'s discount increases if the customer meets the conditions associated with the discount. The system rewards more frequent or profitable customers with benefits such as larger increases in the discount or higher maximum discount than those awarded to less frequent or profitable customers. The discount is decreased or eliminated if the customer fails to meet the conditions associated with the discount.

Claims

1. An apparatus comprising:

a processor; and

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

the processor being operative with the program to;

receive transaction data that represents a transaction,

receive an identifier that identifies a customer participating in the transaction,

determine a customer rating of the customer,

determine a grace period based on the customer rating,

determine a time of the transaction,

determine whether the time of the transaction is within the grace period,

determine a second discount based on a first discount, the customer rating, and the time of the transaction, and

apply the second discount to the transaction,

wherein determining the second discount comprises;

setting the second discount equal to the first discount if the time of the transaction is within the grace period.

2. An apparatus comprising:

a processor; and

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

the processor being operative with the program to;

receive transaction data that represents a transaction,

receive an identifier that identifies a customer participating in the transaction,

determine a customer rating of the customer,

determine a grace period based on the customer rating,

determine a time of the transaction,

determine whether the time of the transaction is within the grace period,

determine a second discount based on a first discount, the customer rating, and the time of the transaction, and

apply the second discount to the transaction,

wherein determining the second discount comprises;

setting the second discount less than the first discount if the time of the transaction is not within the grace period.

3. An apparatus comprising:

a processor; and

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

the processor being operative with the program to;

receive transaction data that represents a transaction,

receive an identifier that identifies a customer participating in the transaction,

determine a customer rating of the customer,

determine a time of the transaction,

determine a second discount based on a first discount, the customer rating, and the time of the transaction, and

apply the second discount to the transaction,

wherein determining the second discount comprises;

determining a discount increment based on;

the customer rating, and

the time of the transaction; and

determining the second discount, at a time when the customer is present at a point-of-sale terminal and participating in the transaction, based on the first discount and the discount increment;

and wherein applying comprises;

applying the second discount to the transaction when the customer is present at the point-of-sale terminal and participating in the transaction.

4. An apparatus comprising:

a processor; and

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

the processor being operative with the program to;

receive transaction data that represents a transaction,

receive an identifier that identifies a customer participating in the transaction,

determine a customer rating of the customer,

determine a time of the transaction,

determine a second discount based on a first discount, the customer rating, and the time of the transaction, and

apply the second discount to the transaction,

wherein determining the second discount comprises;

determining a discount decrement based on;

the customer rating, and

the time of the transaction; and

determining the second discount, at a time when the customer is present at a point-of-sale terminal and participating in the transaction, based on the first discount and the discount decrement;

and wherein applying comprises;

applying the second discount to the transaction when the customer is present at the point-of-sale terminal and participating in the transaction.

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

receive transaction data that represents a transaction;

receive an identifier that identifies a customer participating in the transaction;

determine a customer rating of the customer;

determine a grace period based on the customer rating;

determine a time of the transaction;

determine whether the time of the transaction is within the grace period;

determine a second discount based on a first discount, the customer rating, and the time of the transaction; and

apply the second discount to the transaction,

wherein determining the second discount comprises;

setting the second discount equal to the first discount if the time of the transaction is within the grace period.

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

receive transaction data that represents a transaction;

receive an identifier that identifies a customer participating in the transaction;

determine a customer rating of the customer;

determine a grace period based on the customer rating;

determine a time of the transaction;

determine whether the time of the transaction is within the grace period;

determine a second discount based on a first discount, the customer rating, and the time of the transaction; and

apply the second discount to the transaction,

wherein determining the second discount comprises;

setting the second discount less than the first discount if the time of the transaction is not within the grace period.

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

receive transaction data that represents a transaction,

receive an identifier that identifies a customer participating in the transaction,

determine a customer rating of the customer,

determine a time of the transaction,

determine a second discount based on a first discount, the customer rating, and the time of the transaction, and

apply the second discount to the transaction,

wherein determining the second discount comprises;

determining a discount increment based on;

the customer rating, and

the time of the transaction; and

determining the second discount, at a time when the customer is present at a point-of-sale terminal and participating in the transaction, based on the first discount and the discount increment;

and wherein applying comprises;

applying the second discount to the transaction when the customer is present at the point-of-sale terminal and participating in the transaction.

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

receive transaction data that represents a transaction,

receive an identifier that identifies a customer participating in the transaction,

determine a customer rating of the customer,

determine a time of the transaction,

determine a second discount based on a first discount, the customer rating, and the time of the transaction, and

apply the second discount to the transaction,

wherein determining the second discount comprises;

determining a discount decrement based on;

the customer rating, and

the time of the transaction; and

determining the second discount, at a time when the customer is present at a point-of-sale terminal and participating in the transaction, based on the first discount and the discount decrement;

and wherein applying comprises;

applying the second discount to the transaction when the customer is present at the point-of-sale terminal and participating in the transaction.