System and methods for discount retailing

• US 8,355,948 B2
• Filed: 05/07/2010
• Issued: 01/15/2013
• Est. Priority Date: 05/05/2009
• Status: Active Grant

• Current Assignee: Groupon Incorporated
• Original Assignee: Groupon Incorporated
• Inventors: Mason, Andrew
• Primary Examiner(s): Lastra, Daniel
• Application Number:
  US12/776,028
• Publication Number:
  US 20100287103A1
• Time in Patent Office: 984 Days
• Field of Search: 705/14.1
• US Class Current: 705/14.1
• 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 30/0233 Method of redeeming a frequent usage reward
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

A system and methods to mutually satisfy a consumer with a discount and a vendor with a minimum number of sales by establishing a tipping point associated with an offer for a good or service. If the tipping point is met, the sale of the good or service is executed and the consumer is charged and receives an indication of the discounted sale, such as a certificate. If the tipping point is not met, the discount offer is abandoned and the consumer is not charged. Once the tipping point is established, the vendor receives a payment, even before the consumer uses the certificate. The system and methods also include a reward or loyalty program, an exchange or secondary market for the purchased deals, and a matching algorithm that matches customers to relevant goods or services.

Claims

1. A method of discount retailing in which an offer does not become valid until a minimum number of offers are purchased and in which customers are allowed to collect reward points to be redeemed to purchase additional offers or other awards, comprising a network server, a microprocessor, a memory and computer software, said computer software being located in said memory and run by said microprocessor, said computer software comprising a discount retailing algorithm, wherein said discount retailing algorithm comprises the steps of:

(a) obtaining consent from a merchant to market and advertise an item normally provided by said merchant at a standard offer price;

(b) determining a discount offer price for said item, said discount offer price being a reduction in amount from the standard offer price of that item;

(c) deciding on a tipping point at which time the discount offer price becomes valid;

(d) generating an advertisement to present said discount offer price and said tipping point to potential consumers;

(e) displaying said advertisement over a network through said network server for a predetermined period of time for potential consumers to review;

(f) receiving acceptances of the discount offer price for the item over the network for the predetermined period of time;

(g) determining if the tipping point has been attained;

(h) informing each consumer that accepted the discount offer whether or not the tipping point has been attained;

(i) providing reward points to consumers based on consumer activities; and

(j) allowing each consumer to redeem said reward points.

2. The method of discount retailing of claim 1, wherein consumer activities include accepting a discount offer price for an item in which the tipping point has not been attained.

3. The method of discount retailing of claim 1, wherein consumer activities include accepting a discount offer price for an item in which the tipping point has been attained.

4. The method of discount retailing of claim 1, wherein consumer activities include accepting a discount offer price and redeeming that discount offer at the merchant.

5. The method of discount retailing of claim 1, wherein consumer activities include accepting multiple discount offers.

6. The method of discount retailing of claim 1, wherein consumer activities include providing remarks after accepting a discount offer and redeeming said discount offer at the merchant.

7. The method of discount retailing of claim 1, wherein consumer activities include communicating with other consumers about a discount offer.

8. The method of discount retailing of claim 1, wherein redeeming said rewards points includes using said reward points to reduce the cost of another discount offer.

9. The method of discount retailing of claim 1, wherein redeeming said rewards points includes using said reward points to purchase a good or service from a merchant that has previously provided a discount offer.

10. The method of discount retailing of claim 1, wherein redeeming said rewards points includes using said reward points to purchase a discount offer for which the time to purchase the offer has expired.

11. A method of discount retailing in which an offer does not become valid until a minimum number of offers are purchased and in which a customer is allowed to exchange, trade or sell previously purchased offers, comprising a network server, a microprocessor, a memory and computer software, said computer software being located in said memory and run by said microprocessor, said computer software comprising a discount retailing algorithm, wherein said discount retailing algorithm comprises the steps of:

(a) obtaining consent from a merchant to market and advertise an item normally provided by said merchant at a standard offer price;

(b) determining a discount offer price for said item, said discount offer price being a reduction in amount from the standard offer price of that item;

(c) deciding on a tipping point at which time the discount offer price becomes valid;

(d) generating an advertisement to present said discount offer price and said tipping point to potential consumers;

(e) displaying said advertisement over a network through said network server for a predetermined period of time for potential consumers to review;

(f) receiving acceptances of the discount offer price for the item over the network for the predetermined period of time;

(g) determining if the tipping point has been attained;

(h) informing each consumer that accepted the discount offer whether or not the tipping point has been attained;

(i) allowing consumers to display an accepted discount offer to other consumers for purchase or trade;

(j) providing for said consumer displaying said accepted offer for purchase or trade to communicate with said other consumer desiring to purchase or trade for said accepted offer; and

(k) allowing said consumer to transfer ownership of said accepted discount offer to said other consumer.

12. The method of discount retailing of claim 11, wherein said displaying said accepted discount offer for purchase or trade includes a website that lists all of the accepted discount offers that consumers desire to trade or sell.

13. The method of discount retailing of claim 11, wherein said transfer of ownership from one consumer to said other consumer is checked for validity of the ownership of said accepted discount offer.

14. The method of discount retailing of claim 13, wherein a record of said transfer of ownership is retained and can be accessed at a later date for accuracy.

15. A method of discount retailing in which an offer does not become valid until a minimum number of offers are purchased and in which information about a customer is collected in order to match a customer to particular offers, comprising a network server, a microprocessor, a memory and computer software, said computer software being located in said memory and run by said microprocessor, said computer software comprising a discount retailing algorithm, wherein said discount retailing algorithm comprises the steps of:

(a) obtaining consent from a merchant to market and advertise an item normally provided by said merchant at a standard offer price;

(b) determining a discount offer price for said item, said discount offer price being a reduction in amount from the standard offer price of that item;

(c) deciding on a tipping point at which time the discount offer price becomes valid;

(d) generating an advertisement to present said discount offer price and said tipping point to potential consumers;

(e) displaying said advertisement over a network through said network server for a predetermined period of time for potential consumers to review;

(f) receiving acceptances of the discount offer price for the item over the network for the predetermined period of time;

(g) determining if the tipping point has been attained;

(h) informing each consumer that accepted the discount offer whether or not the tipping point has been attained;

(i) obtaining information about a customer; and

(j) matching said customer to a particular discount offer based on the information obtained about said customer.

16. The method of discount retailing of claim 15, wherein said information includes what the customer prefers.

17. The method of discount retailing of claim 15, wherein said information includes what the customer does not prefer.

18. The method of discount retailing of claim 15, wherein said information includes a price range for which that customer is willing to accept a discount offer.

19. The method of discount retailing of claim 15, wherein said information includes any previous discount offers that said customer preferred.

20. The method of discount retailing of claim 15, wherein said information includes any previous discount offers that said customer did not prefer.

21. The method of discount retailing of claim 15, wherein said obtaining information about a customer includes allowing said customer to create a profile.

22. The method of discount retailing of claim 15, wherein said obtaining information about a customer includes allowing said customer to answer a questionnaire or survey.

23. The method of discount retailing of claim 15, wherein said obtaining information about a customer includes obtaining information about said customer from external sources.