Patent Publication Number: US-2004054575-A1

Title: System, method and apparatus for distributing and redeeming customer selected coupons

Description:
BACKGROUND OF THE INVENTION  
       [0001] The use of manufacturer discount coupons for promoting the sale of consumer goods is a widespread practice, especially in the United States. This promotional technique (which has been pioneered by multinational packaged goods companies) is also being rapidly adopted in virtually all free market economies. Although volumes are significantly lower, coupon discounting is well established in such countries as Canada, the United Kingdom, Italy, France and Spain. Coupon distribution programs are also being developed throughout the world as a global economy emerges based upon competitive market practices.  
       [0002] After many years of operation, the domestic coupon promotional process, in particular, has become refined and relatively efficient. It provides very positive benefits to manufacturers, retailers and consumers alike. A well developed infrastructure has evolved in the United States and Western Europe that can handle the clearing of huge quantities of individual consumer paper coupon transactions, and reconcile the complex financial settlement requirements that occur between retailers and manufacturers. Significant progress has also been made in deploying fairly sophisticated analysis and reporting systems that extract exacting marketing information from the mass of data captured.  
       [0003]FIG. 9 generally illustrates one known coupon processing system as typically employed in the United States. Coupon processing begins with a coupon issuer  100 , most usually a packaged goods manufacturer such as Kellogg, Kraft or Heinz, specifying a coupon promotion and subsequently authorizing a distributor  102 , such as Valassis, Newscorp or Advo to design, produce and distribute paper coupons to customers or consumers  104 . Customers or consumers bring these coupons to an acceptor  106  which is typically a grocery or drug retail chain store such as Kroger, WalMart or Walgreens, on a regular shopping trip. The coupons are honored by the acceptor  106 , who after verifying the promotion terms and conditions, and checking that the correct product is being purchased, awards a monetary discount to the customer  104 .  
       [0004] The coupon acceptor  106  collects all of the redeemed coupons and periodically ships them to a coupon clearinghouse  108  such as NCH, IDI or Carolina. An invoice, that includes the total of the coupon face values and the total of industry-approved handling allowances, accompanies each coupon shipment. The coupon clearinghouse  108  sorts, processes and verifies the coupons received from the coupon acceptor  106 . Most coupons carry core information about the product and the amount of the discount in bar codes formatted according to approved industry standards. The codes on each coupon generally identify the issuing manufacturer, a product family, and the value of the discount. Most coupons also carry an appendix bar code that codifies or contains a promotion identifier referred to as the coupon offer code. In some promotions, an appendix bar code (EAN Extension) is used to carry additional information such as the offer expiration date, household identification, etc. The coupons are scanned at the clearinghouse and validated against authentication codes previously established by the coupon issuer  100 . After the coupon processing is completed, the clearinghouse  108  reimburses the acceptor  106  for money advanced, and forwards the coupons and associated billing invoices to the coupon issuer  100  or its agents.  
       [0005] The coupon issuer  100  or its agent verifies that the amount due to the coupon acceptor  106  is substantially accurate and that the coupon shipment is substantially free of mal-redemption (i.e., the submitted coupons were properly accepted and used to purchase valid products). Also, the data captured by the clearinghouse  108  from the coupons is analyzed and used to generate reports relating to the performance of the coupon promotion to assist the coupon issuer  100  in managing present and future coupon promotions.  
       [0006] In the United States, freestanding inserts are the dominant distribution vehicle. Distribution companies that have industry wide promotion skills and highly developed publishing capabilities, issue booklets containing advertisements and discount coupons that are inserted into newspapers. Direct mail is also a significant distribution vehicle worldwide, particularly outside of the United States.  
       [0007] In general, the paper coupon industry operates on the basis of dedicated distributors and distinctly separate unassociated redemption providers. This lack of linkage increases the security risk and adds an uncertainty to the accuracy of coupon promotion performance reports. Moreover, these common distribution media used by the distributors have become less effective and more prone to abuse as distribution volumes have increased dramatically. For example, in the mid-nineties, the annual coupon distributions of paper coupons exceeded 200 billion in the United States alone, but only about 5 billion coupons were redeemed for purchase of the featured products. During this period, many instances of mal-redemption were uncovered by postal inspectors and Industry Groups causing issuing manufacturers to initiate even more stricter redemption policies. The redemption rate for freestanding inserts, which account for more than 90% of distributed volume, fell below 1.5% in 2001. The excess volume, lack of targeting of freestanding inserts towards likely users, and shortened expiration dates are considered to be major factors in deteriorating redemption rates.  
       [0008] Therefore, there is a need for a radically improved coupon distribution and processing system that rigidly links coupon distribution and redemption processes, that facilities targeting to most likely users, minimizes the chances of financial malfeasance, controls liabilities on unredeemed coupons, and provides more accurate performance accounting so that subsequent promotions can be optimized. There is also a further need to automate and integrate the distribution and redemption processes so that the promotions are more efficient and cost effective.  
       SUMMARY OF THE INVENTION  
       [0009] The present invention relates to a system for distributing and redeeming coupons specifically ordered by a customer. The invention also facilitates the inclusion in the order of extra coupons that are considered to be of interest as determined from pertinent information in a customer database.  
       [0010] One embodiment of the present invention generally includes a coupon distribution center for distributing the coupons, and a redemption center for redeeming the coupons distributed by the coupon distribution center. The redemption center communicates with the coupon distribution center to receive from the coupon distribution center data associated with the coupons distributed by the coupon distribution center to consumers or customers. The redemption center also transmits to the distribution center data relating to the coupons distributed by the distribution center, which are redeemed by the redemption center. As such, the present system provides a closed-loop processing of the coupons to better track and collect real-time information about coupon ordering, distribution, use and redemption.  
       [0011] In one embodiment of the present invention, the system for distributing and redeeming coupons ordered by a customer includes a central processor that communicates between issuing manufacturers and a coupon distribution center that is tightly linked to a coupon redemption center and that operates in real time. Based on input from the issuing manufacturer, the distribution center communicates or relays details on specific promotions such as drop and expiration dates, volume distribution, face value, offer code and other special conditions, directly to the redemption center. The redemption center, in turn feeds back ongoing redemption data detailing financial transactions in the active promotions, offer codes captured, and summaries that form the basis for tracking and measuring the performance of individual promotions.  
       [0012] In one embodiment, the system for distributing and redeeming coupons ordered by a customer includes the central processor in communication with a coupon issuer having capability for automatically creating artwork and copy for actual production of the coupons, and automatically creating a descriptive text overview that serves as a presentation menu of offers to the customer. As coupons are ordered, the central processor instructs the distribution or delivery center to send coupons to the destination assigned by the customer.  
       [0013] In one embodiment of the present invention, the system for distributing and redeeming coupons is adapted or operable to receive orders for coupons directly from customers via an electronic data network, such as the Internet. The system includes a display such as an electronic monitor and processor such as a personal computer that presents a gamut of coupon offers that are actively available for selection. The monitor and local processor are directly connected to or in communication with the distribution center via the data network, such as the Internet. The distribution center presents coupon offers to a viewer, accepts coupon orders from the user, creates the ordered coupons which are preferably encoded with information identifying the requester, reviews the customer database, determines whether other coupons would be suitable for supplementing the order, and arranges for dispatch of the coupons. Simultaneously, the redemption center is actively clearing all coupons that have been used by the mass of customers and issued from the distribution center. All pertinent redemption information is analyzed and reported to the issuing manufacturer, and requester redemption datum is added to the customer database.  
       [0014] In one embodiment of the present system, coupons offered to the customers are not printed until the customer orders the coupons and selects a distribution channel and destination address. The printed coupons are sent to customers through one or more various channels including, for example, mailing, landline or wireless transmission to a remote printer, or via the Internet to a smart card writer. Printing and distributing coupons to customers based on an order received for the coupon from the customer significantly reduces coupon distribution costs and increases the likelihood that the customer will redeem such coupons. The present invention also facilitates the determination of supplemental coupons to send to the customer along with the coupons ordered by the customer, based on data relating to the customer profile stored in a database.  
       [0015] The present invention further includes a method for distributing and redeeming coupons ordered by a customer. The steps of this method in one embodiment include distributing coupons to customers from a distribution center and sending data associated with the coupons distributed by the coupon distribution center to a redemption center. At the redemption center, the coupons distributed by the coupon distribution center are redeemed when the coupons are presented, and data relating to the coupons redeemed by the redemption center is transmitted to the coupon distribution center for analysis.  
       [0016] It is therefore an advantage of the present invention to provide a coupon processing system that employs a data network, such as the Internet, for presenting coupon selections and accepting coupon orders from customers.  
       [0017] Another advantage of the present invention is that coupon presentations can be in text form only, thus minimizing the extensive delays encountered in downloading graphic coupon images.  
       [0018] Another advantage of the present invention is that coupons are selected, but not produced on a local computer. This avoids long print times and eliminates the poor esthetic quality, visual variability and unreadable bar codes that frequently occur due to the low quality and variable performance of common consumer printers.  
       [0019] Another advantage of the present invention is that it enables a customer to choose the particular channel for delivery of the selected coupons. This obviously increases the chances that the coupon will be used and eventually increases the success of a promotion.  
       [0020] Another advantage of the present invention is that the coupons can be delivered to a particular store of choice either by mail or by electronic transmission and printing within the store. This substantially increases the chance of redemption since the coupon is on hand in the store and close to where the products of interest are displayed.  
       [0021] Another advantage of the present invention is that the customer with a network access device, such as a PDA, cellular phone, laptop or desktop computer, can rapidly access the system since coupon presentation is in text format with minimal download times.  
       [0022] Another advantage of the present invention is to provide a closed-loop coupon processing system in which data relating to distributed coupons is immediately communicated between a coupon distribution center and a coupon redemption center in real time.  
       [0023] A further advantage of the present invention is to provide a coupon processing system, which is operable to deliver coupons to customers through multiple, and customer selectable delivery channels.  
       [0024] A further advantage of the present invention is to provide a coupon processing system that delivers coupons to select consumers to reduce excess printing of coupons. Large print runs are not only expensive, but become a potential reservoir of coupons for sourcing mal-redemption scams.  
       [0025] A further advantage of the present invention is to provide a coupon processing system that reduces promotion lead times and production costs by originating coupon artwork and copy in electronic format with graphics art aids, and by using issuing manufacturer memory caches holding universal image content such as logos, brand images, border formats and terms of use.  
       [0026] A further advantage of the present invention is that it speeds a marketer&#39;s response time in modifying ongoing promotions to counter recent competitor activities.  
       [0027] A further advantage of the present invention is that the closed loop operation and enhanced response time result in an ideal test system for optimizing promotion variables. Small test drops can be executed having different promotion characteristics such that actual, high volume promotion is optimized.  
       [0028] A further advantage of the present invention is to provide a coupon processing system that enables coupon issuer criteria defining redemption conditions to be rapidly downloaded to a coupon redemption center and enacted immediately.  
       [0029] A further advantage of the present invention is to provide a coupon processing system which is highly interactive in paying retailers, billing manufacturers, and continually updating the manufacturer, retailer and consumer databases.  
       [0030] A further advantage of the present invention is to provide a coupon processing system in which coupons are printed in a controlled environment on a high quality, high resolution printer. Such coupons have esthetic appeal for the consumer and precision bar codes that can be easily scanned to simplify the acceptance and clearing processes.  
       [0031] A further advantage of the present invention is to provide a coupon processing system which issues coupons that are identical in size and appearance for a particular offer to avoid concerns of authenticity when the coupons are presented for redemption.  
       [0032] A further advantage of the present invention is to provide a coupon processing system that issues coupons having highly scannable bar codes.  
       [0033] A further advantage of the present invention is to provide a coupon processing system which issues coupons that have fixed and unalterable terms and conditions not prone to alteration.  
       [0034] A further advantage of the present invention is to provide the coupon requester with options on how coupons are to be delivered.  
       [0035] A further advantage of the present invention is to provide the coupon requester with options on what type of coupon, paper or electronic is preferred and what destination the coupons are to be delivered.  
       [0036] Additional features and advantages of the present invention are described in and will be apparent from, the following Detailed Description of the Invention and the figures. 
     
    
    
     BRIEF DESCRIPTION OF THE FIGURES  
     [0037]FIG. 1 is a block diagram illustrating a coupon distribution and redemption system in accordance with one embodiment of the present invention.  
     [0038]FIG. 2 is a block diagram illustrating the components of the distribution and redemption control center shown in FIG. 1 in accordance with one embodiment of the present invention.  
     [0039]FIG. 3 is a block diagram illustrating the components of the distribution center of the distribution and redemption control center shown in FIG. 2, and the distribution center&#39;s connection with a customer and a coupon issuer.  
     [0040]FIG. 4A is an illustration of a sample coupon offer list for presentation on an Internet monitor as created by the distribution processor of the distribution center shown in FIG. 3.  
     [0041]FIG. 4B is an illustration of an example of an original artwork and copy master, also created by the distribution processor, for printing esthetic graphics composition coupons.  
     [0042]FIGS. 5A and 5B are block diagrams illustrating components of the coupon distribution center shown in FIG. 3 that are involved in preprinting coupons for delivery to a customer.  
     [0043]FIG. 6 is a flowchart illustrating a method for distributing preprinted coupons upon receipt of an order from a customer.  
     [0044]FIGS. 7A and 7B are flowcharts illustrating a method for preparing and delivering coupons upon receipt of an Internet order from a customer.  
     [0045]FIG. 8 is an illustration of an example of a coupon page prepared for sending to a customer, including customer ordered coupons and supplemental filler coupons.  
     [0046]FIG. 9 is a block diagram illustrating a prior art coupon distribution and redemption system. 
    
    
     DETAILED DESCRIPTION OF THE INVENTION  
     [0047] Turning now to FIG. 1, the system for processing coupons in accordance with one embodiment of the present invention is generally indicated by numeral  20 , and includes a coupon issuer  22 , a distribution and redemption control center or system  24 , a user or customer  26  and a coupon acceptor  28 . In operation, when the coupon issuer  22 , typically a product manufacturer or a service provider, commits to a promotional campaign that includes one or a series of discount coupons, the necessary specifications including artwork, offer terms, release dates, etc., are relayed to control center  24 . The control center  24  manages all functions in presentation and selection of coupons to the customer, as well as the production, delivery and all functions involved in the redemption of such coupons.  
     [0048] When the customer  26  orders the coupons from the control center  24 , the control center sends the coupons to the customer  26  by the selected delivery method such as mail or electronic transmission, as further discussed below. The coupon package is delivered to a specific destination chosen by the customer. The coupons preferably include a code that specifically identifies the requester, customer or customer household that ordered the coupon. The coupon acceptor  28  grants a discount to the customer  26  when a purchase is made that fully complies with the terms and conditions of the tendered coupon. The coupon acceptor  28  then transfers the coupons, along with an invoice summarizing advanced moneys, to the control center  24 . The control center or system  24  then validates and analyzes each coupon and extracts data critical to satisfying financial settlement requirements and the eventual compilation of promotion performance statistics that may include specific customer use information or data.  
     [0049] The control center  24  forwards the coupon data, coupons if required, and billing invoices, to the coupon issuer  22  or designated agent, for independent evaluation in order to further audit payment legitimacy and capture deeper marketing information, such as the redeeming customer identification. The control center  24  also updates new activity to related databases that are structured for easy access to promotion tracking, promotion performance analysis and micro/macro reports concentrated on promotion variables, for example. The coupon issuer  22  (or its agent) subsequently reimburses the control center  24  for payments made to the coupon acceptor  28 . A processing fee is typically also added for services performed in clearing the coupons.  
     [0050] The coupons are usually stored for a period of time to permit subsequent audits that may arise due to special situations, or for general monitoring requirements necessary to ensure the integrity of the redemption process. After a designated storage period, the coupons are destroyed, for example, by shredding or pulverization to avoid possible re-circulation.  
     [0051] Turning now to FIG. 2, the distribution and redemption control center or system  24  includes a coupon distribution center  30  in direct communication with the coupon issuer  22  via the Internet or other suitable data network, to coordinate offer planning, coupon graphics designing, bar code composition and general terms and conditions, etc., necessary for initializing coupon promotions. All details of the distribution transaction information are stored in a coupon issuer database  32  and a customer database  34  in the control center or system  24 . The issuer database  32  contains details such as product promoted, promotion offer code, value of the discount, limits to distribution volume, release date, expiration date, etc. The customer database  34  stores information such as customer identification, household demographic information, e-mail address, regular and/or mailing address, coupon order history, selected delivery channel, chosen delivery destination, etc.  
     [0052] The distribution and redemption control center  24  and redemption center  36  are directly linked via a data network (and central controller  40 ) such that there is also direct communication between the coupon issuer  22  and the distribution center  30 . This arrangement enables the coupon issuer&#39;s criteria concerning acceptance of coupons to be rapidly downloaded in real time to the redemption center  36  and enacted immediately. This could include such information as geographic area acceptance, where regional manufacturers do not sell the product, lists of retailers who do not stock the product, and retailers who are suspected of mishandling coupons, for example.  
     [0053] Furthermore, as soon as a particular coupon offer or promotion is to be released, the distribution center  30  can immediately relay to the redemption center  36 , for validation purposes, all the terms and conditions applicable to the offer. This data transfer is essential since in most cases some terms and conditions are not implicit in the bar code of the coupons. This occurs, for example, with free product or variable value coupons where the manufacturer must set limits according to the product price differences at different retailers. Also, most coupons do not carry codes specifying the expiration date of the offer. Furthermore, sweepstakes coupons, in which the customer enters a written name and address, must be flagged, saved and forwarded for subsequent processing. In such cases, the distribution center  30  sets data capture flags on these special offers that the redemption center  36  converts to save interrupts and that prompt an operator to separate such coupons as they occur in normal handling.  
     [0054] At the transaction stage, i.e., when the coupon acceptor  28  transfers the coupons to the control center  24 , the redemption center  36  verifies the acceptor&#39;s  28  identity, captures coupon data by scanning or manual means, reimburses the acceptor  28  and bills the coupon issuer  22  for the outstanding balance. These transactions are then communicated in real time or when convenient to the distribution center  30 , and to the coupon issuer  22  via the distribution center.  
     [0055] The redemption center  36  continually updates the customer database  34  that is addressed by the distribution center  30  when coupons are ordered and redeemed by the customer  26 . This redemption history may be subsequently used for such purposes as, issuing additional coupons that are likely to appeal to the customer  26  according to prior use criteria or issuing coupons at a higher face value than offered to add additional incentive to use the coupon and purchase the product. Likewise, it may be used as an issuance control tool if, for example, the customer  26  has used too many coupons within a specified time period. In one preferred embodiment, the redemption center  36  also uses both computerized and manual shipment normality sensing tools to ensure that individual stores and retailer chains are redeeming coupons properly.  
     [0056] It should be appreciated that the redemption center  36  communicates with the distribution center  30  and the customer database  34  in real time. As such, the redemption center  36  provides early alerts on problems with the promotion mechanics, thus facilitating early corrections. Problems such as missing or non-scannable bar codes, bar code errors, terms ambiguities or complex offers, like cross product purchases or buy two get one free, etc., cause significant aggravation to the customers  26  and the coupon acceptors  28 , and need rapid resolution. The closed loop operation and speed of response of the system help resolve such problems in a timely and efficient manner. This closed loop operation of the present invention where the distribution and redemption elements are tightly linked, also serves as an ideal testing system where promotion variables can be readily changed and wherein the results can be used to determine optimal characteristics or terms for the promotion. For example, if a coupon promotion for a seventy-five cent discount is not promoting the product as well as desired, as indicated from the results of a low volume test, the discount could be increased to a dollar before committing to a high volume distribution without having to reprint or reissue the entire batch of coupons. Any subsequent customers ordering that coupon would receive the modified promotion since such modifications would also have been made to the offer presentation list.  
     [0057] In one embodiment of the present invention, a coupon acceptor database  37  is included for storing data relating to the coupon acceptors  28 . The coupon acceptor database  37  is preferably updated in real time to enable the redemption center  36  to be highly interactive in paying the coupon acceptors  28  and reporting on the status of their accounts receivable. This database also carries basic information such as store name and address, Dun and Bradstreet business profile, TIN number and any other suitable information pertinent to verifying the acceptor legitimacy.  
     [0058] In one embodiment, the distribution and redemption control center  24  also includes a master database  38  for storing data created from transaction activities performed at the issuance of coupons by the distribution center  30  and the acceptance of the coupons from the coupon acceptor  28  by the redemption center  36 . This database contains all history detailing the financial transactions with the thousands of acceptors and the history of the numerous promotions run by more than several thousand known coupon issuers. Relational databasing facilitates recasting and analysis of the data to generate a broad range of financial and promotion performance reports that can be customized to particular issuer and acceptor requirements. The master database  38  also serves as the core reference for a forecasting engine that can estimate the performance of a promotion prior to release, and as a repository of valuable information for macro reporting on coupon promotions by such determinants as product/service category, geographic regions, face value, expiration date, household characterization, etc.  
     [0059] As indicated above, the control center  24  includes a central controller  40  that administrates and manages all the components within the closed loop system of the control center. In particular, the central controller  40  structures and stores all relevant information generated by the distribution center  30  and the redemption center  36  to the appropriate databases  32 ,  34 ,  37  and  38 . Further, the central controller  40  enables the redemption center  36  to communicate with the distribution center  30  and the coupon issuer  22  in real time, and integrates and reconciles all information regarding particular coupon promotions from start to finish in a closed loop operation using data stored in the master database  38 .  
     [0060] Turning now to FIG. 3, and in accordance with one preferred embodiment of the present invention, the customer  26  is connected to the coupon web site  60  via the Internet  42 . In turn, the coupon web site  60  is in communication with the coupon distribution center  30 . It should be appreciated, however, that communication between the coupon distribution center  30  and the customer  26 , through the coupon web site  60 , can be through suitable other electronic data network, such as an Intranet. The customer  26  can be connected to the Internet  42  via a personal computer, a cellular phone, PDA, or any other suitable electronic data network access device.  
     [0061] When the coupon issuer  22  commits to a promotional campaign that includes discount coupons, the necessary specifications including artwork, offer terms, release dates, etc., are relayed to a distribution processor  44  in the coupon distribution center  30 . The distribution processor  44  runs a series of checks such as the correctness of the offer code, check-digit validity, readability of the bar code, and consistency of text and coded information. Most of these checks are performed automatically by suitable software routines, and a final visual integrity check is preferably made before the offer is formally released to the customer  26  through the coupon web site  60 .  
     [0062] On release approval from the coupon issuer  22 , the distribution processor  44  creates an Internet presentation  46  (See FIG. 4A) of the offer that is then added to the list of offers  47  currently available to the customer. Preferably, this presentation at this point in time is in text form only as shown in FIG. 4A, in order to avoid lengthy Internet download times, and user impatience that inevitably arise when graphics files are transferred. A one-line, text-only descriptor is used to highlight the offer. A viewer can learn more about the offer by highlighting a particular offer line and clicking to drill down if more information is needed. Preferably, this supplementary information is also strictly in text form to expedite user access. The distribution processor  44  by using an image compositor  48  to integrate the graphics and texts retrieved from an image bank  50  automatically produces artwork and copy originals as shown in FIG. 4B that subsequently serve as the master for reproducing the high quantities needed for distribution. The distribution processor  44  also creates a print master  52  (FIG. 4B), which substantially resembles the display  46 , for producing the actual coupons. Previously composed Internet displays  46  and print masters  52  are preferably stored in a design template database  54  so that they are reusable without the need for regeneration.  
     [0063] An example of data elements included in the Internet display  46  or the print master  52  are illustrated in FIGS. 4A and 4B, respectively. Preferably, the print master  52  is composed with full graphic appeal, whereas in the Internet display  46 , the offer specifics are presented, in concisive, eye-catching text terms. Most of the features of the Internet display  46  and the print master  52  are accessed from the image bank  50  (FIG.3) indexed by particular offer specifications. A coupon bar code  56 , however, is generated for each new coupon and checked for internal validity and tested for possible ambiguity with offers previously released. At least one of the bar codes on the coupon may encode an identification of the customer or household who ordered the specific coupon, as discussed in more detail below.  
     [0064] The distribution processor  44  also downloads the print master  50  information to a delivery center  58 , where the actual production, grouping and dispatching of the coupons selected by the customer  26  are handled. To accommodate many promotions or coupon offers for many different coupon issuers  22 , the distribution processor  44  includes an automatic release scheduler keyed by the offer starting date, that automatically transfers required information to the coupon web site  60  via the Internet  42  and to the delivery center  58 . This linkage is also used to immediately convey customer orders to the delivery center  58 .  
     [0065] The distribution processor  44  manages one or more web sites  60  where the customer  26  can access available coupon offers. Such sites are equipped with user-friendly routines and are readily locatable through keywords, bookmarks and a facility for entry to a favored site list. Prior to shopping, the customer  26  would browse the web site  60  and select offers that have appeal. A first time user is required to enter basic registration information that will at least include an e-mail address. After coupon selection is made, the customer  26  is asked to chose the manner of coupon delivery which could be printed coupons, an electronic transmission that would facilitate printing within a particular store, or an electronic transfer across the Internet to a smart card. The coupon selection process is completed when the user enters an address (home, work or designated store) for dispatching the selected coupons. Customary security access procedures such as a password and PIN code are preferred to ensure the correctness of coupon issuance. Additional information may be requested relating to profiling issues such as demographic, socio-economic, lifestyle, etc. that may be used subsequently to target specific offers to particular consumers. On reception of a coupon order from the customer  26 , via the coupon web site  60 , the distribution processor  44  initiates the coupon production and distribution cycle. As illustrated in FIG. 2, after obtaining the coupons, the customer uses them to make the specified purchases and is awarded an instant discount by the acceptor  28 . The acceptor submits the coupons to the coupon distribution and redemption center  24 . The coupons are then handled by the redemption center  36  that has automated components for identifying the acceptor, scanning and manual data capture systems for capturing and validating coupon values and offer codes, and transaction processors that summarize the financial content and related marketing data as contained in the offer codes. The redemption center also has facilities for automatically uploading any relevant data to all of the databases  32 ,  34 ,  37  and  38 .  
     [0066] As seen in FIG. 3, in one embodiment of the present invention, coupons are printed at the coupon distribution center  30  prior to being offered to the customer  26 . As illustrated in FIG. 5A, once the coupon offer has been finalized between the coupon issuer  22  and the distribution processor  44 , a bulk printing order is placed with the delivery center  58  of the coupon distribution center  30  (best shown in FIG. 3). Such print runs are limited in volume and controlled depending upon the rate at which coupons are ordered  49  by the customer(s). Here, the coupons are printed preferably on a high quality, high-resolution printer  62  (best shown in FIG. 3) and added to a printed coupon inventory  64 . The distribution and redemption control center  24  is then primed to deliver the coupons on demand by the customer  26 . Also referring now to FIG. 5B, as a coupon order  49  is accepted, and is to be encoded with customer identity  66 , the coupons composing the order are grouped and put through a secondary print run on a high speed black-ink press that adds the customer identification bar code  53 . Alternatively, depending upon order size and process economy, customer identification coded coupons may be provided in an original print run  55  that produces the coupon in a single step from blank stock to finished item. This process is shown in FIG. 5B where the complexity of the customer order  49  is first reviewed to determine the best production process to apply as indicated by diamond  51 . If the single print process is optimal, the coupon is produced on a single print run on blank stock. If the secondary print process is optimal, pre-printed coupons are withdrawn from inventory and customer bar codes added.  
     [0067] Referring now to FIG. 6, when the distribution processor receives a coupon order from the customer as indicated by block  67 , it checks the customer database  34  (best shown in FIG. 2) to determine or freshly assign for a new user, the household code associated with the customer, as indicated by diamond  68 . If there is sufficient profiling information linked to the household code, additional filler coupons  70  may be added to the coupon package since they should appeal to the customer. The household code serves as a database address to the customer profile that is created from the customer&#39;s prior coupon redemption activities. Then, the coupons ordered by the customer and the filler coupons are pulled from the printed coupon inventory  64  (best shown in FIG. 5A) as indicated by block  72 . If the profile is insufficient to determine interests, only the coupons ordered by the customer are pulled. The coupons then go through an overprint process that encodes a household identification code on each coupon as indicated by block  74 , prior to being dispatched to the customer as indicated by block  76 .  
     [0068] Turning now to FIG. 7A, and in accordance with one embodiment of the present invention, coupons are not pre-printed, but created in real-time upon the demand or order by the customer. In this embodiment (best shown in FIG. 3), after the distribution processor  44  has presented the coupon offer list to the customer  26  (via the coupon web site  60 ), it waits for the customer  26  to order one or more coupons. When the distribution processor  44  receives an order for coupons from the customer  26  (via the coupon web site  60 ) as indicated by block  78 , it checks the customer database  34  (best shown in FIG. 2) for the profile linked to the household code, as indicated by diamond  80 .  
     [0069] If the profile contains sufficient information, in one embodiment, additional filler coupons that may be of interest to the customer are determined and added to the ordered coupons as indicated by block  82 . This process is not performed if there is insufficient profile information for the customer ordering the coupons. As described above, the household code provides direct linkage to the customer profile that is created from the customer&#39;s prior coupon redemption activities and any available demographic, socioeconomic or other information captured when the customer registers.  
     [0070] The ordered coupons along with the filler coupons are then composed on a coupon page  84  (an example of a coupon arrangement on the page  84  is shown in FIG. 8), and encoded with household codes as indicated by block  86 . Preferably, the coupons are arranged on the coupon page  84  in order to optimize printing area lay out, printing efficiency and costs, and to maximize the esthetic appeal to the customer. The seams between coupons on the printed page (FIG. 8) are preferably perforated to permit easy separation. A typical coupon arrangement may facilitate the printing of  12  coupons of approximately 2.7×2.9 inches in size on regular 8.5×11 inch page. In one embodiment, the coupons are printed in a controlled environment on a high quality, high resolution printer such that each coupon issued is identical in size and appearance for a particular offer. In this manner, concerns as to the authenticity of the coupons when they are presented to the coupon acceptor  28  are reduced. Controlled print conditions also result in the coupons having highly scannable bar codes. The coupons may also incorporate antifraud measures such as two-sided printing with highlighted cautionary messages in color, high definition graphics, and even high-resolution symbol patterns to inhibit copying, for example. Such measures are expectedly not practical in the home-printing environment.  
     [0071] In one embodiment of the present invention, the coupon page  84  is printed as indicated by block  88  and dispatched to the customer as indicated by block  90 . The coupons can also be electronically transmitted directly through a landline using a modem or through wireless transmission such as pager or cellular link, to a remote location such as the preferred store as indicated by block  92 . The coupons are then printed on demand, as indicated by block  94 , as the customer makes a shopping trip and enters her coupon order number into the print terminal, for example.  
     [0072] Referring now to FIG. 7 B, and in accordance with another embodiment of the present invention, the ordered coupons, with or without filler coupons, are sent to the customer via the electronic data network such as the Internet or an intranet, to a device accessible to the customer, for example, a personal computer, with a smart card writing capability, as indicated by block  96 . The coupons are then written onto the smart card (not shown), and the coupons are printed at a remote location such as a retail store, as indicated respectively by blocks  98  and  100 . In another embodiment, after the smart card has been written with the coupons as indicated by block  98 , it can be used as a direct electronic coupon, without ever being produced in print form, as long as the acceptor has a smart card terminal and the store POS system has been downloaded with promotion specifics  102  from the coupon distributor.  
     [0073] It should be understood that various changes and modifications to the presently preferred embodiments described herein would be apparent to those skilled in the art. Such changes and modifications can be made without departing from the spirit and scope of the present invention and without diminishing its intended advantages. It is therefore intended that such changes and modifications be covered by the appended claims.