Customer-Generated Deal Platform for Local Retail
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Solution Overview
Problem
Conventional coupon systems, such as those operated by Groupon and LivingSocial, do not effectively anticipate customers' current needs and wants, and fail to leverage individuals' relationships to connect potential customers with local businesses in a way that is profitable for both parties.
Innovation Solution
A customer-generated deal platform that allows individuals to propose and manage coupons, which are vetted by businesses and identifiable by unique codes, enabling consumers to drive deals that meet their needs while ensuring profitability through secured sales targets.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If conventional coupon systems are used to provide discounts, then customers can obtain financial discounts, but the systems fail to anticipate customers' current needs and wants
Solution Approach 1:
Instead of businesses generating coupons unilaterally, the system inverts the process by allowing customers to propose the coupons they want. The deal manager receives coupon proposals from customers, presents them to businesses for approval, and distributes approved coupons. This inversion enables the system to adapt to customer needs while maintaining manageable complexity through automated workflow management.
2Productivity
If individuals leverage their relationships to connect customers with businesses, then more targeted deals can be created, but the system becomes more complex to manage
Solution Approach 1:
The system enables self-service by allowing customers to autonomously propose coupons based on their needs and relationships. Customers can create proposals, track their status, and receive notifications automatically. The deal manager automatically routes proposals to appropriate businesses and manages the approval workflow, reducing the need for manual platform management while increasing productivity.
3Ease of operation
If customers generate their own coupon proposals, then coupons better meet customer needs, but the verification and approval process becomes more complex
Solution Approach 1:
The system performs preliminary actions by automatically validating coupon proposals against business rules and criteria before presenting them to businesses for approval. The deal manager pre-processes proposals, checks feasibility, and prepares them in an optimized format, reducing the complexity of the subsequent approval process while maintaining ease of operation for customers.
4Reliability
If sales targets are secured to ensure profitability, then businesses are protected, but the flexibility of coupon distribution is reduced
Solution Approach 1:
The system implements dynamic coupon proposals where customers can specify distribution targets and conditions. The deal manager and businesses can adjust approval decisions based on real-time factors such as current sales performance, inventory levels, and market conditions. This dynamic approach ensures profitability through secured targets while maintaining flexibility in distribution strategies.
Data Source
AI summary
A deal manager executing on computer hardware receives a discount offer proposal from a first consumer. The deal manager forwards the discount offer proposal to one or more retail suppliers. The discount offer can include proposed terms such as a conditional modification to an original retail price of a respective retail item offered for sale by the supplier. In response to receiving, from the supplier, acceptance of terms as specified by the discount offer proposal, the deal manager or other suitable resource initiates distribution of terms associated with the approved discount offer to the first consumer and/or a second consumer. The second consumer can be one of multiple consumers to which the approved discount offer is distributed. Accordingly, consumers can propose deals that are, in turn, used by other consumers.