Electronic Coupon Management System for Fraud Prevention
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Solution Overview
Problem
The inefficiency of paper-based coupon systems leads to high costs and frustration for marketers and consumers due to the manual process of sorting, redeeming, and tracking paper coupons, with less than 1% of distributed paper coupons being redeemed, despite their effectiveness as a promotional tool.
Innovation Solution
A networked system for managing electronic coupons, including a tightly integrated database, application server, and client components, that facilitates electronic coupon definition, issuance, and redemption, with unique IDs for customers, manufacturers, and retailers, enabling electronic coupon validation, tracking, and historical data maintenance for improved traceability and fraud prevention.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If paper-based coupon systems are used, then coupons can be distributed to consumers, but the manual process of sorting, redeeming, and tracking creates high costs and frustration
Solution Approach 1:
The patent replaces physical paper coupons with electronic coupon codes stored in a database. Instead of consumers physically handling, sorting, and carrying paper coupons, the system creates digital copies of coupons that are automatically associated with customer accounts, eliminating the manual process entirely.
Solution Approach 2:
The patent replaces the mechanical manual process of cutting, sorting, and physically presenting paper coupons with an automated electronic system. The system automatically validates coupon codes, tracks redemptions through database records, and manages the entire workflow electronically without human intervention at each step.
2Reliability
If paper coupons are distributed, then promotional messages reach consumers, but less than 1% of distributed paper coupons are redeemed
Solution Approach 1:
The patent implements a feedback mechanism where the system automatically tracks which coupons are redeemed and provides real-time data on redemption rates. This allows marketers to see exactly which promotional messages are effective and adjust distribution strategies accordingly, improving the efficiency of promotional spending.
Solution Approach 2:
The electronic coupon system serves multiple functions simultaneously: it distributes promotional information, tracks consumer behavior, validates redemptions, provides audit trails, and generates analytical reports. This multi-functionality consolidates what would otherwise require separate systems, improving overall efficiency and redemption effectiveness.
3Loss of information
If paper coupons are used, then manufacturers can promote products, but the manual tracking process lacks detailed transactional data for analysis
Solution Approach 1:
The patent introduces a centralized database system as an intermediary between all coupon-related operations. This database serves as the single source of truth that automatically captures, stores, and organizes all transactional data, eliminating the need for complex manual tracking processes while providing comprehensive data for analysis.
Solution Approach 2:
The patent merges multiple data tracking functions into a single integrated system. Instead of separate systems for tracking coupon distribution, redemption, consumer accounts, and manufacturer inventory, the system combines all these functions into one unified database architecture that efficiently manages all data simultaneously.
4Ease of operation
If electronic coupon systems are implemented, then costs and effort are reduced, but the system complexity increases
Solution Approach 1:
The patent implements self-service functionality where consumers can automatically view and redeem their electronic coupons through user-friendly interfaces without requiring manual intervention. The system automatically validates coupons, checks inventory, processes redemptions, and updates records without human involvement, making the complex backend operations transparent to users.
Data Source
AI summary
A networked electronic coupon management system is disclosed for managing electronic coupons. The system includes tightly integrated database, application server, and client components facilitating performing electronic coupon definition, issuance, and redemption operations. The operations include creating electronic coupons, wherein each electronic coupon includes a unique coupon ID, creating customer accounts, wherein each customer account comprises a unique customer ID; creating manufacturer accounts, wherein each manufacturer account comprises a Unique ID; and creating retailer accounts, wherein each retailer account comprises a unique retailer ID; and assigning a unique electronic coupon ID to a unique customer ID. Thereafter the system validates the electronic coupon with a product purchase transaction by a customer associated with the unique customer ID. Furthermore, funds transfers associated with the product purchase transaction are tracked, and historical transactional level data is maintained for all customer, manufacturer and retailer accounts.