WO2000052620A1

WO2000052620A1 - Targeted purchase incentive

Info

Publication number: WO2000052620A1
Application number: PCT/US2000/005303
Authority: WO
Inventors: Gregory Thomas Malley
Original assignee: Gregory Thomas Malley
Priority date: 1999-03-01
Filing date: 2000-02-29
Publication date: 2000-09-08
Also published as: AU3508100A

Abstract

The present invention is a method for relating patronage from advertisers, sponsors, and business affiliates to the cost of using a service or medium. This purchase incentive (30, 40) is uniquely effective because, while the incentive adds value for consumers, it is also targeted to facilitate consumers in shopping. Enabling use of a service or medium, such as the Internet via a high-speed connection, results in a higher frequency of use. The present invention provides users (10, 20) a credit for patronage of advertisers, business affiliates, and/or sponsors which is applied to reduce or eliminate the cost of the facilitated use of a service or medium. This purchase incentive (30, 40) has the potential to increase the volume of sales by both reducing costs to consumers and by increasing shopping frequency.

Description

Targeted Purchase Incentive

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention is a purchase incentive which is targeted to reduce the cost of means which facilitate purchases from sponsors, advertisers, and business affiliates.

2. Description of the Prior Art

A number of new high technology subscriber services are now available. These subscriber services include Internet access, asymmetric digital subscriber lines, cable modem connections, wireless, cellular phone services, pagers and so on. Most households already have a monthly bill for telephone and cable television services. A significant number of households who are paying for an internet service provider experience the need for a second phone line, so they can receive or make phone calls while other family members are using the internet. There is a need to make these services and mediums widely affordable.

Typically, advertising subsidizes the cost of a medium, such as newspapers, magazines, cable and network television, to users. The cost of many services and products such as newspaper, radio, cable, satellite, internet services or network television programming are underwritten in part or in full by advertisers, sponsors, or business affiliates.

Sponsors usually advertise a product or service with the expectation that an increase in sales will result. There are advertisements that have a reference number, or a caller may be asked from what source they became aware of the sponsor's product or service. Rating services attempt to gauge the number of people who see an ad, but these services do nothing to relate the cost of the service to the user and patronage of the sponsor of the service by the user.

The advertiser, in most cases, does not know if a user who receives a subsidized service ever does patronize them. There is no relationship between patronage of the sponsor and cost of the means, which facilitates purchases by the user.

Offering a purchase incentive can increase sales volume when the incentive adds some perceived value to the consumer making a purchase decision. A typical purchase incentive increases sales volume by lowering the effective price to the user. The business hopes that, although their per unit profit margin is lessened, total profits will be higher due to an increase in the number of units sold.

A typical incentive program will attempt to maximize profits by increasing the volume sold. Although the per unit profit is less due to the incentive offered, the total profit realized is greater because more units are sold. Or the program is intended to induce people to try the product or service in the hope that they will purchase the product or service in the future. Or the discount is offered to induce people to come to a store to purchase an item at a discounted price, hoping that they will buy additional items at their regular price.

Purchase incentive programs usually involve the award of points, related to some value, to customers for buying products or services from the issuer of the incentive. The points or credit obtained from the purchase can then be used to purchase products produced by the company offering the incentive or by a third party company at a discount or for no charge. For example, some credit cards reward users with frequent flyer miles, which can be used toward airline travel. When customers purchase long distance services from some companies they can earn frequent flyer miles. Some supermarket chains offer a discount toward the purchase of groceries once the consumer has reached a specific purchase amount. The credit is awarded for making purchases from the issuer of the incentive.

An on-line interactive frequency and award redemption program credits users who make purchases with award points (Storey U.S. Pat No. 5,774,870 Fully Integrated, On-line Interactive Frequency and Award Redemption Program, 1998 June 30). Users may apply those award points toward purchase of a product. In this method the award incentive is not targeted to reduce the cost of doing business on-line for users and so does not facilitate users in making additional purchases. Toader U.S. Pat. No. 5,774,869 for Method for Providing Sponsor Paid Internet Access and Simultaneous Sponsor Promotion discloses providing sponsor paid internet access for a limited time which results in the user viewing advertisements from the sponsor. This method does not relate purchases from sponsors to the incentive, which is limited free internet access. Nor is the incentive targeted to facilitate consumers in making future purchases.

A purchase incentive program that reduces the cost of subscriber services and mediums, which facilitate buyers in making purchases, benefits businesses and consumers. SUMMARY OF THE INVENTION

The present invention relates patronage from advertisers, sponsors, and business affiliates to the cost of means to facilitate use of a service or medium.

Use of a service is facilitated through a connection, which includes telephone lines, digital subscriber lines, cable, satellite, and wireless services. The more bandwidth a connection has the faster information, which may be in the form of voice, data, sound, or video, can be transmitted. In this method, users who patronize sponsors, advertisers and/or business affiliates are given credit toward the cost of means facilitating use of a service or medium. The credit may reduce the cost of to the extent that the service is free. Credits may be earned which exceed the cost of a service. In the present invention, those credits will be applied to another service or carried forward in time. Credits may also be applied to multiple services or mediums simultaneously. Credits earned may be due to patronage of one or a variety of sponsors by a user. This method includes tracking, registering and calculating credits earned from various sources, which may have a monetary denomination or be convertible into a monetary denomination or some other form of value.

It is an object of the present invention to create an incentive program that adds value to consumers and facilitates use of a service or medium by which consumers make purchases or receive advertising communications that may lead to purchases.

The disclosed invention is advantageous to consumers in that the incentive reduces the costs of means to facilitate use of a service or medium by the consumer.

Another advantage of the current invention is that sponsors, advertisers and business affiliates of a service or medium will be able to match patronage to users so the service can be provided at no charge or at a reduced charge to those users.

It is another object of the present invention to provide a more efficient purchase incentive program so that consumers can be offered more generous incentives.

It is another object of the invention to provide a purchase incentive with enhanced efficacy such that businesses enjoy a greater increase in sales volume from the incentive offered.

It is another object of the invention to provide advertising for which there is no charge.

It is another object of the invention for advertisers, sponsors, and business affiliates that, perhaps beyond a trial period, free services are not provided to users who do not patronize advertisers at some level. It is another object of the invention to construct a purchase incentive program that reduces risk for advertisers.

It is another advantage of the invention that credits may be applied to multiple services from various sources.

It is another object of the invention to use a system for tracking, registering, calculating and applying credits earned through a variety of sources.

It is another object of the present invention that adoption of subscriber based services be widely affordable making access to information more egalitarian.

Briefly, the foregoing objects are realized by providing an incentive applied toward the cost of connection means to a service or medium.

An internet user who patronizes internet advertisers, sponsors or business affiliates receives a purchase incentive that can be applied to reduce the cost of a second phone line, a high speed connection such as an asymmetric digital subscriber line or cable modem, electric utilities or other services.

A high-speed connection enables a user more frequent and lengthier Internet usage, since the connection allows for inbound and outbound telephone calls to be placed and received while the user is on the Internet. A broad bandwidth connection delivers information with greater speed and content. The entire Internet experience, including the experience of purchasing on-line is more compelling. The result of a dedicated Internet connection is increased frequency of Internet use. An incentive encouraging purchases and concomitantly increasing the frequency of Internet usage will result in increased digital commerce revenues. A purchase incentive, which is applied to the cost of the means to facilitate use of a service or medium by the consumer, functions as an investment in infrastructure which increases sales. This purchase incentive more efficiently and effectively stimulates demand relative to a typical purchase incentive that adds only to an offer's perceived value. A purchase incentive applied to the costs of receiving cable or satellite television basic and/or premium channels represents another application for the present invention. In another embodiment of the present invention, users who patronize sponsors, advertisers, or business affiliates receive basic services at a reduced cost or for no charge, based on the level of patronage by the user. Credits earned by users are also applied to premium services such as movie channels, extended channel viewing packages and pay per view events more affordable. The result is more cable and satellite television viewers. Increased number and frequency of viewers in conjunction with an incentive to make purchases from advertisers results in increased revenue for advertisers, sponsors and business affiliates.

The present invention enables more households to afford subscriber services and for households to afford a wider variety of subscriber services.

Advertising is risk free because advertisers, sponsors and business affiliates only incur a cost when a sale is made related to the purchase incentive.

In accordance with one embodiment of the invention, the user makes application for a credit or debit card. The user whose application is approved receives a credit or debit card account number. The approved applicant provides an email account address and indicates what subscriber services they wish the incentive to be applied to along with payment information for those services. The user can go to an Internet web site to obtain information, or from other means, as to what businesses offer a purchase incentive which can be applied to those services. Approved users will receive email confirmations of credits earned which also present advertising content. Purchases made from sponsors, advertisers, and business affiliates with the credit or debit card generate the credit which is applied to the subscriber services. Credits may be carried forward.

Issuing a credit or debit card provides a means of registering, calculating and applying credits from a variety of sources. When subscriber services are billed to the user's credit or debit card, the credit earned by making purchases from sponsors, advertisers, and business affiliates can be applied directly to subscriber service charges.

Purchases made with the card indicate that the consumer has seen a quantity of advertisements from the sponsor, advertiser, or business affiliate. But it is only when a purchase is made that a cost is incurred.

In the preferred embodiment, sponsors do not pay for the advertisements that are distributed. Payment from sponsors is received when purchases are made by users. In another embodiment, advertisers pay for advertising in addition to the commission related to sales made.

In another embodiment, if credits are spent and a charge is incurred, the user is notified and given a period of time to generate credits. If credits are not earned, the user may then pay a fee for the service or use of the medium. In another embodiment, the service may be free for a specified period during which users have the opportunity to make purchases and earn credits.

The embodiment of this method will differ depending on the medium, be it cable, network television, the Internet, newspaper, magazine, telephone services, and so on.

In another embodiment a basic level of service is provided at no charge and extended or premium services for which a fee is normally charged are provided at reduced cost or at no cost for users patronizing sponsors, advertisers, and business affiliates. Internet companies and software businesses often offer a basic level of service at no charge, but do charge for more advanced services. Individuals receiving credits could receive these services at no charge.

In one embodiment, users patronizing sponsors, advertisers, or business affiliates, receive on-line data storage for a reduced cost, with the amount of storage space received based on the amount of purchases. In another embodiment, services which are free such as network television broadcasts, remain free for users who patronize sponsors, advertisers, or business affiliates whereas, for those who do not, a charge is incurred.

In another embodiment, newspapers and magazines which charge a subscription fee are free to readers who make purchases from advertisers.

In another embodiment, a user receiving a free service is notified that a charge will be incurred if sponsors are not patronized at a specified point in time. The charge the user will incur for the service is a function of the level of patronage of advertisers, sponsors, and/or business affiliates. Credits are awarded reducing the cost of a service based on the patronage of advertisers, sponsors, and/or business affiliates.

In another embodiment, bar code information identifying products is processed and credits are assigned reducing the cost of services and mediums sponsored by the advertisers, sponsors, and business affiliates of those products.

In various embodiments, users earn credits towards services based on the amount they purchase from sponsors, the frequency or number of times they patronize sponsors.

In one embodiment, a business can participate in the incentive program with no advertising costs. The advertiser makes payment only when a sale occurs. Accordingly, a participating business incurs no risk, insuring a high adoption rate of this method.

BRIEF DESCRIPTION OF THE DRAWINGS

Further objects and advantages of the present invention will become apparent from a consideration of the ensuing description of the preferred embodiment with reference to the drawings, in which:

FIG. 1 is a flow chart of access to the purchase incentive home page. FIG. 2 is a flow chart of a method for users who access the purchase incentives homepage to receive credit for purchases made.

FIG. 3 is a flow chart of a method for tracking, registering and calculating credits awarded due to patronage of sponsors, advertisers, and or business affiliates with the credits applied to the cost of connection means to a service or medium.

FIG. 4 is a flow chart of a method to receive credit for purchases made off-line and applying those credits to the cost of connection means to a service or medium.

FIG. 5 is a flow chart of a method for a business to become a participant in the award program described.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

Detailed embodiments of the present invention are disclosed herein; however it is to be understood that the disclosed embodiments are merely exemplary of the invention, which may be embodied in various forms. Therefore, specific details disclosed herein are not to be interpreted as limiting, but merely as a basis for the claims and as a representative basis one skilled in the art to variously employ the present invention in virtually any appropriate manner.

The program according to the present invention will be described with reference to FIGS. 1-5. It should be noted that a user is able to proceed forward or backward in the flow charts diagramed in FIGS. 1-5. FIG 1. is a flow chart showing the access part of the program.

Referring to FIG. 1, the numeral 10 generally indicates access via an Internet service provider. Alternatively, 20 indicates a direct access to the internet, through an internet browser. Upon accessing the internet, 30, the user proceeds to a selection menu 40. The user has the option to proceed to enter information in a member application form 50, or to proceed to a menu of advertisers, sponsors, and business affiliates from whom they can make purchases 160, or to change preferences regarding the application of credits earned 120, or to enter information enabling the user to offer a purchase incentive.

Referring to FIG. 2, the user enters information 50, which allows for processing of a bank credit card, debit card or other payment method. Upon submitting the application the form is reviewed, 60. Approval or rejection 70, of the application for a payment method 50, is provided online. If the applicant is rejected they can apply for an alternative payment method, such as a debit card 90, with a participating bank, 100. The approved applicant receives an account number 80, assigned to a credit or debit card which may be used for the payment of desired purchases. The user indicates and prioritizes the order of payment of services 120, for which the user chooses to receive discounts. Once this information is entered, the user provides payment information 130, regarding those services to which the discount is to be applied. The user may then indicate preferences 140, regarding information which they wish to receive via email from sponsors related to specific interests, from specific merchants and/or the affiliation of new sponsors. The information submitted is added to the subscriber database 150. Upon submitting this information, the user is able to choose from a menu of advertisers, sponsors, and business affiliates from whom they can make purchases 160.

Referring to FIG. 3, the user can choose to access a menu of product and service offers 160, from the selection menu 40. A search will be made through the internet connection for a cookie which will recognize current members 170, if they are connecting from a computer previously used to access the product and services menu 160. If the user does not have a current account 80, or is logging on from a different computer than the user has previously used to access the product and services menu 160, the user can indicate 190, if they have a current account 80. If the user has an account number, they can log-in 200. A cookie will be set on that computer (not shown), ready to identify the user if they log-on again with that computer. If the user does not have a current account 80, they can proceed to apply for a credit payment method 50. If the cookie recognizes the user, the user is presented with a menu of advertisers, sponsors, and business affiliates 180. If the user responds to an affiliate 180, they are transferred to the affiliate 210. A purchase can then be made upon inputting 220, their credit/debit account number 80. The credit/debit account purchase is authorized or rejected 230. If the submitted payment method is rejected, the user is able to again enter credit/debit card account number 220. If the submitted payment method is approved, information is transferred back from the affiliate and the commission to be paid is calculated, 240. The affiliate accounts payable database 250, is updated. A credit is calculated 260, and attributed to the user's account, 270. An email confirmation of the credits earned 280, along with an advertising communication regarding affiliates is sent to the user's email address. Payment of services designated, 120, are made from discounts earned (not shown). If the product purchased is returned to the affiliate and a refund is made to the user, the credit made to the user's account 150, is reversed. A charge equal to the value of the credit calculated 260, is made to the member's account 80.

Referring to FIG 4., member application 50, can be made by submission of a written application 200, application can be made by telephone 300 or by the Internet 40. The applicant is notified of approval or rejection 70, of the application for a payment method. If the applicant is rejected they can apply for a debit card, 90, with a participating bank, 100. The approved applicant receives an account number 80, assigned to a credit or debit card which may be used for the payment of desired purchases. When an off-line purchase 310, is made the credit/debit card payment submission is accepted or rejected. If the submitted payment method is accepted and the product information is bar coded, the bar code is read 320, and that data is transferred to the member's account 330. The credit/debit account purchase is authorized or rejected 230. If the submitted payment method is rejected, the user is able to again enter credit/debit card account number 310. If the submitted payment method is approved, information is transferred back from the affiliate and the commission to be paid is calculated 240. The affiliate accounts payable database 250, is updated. A credit is calculated 260, and attributed to the user's account 270. An email confirmation of the credits earned 280, along with advertising communication regarding affiliates is sent to the user's account. Payment of services designated 120, are made from discounts earned (not shown). If the product purchased is returned to the affiliate and a refund is made to the user, the credit made to the user's account 150, is reversed. A charge equal to the value of the credit calculated 260, is made to the member's account 80.

Referring to FIG. 5, a business wishing to participate completes the affiliate application form 400. The incentive which the business wishes to offer is indicated 410. The advertising content the business wishes to be used is submitted 420. The application form is submitted 430. If the form is rejected the user is returned to 420 where a change in the ad content submitted may be made. If the application is approved, notification is made. The advertising message of the approved affiliated is presented to members.

It is to be understood that while certain forms of the present invention have been illustrated and described herein, it is not to be limited to the specific forms or arrangement of parts described and shown.

Claims

What is claimed is:

1. A method for relating the cost of connection means to a service or a medium to patronage of sponsors, advertisers, and/or business affiliates.

2. The method as defined in claim 1 wherein the cost of communication bandwidth is related to patronage of said sponsors, advertisers, and/or business affiliates.

3. The method as defined in claim 1, further including the cost of said connection means enabling use of said service or medium.

4. The method as defined in claim 1, further including the cost of video, sound, and/or data transmission related to patronage of said sponsors, advertisers, and/or business affiliates.

5. The method as defined in claim 1, further including the cost of voice transmission related to patronage of said sponsors, advertisers, and/or business affiliates.

6. The method as defined in claim 1 wherein an incentive relates patronage of said sponsors, advertisers, and/or business affiliates to the cost of said connection means to said medium or service.

7. The method as defined in claim 6 wherein said service, and medium provides said incentive.

8. The method as defined in claim 6 wherein said sponsor, advertiser, and/or business affiliate provides said incentive.

. The method as defined in claim 6 wherein said incentive is applied to the cost of connection means to a service or medium, which has advertising communications.

10. The method as defined in claim 1, further including incentives earned from the purchase of products identified with bar code information.

11. The method as defined in claim 6 wherein an incentive is applied to the cost of said connection means to a service or a medium which facilitates the user in making purchases from said sponsors, advertisers and/or business affiliates.

12. A method for obtaining business affiliates, sponsors, and advertisers by relating the cost of connection means to a service or medium based on patronage of business affiliates, sponsors, and/or advertisers.

13. The method as defined in claim 12 wherein said business affiliates, sponsors, and advertisers are obtained by relating the cost of communication bandwidth to patronage of said sponsors, advertisers, or business affiliates.

14. The method as defined in claim 13 wherein the advertiser, sponsor, and/or business affiliate makes payment for advertising only when a user of the service or medium in which the advertising communication occurs makes a purchase.

5. The method as defined in claim 13 wherein sponsors, advertisers, and/or business affiliates pay a fee for advertising and make additional payment when a purchase is made by a user of the service or medium in which the advertising communication occurred.