Consumer-Defined Coupon System for Targeted Distribution
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Solution Overview
Problem
Current coupon distribution methods result in significant waste and inefficiency, as coupons are often generic and distributed to consumers who have no interest in the product, leading to over-discounting and a lack of marketing data on consumer behavior.
Innovation Solution
A system and method allowing consumers to define the terms of their own coupons, which are then reviewed and accepted, rejected, or modified by potential providers, ensuring targeted distribution and providing marketing data.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Area of stationary object
If coupons are distributed in blanket manner to large numbers of consumers, then coupon distribution coverage is improved, but waste and inefficiency increase due to consumers having no interest in the product
Solution Approach 1:
The system performs preliminary actions by collecting consumer data, preferences, and purchase history before coupon distribution. This allows the system to pre-segment consumers into target audiences and pre-generate personalized coupons, ensuring that coupons are distributed only to consumers who have demonstrated interest in relevant products, thereby eliminating waste from blanket distribution.
Solution Approach 2:
The system applies local quality by customizing coupon characteristics (discount amount, product category, expiration date) to match individual consumer profiles and local market conditions. Each consumer receives coupons tailored to their specific preferences, purchase history, and demographic characteristics, rather than receiving generic coupons in a blanket distribution manner.
2Productivity
If coupon terms are defined generically by provider in advance, then coupon creation efficiency is improved, but relevance to consumer needs deteriorates
Solution Approach 1:
The system implements dynamics by making coupon terms flexible and adaptive rather than fixed and static. Coupon parameters such as discount percentage, applicable products, and expiration dates are dynamically adjusted based on real-time consumer data, market conditions, and provider objectives. This allows the system to maintain high creation efficiency while ensuring each coupon is optimally tailored to the recipient.
Solution Approach 2:
The system applies parameter changes by modifying coupon characteristics based on consumer profiles and market feedback. Instead of using fixed generic terms, the system varies discount amounts, product categories, and promotional conditions to match consumer preferences and purchasing behavior, thereby maintaining relevance while streamlining the creation process through automated parameter adjustment.
3Ease of operation
If high discount amounts are offered on coupons, then consumer attraction is improved, but revenue loss from over-discounting increases
Solution Approach 1:
The system implements feedback mechanisms by continuously monitoring consumer responses to coupons, redemption rates, and purchase behavior. This feedback is used to adjust future coupon discount levels, ensuring that high discounts are offered only when necessary to attract price-sensitive consumers or promote specific products, while lower discounts are used for engaged customers, thereby optimizing revenue and reducing unnecessary revenue loss.
Solution Approach 2:
The system applies parameter changes by dynamically adjusting discount amounts based on consumer segment, product margin, and promotional objectives. High-value customers or those with high purchase intent receive lower discounts, while price-sensitive segments receive higher discounts only when needed, optimizing the balance between consumer attraction and revenue preservation through data-driven parameter adjustment.
4Device complexity
If traditional blanket coupon distribution is used, then distribution simplicity is improved, but marketing data collection deteriorates due to lack of consumer feedback
Solution Approach 1:
The system applies self-service by enabling consumers to actively participate in the coupon creation process by defining their own desired discount terms and conditions. This consumer-driven approach generates rich marketing data about consumer preferences, price sensitivity, and purchasing intent, while the automated system handles the complexity of data collection and analysis, maintaining operational simplicity for the provider.
Data Source
AI summary
A method and system for providing consumer defined coupons includes a process for providing consumer defined coupons whereby a consumer proposes/defines the parameters or “terms” of a proposed coupon and/or marketing offer that the consumer feels would compel the consumer to purchase a product and/or service, shop at a defined store, or perform some other defined action. The consumer defined coupon terms are then provided to a potential coupon provider. The potential coupon provider is then provided the opportunity to review the consumer defined coupon terms. The potential coupon provider is then provided the opportunity to accept the consumer defined coupon terms, reject the consumer defined coupon terms, and/or propose alternative coupon terms. If the potential coupon provider accepts the consumer defined coupon terms, a coupon is then created and provided to the consumer.