This application is directed to the field of processing, presenting and transmitting information, and more particularly to the field of communicating information about a product using an attached tag.
Networks of third party sellers and affiliates constitute a significant and growing component of today's online business. It is estimated that Amazon.com, Inc. derives around 40% of its revenue from its affiliate network (Amazon Associates), which includes almost one million members, and from nearly 1.5 million third party sellers who offer their goods and services through the Amazon marketplace. Affiliate marketing spending in the United States has nearly doubled in five years (2008-2013) from 1.8 to 3.4 billion dollars. The growth of affiliate marketing is accelerating and the overall affiliate marketing revenue is expected to reach four billion dollars in 2014. International data also shows solid growth; annual worldwide affiliate marketing commission payouts exceed seven billion dollars.
Large affiliate networks, such as Commission Junction (owned by ValueClick), are generating increasing revenues and profits; for example, annual ValueClick revenue and profit from affiliate marketing are approaching, respectively, 150 million and 90 million dollars. Among different types of online businesses that take advantage of affiliate marketing, also known as performance marketing, blog publishers are particularly successful; according to recent research, affiliate marketing scores second among revenue generating methods by bloggers.
Affiliate marketing websites employ numerous digital methods to reach prospective customers on behalf of merchants, including search engine optimization, comparison shopping, loyalty programs (rewards, points back, cash back), coupons and rebates, product reviews, blogs and website syndication, email, shopping directories, registration path affiliates, file sharing, etc. A majority of affiliate programs in countries with mature e-commerce environment are using a revenue sharing (pay per sale, abbreviated as PPS) compensation method; other methods are also used with the affiliate market, including cost per click and even cost per mille (1000 impressions), which are more broadly used in niche segments.
In order to capture a growing smartphone audience, publishers are expanding their mobile offerings on optimized websites, which leads to fast growth of mobile affiliate sales. According to UK tracking site Affiliate Window, over 20% of all June 2013 affiliate purchases in the UK have been made from mobile devices, especially from tablets; the 400 thousands mobile purchases (approximately 13 thousand sales per day) represent a 15% increase from the previous month.
In spite of significant advances, affiliate marketing campaigns may still cause controversy among online users, communities, publishers and e-commerce experts, many of whom provide criticism of affiliate marketing. Lack of standardization, guidelines and technical means to control publishers' actions may result in broad abuse of affiliate programs by spammers and other unethical online players. On the other hand, sophisticated web scripting used on publisher pages to enable affiliate programs may cause serious delays in page loading by site visitors which when combined with a related content, such as advertiser banners, may be perceived a nuisance by many web surfers and may cause damage to reputations of both affiliate publishers and advertisers. Such damage may be further complicated by published and advertiser relations with affiliate networks and by marketing methods implemented by those networks. Additionally, affiliate program fraud of different kinds, including fraudulent affiliate sales and stolen sales from other affiliates through malignant cookies and other methods, further aggravates issues facing traditional performance marketing, as well as referral programs.
Another limitation of performance marketing and of e-commerce in general manifests itself through a lack of connection of product promotions with physical goods. People in demo rooms and exhibits often need to go back to online and print catalogs to find a product they have just seen and touched. Just as with situations where a person finds a new product during a visit at a friend's, co-worker's or relative's home, these encounters don't play direct role in today's product distribution.
Accordingly, it is desirable to develop new methods and processes for distribution of goods that connects physical and virtual instances of the goods and incentivizes a broader audience to participate in referral programs beneficial for all parties.
According to the system described herein, communicating information about a product includes associating a tag with the product, where the tag provides information to a smartphone of a user that interacts with the product and the tag, sending product identification information from the smartphone of the user to a back end processing system, where the information indicates an owner of the product, the back end processing system sending product sales information to the smartphone of the user in response to receiving the product identification information, the user interacting with the back end system through the smartphone to purchase the product, and the back end system recording the owner of the product and the sale to the user. The tag may be visual and may include a decorative pattern and/or a QR code. The tag may be implemented using smart fabric. The product may be an electronic book and the tag may be displayed on a special product page. The tag may be photographed using the smartphone. The tag may be an NFC tag. The owner may be enrolled in a referral program and the back end system may provide compensation to the owner in response to the sale. The user may be registered as a new owner in response to the sale. The tag may be decorative and visible when the product is in use or the tag may not be instantly visible on product display.
According further to the system described herein, a non-transitory computer-readable medium contains software that communicates information about a product having a tag associated therewith. The software includes executable code that provides information from the tag to a smartphone of a user that interacts with the product and the tag, executable code that sends product identification information from the smartphone of the user to a back end processing system, where the information indicates an owner of the product, executable code that sends product sales information from the back end processing system to the smartphone of the user in response to receiving the product identification information, executable code that interacts with the user through the smartphone to purchase the product, and executable code that records the owner of the product and the sale to the user. The tag may be visual and may include a decorative pattern and/or a QR code. The tag may be implemented using smart fabric. The product may be an electronic book and the tag may be displayed on a special product page. The tag may be photographed using the smartphone. The tag may be an NFC tag. The owner may be enrolled in a referral program and the back end system may provide compensation to the owner in response to the sale. The user may be registered as a new owner in response to the sale. The tag may be decorative and visible when the product is in use or the tag may not be instantly visible on product display.
The proposed system utilizes built-in physical or electronic tags, attached to individual units of sold or displayed products, uniquely identifiable by the tags, which allows registered product owners or distributors to participate in referral programs, and offers prospective customers to scan attached tags using a smartphone or another mobile device, instantly purchase new units of products, and join the same referral program as the original owner, where each new unit sold via scanning of a product tag returns to the owner of such referral unit a monetary compensation or some other compensation by seller.
The system allows each product owner or distributor to participate in a pervasive referral program simply by registering a product with a built-in referral tag. During such registration, an owner or a distributor joins the referral program and chooses a compensation method. Sales compensation may include a referral fee, a bonus program, such as point accumulation toward a new purchase or early access to new products, discounted and special product offers and other individual or combined benefits.
A pervasive referral program creates a very large distribution network by making each product owner or distributor a potential performance marketing agent for the product seller. Since such programs are completely automated, performance marketing agents don't need any special marketing or sales skills, education or training; participation of the agents in the program is driven by past purchasing history of the agents as well as the social environment and willingness of the agents to join one or multiple networks.
Pervasive referral programs with tags attached to goods may be set up by prominent e-commerce vendors, such as Amazon.com, Apple or Walmart.com through a sequence of steps explained below:
Several usage scenarios for the proposed system are listed below.
The guest takes a photo of the decoration, which encodes the bergère unit and therefor the registered owner's referral account; taking the photo also directs the prospective purchaser (guest) to a dedicated product page, which is displayed on the smartphone screen and may contain product views, specifications, reviews, pricing and sales information, etc. The guest has an ability to instantly complete the purchase. Registration information and an invitation to join the affiliate program as a future product owner (and referral source) are stored on the phone of the guest—for example, as a note in an Evernote notebook. An offer to join an affiliate program may be augmented with a reminder set for activation within several days from the projected delivery date of the bergère to the guest, the new owner of a bergère. Alternatively, the guest may purchase the armchair through a simplified procedure, e.g. in a system guest mode, without even registering any new account. However, the system may generally stimulate new purchasers to register and join the referral program by offering additional discounts and other benefits.
After a new sale has been completed, the system may add another incremental sale to the a profile of the original owner, generate a respective incremental payout (a referral fee, bonus points, special offer(s) associated with incremental sales, etc.) and deliver a notification, report or payment either instantly or according to a schedule, based on system policies and possibly also based on specific requests by the owner.
Embodiments of the system described herein will now be explained in more detail in accordance with the figures of the drawings, which are briefly described as follows.
The system described herein provides a mechanism for creation of very large referral sales networks that may include every individual and corporate product owner and that are driven by physical tags attached to goods that may be scanned by shopper smartphones and other devices and offer products for instant purchase on shopper devices. The system provides front and back end components, software and services to enable large referral networks.
Note that in the illustrations of
Irrespective of a particular type of tag, identifying a unit causes a shopper smartphone or other connected device to reach a cloud-based back-end of the referral program which then returns product and sales pages to the device.
At phase I, the prospective customer 410 scans the tag 435a with his NFC-capable smartphone 440 and a corresponding ID is transferred to a cloud-based back-end of the referral system 450, which participates in all phases I-IV illustrated in
Now that a referral sale has been completed at the phase III, the system registers the sale and the fact that the original owner 420 of the product 430a was associated with the sale and rewards the owner (referral agent) 420. This is shown in phase IV, where the system may generate a summary and a report of benefits, illustrated by an owner score 480, and may deliver an instant monetary payback 490 in a previously agreed upon form to the owner 420.
Referring to
After the step 540, processing proceeds to a step 545, where the system generates product and sales pages, delivers and displays the product and sales pages on a smartphone, smart glasses or other device of a prospective customer, as explained, for example, in connection with phase II in
Various embodiments discussed herein may be combined with each other in appropriate combinations in connection with the system described herein. Additionally, in some instances, the order of steps in the flowcharts, flow diagrams and/or described flow processing may be modified, where appropriate. Subsequently, elements and areas of screen described in screen layouts may vary from the illustrations presented herein. Further, various aspects of the system described herein may be implemented using software, hardware, a combination of software and hardware and/or other computer-implemented modules or devices having the described features and performing the described functions. The system described herein may be implemented with any type of electronic screen capable of being actuated by a touch screen, electromagnetic or other pen.
Note that the smartphone may include software that is pre-loaded with the device, installed from an app store, installed from a desktop (after possibly being pre-loaded thereon), installed from media such as a CD, DVD, etc., and/or downloaded from a Web site. The smartphone may use an operating system such as iOS, Android OS, Windows Phone OS, Blackberry OS and mobile versions of Linux OS.
Software implementations of the system described herein may include executable code that is stored in a computer readable medium and executed by one or more processors. The computer readable medium may be non-transitory and include a computer hard drive, ROM, RAM, flash memory, portable computer storage media such as a CD-ROM, a DVD-ROM, a flash drive, an SD card and/or other drive with, for example, a universal serial bus (USB) interface, and/or any other appropriate tangible or non-transitory computer readable medium or computer memory on which executable code may be stored and executed by a processor. The system described herein may be used in connection with any appropriate operating system.
Other embodiments of the invention will be apparent to those skilled in the art from a consideration of the specification or practice of the invention disclosed herein. It is intended that the specification and examples be considered as exemplary only, with the true scope and spirit of the invention being indicated by the following claims.
This application claims priority to U.S. Prov. App. No. 61/864,324, filed Aug. 9, 2013, and entitled “LARGE REFERRAL NETWORKS DRIVEN BY TAGS ATTACHED TO GOODS,” which is incorporated by reference herein.
Number | Date | Country | |
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61864324 | Aug 2013 | US |