WO2002073494A1

WO2002073494A1 - Personal identification code and associated coupon database

Info

Publication number: WO2002073494A1
Application number: PCT/US2001/007923
Authority: WO
Inventors: Charles P. Jones
Original assignee: Jones Charles P
Priority date: 2001-03-12
Filing date: 2001-03-12
Publication date: 2002-09-19

Abstract

A coupon database system (100) for offering, redeeming and tracking redemption of coupons (120), (122), (124), (126). The coupon database includes customer identification codes, offer codes, redemption codes and symbolic identification codes. The customer identification codes identify customer entities that are eligible to use the coupons and preferably are based on permanent computer identification codes (e.g. CPU serial number, BIOS serial number). The offer codes identify coupon offers and the redemption codes identify specific instances of redemption by customer entities. The symbolic identification codes correspond to a customer perceivable display associated with at least one, some, or all, of the coupon offers in the coupon database system.

Description

Personal Identification Code and

Associated Coupon Database

FIELD OF THE INVENTION

The present invention is directed to coupon databases and to personal identification codes, and more particularly to coupon databases that correlate coupons with customers based on a customer identification code.

BACKGROUND OF THE INVENTION

Traditionally, coupons took the form of pieces of paper or other physical objects that entitled the bearer to some discount, or other favorable bargaining benefit, when the bearer transacted (e.g., purchased) to obtain a product or service. In a sense, these paper-based discount coupons are much like paper currency that can pay or help to pay for a product or service. A major difference between discount coupons and currency is that currency is generally issued by a government and generally enjoys wide acceptance within a nation (or throughout multiple nations), while coupons are generally set up by private parties who define: (1) the specific product and/or service transaction to be used with the coupon; (2) how the coupon will be issued; and (3) how the coupon can be redeemed.

This additional level of control that coupons afford private parties thereby enables the private parties to help direct and gauge consumer behavior. Most fundamentally, by associating the coupon with a specific set of product(s) and/or services(s), and by distributing the coupons such that potential customers need to pay little or no money to receive the coupons, the potential customers are encouraged to select for purchase the product or service associated with the coupon. By using the coupon, the customer gets a discount that he did not need to pay for, but only so long as the customer chooses to purchase the product or service that the issuer has chosen to associate with the coupon. If the manufacturer of Brand X widgets issues generous and copious coupons for Brand X widgets, then the mass of people who receive the coupons are likelier to opt for the Brand X widget, instead of non-discounted competitive widgets manufactured by Brand X's competitor, Brand Y. There is another, more subtle, but extremely important, benefit of coupons.

Particularly, by keeping track of how the coupons are distributed and collected, the issuer can determine a lot about the behavior of customers. For example, if coupons are distributed in the mail to a household, the product purchases for which coupons are used will likely reflect which products the household consumes. Conversely, coupons that are not redeemed by the household are likelier to be associated with products that the household does not consume.

This is valuable information for manufacturers and their marketers. The information can be even more statistically significant if large numbers of coupons are distributed over targeted demographic groups, so that redemption and non-redemption activities can be tracked for a relatively large population. By adjusting the parameters of the coupon, such as the amount of the discount and the redemption time period, other aspects of consumer behavior can be explored.

A full discussion of statistical studies of consumer behavior based on coupon redemption is beyond the scope of this document. However, in collecting relevant consumer information there are a couple of widely recognized challenges for coupon issuers. One challenge is fraud. Because the coupons are distributed at little or no cost, unscrupulous parties may attempt to collect large numbers of coupons and to redeem these with, or even without, associated product purchases. Another challenge is correlation of the use of a coupon with a specific demographic group, household or individual. If the coupons are widely circulated, then it can be difficult to tell who is collecting and utilizing the coupons, which introduces uncertainty into statistical consumer study based on coupon redemption. On the other hand, distributing the coupon so that the identity of the coupon recipient and/or redeemer is precisely known will generally present a costly record generation and recordτ keeping burden to be shouldered by the coupon issuer and/or the coupon redeemer. This is because identifying information for the consumer must be supplied (by the redeemer) and maintained (by the issuer).

In addition to these challenges, coupons have costs One cost is the cost of giving discounts to customers. Generally, the coupon issuer pays a merchant for the coupons collected in connection with valid purchases made through that merchant. While the issuer may convince interested parties (e.g., the manufacturer, market researchers, merchants) to help pay for the cost of the discounts, in the end somebody needs to pay for the discounts effected by the coupons. In other words, somebody needs to pay for the coupon discounts. Additionally, there is another factor that can have a large affect on how much it really costs to issue coupons. Particularly, it is not known in advance how many coupons will be redeemed. Therefore, a pool of money, called a contingency, is generally set aside to cover redemption costs for the redemption period, and even for some amount of time after the redemption time period is over. As is probably apparent, there is a large opportunity cost and/or time value of money cost associated with setting aside a large pool of money. For this reason, there are recognized advantages in: (1) reducing the quantity of the contingency; and (2) reducing the amount of time for which the contingency must be set aside.

As far as the quantity of the contingency, the contingency is generally somewhat less

than the aggregated discounts of the distributed coupons because most coupons have a redemption rate that is much lower than one hundred percent. One to five percent redemption rates are typical. On the other hand, it is very difficult to know precisely the redemption rate at the time the contingency is set aside and held, so the contingency generally somewhat exceeds the expected aggregate coupon discounts multiplied by the expected redemption rate. If the coupon issuer sets the contingency too low, there may be a shortfall as merchants attempt to redeem the coupons. Such a shortfall can be disastrous to the financial reputation of the coupon issuers. For this reason, contingencies are generally set high enough and maintained long enough to avoid any realistic possibility of a shortfall

While coupons have traditionally been communicated and redeemed through print media, more recently some coupons have been proposed that are not print media based, or are only partially print media based. Instead of printed documents, the coupons are tracked through computer data stored and manipulated on computers and over computer networks. Once the coupon is conceptualized as a computer database, rather than as a piece of paper, some of the above challenges may be partially addressed and some of the above costs may be

somewhat reduced.

Also, the coupon may be maintained in many, sometimes co-existing, forms: (1) as data stored on or among computer storage devices (e.g., magnetic disk, optical disk, magneto- optical disk, read only memory, random access memory, magnetic tape, and so on); (2) on portable data storage devices (e.g., magnetic card, magnetic disk, optical disk, magneto- optical disk); and (3) on paper (hard copy from a personal computer, hard copy from a dedicated kiosk computer). By distributing the database, or portions thereof, among various old and new media, the use of the coupon can be more carefully controlled. Furthermore, the use of networked computers allows the database or portions thereof to be readily transferred between many, many networked locations on an as-needed basis. A discussion of some specific coupon database patent publications follows.

U.S. patent 6,076,068 ("DeLapa, et al.") discloses a coupon database implemented as digital data that is transferred over a computer network. The digital data of the coupon database includes image data and data identifying a household for which the coupon has been allotted. When using the coupon, the household member identifies himself through an identification code. The identification code is disclosed to be input to the computer network. For example, the identification code may be input when making a purchase by scanning a bar code on an identification card, by entering the identification code by keystroke, by scanning a magnetic storage medium, by voice recognition, by handprint recognition or the like.

U.S. patent 5,907,830 ("Engel, et al.") discloses an electronic coupon distribution system for providing online coupons over the Internet. The coupons (or coupon databases), obtained over the Internet, are printed on paper. The printed, paper version of the coupon includes a coded or encrypted identifying indicia to prevent unauthorized reproduction of the coupon. More particularly, the coupon customer directs downloading of the coupon from a host computer to a client computer. The "address" of the client computer is used as the identifying indicia, which is printed on the printed version of the coupon, in the form of a bar code. Engel, et al. also discloses that coupons can be stored, organized and utilized in connection with a purchase through an electronic coupon card. Use of the coupon card requires the user to periodically submit access codes in order to continue utilizing the coupon card. U.S. patent 5,008,519 ("Cunningham, et al.") discloses a coupon system wherein traditional paper coupons bearing bar codes are optically scanned upon their use in connection with a purchase. The redemption of the coupon is electronically communicated to a remote central clearinghouse that controls payments to merchants based on the acceptance of the coupons. Using the electronic communications, the clearinghouse tracks the use of coupons and makes the associated payments to merchants, as appropriate.

U.S. patent 6,002,771 ("Nielsen") discloses a coupon database that is implemented over a computer network. In Nielsen, the network data communications associated with generation and redemption of the coupon are encrypted. Decryption of the encrypted coupon- related communications rely on either a secret key, or alternatively, on two keys (e.g., a public / private key system). Use of the encryption and associated encryption keys makes it difficult for unauthorized third parties to misuse the computer network coupon system.

To the extent that specific publications are discussed above, these discussions should not be taken as an admission that the discussed publications (e.g, patents) are prior art for patent law purposes. For example, some or all of the discussed publications may not be sufficiently early in time and/or sufficiently enabling so as to amount to prior art for patent law purposes. SUMMARY OF THE INVENTION

The present invention provides an advantageous and workable system for distribution of coupon offers, review of coupon offers by customer entities, redemption of coupon offers in connection with commercial transactions and tracking of redemptions. The coupon database system of the present invention defines various types of codes for alerting customers to coupon offers, uniquely identifying coupon offers, reliably identifying customer entities and securely identifying instances of coupon redemption. Although the various codes of the coupon database of the present invention will generally be stored among communicating (e.g., networked) computers as machine readable data, portions of the database may additionally be stored and transferred through other media, such as printed coupons, magnetic storage media (e.g., cards with magnetic strips), sound recordings and the like, in order to assist in the effective and efficient transfer of coupon-related information.

One way of identifying customer entities according to the present invention is to assign each customer a customer identification code based at least in part on a computer associated (e.g., owned, rented, possessed, primarily used) with the customer entity. More particularly, computers generally have built-in, relatively permanent identification codes.

One such code is the central processing (CPU) serial number. Another example of a permanent computer identification number is the operating system serial number. Using a permanent computer identification code as the basis for a customer identification code is advantageous in that: (1) the permanent computer identification code often remains constant, even as other information concerning the customer (e.g., address) is subject to change; and (2) customers generally do not have great expectations of privacy in their permanent computer identification codes. The present invention also contemplates that identification codes for computer users based on permanent computer identification codes may be usefully employed even beyond the coupon database context.

At least some embodiments of the present invention may exhibit one or more of the following objects, advantages and benefits: (1) a coupon database wherein data is apportioned so that secure coupon-related data (e.g. redemption data) can be stored on secured computers (e.g., server computers with firewall protection), and non-secure data can be stored on other computers or physically manifested (e.g., paper coupons), as is convenient;

(2) more reliable user identification and customer identification based on pre- existing permanent computer identification codes;

(3) increased reliability and security in coupon redemption through the use of redemption codes, and especially redemption codes that include a non-printable character; and

(4) increased computer implementation of coupons, leading to: (a) more accurate targeting of coupon offers to individuals and/or demographic groups; (b)more uniform and fair implementation of the rule governing redemption; (c) quicker and more accurate information concerning ongoing coupon redemptions; (d) smaller contingencies; and (e) shorter contingency periods.

According to a further aspect of the present invention, a piece of coupon database software includes a coupon database and customer identification codes. The coupon database includes machine readable data relating to coupons. The customer identification codes respectively correspond to customer entities, with at least some of the customer identification codes being based at least in part on a permanent computer identification code of a computer associated with the respective customer entity.

According to a further aspect of the present invention, a piece of coupon database software includes customer identification codes, offer codes, symbolic identifier data and redemption codes. The customer identification codes respectively correspond to a plurality of customer entities. The offer codes are each uniquely associated with a coupon offer. The symbolic identifier data defines a symbol associated with at least one of the coupons of the coupon database software. The redemption codes correspond to a redemption of a coupon offer by a customer entity.

Further applicability of the present invention will become apparent from a review of the detailed description and accompanying drawings. It should be understood that the description and examples, while indicating preferred embodiments of the present invention, are not intended to limit the scope of the invention, and various changes and modifications within the spirit and scope of the invention will become apparent to those skilled in the art.

BRIEF DESCRIPTION OF THE DRAWINGS

The present invention will become more fully understood from the detailed description given below, together with the accompanying drawings, which are given by way of illustration only, and are not to be construed as limiting the scope of the present invention.

In the drawings:

Fig. 1 is a block diagram of a coupon database system according to the present invention. Fig. 2 is a flowchart of a first exemplary method of using a coupon according to the present invention.

Fig. 3 is a flowchart of a second exemplary method of using a coupon according to the present invention. Fig. 4 is a flowchart of a third exemplary method of using a coupon according to the present invention.

Fig. 5 is a flowchart of a fourth exemplary method of using a coupon according to the present invention.

Fig. 6 is a flowchart of a fifth exemplary method of using a coupon according to the present invention.

Fig. 7 is a table showing a database of coupon offer information according to the present invention.

Fig. 8 is an exemplary print-media, unregistered coupon offer according to the present invention. Fig. 9 is an exemplary online coupon offer according to the present invention.

Fig. 10 is a table showing a database, according to the present invention, of information regarding coupons issued and/or potentially issued pursuant to a coupon offer.

Fig. 11 is a table showing a database, according to the present invention, of coupons that have been collected and registered by a customer. Fig. 12 is a table showing a database, according to the present invention, of coupons that have been redeemed by a retail store. DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

Before starting a description of the Figures, some terms will now be defined.

DEFINITIONS the present invention: means at least some embodiments of the present invention; references to various feature(s) of the "present invention" throughout this document do not mean that all claimed embodiments or methods include the referenced feature(s). user: any entity capable of being associated with a computer; includes, but is not limited to, individual, corporate, institutional, household and virtual being entities. permanent computer identification code: any identification code (e.g., alphanumeric string, graphical code) that is specific to a piece of computer hardware (e.g., a motherboard) and that does not change during normal operations and maintenance of the computer; operating system serial numbers, basic input output system (BIOS) serial numbers and network card addresses (e.g., network card MAC addresses) are all examples of permanent computer identification codes; a network IP address is not an example of a permanent computer identification code because these numbers are not computer specific; a conventional user password, even if it is computer-specific, is not an example of a permanent computer identification code because it is subject to routine discretionary revision. associated with a computer: includes, but is not limited to, associations established through ownership, possession, use, and arbitrary assignment. coupon: a privilege, to be selectively exercised by a customer, to obtain more favorable terms in a specified commercial transaction than would be obtained absent the coupon; commercial transactions include, but are not limited to, sales, rentals, receipt of free samples and barter transactions; the more favorable terms include, but are not limited to, discounted payments, obviation of any payment requirement, more favorable financing and

receipt of more valuable goods and/or services. customer: any entity (e.g., individual, household, corporate entity, institution, virtual being) capable of using a coupon; customers include, but are not limited to, purchasers of goods and/or services, receivers of free goods and/or services, and renters of goods and/or

services. coupon offer: issuance of a coupon; the coupon offer may or may not place restrictions on identity of the applicable underlying commercial transactions, identity of the redeemer, time for redemption, allowable number of separate redemptions and so on. redemption: entering into a commercial transaction, along with associated use of a

coupon. redemption code: any code used in conjunction with a coupon database that is assigned to a particular coupon redemption, or in anticipation of a potential redemption, of a particular coupon; redemption codes include, but are not limited to, two part security keys. coupon database: the global set of data used in implementing coupons; a coupon database may include data useful in defining coupon offers, distributing coupon offers, organizing and storing coupon offers by customers, effecting redemption of coupon offers and providing compensation for parties honoring coupon redemptions; the data may reside on or among one or more of the following types of media: (1) human readable media (e.g., printed paper, sound recordings, Braille); and (2) machine readable media (e.g., storage of a stand-alone computer, storage of a networked computer, store of a kiosk computer, storage of a cash register computer, magnetic data stored on a card, optically stored data on a disk). non-printable character: character that will not be printed by standard computer printing devices; for example, standard ASC II assigns certain characters as being unprintable characters. symbol: human perceivable indication, including, but not limited to, graphic displays, audio programs, audio-visual programs, tactile displays and olfactory indications.

To the extent that the definitions provided above are consistent with ordinary, plain and accustomed meanings (as generally evidenced, inter alia, by dictionaries and/or technical lexicons), the above definitions shall be considered supplemental in nature. To the extent that the definitions provided above are inconsistent with ordinary, plain and accustomed meanings (as generally evidenced, inter alia, by dictionaries and/or technical lexicons), the above definitions shall control. If the definitions provided above are broader than the ordinary, plain and accustomed meanings in some aspect, then the above definitions will control at least in relation to their broader aspects.

To the extent that a patentee may act as its own lexicographer under applicable law, it is hereby further directed that all words appearing in the claims section, except for the above- defined words, shall take on their ordinary, plain and accustomed meanings (as generally evidenced, inter alia, by dictionaries and/or technical lexicons), and shall not be considered to be specially defined in this specification. Notwithstanding this limitation on the inference of "special definitions," the specification may be used to evidence the appropriate ordinary, plain and accustomed meanings (as generally evidenced, inter alia, by dictionaries and/or technical lexicons), in the situation where a word or term used in the claims has more than one alternative ordinary, plain and accustomed meaning and the specification is helpful in choosing between the alternatives. First, the various hardware components of the invention will be described in general terms in conjunction with the block diagram of Fig. 1. Following this discussion, several exemplary methods of distributing coupon offers, registering coupons, redeeming coupons and compensating merchants for coupons will be discussed in connection with the flowcharts of Figs. 2 to 6. Finally, an exemplary embodiment of the coupon database, which is preferably distributed amongst the hardware of Fig. 1, will be discussed in detail in connection with Figs. 7 to 12.

BLOCK DIAGRAM OF FIG. 1 As shown in Fig. 1 , an exemplary embodiment of a coupon database system 100 includes coupon administrator server computer system 102, product manufacturer server computer system 104, retail store server computer system 106, online merchant server computer system 108, computer network 110, customer "A" personal computer system ("PC"), customer "B" interactive television system 114, retail store coupon kiosk 116, retail store cash register computer system 118, unregistered coupon circular 120, registered coupon hard copy 122, registered coupon card 124 and registered coupon compact disk ("CD") 126.

According to the present invention, coupon offers and specific coupons generally will entail the creation, maintenance and augmentation of data that makes up a global coupon database. The identity of the various computers and storage devices over which the coupon data is distributed is not generally considered to be critical. As distributed computing and data communication over various types of digital and/or analog networks (of the wired and wireless varieties) is developed over the coming years, various and different distributions and forms of computer instructions and associated coupon data are expected to become acceptable and/or optimal. However, the components shown in block diagram of Fig. 1 convey some idea of how different data may be stored among different devices.

In addition to the computer network aspect of the exemplary coupon database, the coupon database is structured so that coupon offers and/or registered coupons (redeemed and not-yet-redeemed) may also be stored on portable storage mediums. The simplest portable storage medium is probably the printing of bar codes, code numbers, graphic information and/or textual information on paper. However, as explained below, data may also be stored on other extant storage devices, such as cards with magnetic strips and CD's, which allow larger amounts of coupon-related data to be stored in a smaller space. Also, the present invention generally contemplates that new kinds of portable storage devices may be developed in the future, and these may also be used, as appropriate, to store coupon-related data.

Coupon administration server computer system 102 includes conventional computer hardware such as a server computer and a firewall. The coupon administration server computer system generally takes on somewhat similar functions to a conventional coupon clearinghouse. Manufacturers and other coupon issuers communicate to the coupon administrator that they would like to issue a coupon offer. At this point, the coupon administrator will add data (explained in more detail below) to its database on the coupon administrator server computer system to implement the coupon offer. The coupon administrator may also implement the coupon offer by distributing the coupon offer online and/or by distributing paper copies of the coupon offer through print media.

After the coupon offer is distributed, data may be added to the coupon database at coupon administration server computer system 102 to reflect customer collection of coupons, customer redemption of coupons and merchant compensation for coupons. As explained below, the coupon database will contain data relating to the mechanics of coupon use and may additionally include customer identification information, customer preference information (e.g., customer shopping habits), demographic information and merchant information. In this preferred embodiment, the coupon administration server computer system is a sort of nerve center for the entire operation. This is the preferred embodiment because coupon administrators tend to have a lot of specialized knowledge and software for implementing coupon offers and coupons, and because it is therefore efficient for manufacturers and other coupon offerers to farm out this work to a coupon administrator. Alternatively, the functions and data of the coupon administration server computer system could be resident elsewhere, for example on a manufacturer's computer system or on a merchant's computer system.

Product manufacturer server computer system 104 is a server computer system maintained by a manufacturer who makes a coupon offer with the assistance of the coupon administrator. One function of the product manufacturer server computer system will be to make electronic communications to the coupon administrator in order to describe the coupon that will be offered. The manufacturer generally will supply the terms and variables associated with the coupon offer, such as redemption period, amount of discount, applicable products or product families, coupon artwork, distribution methods (e.g., circulars, mailings, electronic distribution) and the like. Furthermore, the product manufacturer's server computer system may be used to make electronic fund transfers, as necessary, to compensate the coupon administrators and/or merchants, as the coupons are redeemed. Of course, this compensation will generally come out of a contingency that has been set aside at the time the coupon offer is made.

Another function that product manufacturer server computer system 104 may perform is to present the coupon offer, or links thereto, on network pages (e.g., web page) served to the public from the product manufacturer server computer system. For example, if a curious consumer requests a network page from the product manufacturer, the coupon offer may serve as a sort of reward for visiting the page and as an enticement to linger longer at the product manufacturer's network site.

Retail store server computer system 106 is a server computer system maintained by a retail store. As used herein, retail store means a traditional "brick and mortar" store (e.g., supermarket, department store, auto parts store), as contrasted with a store that does business primarily over computer networks. Stores that do business primarily over computer networks are herein referred to as online merchants. However, the present invention will generally work for both retail stores and for online merchants. Similarly to the product manufacturer, the retail store server computer system may maintain network pages with coupons, and the retail store may issue its own coupons.

Online merchant server computer system 108 is a server computer maintained by an online merchant. Preferably, the online store server computer system will maintain a database of products for sale and will include server software necessary to allow customers to effect purchases over computer network 110. When the online merchant redeems a coupon, such as a manufacturer's coupon, in connection with an online purchase, then the online merchant server computer system will communicate over computer network 110 in order to effect changes to the coupon database. These changes reflect the coupon redemption and to trigger compensation for the redemption by the coupon administrator to the online merchant. Because the coupon database of the present invention facilitates fraud-free, reliable coupon redemption, even in a computer network environment, this may encourage more manufacturers to issue coupons that are redeemable at online merchants to a greater extent than they currently do.

Computer network 110 is preferably the Internet, but may also take the form of any sort of computer network now extant or to be developed in the future. The function of the computer network is to communicate coupon-related and online-purchase-related information between the various computers of coupon database system 100 on an as-needed basis. Customer "A" PC 112 is a conventional personal computer setup, including the appropriate hardware and software to allow the customer "A" PC to communicate over computer network 110. For example, customer "A" PC may be a desktop computer, a laptop computer or a dummy terminal. As customer "A" calls up network pages on customer "A" PC, he may collect coupons from online coupon offers, preferably by selecting a coupon offer display shown on the display screen of customer "A" PC.

As the customer collects coupons, customer "A" PC 1 12 can facilitate various methods of registering and storing coupons (the concept of registering coupons will be discussed in more detail below). For example, data identifying a coupon may be stored on a storage device (e.g., a hard disk) that is internal to customer "A" PC. The fact that a coupon has been collected by a particular customer may also be communicated over computer network 110 to coupon administration server computer system 102, and the appropriate particulars may be stored in the portion of the coupon database resident on administration server computer system. In this case, the identity of the coupons collected by the customer will be available anyplace equipped with a device that can communicate with coupon administration server computer system 102.

Other ways of storing collected coupons include digital storage, such as magnetic storage on registered coupon card 124 and magnet-optical storage on registered coupon CD 126. An advantage of these types of digital storage mediums is that a large amount of information about the customer and his collected coupons are stored in a small space. Also, this information can be quickly read at a retail store or other properly equipped location where the coupons are to be selectively redeemed. In order to make and update digital storage mediums 124 or 126, customer "A" PC must include appropriate writing hardware, such as a smart card writer and/or a compact disk recording device.

Customer "B" interactive television system 114 is used by customer "B" to collect coupons. For example, analog data corresponding to coupon offers can be embedded in analog television signals, thereby allowing customer "B" to collect coupon offers using interactive television communication devices that exist now or may be developed in the future. Alternatively, information about the coupon offer (e.g., a code number) can be presented as part of the audiovisual television broadcast. In this case, customers may need to write down the relevant information for later entry into the computer network on a home

computer or at a retail store.

Retail store coupon kiosk 116 is preferably a self-service kiosk located in or near a retail store. In some embodiments of the present invention, the kiosk may allow customers to view coupons they have previously collected (e.g., while viewing network pages). In other embodiments, the kiosk may present new coupon offers to customers, and allow collection of coupons at the site of the store. Retail store cash register computer system 118 is a computer system connecting cash registers in a store to computer network 110. Retail store cash register computer system 118 is instrumental in implementing redemption of coupons in a retail store setting. Because the cash register is already designed to register purchases, some of which involve coupons, it is a good location to facilitate redemption of the coupons. The retail store cash register computer system may determine whether applicable coupons are to be redeemed in a variety of ways. For example, the retail store cash register computer system may communicate over computer network 110 with the coupon administration server computer system 102 in order to determine what coupons a particular customer has collected. In this example, the coupon administration server computer system 102 is used as a storage means. As a further example,

collected coupons may be communicated to the cash register by means of magnetic cards, compact disks, manual entry of appropriate codes, scanning of bar codes and the like.

Unregistered coupon circular 120 is preferably a mass-distributed, paper-and-ink coupon offer publication. Unregistered coupon circular 120 may be very similar to conventional coupon circulars, except: (1) appropriate codes (further explained below) should be included in order to allow registration and redemption of the coupon in the coupon

database; and (2) preferably some type of easily-perceived visual symbol is present to indicate which coupon database and/or coupon administrator that the coupon is being implemented by. Other non-computer-network ways that coupon offers may be distributed include targeted mailings, newspaper advertisements, magazine advertisements, inclusion in product packaging, in-store printing devices, door-to-door delivery and the like. Also, the coupon offer can be distributed in non-paper-and-ink forms such as by telemarketers who provide appropriate coupon offer code numbers (further explained below). EXEMPLARY METHODS OF FIGS. 2 TO 6

According to the present invention the data in the coupon database, corresponding to a specific coupon, has a life cycle that preferably occurs in four stages: (l)coupon offer; (2) coupon registration; (3) coupon redemption; and (4) coupon compensation. As will be apparent from the explanation of the flowcharts of Figs. 2 to 6, all four, distinct stages are always necessary. For example, coupon registration is generally a discretionary stage (unless the designer of the software controlling the coupon database chooses to require coupon registration prior to coupon redemption). As a further example, free sample coupons would, in many cases, require no separate compensation steps. Also, additional life stages may be added. To name a few examples of this, the designer of the coupon database may require or allow multiple registration stages, prescribed database activity between redemption and compensation, or some type of post-compensation activity (e.g., auditing activity). However, the four stages enumerated above are helpful in conceptualizing the changes to the data in the coupon database as coupons progresses from new coupon offer to the closing of the contingency. However, before discussing the structure and contents of the coupon database in detail, the flowcharts of Figs. 2 to 6 will show some exemplary patterns of how the various stages of a coupon's life manifest themselves in the

commercial world.

Fig. 2 is a flowchart wherein a coupon offer is issued as print media, is registered electronically, is then stored digitally and is then redeemed and compensated electronically.

At step SI, a coupon circular is issued. For example, the coupon offer may be printed as an advertising supplement to a widely circulated newspaper. In this way, the coupon offer may be roughly demographically targeted by choosing which newspapers to augment with the coupon offer. Of course, many other ways of distributing (more or less demographically targeted) print media coupon offers exist and could be employed in connection with the present invention. These print media coupons are unregistered, because customers have not yet communicated to the coupon database the fact that they have collected (and presumably

plan to use) the coupons.

At step S2, someone (a "customer") collects the coupon offer and decides to register the coupon electronically. In this example, the registration involves having the customer use his PC to visit a network page whose network address is printed on the coupon. In this example, the network page for coupon registration is set up and maintained on the coupon administration server computer system. Once at the network page, the customer enters information to identify himself. One preferred option is to have customers create "accounts." In this way, if the customer desires to register and/or redeem coupons on many separate occasions, he will not need to provide detailed identification information on each visit. As explained in more detail below, the present invention includes ways of quickly and reliably identifying users having accounts as they make repeat visits to the network site of the coupon administration server computer system.

In order to identify the coupon or coupons as part of the registration step S2, the customer is required to answer a consumer survey question as prescribed by the manufacturer who is the offeror of the coupon. The customer is also required to watch a short audiovisual advertisement as part of the registration process.

As registration processing continues, processing proceeds to step S3, wherein the customer prints a registered version of the coupon on the printer of his PC system. The registered hard copy of the coupon may contain bar codes, other machine readable optical codes and encrypted graphical codes. Processing proceeds to step S4 wherein the customer saves the registered coupon as digital data to a magnetic card and to a CD. The magnetic card and CD are easily capable of holding information for a huge number of coupons. Before moving on to an explanation of step S5, the advantages of coupon registration to the customer and to the coupon offeror will be described.

Coupon registration benefits the customer because they can now store collected coupons on a network server and on digital storage media. By storing the coupons on the network server, the coupons become accessible to the customer anywhere that the customer has access to the computer network. Especially as the proliferation of computer network ready devices continues, this means that the customer can access his coupon collection at many, many locations all over the world. Also, the customer can store his coupon

information as digital data so that the coupons can be quickly processed at the time of redemption. Storage on digital storage mediums allow the customer to carry many more coupons than would fit comfortably in a typical wallet. As a further advantage, registration allows security tasks and information collection activities to be moved up to a convenient time, prior to check-out at a retail store or online merchant. For example, the coupon database may be set up so that the customer needs to prove his identity with a password in order to conduct coupon-related activities (e.g., coupon redemption). In theory, this could be done at the time of redemption. However, during either an online or retail store purchase, this would probably be considered an unacceptable distraction, as other activities (e.g., purchase of other items) are gang on at the same time.

By registering the coupons prior to purchase, both customer and offeror get the security benefits of account based and password controlled coupon usage, without the necessity of holding up a checkout queue to perform the required tasks. Also, by pre- registering coupons, many coupons can be securely registered at one convenient time. In other words, coupons for many shopping excursions can be registered pursuant to a single entry of the customer's password. Secure, account based, password protected activation of the coupons helps detect, deter and prevent fraudulent misredemption of the coupons. It is easy to see how this protects coupon offerors - they will pay less money to compensate for fraudulent redemptions, and as fraudulent redemption goes down, contingencies may also be able to be decreased based on a historically-observed decrease in fraudulent redemptions. Customers also benefit because coupon offers can be made more frequently and/or generously if there is less fraud cost.

If additional incentive to consumers to register coupons is required, it may also be possible to make the coupon more favorable to the customer, if the customer chooses to register. For example, the redemption value could be doubled for registered coupons relative to the value of the same coupon offer when redeemed in unregistered form. Also, the value of the redemption coupon can be increased in increments depending on participation in registration activities that are made discretionary. For example, the coupon could be increased in value depending upon how many consumer survey questions the customer chooses to answer.

There are other benefits to coupon offerors. Coupon registration is an opportunity to collect consumer survey information and to present product advertising and information.

Also, offerors and coupon administrators get information about who is collecting their coupon offers. In this way, targeted distributions can be checked to see if the coupon is indeed being collected, in the main, by the demographic that was targeted. This information may be extremely valuable in optimizing the effectiveness of coupon distributions that are targeted in various ways. In other words, an offeror may have sophisticated desires concerning the type of customers that they are trying to attract, and coupon registration can be a powerful tool in tailoring results to these desires. As a further advantage, coupon registration information is collected in machine readable form (e.g., Hypertext Transfer

Protocol text), so that it can be readily communicated from the coupon administration server computer system to the offerer's computer system for ready analysis.

As a further set of advantages to the offeror, coupon registration can be instrumental in setting up more effective and efficient rules governing contingencies, with a view to decreasing the size of the contingencies. For example, if registration is required, and a lower-

than-expected number of registrations occurs at the time the coupon offer is distributed, then it may be permissible to release some of the contingency well in advance of the end of the prescribed redemption period. Also, time limits for registration can be set by the offeror and coupon administrator, so that there is a deadline for coupon registration and a later occurring deadline for redemption. This could set a firm and early cap on the required contingency, while still allowing customers plenty of time to redeem coupons on an as-needed basis.

Moving now to step S5 of the flowchart of Fig. 2, the registered coupon is redeemed at the cash register in conjunction with an applicable purchase at a retail store. So long as a registered coupon is used, whether in its hard copy or digital form, the usage will be more secure and less susceptible to fraud, as explained above. Either during or after the purchase, the cash register, which communicates over the computer network, communicates to the coupon administration database that the coupon has been redeemed, and the coupon database is revised to reflect the redemption. At step S6, compensation is made to the retail store. For example, the coupon administrator may make a monthly electronic fund transfer to the retail store to compensate for coupon redemptions and may also send a statement by email detailing the compensatory activity by email. Because the coupon database is machine readable (e.g., stored on a disk at the coupon administration server computer system), the compensations can be automatically compiled, with appropriate software, and the compensations and associated statements may be efficiently generated. Also, the database provides an excellent audit trail, which can help detect patterns evincing fraudulent redemptions.

Moving now to Fig. 3, at step S10, a customer again procures an unregistered coupon. The method proceeds to step S 11 , wherein the unregistered, print media coupon is presented in conjunction with an applicable purchase at a retail store. This is very similar to traditional coupon collection and redemption. However, during the redemption at step S 11 the cash register server computers system communicates over the computer network with the coupon administration server computer system to make the necessary changes to the coupon database to effect coupon redemption. Any required security checking is done at the time of coupon redemption, because there is no separate coupon registration stage in this exemplary method. Because the necessary security measures are implemented in connection with coupon redemption, it may be advantageous to make the security related activities (e.g., entry of an account password) as streamlined as possible. The method then concludes with step SI 2, wherein periodic compensation and related statements are made to the retail store for its coupon redemptions.

The method of the flowchart of Fig. 4 commences with step S20 wherein an unregistered coupon circular is again procured by the customer. At step S21, the unregistered coupon is redeemed in connection with an applicable purchase at a retail store. Because the cash register system at the store is not equipped to communicate over the computer network, the retail store may honor the coupon, but it is not equipped to electronically register and/or redeem the coupon. The coupon database will not reflect any redemption at the time the retail store honors the coupon because there is no way to effectively inform the coupon database that the coupon has been collected and used at the time it is honored. At step S22, the retail store collects its coupons and sends them to the coupon administrator, just as conventional coupons are traditionally sent to coupon clearinghouses for conventional redemption and compensation. At step S23, the coupon administrator redeems the coupons by revising the coupon database stored in the coupon administration server computer system to reflect the coupons that have been honored. At step S24, compensation is made to the retail store for the coupons it has redeemed.

There are some disadvantages to the method of Fig. 4. To a large extent, this method reflects the unsecured, traditional method of handling coupons. It is advantageous in that neither the customer nor the store is required to have network communication equipment, but there is no security at the time the coupon is honored and sent to the coupon administrator, which increases the potential for fraud. Also, retail stores tend to incorrectly honor some coupons in good faith. For example, a retail store may accidentally honor a coupon that has expired. Difficult decisions must be made as to whether to compensate such good faith redemption, or to refuse compensation (at the risk of angering the retail store). Also, the additional handling of paper coupons most likely requires additional employee resources at the retail store end and/or at the coupon administrator end. In light of the disadvantages of Fig. 4, coupon offerors and coupon administrators should consider carefully whether to create coupon database rules allowing this method to be used. In some cases, it may be better to require registration by the customer and/or to require electronic redemption at the time of purchase. The method of the flowchart of Fig. 5 commences at step S30, wherein a customer is visiting network pages (e.g., a product manufacturer's website) and locates an electronic coupon offer, entitling the customer to a free sample. The coupon offer is implemented by the coupon database according to the present invention. Symbols that identify the coupon offer administrator may be present in the coupon's display. For example, the display for the coupon may contain a name or graphic symbol identifying a particular coupon administrator.

If the customer has an account with the coupon administrator, then the customer may be especially inclined to exercise the coupon to obtain the free sample product, because the customer has already taken the steps to set up an account with the administrator.

At step S31, the customer uses the coupon link to visit the coupon administrator's network site to register and redeem the electronic coupon. Because the coupon offer is a free sample offer, there is no purchase to be made by the customer. Therefore, any registration type activities (e.g., entry of password, consumer survey questions, advertising) would most naturally be done at the time of redemption. If the free sample is a relatively valuable free sample, the customer might expected to participate in a higher degree of registration

activities.

At step S32 the coupon administrator and product manufacturer co-operate to send the free sample (e.g., by mail) to the customer. There may be no compensation step here, as free sample products are being provided, rather than monetary consideration. The method of the flowchart of Fig. 6 commences with step S40, wherein the customer again locates an online coupon offer. At step S41 , the customer collects the online coupon by registering the coupon with the coupon database over the computer network. At step S42, the customer uses his PC to find an online merchant who offers the applicable product for online purchase, so that the customer can use the registered electronic coupon and receive his discount. It is noted that the online merchant may be required to have some sort of account or registration with the coupon administrator in order to honor the coupon.

Once an appropriate online merchant is located, at step S43 the coupon is redeemed in connection with the applicable purchase from the online merchant. Because the coupon has been registered and is being used in conjunction with an online purchase, there can be a high level of security. While there has been some suggestion that coupons can be implemented in the world of online shopping, the security and ease-of-use provided by the present invention may help make this suggestion into more of a reality, as the present amount of online coupon activity is quite small in relation to the amount of non-online coupon activity at present. At step S44, compensation is made to the online merchant, and appropriate changes are made to the coupon database residing at the coupon administration server computer system to reflect the compensation.

The flowcharts of Figs. 2 to 6 do not reflect every possible way that coupon offers and redemptions may be implemented according to the present invention, but the differences in these methods should provide a feel for the breadth of the variety of ways that the coupon database of the present invention can be utilized. The following section will provide detailed information concerning database structures and coupon coding that help allow the foregoing methods to be accomplished. EXEMPLARY COUPON DATABASE OF FIGS. 7 TO 12

Fig. 7 is a table showing an exemplary coupon offer database, which would typically be stored on a coupon administration server computer system. This is a global database of all offers that have been implemented through the coupon administrator, and the exemplary database of Fig. 7 shows the kind of information that may be stored in the database on an offer-by-offer basis.

The first column of the Fig. 7 table is the "coupon offer number," which is a code identifying the offer. In this simple example, the code numbers are assigned serially, counting from 1. More complicated coding schemes could be implemented.

The second column of the Fig. 7 table is "individual coupon information," which is data specific to each coupon that is actually used under the coupon offer. For example, if a given individual redeems a coupon at a store pursuant to the coupon offer, then this information is preferably all part of the database, and can be stored as individual coupon information. For this example, individual coupon information will be discussed below in connection with Fig. 10.

The third column of the Fig. 7 table is "offeror information." Generally, a coupon administrator will implement coupon offers on behalf of many clients, or offerors. This portion of the Fig. 7 table tracks the identity of the offeror who is making the offer. As shown in the third column of the Fig. 7 table, an offeror code is present. This offeror code can be manually or automatically correlated with a plethora of further information about the offeror (e.g., telephone number, payment history), so that the offeror code is an efficient way of providing effective access to information about the offeror. The fourth column of the Fig. 7 table is "distribution information," which relates to the ways in which the coupon offer is distributed. As shown in the fourth column, distributions may contain print media coupons (e.g., Any City Times, A.C. Trib), coupons included in product packaging (e.g., software pack insert), coupons distributed by telemarketing, coupons distributed by broadcast (e.g., radio, television, Internet), as well as any other method of distributing coupons now known or to be developed in the future. The database could additionally include further information about distribution of the coupon offer, such as payment information.

The fourth column also includes two code numbers: (1) offer prefix; and (2) art template. These will be discussed in order.

The offer prefix is a kind of offer code. Offer codes are any type of codes (e.g., alphanumeric string, graphic code) that identify a specific coupon offer. Offer codes may identify a coupon offer as a whole. Alternatively, offer codes may identify the offer more particularly on a coupon-by-coupon basis. In this example, for purposes of fuller illustration, both types of offer codes are present. The offer prefixes, shown in thefourth column, are offer codes that identify only a specific offer, and apply equally to every coupon issued, collected and/or redeemed under that offer. As discussed below in connection with Fig. 10, the database also includes exercise codes, which are offer codes that are implemented on a coupon-by-coupon basis. However, some embodiments of the present invention may include only more general offer codes assigned on an offer-by-offer basis, such as the offer prefixes of the fourth column.

In this example, the offer prefix is built based upon the offeror code and upon the number of previous offers that the offeror has made. For example, as shown in the first row, fourth column of the Fig. 7 table, offeror "John Doe Widget Co." is offeror code 01, so the first two characters of the offer prefix are 01. This happens to be John Doe Co.'s first offer, so the complete offer prefix is 0101. Moving down the fourth column to the sixth row, John Doe Co. has made a second offer, which has accordingly been assign he offer prefix 0102. There are may other ways of establishing offer codes, but an important concept is that the offer codes provide an efficient informational mechanism for identifying a specific coupon offer with more or less specificity. This can be important for conveying the offer to customers and for facilitating communications (e.g., network communications) related to the coupon database. The art template code identifies artwork (print-media, online or both) to be used in distributing the coupon offer. Examples of artwork generated by using art templates will be discussed below in connection with Figs. 8 and 9. In this example, the art template codes are assigned somewhat similarly to the offer prefixes, but may vary therefrom when the same art template is used for multiple offers (with or without substantive revision). For example, by comparing the fourth column at rows one and six, it can be seen that the John Doe Co. is utilizing the same art template (perhaps with revisions) with two different coupon offers.

Moving now to the fifth column of the Fig. 7 table, the "offer terms" are included for each offer in the database. Many typical terms, such as amount of discount and redemption deadline, will be familiar. Also present in the fifth column are any applicable registration requirements. As explained above, registration of the coupon (prior to redemption) may be made discretionary or mandatory.

In this example, more granulated rules are provided by defining registration in terms of registration requirements. If registration is completely mandatory, then there are no registration requirements at all (even though registration will usually be an option and there may be discretionary activities related to the registration process). On the other hand, if some registration related activities are mandatory, then the mandatory activities are designated as registration requirements. For example, at the fifth column, second row, an offer has made both the viewing of an advertisement and the completion of a customer survey to be mandatory registration activities. As a further example, at the fifth column, fourth row, an offer has made permission to release consumer information mandatory (in order to get a free wristwatch).

However, when determining which, if any, registration activities are to be made into requirements, some important considerations should be taken into account. First, registration requirements may make it difficult or impossible to allow the customer to redeem the coupon at a cash register in a retail store without having first pre-registered. This is because the registration activities will generally: (1) take some time; and (2)require computer equipment (e.g., keyboard, display, mouse). Because of the time and equipment requirements, most types of registration activities cannot be accomplished at a typical retail checkstand. Because of these difficulties with registration requirements, some coupon administrators may choose to make rules to control this situation, such as arule forbidding the use of required registration activities in connection with coupons redeemable at retail stores.

Another thing to consider when defining registration requirements is the burden to the customer. A customer's time is valuable. When the proposed registration requirements are time-consuming, the value of the coupon will generally need to provide sufficient incentive for customer participation. At column five, row six of the table of Fig. 7, one creative solution is shown: the customer gets a considerably larger discount if he participates in a consumer survey. The present invention inventively allows consumer surveys and the like to be connected to coupon offers in new ways. However, experience will probably be a valuable guide in balancing the associated burdens among all relevant parties, such as manufacturers, retailers and customers, in a way that is acceptable to all involved. The final column of the Fig. 7 table is the balance remaining in the contingency account associated with the coupon offer. The present invention allows more accurate tracking of coupon collections and redemptions, which in turn may enable more realistic assumptions to be used in setting the size and duration of the contingency fund. This is a powerful advantage of the present invention because contingency funds can tie up a lot of money. Also, the registration activities (mandatory or discretionary) can provide necessary confidence to reduce or eliminate a contingency fund at an earlier time. For example, as shown at the Fig. 7 table at column five, row two, coupon offer number 2 requires that mandatory online registration must be completed by March 17, 2001 in order to redeem the coupon. Regardless of when the customers actually redeem the coupons, and regardless of when stores communicate the redemptions to the coupon administration server computer system, a maximum number of redemptions and associated outlay is effectively capped on March 18, 2001 by the number of customers who have taken the necessary steps of pre- registration.

A further advantage of the present invention, which relates to reduction of contingency accounts, is that stores do not have as much discretion in accepting late coupons.

Traditionally, the rejection of or acceptance of coupons after the redemption deadline can cause relationship issues between stores, customers and/or coupon administrators. As a practical matter, the relatively automatic redemption procedures according to the present invention may make it easier to enforce redemption deadlines, without any bad feelings on the part of customers. This is because customers are more likely to readily perceive that stores no longer have discretion in accepting late coupons, and will not be as likely to attempt pressuring the store into honoring an expired coupon. By effectively eliminating the issue of late redemptions, the present invention may make it possible to terminate contingency accounts at an earlier juncture.

Fig. 8 shows a more detailed view of an unregistered print media coupon 120. This unregistered coupon is the type of coupon that might be printed in an advertising supplement to a newspaper. The recitation of discount and other terms of redemption on coupon 120 is a conventional practice. However, the coupon also includes: (1) an exercise code (in numeric and bar code format); and (2) an iconic symbol (in this example, a stylized dollar sign).

The exercise code is 01011034, which is a concatenation of an offer prefix of 0101 and a suffix of 1034. As explained in connection with Fig. 7, the offer prefix of 0101 reflects that the offeror is John Doe Widget Co. and that this is their first coupon offer. The suffix will be further explained below in connection with Fig. 10. This exercise code is a type of offer code in that it identifies the offer. When a customer undertakes to register the coupon online, or to redeem the coupon at a retail store, the exercise code effectively identifies the coupon offer for the purpose of revising the coupon database to reflect registration and/or redemption of the coupon. Because the exercise code is presented both in bar code and numerical format, it can be read by either a bar code reader or a human being.

If the coupon were distributed by telemarketing or by a television broadcast, then the exercise code would be provided in audio and/or visual form. In these cases, the customer would have to write down the exercise number, or remember it, so that the coupon could be registered and redeemed. In the future, new types of analog broadcasts may make it more feasible to embed the number, in machine readable form, in the analog broadcast.

The iconic symbol allows customers to quickly identify this coupon offer as being the type of coupon offer that can be registered online. Because online registration has powerful advantages for the consumer with respect to coupon maintenance, management and storage, the iconic symbol may very well attract customers to this particular coupon, relative to other, more traditional coupons.

Fig. 9 shows display device 112a, which is a part of customer "A" PC 112 (shown in

Fig. 1). Display 112b of display device 112a shows a display that includes an online coupon offer. Once again, the iconic symbol is present in order to reinforce the association between the coupon and the convenient and effective services provided by the coupon administrator.

In this example, by clicking on the iconic symbol, the browser of customer "A" PC will be redirected from the John Doe Widget Co. (that is, the manufacturer's) networkpage into communication with the coupon administration server computer system for purposes of registering the coupon to effect online "collection" of the coupon. Alternatively, appropriate software for coupon registration or collection could be built into the server computer system of the manufacturer or other network entity that is active in online distribution of the coupon. Now that the database and physical implementations of a coupon offer distribution have been explained, Fig. 10, which shows more detailed information for a database of coupons under a particular coupon offer, will be discussed. The more-detailed database of

Fig. 10 is preferably stored and maintained along with the coupon offer database of Fig. 7 on the coupon administration server computer system. In this example, the exemplary database corresponds to coupon offer number 1 from the Fig. 7 table. The first column of the Fig. 7 table corresponds to the exercise codes. The exercise codes generally correspond to each particular use of a particular offer, and are basically a coupon-specific form of an offer code. However, when a coupon is first offered, it is not always clear how many times the offer will be collected and redeemed. For example, if the coupon offer is distributed as an offer code that is distributed by television broadcast, it is not known in advance how many people will act upon the coupon offer. More subtly, if the coupon is distributed through print media, it is theoretically possible to include coupon specific offer codes (see Fig. 8 for an example of this), but the printing of serialized numbers substantially complicates the printing process. Therefore, it may be preferable to use a merely offer specific offer code (e.g., an offer prefix), rather than a coupon specific offer code

(e.g., an exercise code), even in print media coupon offers.

While coupon specific offer codes may not be feasible early in the life of a coupon, it is preferable that a coupon specific offer code becomes established before or at the time of coupon redemption, so that the coupon database can organize the redemptions and associated information related to the redemptions on a coupon-by-coupon basis.

In view of these conflicting imperatives regarding the specificity of the coupon offer code, there are a variety of approaches to assigning offer codes. For example, coupon specific offer codes (e.g., exercise codes) may not even be generated for the coupon database until registrations and/or redemptions are effected. The example of Fig. 10 handles the generation of coupon specific offer codes in a somewhat different manner. More particularly, each offer, or offer prefix, is allotted some predetermined number of coupon specific offer codes (that is, exercise codes) at the time the coupon offer is entered into the coupon database by the coupon administrator. For example, if the coupon is distributed as a print media coupon insert, and 100 copies of the insert are printed, then 100 exercise codes would typically be allotted. For a broadcast, the number of allotted exercise codes should be based upon the expected number of redemptions. While this early assignment of coupon specific offer codes may not always be the preferred method, it is helpful for the illustrative purposes of Fig. 10.

As stated above, the exercise codes in this example consist of the offer prefix, along with a coupon specific suffix. In this example, the suffix is four digits long. The first digit of the suffix relates to the mode of distribution (e.g., 0 = Any City Times coupon insert, 1 = AC Trib coupon insert, 2 = AC Trib online distribution). The final three digits of the suffix in this example are serialized digits that uniquely identify each allotted exercise code. For example, if 100 exercise numbers are allotted to the John Doe Widget Co. coupon insert to the Any City Times, then the allotted exercise codes would run from 01010000 to 01010099. This way of assigning the digits of an exercise code is exemplary, and illustrates that offer codes may helpfully reflect information (such as offeror identity) relating to the coupon offer. The second column of the Fig. 10 table provides distribution information for each unique exercise code. In this example, this information is helpful because a single offer prefix may be distributed in more than one form.

The third column of the Fig. 10 table provides information on the customer who has registered the coupon. This registeree information includes a two-part security key, including a security key host part and a security key client part. This two-part security key is one embodiment of a redemption code. Other forms of redemption codes are also possible, beyond this particular embodiment, and the term "redemption code" is defined above in the Definitions section. The security key host part is maintained exclusively at the server computer system of the coupon administrator and is not given to the customer or to stores at which the coupon may be redeemed. The host part of the security key preferably includes at least one non- printable character, designated "[non-prt]" in Fig. 10, so that this information is more difficult to access without appropriate authorization. Also, security may be further enhanced by assigning the host part of the security key in a non-sequential manner, with any readily perceivable pattern in the host part codes. Access to the coupon database may be controlled based on the host part of the security keys. For example, if an employee of the coupon administrator wants to see coupon database information corresponding to a particular exercise

code, he may be required to provide the host part of the security key.

The client part of the security key is a code that is given to the customer at the time of registration. The customer may store this number locally on his PC, print it out on a hard copy of the coupon as registered, store it magnetically as part of the information on a magnetic card and so forth. In this example, the first two characters of the client part of the security code correspond to the initials of the registeree, and the last four characters are based on a permanent computer identification code of the registeree's primary computer. The term "permanent computer identification code" is defined above in the definitions section.

In this example, the permanent computer identification code corresponds to a CPU serial number of the registeree's computer. In the real world, these codes may be considerably longer than four characters. Also, the client part of the security key may algorithmically transform the relevant permanent computer identification code in some manner. For example, in the Fig. 10 table, the permanent computer identification code has the registeree's initials appended onto its front end. Many other kinds of transformations are possible.

The use of permanent computer identification codes to help identify individuals is a practice that may be advantageously applicable even outside of the coupon database arena. This is because other identification type information, such as address, and even initials may be subject to change on a fairly frequent basis. That is not to say that individuals do not change their primary computers, but the use of permanent computer identification codes as individual identification numbers has several advantages: (1) computer changes may occur less frequently; (2) the permanent computer identification code may be used in conjunction with other information (such as initials) which does not tend to change when an individual changes computers; (3) in many cases, these permanent computer identification codes can be automatically read by software (reducing the need for manual entry of this code); (4) individuals do not usually have confidentiality concerns with respect to their various permanent computer identification serial numbers; and (5) if an individual changes his primary computer, this change can often be observed as the individual's online interactions are tracked.

By the use of a two-part security key, access to the coupon database can be controlled in a granulated manner. If an individual has the host part of the key, this may entitle him to observation and/or revision access to certain portion of the coupon database. If an individual has only the client part of the security key, this may entitle him to observation and/or revision access to different portions of the coupon database. If an individual has both parts of the security key, then he may be entitled to an even higher level of observation and/or revision access. This carefully controlled access makes it difficult for interlopers to commit fraud by creating false redemptions or the like, and also may make it easier to detect fraudulent activity.

In Fig. 10, the fourth column corresponds to other information about any registration that has taken place. For example, as shown in Fig. 10, the date of each registration is recorded in the database, as is the network address of the remote computer (e.g., customer

"A" computer system) from which the registration was accomplished.

The fifth column of the Fig. 10 table includes any consumer information collected pursuant to the registration. For example, if a mandatory or discretionary consumer survey is filled out pursuant to the registration, then this information is stored here in this example. The sixth column of Fig. 10 corresponds to information on the redemption, if any, for each exercise code. This redemption information would typically include identifying information for the store at which the redemption occurred. The seventh column of the Fig. 10 table corresponds to information regarding whether the business which redeemed the coupon has yet been compensated. Fig. 11 is a table showing a database that would typically be maintained by a customer. For example, this database may be stored on the hard disk of customer "A" PC 112 and/or on a magnetic card. This data relates only to the coupons registered and/or redeemed by the customer and does not include information about the coupon related activities of other customers. The information included should be sufficient to allow the customer to readily organize and manage his coupons, and may be considered as sort of an electronic coupon caddy.

Fig. 12 is a table showing a database that would typically be maintained by a store that redeems coupons of the coupon database. For example, this database may be stored on retail store server computer system 106. This data relates only to the coupons redeemed, by various customers, at the store. For example, the Fig. 12 table includes compensation information so the store can track receipt of compensation monies from the coupon administrator in a reliable manner.

CONCLUSION

Many variations on the above-described exemplary coupon databases are possible. Such variations are not to be regarded as a departure from the spirit and scope of the invention, but rather as subject matter intended to be encompassed within the scope of the following claims, to the fullest extent allowed by applicable law.

Claims

What is claimed is:

1. Computer software for use by a plurality of users, with each user having an

associated computer, the software comprising:

a computer program (100, 102) comprising machine readable instructions, with the

operation of the computer program being at least partially dependent upon the identity of a user,

from the plurality of users, who is using the computer program; and

a user database (Fig. 10) comprising machine readable data identifying each user of the

plurality of users (112, 114), with the user database comprising a user identification code for

each user respectively based on a permanent computer identification code of a computer

associated the respective user.

2. The computer software of claim 1 wherein the permanent computer identification

codes include at least one of the following types of identification codes: a central processing unit

serial number and an operating system serial number.

3. The computer software of claim 1 wherein the computers are associated with the

respective users by virtue of the respective user's possession of its associated computer.

4. The computer software of claim 1 further comprising updating instructions

comprising machine readable instructions for determining that the association between a user and

a computer has changed and for accordingly updating the user identification code for that user.

5. The computer software of claim 1 wherein:

the computer program comprises machine readable instructions for implementing a

coupon database; and

the plurality of users comprises customer entities who may use coupons of the coupon

database.

6. A coupon database software comprising:

a coupon database (100, 102) comprising machine readable data relating to coupons; and

a plurality of machine readable customer identification codes (Fig. 10) respectively

corresponding to a plurality of customer entities, with at least some of the customer identification

codes being based at least in part on a permanent computer identification code of a computer

associated the respective customer entity.

7. The coupon database software of claim 6 wherein the computer permanent

computer identification codes include at least one of the following types of identification codes:

a central processing unit serial number and an operating system serial number.

8. The coupon database software of claim 6 further comprising updating instructions

comprising machine readable instructions for determining that the association between a

customer entity and a computer has changed and for accordingly updating the customer

identification code for that customer entity.

9. The coupon database software of claim 6 wherein the coupon database comprises

a plurality of offer codes (Fig. 7), with each offer code being uniquely associated with a coupon

offer.

10. The coupon database of claim 9 wherein each offer code is capable of being

expressed as a series of printable characters.

11. The coupon database software of claim 10 further comprises symbolic identifier

data comprising machine readable data defining a symbol (112b) associated with at least one of

the coupons of the coupon database software.

12. The coupon database software of claim 11 wherein the symbol is a graphical

image.

13. The coupon database software of claim 11 wherein the symbolic identifier data

comprises machine readable data corresponding to a program sequence designed to inform

customer entities of a coupon offer.

14. The coupon database software of claim 6 further comprising a plurality of

redemption codes (Fig. 10), with each redemption code corresponding to a redemption of a

coupon offer by a customer entity.

15. The coupon database software of claim 14 wherein each redemption code includes

at least one non-printable character.

16. A method of redeeming a coupon comprising the steps of:

collecting, by a customer entity, a coupon offer;

registering, by the customer, the coupon offer in a first transaction; and

after the registration step, redeeming the coupon in a second transaction that is separate

from the first transaction.

17. The method of claim 16 wherein the registration step comprises at least one of the

following activities: provision of customer information, permission to release customer

information, participation in a consumer survey and observation of an advertisement.

18. The method of claim 16 wherein the registration step comprises assignment of a

redemption code.

19. Coupon database software comprising:

corresponding to a plurality of customer entities;

a plurality of offer codes (Fig. 7), with each offer code being uniquely associated with a

coupon offer; symbolic identifier data (Fig. 7, 112b) comprising machine readable data defining a

symbol associated with at least one of the coupons of the coupon database software; and

a plurality of redemption codes (Fig. 10), with each redemption code corresponding to a

redemption of a coupon offer by a customer entity.

20. The coupon database software of claim 19 wherein at least some of the customer

identification codes are based at least in part on a permanent computer identification code of a

computer associated the respective customer entity.

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