System and method for tracking and establishing a progressive discount based upon a customer's visits to a retail establishment

• US 7,240,021 B1
• Filed: 03/27/1998
• Issued: 07/03/2007
• 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, Chuprevich, John
• Primary Examiner(s): Bayat, Bradley B.
• Application Number:
  US09/049,297
• Time in Patent Office: 3,385 Days
• Field of Search: 705/14, 705/7, 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 30/00 Commerce
• CPC Class Codes: G06Q 30/0211 Determining the effectiveness of discounts or incentives
• 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 30/0235 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 30/0601 Electronic shopping [e-shopping]

Abstract

A system and method for rewarding a customer'"'"'s loyalty to a retail establishment and encouraging regular customer visits by offering a progressive discount on their purchases includes a point of sale (POS) controller that determines a loyal customer'"'"'s discount. The value of the discount is dependent upon the customer visiting the retail establishment on a regular basis. A customer'"'"'s visits are tracked, and the customer is provided with a discount that is incremented by a pre-defined value if the customer visits at least once every pre-defined period. The discount may only be incremented once in every pre-defined time period and may be negated if the customer did not visit at all during the pre-defined time period. Coupons that are representative of the discount earned by the customer may also be offered. If the coupon is redeemed within the pre-defined time period, a new coupon is issued having a higher discount value of a pre-defined value. If the coupon is redeemed after the pre-defined time period has expired, the customer receives no discount on the current purchase and is issued a new coupon at a pre-defined minimum discount value.

Claims

1. A method for determining a discount, the method comprising:

receiving a customer identifier that indicates a customer;

determining a previous purchase associated with the customer and a time of the previous purchase;

determining a first discount associated with the customer and a time of the first discount;

determining a current transaction associated with the customer and a time of the current transaction;

determining a first difference between the time of the current transaction and the time of the previous purchase;

determining a second difference between the time of the current transaction and the time of the first discount;

determining a second discount based on whether the first difference is less than a predetermined minimum transaction period and whether the second difference is greater than a predetermined discount adjustment period; and

providing the second discount to the customer.

2. A method for determining a discount, the method comprising:

receiving a customer identifier that indicates a customer;

determining a previous purchase associated with the customer and a time of the previous purchase;

determining a first discount associated with the customer and a time of the first discount;

determining a current transaction associated with the customer and a time of the current transaction;

determining a first difference between the time of the current transaction and the time of the previous purchase;

determining a second difference between the time of the current transaction and the time of the first discount;

determining, on a data processing device, a second discount based on whether the first difference is less than a predetermined minimum transaction period and whether the second difference is greater than a predetermined discount adjustment period; and

providing the second discount to the customer.

3. The method of claim 2, further comprising:

applying the second discount to the current transaction.

4. The method of claim 2, further comprising:

applying the second discount to a future transaction associated with the customer.

5. The method of claim 2, in which determining a second discount further is based on the first discount.

6. The method of claim 2, in which determining a second discount further is based on a predefined value.

7. The method of claim 6, in which determining a second discount further is based on increasing the first discount by the predefined value.

8. The method of claim 2, in which determining a second discount further comprises:

increasing the first discount by a predefined value, if the first difference is less than the predetermined minimum transaction period and the second difference is greater than the predetermined discount adjustment period.

9. The method of claim 2, in which determining the second discount further comprises:

decreasing the first discount by a predefined value, if the first difference is not less than the predetermined minimum transaction period.

10. The method of claim 2, in which determining a second discount further comprises:

setting the second discount equal to the first discount, if the difference is less than the predetermined minimum transaction period and the second difference is not greater than the predetermined discount adjustment period.

11. A method for determining a discount, the method comprising:

receiving a customer identifier that indicates a customer;

determining a previous purchase associated with the customer and a time of the previous purchase;

determining a first discount associated with the customer and a time of the first discount;

determining a current transaction associated with the customer and a time of the current transaction;

determining a first difference between the time of the current transaction and the time of the previous purchase;

determining a second difference between the time of the current transaction and the time of the first discount;

determining a second discount based on whether the first difference is less than a predetermined minimum transaction period and whether the second difference is greater than a predetermined discount adjustment period; and

exchanging at least one item for a payment amount that is based on the second discount.