Augmented Reality Coupon Distribution Through Product Overlays
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Solution Overview
Problem
The distribution of coupons in the industry faces low redemption rates due to inefficiencies in targeting the right customers and consumer access issues, with traditional models being flawed and consumers lacking control over coupon usage.
Innovation Solution
A system utilizing augmented reality (AR) on mobile devices or AR glasses to provide visual overlays that entice customers to view a predetermined number of product images, triggering the award of digital coupons or promotional data.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If traditional coupon distribution models are used, then businesses can distribute coupons to customers, but redemption rates remain low (8-16%) due to inefficiencies in targeting and access
Solution Approach 1:
The patent introduces an augmented reality system as an intermediary between coupon distribution systems and consumers. The AR application on mobile devices acts as a mediator that receives coupon data from businesses, processes it through AR experiences, and delivers personalized coupons to consumers based on their interactions, thereby improving targeting efficiency and redemption rates while managing complexity through a dedicated intermediate platform
Solution Approach 2:
The patent replaces traditional mechanical coupon distribution methods (printed coupons, email, website postings) with an augmented reality-based digital system. Consumers interact with AR visual overlays through camera views to earn digital coupons, substituting physical and electronic distribution mechanisms with an immersive AR experience that enhances engagement and tracking capabilities
2Reliability
If paid coupon models are used, then businesses can incentivize customer commitment and increase redemption probability, but customers face additional payment obstacles that reduce overall accessibility
Solution Approach 1:
The patent implements a hybrid coupon model where consumers can earn free digital coupons through partial engagement (viewing a specified number of visual overlays in AR) rather than requiring full payment. This partial action approach allows consumers to obtain coupons without paying, maintaining accessibility while still requiring sufficient engagement to ensure genuine interest and higher redemption probability
Solution Approach 2:
The patent changes the acquisition parameter from monetary payment to engagement-based earning. Instead of requiring payment as the threshold parameter, the system uses the number of visual overlays viewed as the earning criterion, transforming the coupon acquisition mechanism from a financial transaction to an engagement-based reward system that improves both accessibility and redemption reliability
3Ease of operation
If free coupon models are used, then consumers can access coupons without payment barriers, but redemption rates remain low because customers are not loyal and take short-term interest
Solution Approach 1:
The patent incorporates feedback mechanisms where the AR system tracks and records consumer interactions with visual overlays, storing this data to enable personalized future coupon distributions. This feedback loop allows the system to learn consumer preferences and behaviors, delivering increasingly targeted coupons that foster loyalty while maintaining free access, thereby converting short-term interest into long-term customer relationships
Solution Approach 2:
The patent performs preliminary actions by pre-processing consumer interaction data through AR experiences before coupon distribution. The system analyzes viewing patterns, product interests, and engagement levels in advance to pre-select and personalize coupon offerings, ensuring that free coupons are highly relevant to individual consumers and more likely to be redeemed, thus building loyalty through personalized attention
4Ease of operation
If consumers use printed coupons, then they maintain control over coupon usage, but the distribution medium is outdated and lacks targeting efficiency
Solution Approach 1:
The patent creates a digital copy of the printed coupon experience within the augmented reality environment. Instead of physical paper coupons, consumers receive virtual coupons displayed through AR visual overlays that they can view, save, and present digitally at point of sale. This digital copying maintains consumer control over their coupons while enabling efficient business-side targeting, tracking, and distribution through electronic data management
Data Source
AI summary
A distribution system and apparatus includes a data processing base module containing information representing customers, and a data processing promotion module containing promotional data. A data processing store module contains information regarding saleable items available for purchase by the customers. A data processing augmented reality module contains visual overlays for images corresponding to saleable items contained in the store module. The augmented reality module provides a visual overlay to appear on a screen of a camera when a customer directs the camera of a mobile device at a desired saleable item contained in the store module. The base module tracks whether the customer views a predetermined minimum number of visual overlays such that if the minimum number is viewed, then the promotional module sends promotional data to the customer.