Intelligent Clearing Network for Electronic Coupon Validation
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Solution Overview
Problem
Current coupon systems are labor-intensive for consumers, retailers, and manufacturers, requiring manual processing and lacking real-time market intelligence, with errors and delayed redemption processing.
Innovation Solution
An Intelligent Clearing Network (ICN) system that enables electronic validation and redemption of coupons through a network, using POS terminals to transmit coupon information to a central server for validation, redemption, and market intelligence reporting.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If manual coupon processing is used, then consumers can use coupons at retailers, but labor and time are expended in clipping and organizing coupons
Solution Approach 1:
The patent replaces physical coupons with electronic coupon data stored in a database. The POS terminal reads coupon information electronically from the database using the coupon code as a key, eliminating the need for consumers to physically clip and organize paper coupons while maintaining the coupon redemption function
Solution Approach 2:
The patent substitutes the mechanical process of manually clipping and organizing paper coupons with an electronic data retrieval system. The POS terminal automatically queries the database for coupon information based on the coupon code, replacing manual labor with automated electronic processing
2Ease of manufacture
If manual clearing of coupons is used, then retailers can process coupons, but the process is labor intensive and delays market intelligence availability
Solution Approach 1:
The system enables automated self-service processing where the POS terminal automatically queries the database for coupon information, validates the coupon against the transaction, and retrieves market intelligence data without requiring manual intervention. The database automatically updates and makes information available to all terminals
Solution Approach 2:
The system implements real-time feedback loops where the POS terminal queries the database for coupon information, the database validates and returns the coupon data, and the terminal processes the redemption. This automated feedback mechanism eliminates manual clearing delays and provides immediate market intelligence
3Loss of information
If extended barcodes are used to provide marketing intelligence, then useful information is captured, but it is not available to manufacturers until manual clearing is complete
Solution Approach 1:
The patent stores complete coupon information including extended barcode data and market intelligence in an electronic database. The POS terminal retrieves this information electronically by querying the database with the coupon code, making all marketing intelligence immediately available without waiting for manual clearing processes
Solution Approach 2:
The system pre-loads all coupon information and market intelligence data into the database before the transaction occurs. When a coupon is presented, the terminal simply queries the pre-prepared database for the relevant information, eliminating the need for post-transaction manual data collection and processing
4Ease of operation
If paper coupons are used, then consumers can redeem coupons, but mistakes in printing can last for the duration of a promotion
Solution Approach 1:
The patent replaces physical printed coupons with electronic data stored in a centralized database. When a coupon code is entered or scanned, the terminal queries the database to retrieve the current valid coupon information. This allows immediate correction of any data errors without propagating printing mistakes throughout a promotion period
Solution Approach 2:
The system implements dynamic, real-time updates to coupon data in the database. Any corrections or changes to coupon information can be made immediately and will be reflected in subsequent transactions, making the system adaptable and error-correctable unlike static printed materials
Data Source
AI summary
In an embodiment, a system for redeeming coupons, promotions, or incentives comprises a network through which a Point-of-Sale (POS) terminal communicates, through a POS controller, with an Intelligent Clearing Network (ICN) server. One or both of the POS terminal and POS controller are installed with POS bridge software. The ICN server is configured to run a real time software application while in communication with the POS terminal, wherein the POS terminal transmits coupon transaction information including universal product codes to the ICN server via the network.