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Method and system for processing customized reward offers to e-commerce buyers

IP.com Disclosure Number: IPCOM000004412D
Publication Date: 2000-Nov-08
Document File: 2 page(s) / 16K

Publishing Venue

The IP.com Prior Art Database

Abstract

The present invention is a method is for providing and managing a customized reward offer to a user of an e-commerce Web site account. The method includes the step of accessing historical account data associated with the financial account. The method further includes the step of determining a first performance target associated with the e-commerce Web site. The method also includes the steps of selecting a reward offer having an associated reward description and transmitting the first performance target and the reward description to the buyer. The method continues with the steps of collecting transaction data associated with the Web site and evaluating the collected transaction data to determine a second performance target. The collected transaction data is then compared to first performance target. If the collected transaction data exceeds the first performance target, the user's reward account is updated to reflect the reward. A system is also provided to implement the steps of the method.

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Method and system for processing customized reward offers to e-commerce buyers

Methods and systems for promoting usage of credit card accounts are well known. Such methods and systems are generally designed to reward a credit card holder for exhibiting behavior preferred by a credit card issuer. Credit card reward programs typically fall into one of three categories: reward accrual programs, tiered reward programs and specialty programs. To encourage customer loyalty, these same types of reward programs can be directed toward users of specific e-commerce Web sites. Reward accrual programs promote usage of an e-commerce Web site by rewarding buyers with either rebates or redeemable program points. In such programs, account usage is typically measured as a function of purchase volume. Generally, Web site user performance is measured monthly, and rewards are distributed based on the monthly measurements.

The present invention is a method is for providing and managing a customized reward offer to a user of an e-commerce Web site account. The method includes the step of accessing historical account data associated with the financial account. The method further includes the step of determining a first performance target associated with the e-commerce Web site. The method also includes the steps of selecting a reward offer having an associated reward description and transmitting the first performance target and the reward description to the buyer. The method continues with the steps of collecting transaction data associated with the Web site and evaluating the collected transaction data to determine a second performance target. The collected transaction data is then compared to first performance target. If the collected transaction data exceeds the first performance target, the user's reward account is updated to reflect the reward. A system is also provided to implement the steps of the method.

As shown in Figure 1, this first customized reward offer, including the first performance target, the reward and a first target period, is transmitted to e-commerce buyer 112 as indicated by reference numeral 120.

After receiving the transmission of the customized reward offer, e-commerce buyer 112 may initiate and complete transactions affecting his/her reward standing in an effort to achieve the communicated first performance target. As shown, transactions may be conducted with Web site merchant terminals 114, 116 and 118. As indicated by reference numeral 126, Web site central controller 200 collects transaction data from Web site merchant terminals 114, 116 and 118 through the Internet 110. This transaction data is stored by Web site central controller 200 and is used to manage the reward standings of e-commerce buyer 112.

Figure 1 Schematic block diagram illustrating the information flow between parties according to the present invention