New loyalty program models
 

The first time my professional and FT lives intersect :)

I work in the world of tech investing, and we've got a project going on with a multinational financial company. No doubt you use them. We're working in many areas with them, but one in particular likely has relevance to you folk: New loyalty program models particularly for credit cards. Besides the most gameable program, what new model has been in the back of your mind :) Alternatively, have you come up with some type of model that /isn't/ gameable?

As a first pass filter do you have any ideas that are (and if it clears that bar, feel free to PM me)
a) patentable. (not published, offered for sale, non-obvious, no conflicting prior art, etc).
b) novel.
c) related to alternative payment schemes (b2b, b2c, social networks, affinity groups, ecosystems that connect, incent, and reward)
d) if you're already working on a project in this space and want c-level access to pitch, there might be an opportunity too


I ABSOLUTELY DO NOT WANT ANY CONFIDENTIAL DISCLOSURES. PM me to start the conversation about how we'd discuss something that is confidential in nature (NDA, payment terms, etc).

In the realm of not publishing... I wouldn't suggest discussing new ideas on this or other forums else it can preclude patentability.

So you want people to pm you their revolutionary ideas that would be worth millions to financial companies? This doesn't sound at all suspicious.

I pretty clearly say don't send me any ideas but to PM me if you have one and we can talk about how to set up an NDA and sort out what compensation would make sense.

Typically these type of proposals are less than favorable, but it is also nearly impossible for an individual to execute such a 'revolutionary' idea in an industry that requires significant resources to properly test in the market.

Also, often times, the first version of an idea isn't always THE success. Look at how whatsapp was sold for 16 billion, but when whatsapp started, there were companies like gogii that already had established a solid user base. The same with how facebook succeeded myspace, which succeeded friendster.

If someone would like to think they got a million/billion dollar idea that they'd rather not share because someone else would take the spoils, then I'd question whether they are serious about the idea in the first place. You'd figure an idea like that would already have been tested on a smaller scale in some shape or form already. Come up with an MVP and see if the proof of concept holds, etc.

I personally don't like the idea of middle men fishing for ideas from the public on behalf of their corporate overlords (better off pinging a few friends and bouncing off ideas), but I think some people also need to consider that sometimes it's OK to give up ideas if you're just going to sit on it and not do anything about it. Do your homework, make sure you get as large of a piece of that pie as possible when negotiating with other entities, and actualize the potential that will never materialize if you simply sit on it forever until someone else comes up with the same idea and reaps its rewards. This may come especially handy if you really do have a patent-able idea. Patent it yourself and sell it to the corporation, or better yet, negotiate revenue share/royalties. That way you give your idea but CYA while you're at it. Be smart.

That said, I think if I were OP, I would dig through these forums and see what people are complaining/wishing/hoping for, and come up with his own ideas on what to do. I'm building an app right now, and this place as some seriously good data points, and I don't even have to ask anything directly from anyone.

You mostly hit the nail on the head on all points, though as related to what I do which is specifically in the realm of open innovation, we're constantly out talking to folks to find new ideas - we know what the problems are, we're looking for new solutions on behalf of our clients. We don't post on forums because the audience tends not to be savvy of either IP or large scale startup / enterprise systems - but in this case because I consider the audience to be savvy of the /market/ of points, it's not much of a hurdle for me to wade in and ask. If nothing comes of it, oh well, we have many other pathways we work.

One idea I have is to have deals with specific retailers for more points. For a credit card to pay out a percentage of purchases from their own funds is difficult and usually limited to 1% for noncategory purchases. However, for purchases at a certain retailer, if the retailer is willing to contribute, it may be possible to pay 10% or more. This will help that retailer get traffic, so it is a win-win.

I suspect that Chase already does this with the Freedom quarterly bonuses in which a specific retailer (Amazon, Lowes, Starbucks) appears in lieu of a category.