Targeted Offer System Using Payment Data for Location Notifications
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Solution Overview
Problem
Existing targeted offer distribution systems lack the ability to provide consumers with real-time, location-specific redemption options for electronic offers using mobile devices, requiring physical store visits and delayed delivery for online purchases, and often rely on outdated transaction data.
Innovation Solution
A method and system that uses payment data to generate targeted offers on mobile devices, providing a visual representation of redemption locations on a map, allowing immediate redemption at physical stores or online, with up-to-date data and accurate inventory checks to ensure valid offers.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If targeted offers are distributed electronically to mobile devices, then consumer accessibility and convenience are improved, but the ability to provide real-time location-specific redemption options is lost
Solution Approach 1:
The patent introduces a payment processing network as an intermediary between merchants and consumers. This network receives transaction data from merchants, processes it to generate targeted offers, and delivers them to consumer notification devices. The intermediary consolidates information from multiple sources and adds value by providing real-time, location-aware redemption details that neither merchants nor consumers could provide alone.
Solution Approach 2:
The system implements feedback loops where transaction data flows from consumers to merchants to the payment processing network, which then generates targeted offers based on this feedback. The network continuously monitors transaction patterns and uses this feedback to create timely, relevant offers with accurate redemption location information, resolving the contradiction between electronic distribution and real-time location specificity.
2Productivity
If offers are redeemed only at physical store locations, then inventory control is simplified, but consumer convenience and speed of redemption are reduced
Solution Approach 1:
The patent enables notification devices to serve multiple functions: receiving targeted offers, displaying them with redemption locations, and facilitating redemption at both physical and online locations. This multi-functionality allows consumers to redeem offers quickly regardless of location preference, while the backend system maintains inventory control through centralized processing.
Solution Approach 2:
The system replaces physical coupon redemption mechanics with electronic notification and verification. Instead of physical coupons requiring manual verification at stores, the system uses electronic notifications with embedded redemption information that can be verified automatically at both physical registers and online checkout systems, reducing redemption time and complexity.
3Adaptability or versatility
If offers are generated using historical transaction data, then offer personalization is achieved, but data currency and offer relevance deteriorate
Solution Approach 1:
The payment processing network performs preliminary actions by continuously collecting and processing transaction data as transactions occur, rather than waiting for batch processing. This preliminary data preparation enables the system to generate highly personalized offers in real-time based on the most current transaction information, maintaining both personalization and data currency.
Solution Approach 2:
The system implements continuous data collection and offer generation rather than periodic batch processing. The payment processing network operates continuously to monitor transactions, update consumer profiles, and generate targeted offers in real-time. This continuous action ensures offers remain personalized and current, eliminating the time loss associated with periodic data updates.
4Reliability
If consumers must wait for delivery of online purchases using offers, then fulfillment accuracy is improved, but consumer convenience and offer redemption speed are reduced
Solution Approach 1:
The patent introduces dynamic redemption options that adapt to consumer needs. Consumers can choose to redeem offers for immediate pickup at physical locations or for online delivery. The system dynamically adjusts fulfillment based on the redemption choice, providing both immediate satisfaction (pickup) and convenience (delivery) while maintaining fulfillment accuracy through centralized order management.
Solution Approach 2:
The system segments the redemption process into distinct options: immediate physical pickup and online delivery with later receipt. This segmentation allows consumers to choose based on their urgency and convenience needs, while the backend system handles both pathways with equal accuracy, resolving the contradiction between speed and reliability.
Data Source
AI summary
A method and system for providing geographic location notifications for targeted offers is disclosed. One embodiment of the invention is directed to a method including monitoring for an event to trigger a targeted offer. Upon detection of the event, the offer is generated. The offer is targeted to a consumer and is generated using payment data generated in response to transactions conducted by the consumer with a plurality of different merchants. A geographic location for redeeming the offer is determined. A notification message is generated about the offer. The notification message includes the offer and the geographic location for redeeming the offer. The notification message is sent to a notification device which is operated by the consumer. A graphical depiction of the offer is displayed on a map on the notification device.