Smart Coupon Dispenser
Original Publication Date: 2001-Aug-01
Included in the Prior Art Database: 2001-Aug-01
Smart Coupon Dispenser
Target marketing is an increasing phenomenon in today's competitive consumer market. In Target Marketing, we mean, the producer/seller of the goods markets his product to the segment of the market that is most likely to consume the goods. By doing so, the manufactures will be able to cut down their marketing expenses and increase their sales per advertisement dollar spent (an important benchmark for sales and marketing division). Companies rely on market research data and consumer profiles (buying pattern, income level etc.) to determine the Target market for their product.
A good research may determine the Target Market with a very high degree of accuracy, but fails to capture the impulsive nature of the buyer. Research has shown that impulse buying accounts for a significant portion of the consumer spending dollars. Impulsive buying among consumers is often prompted by the promotions at the store (e.g., discounts or banners at the store).
Cross Promotion is another important aspect of the marketing that can be effectively used for improving the sales. In cross promotions you could identify complementary products, for example Chips and Salsa, and then provide coupon for its complementary product when the product is purchased. By providing a coupon for the complementary product you can increase the probability of the purchase.
Another topic that is worth introducing is the RFID technology that is gaining increasing popularity. RFID works on a capacitive coupling principle. Electric fields ("E-fields") are capacitively coupled to and from a reader and tag. The RFID reader/writer generates an excitation field which serves as both the tag's source of power and its master clock. (The tag should enter the field and does not have to be in the line of sight with the reader). The tag cyclically modulates its data contents and transmits them to the reader's receiver circuit. The reader demodulates and decodes the data signal and provides a formatted data packet to a host computer for further processing. Tags are printable by a label converter using standard industry methods. These tags can assume virtually any shape and size enabling the adaptability of RFID tags to applications using existing barcodes.
In this paper we will discuss a system that observes the buyer purchases and issues coupons for products that are complementary to those once purchased by the user (Cross Promotion). As we see in the later sections, this system can be developed using many of the existing technologies that are widely available. By issuing coupons in real time, it is possible to exploit the impulsive nature of the buyer.
Following picture illustrates a system that allows the stores to monitor the purchases of their customers and issues coupons based on the items in their shopping cart.