111111
`
`1111111111111111111111111111111111111111111111111111111111111
`US007054830B 1
`
`c12) United States Patent
`Eggleston et al.
`
`(10) Patent No.:
`(45) Date of Patent:
`
`US 7,054,830 Bl
`May 30,2006
`
`(54) SYSTEM AND METHOD FOR INCENTIVE
`PROGRAMS AND AWARD FULFILLMENT
`
`(75)
`
`Inventors: York Eggleston, 301 S. Fremont Ave.,
`Baltimore, MD (US) 21230; Andrey
`Ukhov, Bloomington, IN (US)
`
`(73) Assignee: York Eggleston, Baltimore, MD (US)
`
`( *) Notice:
`
`Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U.S.C. 154(b) by 0 days.
`
`(21) Appl. No.: 09/412,147
`
`(22) Filed:
`
`Oct. 5, 1999
`
`Related U.S. Application Data
`
`(63) Continuation of application No. 09/040,490, filed on
`Mar. 18, 1998.
`
`(60) Provisional application No. 60/063,180, filed on Oct.
`20, 1997, provisional application No. 60/067,776,
`filed on Dec. 10, 1997.
`
`(51)
`
`Int. Cl.
`G06F 17160
`(2006.01)
`(52) U.S. Cl. ........................................... 705/14; 705/10
`(58) Field of Classification Search .................... 705/7,
`705/14,10, 17,26,27; 707/100-104,200
`See application file for complete search history.
`
`(56)
`
`References Cited
`
`U.S. PATENT DOCUMENTS
`
`3,697,729 A
`3,698,718 A
`3,790,070 A
`3,941,388 A
`4,140,319 A
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`4,346,442 A
`4,378,941 A
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`
`10/1972 Edwards et al.
`10/1972 Kuhn
`2/1974 Schnitzer eta!.
`3/1976 Isaac et al.
`2/1979 Aycock et al.
`3/1980 Robbins
`3/1982 Braun et al.
`8/1982 Musmanno
`4/1983 Derby
`511983 Horst et a!.
`
`4,554,446 A
`4,561,658 A
`4,566,066 A
`4,585,160 A
`4,597,046 A
`4,601,490 A
`4,619,457 A
`4,634,147 A
`4,694,397 A
`4,711,454 A
`4,722,554 A
`4,723,212 A
`4,725,719 A
`
`1111985 Murphy eta!.
`12/1985 Peterson
`111986 Towers
`4/1986 Fiske, II
`6/1986 Musmanno et a!.
`7/1986 Brandon
`10/1986 Small
`111987 McClure
`9/1987 Grant eta!.
`12/1987 Small
`2/1988 Pettit
`2/1988 Mindrum et a!.
`2/1988 Oncken et al.
`
`(Continued)
`
`wo
`
`FOREIGN PATENT DOCUMENTS
`* 1111996
`wo 96/36926
`
`(Continued)
`
`OTHER PUBLICATIONS
`
`Michael, Judd H et a! disclose an article entitled "Informa(cid:173)
`tion sources used by furniture retailers: The importance of
`furniture markets", Forest Products Journal, Madison: Apr.
`1995, vol. 45, Issue 4, p. 25, 6 pages.*
`
`(Continued)
`
`Primary Examiner-Frantzy Poinvil
`(74) Attorney, Agent, or Firm-Ralph P. Albrecht; Venable
`LLP
`
`(57)
`
`ABSTRACT
`
`A method and system for providing incentive programs over
`a computer network is provided in which a host may provide
`sponsoring companies with the capability to buy prepack(cid:173)
`aged or self-built incentive programs, offer such incentive
`programs to consumers, provide sponsoring companies and
`retailers with the capability to associate prizes with incentive
`programs, provide sponsoring companies, retailers and con(cid:173)
`sumers with convenient fulfillment of prizes, and store and
`manipulate databases regarding all of the foregoing.
`
`37 Claims, 23 Drawing Sheets
`
`SWY&KRG 1001 - Page 1
`
`

`

`US 7,054,830 Bl
`Page 2
`
`U.S. PATENT DOCUMENTS
`
`4/1988 Roberts et al.
`4,739,478 A
`5/1988 Leon et al.
`4,742,457 A
`10/1988 Clinnin et a!.
`4,775,154 A
`1111988 Clinnin et a!.
`4,781,378 A
`2/1990 Auxier
`4,902,020 A
`3/1990 Tai
`4,908,761 A
`111991 Girouard et a!.
`4,982,346 A
`5,009,429 A
`4/1991 Auxier
`5/1991 Todd
`5,018,975 A
`6/1991 Burton et al.
`5,025,372 A
`10/1991 Peach et al.
`5,053,955 A
`5,056,019 A
`10/1991 Schultz et a!.
`12/1991 Desbiens
`5,074,566 A
`2/1992 Peach et al.
`5,085,470 A
`3/1993 Roemer, Jr. et a!.
`5,197,884 A
`5/1993 Anderson
`5,207,792 A
`10/1993 Peterson
`5,249,807 A
`10/1993 Franklin
`5,255,456 A
`3/1994 Alexander
`5,292,133 A
`6/1994 Peach et al.
`5,321,604 A
`8/1994 Ajaji
`5,342,056 A
`2/1995 Hamilton et a!.
`5,393,964 A
`7/1995 Benaderet
`5,435,565 A
`111996 Rivalto
`5,482,139 A
`5,537,314 A * 7/1996 Kanter
`5,572,005 A
`1111996 Hamilton et a!.
`
`1111996 Lockwood
`5,576,951 A
`6/1997 Saxe
`5,636,346 A
`9/1997 Fraser
`5,664,115 A
`5,699,310 A * 12/1997 Garloff et a!.
`5,774,870 A * 6/1998 Storey
`5,794,210 A
`8/1998 Goldhaber et a!.
`5,855,008 A * 12/1998 Goldhaber et a!.
`5,915,243 A * 6/1999 Smolen ....................... 705/14
`5,916,024 A * 6/1999 Von Kohorn ................ 463/40
`5,970,469 A * 10/1999 Scroggie et a!. .............. 705/14
`5,996,007 A * 1111999 Klug et al.
`6,014,634 A *
`1/2000 Scroggie et a!. .............. 705/14
`6,278,980 B1 * 8/2001 Wendkos ..................... 705/14
`
`FOREIGN PATENT DOCUMENTS
`
`wo
`wo
`
`9723838
`9722058
`
`3/1997
`6/1997
`
`OTHER PUBLICATIONS
`
`Carl G. Kline, MBA, "Virtual Store-Using Contests for
`Promotions ... Exclusive to Smart Business Supersite,"
`http://www.smartbiz.com/sbs/colunms/kline 15.html., 1997.
`"Cybercash Sweepstakes", Interactive PR & Marketing
`News, http:/prizelink.com/cc-press.html, 1997.
`* cited by examiner
`
`SWY&KRG 1001 - Page 2
`
`

`

`U.S. Patent
`
`May 30,2006
`
`Sheet 1 of 23
`
`US 7,054,830 Bl
`
`32
`/
`
`COMPUTER
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`Fig. 1
`
`SWY&KRG 1001 - Page 3
`
`

`

`U.S. Patent
`
`May 30,2006
`
`Sheet 2 of 23
`
`US 7,054,830 Bl
`
`18
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`Fig. 3
`
`SWY&KRG 1001 - Page 4
`
`

`

`U.S. Patent
`
`May 30,2006
`
`Sheet 3 of 23
`
`US 7,054,830 Bl
`
`58 "'
`60
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`
`SWY&KRG 1001 - Page 5
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 4 0f 23
`
`US 7,054,830 B1
`
`
`
`OPERATING
`SYSTEM
`
`DATA
`
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`
`SWY&KRG 1001 - Page 6
`
`SWY&KRG 1001 - Page 6
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 5 of 23
`
`US 7,054,830 B1
`
`301
`
`302
`
`BROWSE TO
`CONSUMER
`HOME PAGE
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`
`
`Fig. 8
`
`SWY&KRG 1001 - Page 7
`
`SWY&KRG 1001 - Page 7
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 6 0f 23
`
`US 7,054,830 B1
`
`LOG IN
`
`332
`
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`SWY&KRG 1001 - Page 8
`
`- -
`
`NO
`
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`
`SWY&KRG 1001 - Page 8
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 7 of 23
`
`US 7,054,830 B1
`
`/—358
`
`
`SELECT TYPE
`OF PROMOTION
`
`
`
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`364
`PROMOTION
`
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`
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`Fig. 10
`
`SWY&KRG 1001 - Page 9
`
`SWY&KRG 1001 - Page 9
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 8 0f 23
`
`US 7,054,830 B1
`
`/ 374
`
`378 Q)
`
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`380
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`OF TYPES
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`
`UPDATE
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`HOME PAGE
`
`Fig. 11
`
`SWY&KRG 1001 - Page 10
`
`SWY&KRG 1001 - Page 10
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 9 0f 23
`
`US 7,054,830 B1
`
`403
`
`402
`
`;/
`
`
`
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`
`SWY&KRG 1001 - Page 11
`
`SWY&KRG 1001 - Page 11
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 10 0f 23
`
`US 7,054,830 B1
`
`
`452
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`‘
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`
`SWY&KRG 1001 - Page 12
`
`SWY&KRG 1001 - Page 12
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 11 0f 23
`
`US 7,054,830 B1
`
`42\2 /\
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`
`419
`
`/
`
`SWY&KRG 1001 - Page 13
`
`SWY&KRG 1001 - Page 13
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 12 0f 23
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`US 7,054,830 B1
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`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 13 0f 23
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`US 7,054,830 B1
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`SWY&KRG 1001 - Page 15
`
`SWY&KRG 1001 - Page 15
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 14 0f 23
`
`US 7,054,830 B1
`
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`
`SWY&KRG 1001 - Page 16
`
`SWY&KRG 1001 - Page 16
`
`

`

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`U.S. Patent
`
`May 30, 2006
`
`Sheet 15 0f 23
`
`US 7,054,830 B1
`
`FIRST NAME
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`LAST NAME
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`— —
`
`877
`- - -
`
`PRIZE N
`
`00 (DO
`
` 882
`
`
`
`Fig. 18
`
`SWY&KRG 1001 - Page 17
`
`SWY&KRG 1001 - Page 17
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 16 0f 23
`
`US 7,054,830 B1
`
`900
`
`910
`
`DISPLAY
`
`SWY&KRG 1001 - Page 18
`
`SWY&KRG 1001 - Page 18
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 17 of 23
`
`US 7,054,830 B1
`
`
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`SWY&KRG 1001 - Page 19
`
`SWY&KRG 1001 - Page 19
`
`
`
`
`
`
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 18 0f 23
`
`US 7,054,830 B1
`
`INCENTIVE COMPANY
`
`‘CONSUMERlZPO
`
`DB
`
`662
`
`664
`
`Omlfimgg'z
`CONSUMERS
`
`PRIZE WINNERS' BY
`FULFILLMENT METHOD
`
`/
`
`660
`
`TRANSFER TO
`
`THIRD PARTY
`
`FOR FULFILLMENT
`
`fig???
`
`SPCQ‘L'EOR
`
`674
`
`670
`
`672
`
`680
`
`PRIZE RETAIL FILE
`BY RETAILER
`
`TRANSFER FILE TO
`
`SPONSORING FIRM
`
`FOR FULFILLMENT
`
`682
`
`TRANSFER FILES
`TO RETAILER
`
`686
`
`684
`
`
`RETAILERS VERIFY
`UNIOUE CARDHOLDER
`
`
`Is WINNER OF
`UNIQUE pRIZE
`
`
`,
`
`704
`
`CONSUMER INSTRUCTED
`
`CONSUMER COLLECTS
`
`TO RETRIEVE PRIZE
`AT RETAILER x
`
`UNIQUE PRIZE
`AT RETAILER x
`
`702
`
`698
`
`CONSUMER
`WIN'S PROMOTION
`
`696
`
`ACROSS NETWORK
`
`CARD ISSUED TO
`CONSUMER REGISTERED IN
`PROMO OFFERING
`
`
`
`
`
`
`CONSUMER PRESENTS
`CARD & PRIZE AT
`700
`RETAILCHECK—OUT W690692
`
`
`
`
`
`
`Fig 21
`
`CONSUMER COLLECTS
`UNIQUE PRIZE ON OUR
`PAYMENT
`
`AWARDS FILLED
`REPORT CREATED
`BY RETAILER
`
`688
`
`FILE UPLOADED
`FOR pAYMENT
`
`BY INCENTIVE FIRM
`VIA ISSUER
`
`
`INCENTIVE FIRM
`CONFIRMS &
`PAYS RETAILER
`
`V'A ISSUER
`
`69“
`
`SWY&KRG 1001 - Page 20
`
`SWY&KRG 1001 - Page 20
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 19 0f 23
`
`US 7,054,830 B1
`
`650
`
`/
`
`652
`
`654
`
`656
`
`658
`
`WITH CARD
`
`INPUT 0F REIAILER
`AWARD DATA IN
`AWARD DB
`
`INCENTIVE
`PROGRAM
`ESTABLISHED
`
`CONSUMER
`EXAMS/ WINS
`AWARD OUTLINE
`
`AWARD
`REDEMPTION
`AT RETAILER
`
`Fig. 22
`
`SWY&KRG 1001 - Page 21
`
`SWY&KRG 1001 - Page 21
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 20 0f 23
`
`US 7,054,830 B1
`
`710
`d
`FIRM DECIDES TO
`
`SPONSOR
`
`_
`
`A PROMOTION
`
`INCENTIVE PROGRAM
`
`714
`716
`
`7
`
`
`FIRM
`FIRM ACCOUNT
`
`
`
`ACCOUNT
`ESTABLISHED WITH
`
`
`
`‘ WITH INCENTIVE |
`
`ESTABLISHED
`
`?
`
`—
`
`FIRM
`
`INCENTIVE Finv‘I
`
`(SPONSOR DATABASE)
`
`NO FIRM REGISTERS
`
`YES
`
`7I6
`
`7‘8
`
`720
`
`FIRM SELECTS/
`BUILDS INCENTIVE
`PROGRAM ONLINE
`
`SPONSOR ACCOUNT
`UPDATED
`
`AWARD DATABASE
`
`FIRM QUERIES
`
`FIRM SELECTS
`
`
`
`
`722 AND/ OR INPUTS
`AWARD UNIT FROM
`AWARD DB
`
`SPONSOR ACCOUNT
`UPDATED
`
`724
`
`726
`
`FIRM PAYS FOR
`INCENTIVE PROGRAM
`AND AWARD UNIT
`
`728 SPONSOR ACCOUNT
`ACTIVATED
`
`
`
`
`Fig. 23
`
`SWY&KRG 1001 - Page 22
`
`SWY&KRG 1001 - Page 22
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 21 0f 23
`
`US 7,054,830 B1
`
`502
`504
`503
`510
`
`
`CONSUMER JOINS
`Cfififl’ggfifl“
`CONSUMER UNIQUE
`CONSUMER
`
`
`
`
`
`ID GENERATED
`IDENTIFICATION
`THE PROMOTIONS
`INCENTIVE
`
`
`
`
`
`
`CLUB ON TIME
`&ASSIGNED
`FILE CREATED
`CLUB DB
`
`
`
`
`
`
`CONSUMER ID
`FILE TRANSFERRED
`TO CARD ISSUER
`
`512
`
`50°
`\
`
`540
`
`538
`
`AND AWARD UNIT -
`
`PRIZE INVENTORY ID
`MATCHED WITH
`CONSUMER CARD ID
`
`Fig. 24
`
`CONSUMER EXITS
`
`CARD ISSUER
`ENCODES &
`EMBOSSES CARD
`
`CLUB MEMBER
`
`CARD MAILED
`TO INCENTIVE
`
`514
`
`518
`
`
`
`
`
`
`CONSUMER
`PARTICIPATES IN 520
`~ NETWORK
`
`, PROMOTIONS
`
`CONSUMER
`WINS PRIZE x
`
`522
`
`CONSUMER
`INSTRUCTED TO 524
`PICK-UP PRIZE X
`AT STORE Y
`
`
`
`
`CONSUMER
`VISITS STORE
`
`528
`
`CONSUMER
`SELECTS ITEM X 530
`AT STORE
`
`532
`
`CONSUMER
`PRESENTS CARD
`AT POINT OF SALE
`
`TERMINAL
`
`CARD
`SCANNED
`
`534
`
`SWY&KRG 1001 - Page 23
`
`SWY&KRG 1001 - Page 23
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 22 0f 23
`
`US 7,054,830 B1
`
`
`
`
`
`RECEIVES
`PRESENTS
`QUERY UPLOADED
`
`544
`REGISTERED
`INSTRUCTION
`FULFILLMENT
`WINNER'S FILE
`
`
`
`
`
`
`CONSUMER WINS
`To VISIT STORE
`CARD AT POINT
`IIN CONSUMER
`
`
`
`
`
`DATABASEI
`YFOR AWARDx
`OF SALE -POS
`
`
`
`
`‘552
`
`564
`546 DATA ENTRY IN
`560
`WINNERS' TABLE
`NO
`FULFILLMENT
`
`CARD
`
`WINNER ?
`
`
`
`548 WINNER'S FILE
`
`REFER
`TO
`ISSUER
`
`562
`
`
`
`CORRECT
`INPUT
`?
`
`
`
`
`
`550
`
`RETAILER CONFIRMS
`AWARD UNITS
`
`PRESENTS FROM
`ITEM Y FOR
`AWARDYAT (POINT
`0" SALEI P05
`
`568
`
`
`
`INCENTIVE FIRM
`
`
`548
`TRANSFERRED
`
`
`WINNER'S
`FILE TO RETAILER
`
`
`PROVIDE SUBSTITUTE
`PRODUCT AND NOTE
`
`598
`
`FUNDS FULFILLMENT
`TRANSFERRED
`To RETAILER
`
`594
`
`
`
`
`
`
`596
`-
`Fl 9 . 2 5
`
`INCENTIVE FIRM
`CONFIRMS AWARD
`UNIT AND ID OF
`CONSUMER
`
`
`TRANSACTION
`FILE TRANSMITIED
`TO INCENTIVE FIRM
`VIA ISSUER
`
`
`536
`
`RECEIVES
`AUTHORIZATION
`CODE ON A RECEIPT
`
`588
`
`CONSUMER
`SIGNS RECEIPT
`AND EXITS
`
`F
`E
`TISXIISILUCII13§5
`COLLECTED
`
`590
`
`592
`
`SWY&KRG 1001 - Page 24
`
`/
`
`542
`
`582
`
`580
`
`REFER T0 N0
`
`584
`
`578
`
`576
`
`ITEMS IDENTIFIED
`VIA RETAIL
`INVENTORY
`SYSTEM
`
`570
`
`
`
`
`
`QUERY UPLOADED 572
`WINNER'S FILE
`
`
`
`
`NOTIFY
`CONSUMER
`
`'5
`WINIEIERS
`
`AWARD
`
`?
`OF SALE
`
`
`
`CREDIT 3'” FOR
`PAYMENT DISCOUNT
`OF ”EMS
`
`SWY&KRG 1001 - Page 24
`
`

`

`U.S. Patent
`
`May 30, 2006
`
`Sheet 23 0f 23
`
`US 7,054,830 B1
`
`602
`
`REGISTERED
`CONSUMER WINS
`
`_
`
`
`
`PRESENTS PROMO
`
`608
`ITEM Y FOR
`2
`
`AWARD Y 0R IPOINT
`
`
`
`
`OF SALE) POS
`RECEIVES
`STORE DIAL—UP
`
`
`
`T0 CARD ISSUER
`INSTRUCTION T0
`
`
`
`ON'LINE WINNERS,
`VISIT STORE
`
`
`
`
`PRESENTS
`DATABASE
`Y FOR AWARDx
`
`
`
`
`FULFILLMENT
`
`CARD
`
`
`
`
`614
`
`
`
`DATA ENTRY
`DATA ENTRY
`
`
`CORRECT
`IN WINNERS'
`IN WINNERS'
`
`
`INPUT
`
`TABLE
`TABLE
`?
`
`
`
`
`
`
`INPUT CARD ID
`
`600/
`
`INPUT ITEM SKU
`
`
`CORRECT
`
`INPUT
`?
`
`
`RECEIVES
`630 AUTHORIZATION
`CODE #
`
`
`
`
`
`
`
`CONSUMER
`632
`SIGNS RECEIPT
`
`
`AND EXITS
`
`
`
`
`FULFILLMENT
`TRANSACTION
`
`
`COLLECTED
`
`
`
`TRANSACTION
`
`
`FILE SUBMITTED
`
`TO INCENTIVE FIRM
`VIA ISSUER
`
`
`INCENTIVE FIRM
`638 CONFIRMS AWARD
`
`
`UNIT & ID OF
`
`CONSUMER
`
`
`Fig. 26
`
`
`
`640 FOCUS FULFILLMENT
`TRANSACTION
`TO STORE X
`
`
`SWY&KRG 1001 - Page 25
`
`SWY&KRG 1001 - Page 25
`
`

`

`US 7,054,830 Bl
`
`1
`SYSTEM AND METHOD FOR INCENTIVE
`PROGRAMS AND AWARD FULFILLMENT
`
`CROSS REFERENCE TO RELATED
`APPLICATIONS
`
`2
`tracking the part1c1pation of consumers in the incentive
`programs and fulfilling the awards or prizes won in such
`incentive programs may exceed the benefits of offering the
`incentive program. These costs may be particularly high in
`instances where the activities associated with an incentive
`program must be carried out by different companies, or by
`different organizations within the same company. Accord(cid:173)
`ingly, a need has arisen for a unified system that provides for
`program generation and administration, data tracking and
`10 award fulfillment.
`Existing incentive programs do not meet all of the con(cid:173)
`sumer and sponsor needs associated with incentive pro(cid:173)
`grams. One form of incentive program that is used exten(cid:173)
`sively is that of promotional mailings. The processing of
`promotions, i.e., providing the appropriate check or discount
`coupon to the customer as a reward for the initial purchase,
`involves high volume and labor intensive activity, including
`collection, verification and organization of initial proofs of
`purchase and related information, preparation of the checks,
`20 coupons or other items using preprinted stock provided by
`the sponsor in connection with the particular promotion, and
`finally the sorting of individual items based on their mailing
`destinations.
`At any given time, a typical provider of promotion
`25 services is involved with many different promotions of
`various sponsoring manufacturers. Preprinted forms, when
`provided by different sponsors, can vary in size and shape,
`thus creating the need to handle individual promotions
`separately. This increases handling expense, not only in
`30 added labor, but also in the mailing cost, as it is difficult with
`a single promotion to accumulate a volume of items suffi(cid:173)
`cient to qualify for certain reduced postage rates, e.g. the
`reduced rate available for mail presorted by zip code of the
`destination. Manual recombination and sorting of items for
`35 multiple promotions would be prohibitively expensive.
`Another form of promotional program is coupon distri(cid:173)
`bution and redemption. Many problems exist with the cou(cid:173)
`pon distribution and redemption system. For example, few
`consumers will go through all the steps necessary to redeem
`40 their coupons. More commonly, many consumers forget to
`bring coupons that they have clipped and saved to the store.
`Thus, consumer reluctance to take all necessary steps par(cid:173)
`tially defeats the manufacturer's purpose for offering the
`purchase incentive. A manufacturer distributes coupons with
`45 the expectation that the coupons will induce sales of its
`product by offering a discount. However, when the coupon
`is forgotten or disregarded, the consumer is usually not
`aware of the incentive when he is selecting a product among
`different brands at the retail store.
`Another problem with coupon redemption systems is
`verification. Because the verification of redemption condi(cid:173)
`tions is performed by a check-out clerk, a consumer can in
`some instances present so many coupons that it is imprac(cid:173)
`tical to verifY the required purchases for all of them. As a
`result, some coupons are redeemed without the required
`purchase.
`The introduction of the digital computer and the computer
`network eliminates some of the inconveniences of conven(cid:173)
`tional incentive programs, particularly those that relate to
`data tracking and manipulation. The digital computer is a
`powerful data processing tool that allows a user to organize,
`store and analyze data at volumes and rates that would be
`impossible by any prior known techniques.
`Computers have been used in connection with incentive
`programs and other programs that have characteristics in
`common with incentive programs, but known computer
`incentive programs address some, but not all of the draw-
`
`This is a continuation of application Ser. No. 09/040,490,
`filed Mar. 18, 1998.
`This application is based upon U.S. Provisional Patent
`Application No. 60/063,180, entitled SYSTEM AND
`METHOD FOR INCENTIVE PROGRAMS AND AWARD
`FULFILLMENT, filed Oct. 20, 1997, naming Eggleston and
`Ukhov as inventors, and U.S. Provisional Patent Application
`No. 60/067,776, entitled METHOD AND SYSTEM FOR
`INCENTIVE PROGRAMS AND AWARD FULFILL- 15
`MENT, filed Dec. 10, 1997, naming Eggleston as inventor.
`The entirety of both such provisional patent applications is
`incorporated by reference herein.
`
`BACKGROUND OF THE INVENTION
`
`1. Field of the Invention
`The present invention relates to systems and methods for
`conducting incentive programs and systems and methods for
`fulfilling awards and prizes won in incentive programs.
`The present invention relates more particularly to systems
`and methods for conducting incentive programs over com(cid:173)
`puter networks, such as the Internet.
`2. Description of Related Art
`Incentive award programs, in which incentive companies
`contract with sponsoring companies for programs to pro(cid:173)
`mote sales of the sponsoring companies' products or ser(cid:173)
`vices, are well-known. Incentive programs include discount
`coupon programs; customer loyalty programs, such as fre(cid:173)
`quent flyer programs, and promotional games, such as
`sweepstakes prizes, scratch-and-win games, and the like, in
`which a sponsoring company's products or services are won
`by successful participation in the incentive program.
`Incentive programs offer awards and incentives to modify
`behavior of individual consumers and to direct the consum(cid:173)
`ers to some pre-determined action, such as purchase of
`products or services upon visiting a retail site, viewing
`advertising, testing a product, or the like. Companies use
`awards and incentives to increase awareness of product
`offerings, to launch new products, to attract the attention of
`a newly identified audience, to differentiate products to
`encourage certain behavior, to obtain information, and for
`other purposes.
`Traditional incentive programs systems suffer drawbacks
`in terms of convenience of tracking data, changing promo- 50
`tions, and the like. For example, for a consumer who
`participates in multiple incentive programs it may take time
`and effort to track his or her participation in each program.
`For example, time is required to keep track of loyalty points
`earned in each separate incentive program. Therefore, when 55
`a consumer receives an offer to participate in an incentive
`program, the consumer may decide against participating in
`it, not because the incentive program is not attractive, but
`because the cost to the consumer, in terms of the time and
`effort to tracking another incentive program, exceeds the 60
`expected benefit of the incentive program. Accordingly, a
`consumer need has arisen for a streamlined system and
`method for tracking consumer participation in a variety of
`incentive programs from different sponsors.
`A similar problem exists for sponsoring companies who 65
`wish to offer promotions. The collective costs of generating
`incentive programs, administering the incentive programs,
`
`SWY&KRG 1001 - Page 26
`
`

`

`US 7,054,830 B1
`
`3
`backs of traditional promotions. For example, US. Pat. No.
`5,053,955 to Peach et al. discloses an improved process of
`printing and assembling coupons. Peach et al. discloses a
`computer-based system for merging certain information for
`various promotions, so that a single stream of data can be
`used as a source for printing and mailing coupons for
`multiple promotions. Thus,
`the system of Peach et al.
`reduces some of the paperwork associated with a single-
`promotion systems, but
`it merely mitigates, rather than
`solves, the problems inherent in paper-based promotions.
`Computer-based promotional games are also known.
`Such games include scratch-and-win games, treasure hunts,
`video pinball and the like. Such incentive programs have
`advantages over paper promotions, in that data regarding
`participation is easily stored and manipulated. However,
`existing incentive programs do not solve all consumer and
`sponsor needs. In particular, such promotional games do not
`assist consumers in tracking participation in multiple pro-
`motions and do not assist sponsors in generating incentive
`programs, tracking participation in incentive programs and
`fulfilling awards and prizes.
`Computer-based systems exist for tracking some aspects
`of consumer participation in incentive programs. For
`example, US. Pat. No. 5,056,019 to Schultz et al. discloses
`an automated purchase reward accounting system and
`method. In particular, Schultz et al. discloses a marketing
`method for providing manufacturer purchase reward offers
`by automatically tracking the purchases of member consum-
`ers through the use of bar-coded membership cards and
`using the purchase records in a data processing system to
`determine if the required purchases have been made to earn
`a reward. Each member consumer receives a reward booklet
`
`disclosing the available reward offers, a periodic status
`report indicating the member consumer’s progress toward
`earning rewards, and a reward certificate for those rewards
`earned. The card-based system of Schultz takes advantage of
`certain data processing capabilities of computer systems and
`certain data storage capabilities of electronic card technolo-
`gies; however, among other drawbacks,
`the system of
`Schultz does not address the need for a system that assists
`sponsor companies in generating incentive programs,
`in
`tracking participation of consumers in multiple incentive
`programs, or in fulfilling awards.
`The computer network offers the possibility of improved
`systems for offering incentive programs and for tracking
`participation in an incentive program. By linking together
`several computers and by providing shared resources and
`cross-platform communications, the computer network pro-
`vides improved access to sophisticated applications by users
`at remote locations.
`
`One of the most widely accepted and heavily used net-
`works is the Internet. The Internet is a global system of
`interconnected computer networks formed into a single
`world wide network. A user,
`through the Internet, can
`interactively transmit messages with users in different coun-
`tries. Similarly, a user in the US. connected to files and
`libraries and other jurisdictions such as Europe and Asia, can
`download files for personal use. Accordingly, the Internet
`computer network provides strong communications func-
`tions similar to the communications functions provided by
`ham radio operators. Moreover, the Internet computer net-
`work acts like a universal
`library, providing electronic
`access to resources and information available from Internet
`
`sites throughout the world.
`Various systems and methods are known which permit a
`sponsor to track data of multiple parties in databases and to
`update information in the databases based on transactions
`
`10
`
`15
`
`20
`
`25
`
`30
`
`35
`
`40
`
`45
`
`50
`
`55
`
`60
`
`65
`
`4
`
`entered into by the parties to the transactions. For example,
`US. Pat. No. 5,664,115 to Fraser discloses an interactive
`computer system to match buyers and sellers of real estate
`using the Internet. Similarly, banks, credit card companies,
`and other financial institutions have developed computer-
`based systems that track client account information and
`update the information upon entry of various transactions.
`Some such systems involve use of electronic cards and
`operate over computer networks. Such systems have
`requirements peculiar to their respective industries, and
`none of the existing systems address all of the problems
`inherent in known incentive programs, particularly the prob-
`lem of the need for an incentive program system that
`conveniently tracks participation while offering automated
`generation of incentive programs and automated fulfillment
`of awards won in incentive programs.
`Computer incentive programs are offered on the Internet;
`however, such systems are generally offered by a single
`sponsor and are generally limited to offering consumers the
`ability to participate in incentive programs. Known systems
`do not offer sponsors the ability to conveniently generate
`incentive programs, to track participation of consumers in
`multiple incentive programs, or to provide for automated
`fulfillment of awards.
`
`Another important drawback of known computer incen-
`tive program systems is that the obligation to fulfill the
`awards promised in a promotional campaign is often a
`logistically difficult and expensive task. The coordination of
`delivering or arranging for the retrieval of the awards for the
`specified winner, in volumes that permit successful incentive
`programs, requires coordination of prize inventory, systems
`and information.
`
`One system that addresses award fulfillment is disclosed
`in US. Pat. No. 5,025,372 to Burton, et al. Burton et al.
`discloses a system and method for administration of incen-
`tive award programs through letters of credit. In the Burton
`et al. system, a computer system for an incentive award
`program allocates monetary amounts available for expendi-
`ture through credit instruments issued to program partici-
`pants when the participants perform to a designated level of
`achievement. Participants’
`identifying information and
`credit instrument account numbers are stored in memory.
`Levels of performance are calculated and assigned for each
`participant in order for a monetary amount to be available
`for expenditure through the participant’s credit instrument.
`Calculations, adjustment and reporting concerning amounts
`allocated for instrument use, withheld amounts, instrument
`transactions and account balances are made. Calculations
`
`and printed invoices for payment by a financial institution to
`an incentive company based on the credit instruments issued
`under the incentive program are made and are dependent
`upon the monetary volume of expenditures through the
`credit instruments, the total interest income on the credit
`instruments, and the number of instruments issued.
`The system of Burton et al. takes some advantage of a
`computer system for tracking data, but it has a number of
`drawbacks. Among other things, Burton et al. offers no
`advantage to a company sponsoring an incentive program in
`terms of the investment of skill and labor in developing an
`incentive program. Further,
`the complex letter of credit
`scheme of Burton et al. is likely to require participation of
`other entities, such as banks and attorneys in order for it to
`operate properly. Also, Burton et al. does not provide for
`tracking of data for participation of a given consumer in
`incentive programs of multiple program providers. Finally,
`Burton et al. does not provide a system for automated
`generation of incentive programs.
`
`SWY&KRG 1001 - Page 27
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`SWY&KRG 1001 - Page 27
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`US 7,054,830 B1
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`5
`Many existing promotional systems are also subject to the
`drawback that they require specific computer software or
`computer hardware to be purchased in order to participate in
`th