PCT
`
`WORLD INTELLECTUAL PROPERTY ORGANIZATION
`International Bureau
`
`INTERNATIONAL APPLICATION PUBLISHED UNDER THE PATENT COOPERATION TREATY €PCT)
`
`
`
`(51) International Patent Classification 5 :
`(11) International Publication Number:
`WO 92/20036
`
` (43) International Publication Date: 12 November 1992 (12.11.92)
`
`GO6F 15/21
`
`
`
`
`
`
`(21) International Application Number: PCT/US92/03898|(74) Agent: HEAL, Noel, F.; 2516 Via Tejon, Suite 316, Palos
`
`Verdes Estates, CA 90274 (US).
`
`
`
`
`
`
`
`
`
`
`
`
` (57) Abstract
`
`(22) International Filing Date:
`
`6 May 1992 (06.05.92)
`
`(30) Priority data:
`95,650
`
`6 May 1991 (06.05.91)
`
`US
`
`(71) Applicant: CATALINA MARKETING INTERNATION-
`AL, INC. [US/US]; 721 East Ball Road, Suite 200, Ana-
`heim, CA 92805 (US).
`
`; 25162 Barents Street,
`(72) Inventors: O'BRIEN, Michael, R.
`Laguna Hills, CA 92653 (US). OFF, George, W.
`; 65 Sea
`Island Drive, Newport Beach, CA 92660 (US). CHER-
`NEY, Timothy, L.
`; 1373 Armstead Lane, Fullerton, CA
`92633 (US).
`
`
`
`(81) Designated States: AU, BB, BG, BR, CS, FI, HU, JP, KP,
`KR, LK, MG, MW, NO, PL, RO, RU, SD.
`
`Published
`With international search report.
`
`'
`
`A system for automatically distributing discount coupons
`or certificates in a retail store, conditioned on a preselected com-
`bination of present and past shopping behavior of a customer
`whose orderis being processed at a checkout stand (12, 13). Gen-
`eration of a printable discount coupon can be based on any de-
`sired combination of customer-supplied data, obtained from a
`customeridentification data base (22, 24) past shoppingactivity,
`derived form data gathered during previous customervisits to the
`store, and present shopping activity, as evidenced by items ident-
`ified in the current customerorder.If all of the preselected condi-
`tions for generation of a couponaresatisfied, the coupon is gen-
`erated and printed at the checkout stand (12, 13).
`
` CATALINA
`PERSONAL
`
`COMPUTER
`
`
`
`
`
`30
`
`HOST
`
`COMPUTER
`
`CHECKOUT
`DIRE!
`DATABASE
`
`
`
`
`
`
`
`PROVI-1026 - Page 1
`
`PROVI-1026 - Page 1
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`

`

`FOR THE PURPOSES OF INFORMATION ONLY
`
`Codes used to identity States party to the PCT onthe front p
`applications undet the PCT.
`
`apes of pamphlets publishing international
`
`United States of Anicriva
`
`Finiaitd
`Fratve
`Gabon
`United Kingdon
`Guinea
`Greece
`Hungary
`Ircland
`italy
`Japan
`Democratic People’s Republic
`of Kurca
`Republic of korea
`Licchtenstcin
`Sri Latha
`1 wacmnboury
`Monaco
`Maskigane at
`
`Al
`AL
`
`Austin
`Australia
`Burmadus
`Below
`Burkines Faso
`Baigarta
`Benin
`Brastl
`Candids
`
`Contrat Afmeaa Republic
`Congo
`Switzer fans
`C6te dH Ivohe
`Caunmbroos
`Crcchaslov cht
`Gerniaay
`Denk
`Spatt
`
`Mut
`Monpolis
`Mautituie
`Mualuwi
`Netheriands
`Norway
`Poland
`Rumania
`Russian Federation
`Sudan
`Sweden
`Suncgal
`Soviet Unign
`Chad
`Toyo
`
`PROVI-1026 - Page 2
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`

`WO 92/20030
`
`PCT/US92/03898
`
`-1l-
`
`METHOD AND APPARATUS FOR
`SELECTIVE DISTRIBUTION OF DISCOUNT COUPONS
`
`CROSS~REFERENCE TO RELATED APPLICATION
`
`5
`
`10
`
`This application is related to application
`Serial No. 07/465,478 entitled "Method and Apparatus
`for Dispensing Discount Coupons."
`
`BACKGROUND OF THE INVENTION
`
`15
`
`This invention relates generally to point-of-
`sale computer systems of the type used in retail stores
`to record sales transactions. More particularly,
`the
`invention relates to point-of-sale systems capable of
`handling discount coupons. Most point-of-sale systems
`have terminals that are capable of reading a code print-
`ed on each product package, and thereby determining the
`price from an internal file that is accessed by a store
`20 controller. Products are coded by means of a series of
`parallel
`lines,
`in accordance with a convention known
`
`as the Universal Product Code.
`
`AS every grocery shopper knows, many manufactu-
`rers distribute discount coupons
`for their products,
`25 either through the mail, or by printing them in newspa-
`pers or magazines, or enclosing them in similar or re-
`
`lated product packages. When a customer presents a dis-
`count coupon at the time of purchase of an appropriate
`product,
`the grocery checker operating the terminal
`30 will
`typically key in the coupon amount,
`and the dis-
`count will be subtracted from the customer's bill.
`
`This procedure often has the disadvantage that
`the customer may not have actually purchased the dis-
`countable product, and the coupon will then be improper-
`ly redeemed. A further disadvantage,
`from a customer
`
`~
`35
`
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`

`

`WO 92/20030
`
`—-2-
`
`PCT/US92/03898
`
`is that collecting coupons and taking them
`standpoint,
`to the store is inconvenient, and many customers simply
`do not participate in any promotional program involving
`distributed coupons. This represents a significant loss
`for the manufacturers or retailers that distribute the
`
`5
`
`coupons.
`
`10
`
`In the cross-referenced patent application,
`and in related United States Patent Nos. 4,910,672 and
`4,723,212,
`systems are @isclosed for generating print-
`able discount coupons at a checkout counter, as a re-
`sult of the purchase of one or more "triggering" pro-
`ducts. A customer may then be presented with a discount
`coupon for use on a subsequent visit. This technique
`has proved to be very successful
`in distributing single
`15 discount coupons in response to the purchase of select-
`ed products or groups of products, but does not address
`other important marketing goals of retailers.
`Retailers and manufacturers of grocery items
`and other consumer products have long felt a need for
`20 marketing and promotional programs that were more selec-
`tive in targeting customers for attention. Most promo-
`tional programs involving product discounts require the
`distribution of coupons to large numbers of people,
`most of whom do not
`take advantage of
`the discounts
`25 offered. An important goal
`in promotional programs
`is
`to increase the percentage of
`redemptions of discount
`coupons, but this goal can only be achieved if alterna-
`tive schemes are devised to target the promotional pro-
`grams more selectively than has been possible in the
`30 past. Printing discount coupons in the store has alrea-
`dy proved to be a key feature of
`such programs,
`and
`printing coupons in response to the purchase of trigger-
`ing items is one specific technique for customer target-
`ing. What
`is still needed, however,
`is a more general
`technique for targeting customers to receive details of
`
`~
`35
`
`SUBSTITUTE SHEET
`PROVI-1026 - Page 4
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`

`

`WO 92/20030
`
`~ 3 -
`
`PCT/US92/03898
`
`promotional programs, based on more than simply a sin-
`gle triggering purchase. The present
`invention is di-
`rected to this end, as will be appreciated from the fol-
`lowing summary.
`
`SUMMARY OF THE INVENTION
`
`10
`
`invention resides in a method and
`The present
`apparatus for generating printable discount coupons
`in
`a retail store, conditioned on some preselected combina-
`tion of customer attributes and past and present custom-
`er shopping activities.
`In terms of apparatus,
`the in-
`vention comprises a plurality of terminals at customer
`checkout locations, each having means for reading prod-
`15 uct codes on purchased items
`in a customer order;
`a
`store controller with which the terminals can communi-
`
`the store controller having access to an item
`cate,
`record file containing price and other information for
`each product
`item; means for storing the terms and con-
`- 20 ditions of discount deals for which a customer may qual-
`ify; and means for uniquely identifying each customer,
`but only if preselected conditions relating to custom-
`ers have been met by the specific customer whose order
`is being processed.
`
`25
`
`30
`
`The apparatus may also include means for print-
`ing the discount coupon for immediate customer distribu-
`tion. Further,
`the apparatus may include means for pro-
`cessing redemption of
`a printed discount coupon in a
`subsequent customer order,
`and applying a discount
`to
`the subsequent customer order if the discounted item is
`purchased, and means for maintaining a
`log of discount
`coupons printed and cumulative discount coupons re-
`
`deemed.
`
`~
`35
`
`the apparatus of the inven-
`More specifically,
`tion further comprises means for identifying triggering
`
`PROVI-1026 - Page 5
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`

`

`WO 92/20030
`
`-4-
`
`PCT/US92/03898
`
`products in the customer order, wherein each triggering
`product pertains to a condition of a coupon deal pre-
`sently in effect or to be put
`into effect
`in the fu-
`ture; and customer purchase file means for storing data
`5 pertaining to the customer's purchase of
`triggering
`products,
`for use in determining whether future coupon
`deals should be effective. The means for automatically
`
`10
`
`15
`
`generating a printable discount coupon includes means
`for determining from the customer purchase file whether
`the customer has met all of the coupon deal conditions
`pertaining to past customer activity,
`and means
`for
`determining from the customer purchase file whether the
`customer has met all of the coupon deal conditions per-
`taining to present customer activity. A printable cou-
`pon will be generated only if the customer has met all
`of the required past and present customer activity re-
`quirements. These activity requirements may be selected
`as desired for a particular coupon deal. For example, a
`coupon may be generated if the customer has purchased a
`20 certain item in a specified time interval, but has not
`purchased’ a specific item in the present order.
`In one form of the invention,
`the only condi-
`tion to be satisfied before generating a coupon is that
`the customer is ina preselected target group of custom-
`25 ers, which may be specified by factors such as age, res-
`idence location or income level.
`the invention comprises
`In terms of a method,
`the steps of storing the terms and conditions of at
`least one discount coupon deal; uniquely identifying
`the customer whose order is being processed; determin-
`ing whether
`the identified customer has satisfied all
`of the conditions of a discount coupon deal; and auto-
`matically generating a printable discount coupon if the
`conditions are satisfied.
`
`30
`
`PROVI-1026 - Page 6
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`

`

`WO 92/20030
`
`PCT/US92/03898
`
`~5—
`
`the step of de-
`In one form of the invention,
`termining whether the identified customer has satisfied
`all of the conditions of the discount coupon deal
`in-
`cludes determining whether the customer falls within a
`
`5 preselected target group of customers, based on informa-
`tion previously provided by the customer.
`In another
`form of the invention,
`the step of determining whether
`the identified customer has satisfied all of the condi-
`tions of the discount coupon deal
`includes determining
`10 whether the customer's past and present shopping activi-
`ty satisfies preselected conditions.
`More specifically,
`the method further compris-
`es the steps of preselecting triggering products, each
`of which pertains to a condition of
`a discount deal
`15 presently in effect or to be put into effect later, de-
`tecting the purchase of triggering products in the cus-
`tomer order, and saving customer purchase data concern-
`ing the purchase of
`triggering products. The step of
`determining whether
`the customer's past and present
`shopping activity satisfies preselected conditions in-
`cludes reviewing the customer purchase data saved in
`previous visits to the store.
`It will be appreciated from the foregoing that
`the present
`invention represents a significant advance
`in the field of point-of-sale systems in which discount
`coupons can be printed in retail stores.
`In particular,
`the invention provides for very specific targeting of
`customers for promotional discount coupons, based on a
`selected combination of customer-supplied information,
`and present and past shopping activity by the customer.
`Other aspects and advantages of the invention will be-
`come apparent
`from the following more detailed descrip-
`tion,
`taken in conjunction with the accompanying draw-
`ings.
`
`20
`
`25
`
`30
`
`~
`35
`
`PROVI-1026 - Page 7
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`

`

`WO 92/20030
`
`-6=
`
`PCT/US92/03898
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`FIGURE 1 is a simplified block diagram showing
`the apparatus of a point-of-sale computer system incor-
`5 porating the present
`invention for use in a retail
`
`store;
`
`showing the functions
`is a flowchart
`2
`FIG.
`performed in a general wait state processing loop,
`in
`accordance with the method of the invention;
`FIG.
`3
`is a
`flowchart
`showing the functions
`performed in processing input data and generating print-
`able discount certificates in accordance with the meth-
`
`10
`
`od of the invention;
`
`FIGS.
`
`3a and 3b are flowcharts showing more
`
`15 detail of decision blocks 72' and 72 of FIG. 3; and
`
`showing the functions
`flowchart
`is a
`4
`FIG.
`performed in processing output data in accordance with
`the method of the invention.
`
`20
`
`25
`
`30
`
`35
`
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`

`WO92/20030
`
`~J-
`
`PCT/US92/03898
`
`DESCRIPTION OF THE PREFERRED EMBODIMENT
`
`Overview:
`
`As shown in the drawings for purposes of illus-
`the present
`invention is concerned with point-
`tration,
`of-sale systems for recording sales transactions involv-
`ing discount coupons or certificates. FIG.
`1
`shows
`in
`broad outline the components of such a system.
`In each
`store in which the invention is to be used,
`there is a
`store point-of~sale controller,
`indicated by reference
`numeral 10,
`and a plurality of checkout
`terminals 12,
`each having an associated optical scanner 13. Associat-
`ed with the store controller 10 are a number of files,
`one of which is an item record file,
`indicated at 14,
`and these files are used by the controller to provide
`information to the terminals 12. The item record file.
`14 contains a
`record for each product sold in the
`store, and is used to access price and other informa-
`tion concerning the product.
`the terminals
`In a typical store installation,
`12 and the store controller are connected together in
`ring bus configuration, known as the terminal process-
`ing loop,
`indicated at 16. Communication between the
`store controller 10 and the terminals 12
`is made over
`the terminal processing loop 16.
`including
`far,
`The components described thus
`the item
`the store controller 10,
`the terminals 12,
`record file 14,
`and the terminal processing loop 16,
`together constitute a conventional retail point-of-sale
`system.
`In accordance with the invention,
`transactions
`taking place at
`the terminals are monitored to detect
`the sale of preselected triggering products, and print-
`able cumulative discount certificates are generated as
`required. The
`invention is implemented principally in
`software form in a personal computer 20, which is
`
`10
`
`15
`
`20
`
`25
`
`30
`
`35
`
`PROVI-1026 - Page 9
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`

`

`WO 92/20030
`
`-8-
`
`PCT/US92/03898
`
`indi-
`as
`coupled to the terminal processing loop 16,
`cated by line 21,
`in such a manner
`that the personal
`computer appears to the store controller 10 to be an-
`other terminal.
`is a standard price
`The
`item record file 14
`file used in point-of-sale systems, except that it in-
`cludes a trigger flag, which is an additional one-bit
`field. The record format of this file is shown in more
`detail
`in the cross-referenced patent application.
`In
`the process of coupon creation,
`the file 14 is accessed
`to determine if a product being purchased is a trigger-
`ing product. If so, a corresponding record is retrieved
`from the checkout direct data base 24. This provides
`additional
`information about
`the discount deal that
`is
`in effect for this particular product, specifically the
`amount of the discount. Discount coupons may be printed
`as a result of purchase of a triggering item, as in the
`systems described in Pat. Nos. 4,910,672 and 4,723,212,
`or may be printed without
`the purchase of a triggering
`item, if the customer is targeted for a specific promo-
`tional program, as will be described in this specifica-
`tion.
`
`5
`
`10
`
`15
`
`20
`
`Associated with the personal computer 20 are
`two file systems: a customer purchase file 22 and anoth-
`25 er database file 24 referred to as the checkout direct
`database.
`In operation,
`the personal computer 20 de-
`tects the purchase of triggering products at the termi-
`nals 12, retrieves the terms of each discount deal
`from
`the checkout direct database 24, builds a list of trig-
`30 gering products, and at the end of the customer transac-—
`tion updates the customer purchase filed with the items
`in the list. The customer purchase file is interrogated
`to determine if any checkout direct coupons are to be
`printed. The personal computer 20 also controls print-
`ing of the cumulative discount certificates,
`through a
`
`35
`
`~
`
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`

`WO 92/20030
`
`PCT/US92/03898
`
`~ 9 -
`
`printer output bus 26, which is connected to a printer
`at each terminal 12, one of the printers being shown at
`28.
`
`5
`
`10
`
`The personal computer 20 is also coupled to a
`retailer host computer 30,
`as
`indicated by line 32,
`which may be a telephone line or some other comnunica-
`tion link. The retailer host computer 30 controls commu-
`nications with all store controllers in the retailer's.
`various stores, and is responsible for generating vari-
`ous accounting reports, as indicated at 34. The retail-
`er host computer 30 has an associated data base 36 of
`various files relating to the retailer's entire store
`operations.
`
`15
`
`20
`
`the personal
`In accordance with the invention,
`computer 20 keeps
`track of selected features of each
`customer's purchase history,
`in the customer purchase
`files 22, and the printing of coupons is conditioned on
`some desired combination of past history and current
`purchase behavior. Coupon printing may also be condi-
`tioned on demographic factors. Thus,
`a
`list of valid
`customers may be subject
`to demographic filtering ei-
`ther
`in the personal computer, or
`in off-line device
`(not shown), which provides a filtered list of customer
`identifiers to the personal computer. For example,
`a
`25 promotional program may be limited to customers
`in a
`certain age group, geographical area, or income range.
`Conditioning the distribution of
`a coupon or
`certificate on past purchase behavior opens up some in-
`teresting marketing options for the retailer and manu-
`facturer. For example,
`a coupon for hair shampoo can be
`printed some preselected time after a prior purchase of
`the same product, or even a different product,
`to pro-
`vide the customer an opportunity to buy the discounted
`product at a time when his prior purchase has been al-
`35 most completely used. Another possibility is to target
`
`30
`
`~
`
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`

`

`wo 92/20030
`
`-10-
`
`PCT/US92/03898
`
`5
`
`10
`
`households based on the categories or brand names that
`have been purchased over a period of time.
`In general, past customer behavior data uti-
`lized in the invention can be either derived from exist-
`ing data bases, or gathered by the apparatus of the in-
`vention. Retailers that have customer
`identification
`cards in place are already able to analyze customer be-
`havior in terms of departmental sales records, shopping
`frequency and order size over a period of time. Based
`on these factors,
`a retailer could provide a customer
`target list for a specific promotional program. For ex-
`ample,
`if a store were to open a new delicatessen de-
`partment,
`it could later identify those customers who
`had not used it, and target them for a special discount
`15 promotion. The other level at which customer behavior
`data may be employed involves the collection of the be-
`havior data as well as its use. Sales for a selected
`category of items, or for multiple categories of items,
`are monitored over a period of
`time, perhaps several
`20 months, and the results are accumulated in the customer
`purchase files 22. A promotional program can then use
`the data in these files to identify and target custom-
`ers whose. past shopping behavior in the selected catego-
`ry meets some desired criterion. For example,
`in a pro-
`25 motional program that distributes discount coupons for
`a particular brand of coffee,
`the targets could be cus-
`tomers who have purchased some other brand in the last
`several months. Another promotion might be used to re-
`ward customers whose shopping behavior demonstrates loy-
`30 alty to a particular brand of a product.
`In all of
`the cases and examples described
`the distribution of discount coupons or certifi-
`above,
`cates may also be conditioned on a customer's present
`behavior, as determined by the size and nature of
`the
`customer's present
`transaction at
`the store. A condi-
`
`%
`
`~
`35
`
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`

`
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`WO 92/20030
`
`-li-
`
`PCT/US92/03898
`
`tion for printing a coupon may be the size of the or-
`der,
`the purchase of a particular item, or the purchase
`of a particular size or quantity of an iten.
`
`10
`
`15
`
`5 Certificate creation and redemption:
`The coupon creation functions performed by the
`apparatus of the invention are shown in FIGS. 2, 3, 3a,
`3b and 4. FIG.
`2 illustrates a "general wait state" of.
`processing performed in the personal computer 20, which
`involves cyclic checking to determine whether any spe-
`cific processing task needs to be performed. Once pro-
`cessing is initiated to a certain stage,
`a return is
`made to the general wait state, as will be further ex-
`plained. For purposes of explanation,
`the processing
`steps performed by the invention are depicted as involv-
`ing a transaction at a single terminal. It will be un-
`derstood, however,
`that
`the personal computer 20 pro-
`vides effectively simultaneous processing for all of
`the terminals 12, but to illustrate processing for mul-
`tiple terminals would render the flowcharts unduly com-
`plicated.
`
`20
`
`The general wait state processing loop shown
`2
`includes a series of
`four decision blocks
`in FIG.
`40-43.
`In block 40,
`the computer 20 determines whether
`there is any input ‘data to process.
`Input data is ei-
`ther from a terminal bar code scanner
`(not shown), or
`from a terminal keyboard (not shown). If there is input
`to process,
`the computer 20 enters an input processing
`sequence,
`shown at 44 and,
`in more detail,
`in FIG. 3.
`In block 41,
`the computer determines whether
`there is
`any output
`to process. If so, an output processing se-
`quence is entered,
`as
`indicated at block 46 and,
`in
`more detail,
`in FIG. 4.
`Block 42 in the general wait state processing
`loop determines whether any response has been received
`
`25
`
`30
`
`35
`
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`WO 92/20030
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`
`PCT/US92/03898
`
`from a prior request made to the controller 10 for file
`access. As will become apparent,
`the computer 20 makes
`a number of requests for file access but, because gain-
`ing access to a file may take a relatively long time,
`5 processing continues in the general wait state loop un-
`til a response to the request
`is received. Then a re-
`sponse return is made, as indicated at 48, which simply
`means
`that control
`is transferred back to a point
`in
`
`10
`
`the program at which the file access request was made,
`so that
`the program can continue in its proper se-
`quence. Finally, decision block 43 in the general wait
`state loop determines whether a time-out
`is complete.
`In some point-of-sale systems, printing of cumulative
`discount certificates may be accomplished without a com-
`15 pletely separate printer for that purpose. There may be
`a separate print station for printing the certificates,
`but the print head may be shared by other printing func-
`tions, such as customer receipt printing.
`In this case,
`it may be necessary to avoid having the printing of so
`20 many discount certificates (and possibly other types of
`discount coupons) that other printing functions are pre-
`cluded. Therefore,
`the printing of a discount certifi-
`cate, or of a substantial part of the certificate, can
`be followed by a request for a time-out,
`to allow other
`25 printing functions to gain access to the printer. Until
`the time-out
`is complete, as determined in block 43,
`processing remains in the general wait state loop. When
`the time-out is complete, a time-out return is made, as
`indicated in block 50,
`to continue processing at
`the
`30 point from which the time-out was requested.
`The present
`invention performs
`a variety of
`functions in connection with selective printing of dis-
`count coupons or certificates, all of which require no
`active customer participation except
`in the sense that
`each customer must be uniquely identifiable in some
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`the most common way of identifying cus-
`way. Currently,
`tomers is by means of an identification card issued by
`a retailer. Customers are encouraged to obtain identifi-
`cation cards to facilitate payment by personal check,
`5 but
`the cards also provide the means
`for associating
`customer behavior with a unique customer or household.
`In this specification,
`the identification card (ID
`card)
`is described as the tool used for making this as-
`sociation. Typically,
`the customer ID card has a unique
`identifying number encoded on it using bar codes or a
`magnetic stripe, either of which can be conveniently
`read at the checkout counter. However, it will be under-
`stood that other means for customer identification are
`possible and also fall within the scope of this inven-
`tion. For example,
`customers may be identified by a
`machine-readable driver's license, or a bank card, or
`even by means of fingerprint scanning,
`if the technolo-
`gy for doing so becomes available at reasonable cost.
`FIG.
`3
`shows the input processing sequence 44
`in more detail. First,
`in block 52,
`the input data is
`examined to determine whether it is redemption data.
`Each printed discount certificate will have a special
`bar code that can be read at the checkout counter, and
`and distinguished from the Uniform Product Codes
`that
`identify products, and from other codes on customer ID
`cards.
`If the input
`is not
`redemption data,
`it is
`checked,
`in block 53,
`to determine if it is a valid cus-
`tomer
`ID.
`If the input
`is not
`redemption data and is
`not a valid customer
`ID,
`it is next checked,
`in block
`54,
`to determine if it is Uniform Product Code
`(UPC)
`data.
`If so,
`a record corresponding to the UPC in the
`input data is retrieved from the item record file 14
`(FIG. 1), and is checked to determine whether the item
`is one that should trigger the generation of a cumula-
`tive discount certificate, as indicated in block 56. If
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`the item is not one that has been preselected to trig-
`ger generation of a certificate, no further processing
`is needed for this item and a return is made to the gen-
`eral wait state, as indicated at 58. If the item is a
`triggering item,
`a corresponding record is retrieved
`from the checkout direct data base 24 (FIG. 1), as indi-
`
`5
`
`cated in block 60. The succeeding processing steps gen-
`
`10
`
`15
`
`erate a selective UPC list for the customer order pres-
`ently being processed. The list contains only trigger-
`ing items purchased by the customer. For purposes of
`this invention,
`a triggering item is defined as any
`item that has an effect on the terms of a discount
`deal. For example, purchase of a triggering item may be
`the sole criterion for initiating printing of a dis-
`count coupon; or purchase of one or more triggering
`items may be a condition that qualifies the customer
`for a discount coupon for which he has qualified by rea-
`son of some past shopping activity.
`If the item being
`processed is not already in the list, as determined in
`20 decision block 62, it is placed in the list, as indicat-
`ed in block 64. If the item is already in thelist, the
`number of purchases of this item is incremented, as in-
`dicated in block 66, and a return is made to the gener-
`al wait state processing loop, as indicated at 58. Re-
`25 peated processing of data corresponding to purchased
`items,
`in blocks 54 through 66, results in the genera-
`tion of a UPC list of triggering items, which may re-
`sult
`in the printing of a coupon or certificate. This
`list is stored internally in the computer 20 until the
`end of
`the customer
`transaction, as
`indicated by the
`
`30
`
`"tender" state of the checkout keyboard.
`
`When the customer tenders payment for the or-
`the operator actuates a "tender" key to terminate
`der,
`the transaction and open a cash drawer at the checkout
`counter. The actuation of the tender key is detected as
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`indicated in decision block 68. Prior to actuation of
`
`the key, processing proceeds from block 68 to the gener-
`al wait state loop, as indicated at 58. Once the tender
`key has been detected,
`the cumulative discount list is
`examined to determine if it contains any items. If the
`
`list contains one or more items,
`these items are added
`to the customer purchase file, as
`indicated in block
`71. This is the principal data gathering step,
`in which
`the purchases of triggering items are recorded for pos-
`sible later analysis.
`In the most advanced form of the
`invention, everything the customer purchases may be a
`triggering item for which purchase data must be gath-
`ered for later use in targeting customers for specific
`promotional programs. Obviously, gathering purchase
`data on a "full basket" of items requires a very large
`storage capacity for
`the customer purchase files 22,
`but still employs the same principles described here.
`a
`After updating the customer purchase files,
`decision is made as to whether any discount coupons or
`certificates should be printed, as indicated in block
`72. This decision is based on both current and prior
`purchases, which are stored in the customer purchase
`file,
`and is further explained with reference to FIG.
`3b. If the criteria have not been met,
`the UPC list for
`
`the transaction is cleared, as indicated in block 74,
`and return is made to the general wait state processing
`loop, via block 58. If the desired criteria are met, as
`determined in decision block 72,
`the appropriate check-
`out direct coupons are generated, as indicated in block
`76,
`and is placed in a print queue,
`as
`indicated in
`block 78, before clearing the list
`(block 74)
`and re-
`turning to the general wait state loop via block 58.
`A related aspect of the invention is the gener-
`ation of printable coupons or certificates in response
`to the detection of a valid customer ID,
`in block 53.
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`Some coupon deals do not require the use of data relat-
`ing to the current customer transaction, and can there-
`fore be processed as soon as the customer ID is detect-
`ed,
`in block 53. A decision is made in block 72' wheth-
`5 er any coupons are to be generated for this customer.
`If so,
`the coupons are generated, as indicated in block
`76',
`and placed in the .print queue, as
`indicated in
`block 78'. Otherwise a return is made directly to the
`wait state, as indicated at 58.
`Printing the coupons or certificates is accom-
`plished with the steps of output processing 46,
`as
`shown in more detail
`in FIG. 4. Basically, output pro-
`cessing involves three steps: printing a certificate
`from the print queue, as indicated in block 80,
`remov-
`ing from the print queue an entry corresponding to the
`printed certificate (block 82), and logging the print-
`ing of the certificate (block 83)
`in the cumulative dis-
`count certificate log files 22 (FIG. 1). Then a return
`is made to the general wait state processing loop, via
`20 block 58.
`If other certificates remain to be printed,
`they will be retrieved from the print queue on a subse-
`quent return to these output processing steps.
`The only general aspect of
`the invention not
`yet discussed is certificate redemption. Each printed
`cumulative discount certificate is redeemable on a sub-
`sequent visit to the store. When the certificate is pre-
`sented,
`the checkout counter operator scans a bar code
`on the certificate and this action generates input data
`to the personal computer 20 (FIG. 1).
`Input data relat-
`ing to redemption is recognized, as indicated in deci-
`sion block 52
`(FIG. 3), and the redemption is logged,
`as indicated in block 84 of FIG. 3. Logging redemptions
`involves two basic functions: maintaining a cumulative
`record of certificates that have been redeemed,
`in the
`files 22 (FIG. 1), and applying the discount to the cus-
`tomer order.
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`Conditioning of Coupon Generation:
`a
`As
`indicated in the description of FIG. 3,
`decision whether or not
`to generate a printable dis-
`count coupon or certificate is made at either or both
`of
`two stages in the processing of
`input data. One of
`these stages,
`indicated at block 72',
`is at
`the point
`at which a valid customer
`ID has been recognized but
`details of
`the present