CoolSavings Granted Patent for Internet Coupon Service

Chicago-based CoolSavings
said it received a U.S. patent for its online coupon distribution service.


Specifically, the patented system protects the anonymity of consumers, while
permitting advertisers to target them with coupon offers based on various
household characteristics and shopping habits, the company said.


The system also allows advertisers to limit the number of coupons distributed
in total or per household and allows real-time management of online
promotions. Additional patent benefits include a boost to the CoolSavings
national brand as well as a significant barrier to entry for any current or
future competitors, the company said.


“The patent creates a potential barrier for any company attempting to
distribute coupons over the Internet,” said Steven M. Golden, chairman and CEO
of CoolSavings. “The patented CoolSavings program acts as a target marketing
tool for advertisers and a privacy advocate for consumers.”


Besides offering traditional coupons, the site builds store traffic through
contests and retailer promotions. For example, H&R Block recently posted a
$25-off coupon on tax preparation accompanied by a trivia contest with a
$5,000 grand prize. Out of the first 6,000 contestants, 4,000 downloaded the
coupon.


Launched in March 1997, CoolSavings said it now lists as clients more than 30
national advertisers including J.C. Penney, Kmart, Toys ‘R’ Us, Barnes &
Noble, National Car Rental, Chuck E. Cheese’s, Pearle Vision, LensCrafters,
ServiceMaster, Fashion Bug, Blockbuster, McDonald’s, Long John Silver’s and
Footaction.


In the 12 months since, CoolSavings has registered more than 900,000 shoppers
and said it is projected to grow to more than 1.5 million shoppers by
September.

News Around the Web