Abstract: Methods and systems are provided for activating and redeeming product discount offers targeted to particular customers. Information related to a merchant loyalty program such as t-logs, customer loyalty information, redemption history, customer segmentation data, and merchant product taxonomies are regularly transmitted to an incentive management system for storage. Merchants can then generate pools of offers and submit them to the incentive management system, which analyzes the characteristics of the offers and uses the information related to the merchant loyalty program to target the offers to specific customers most likely to redeem such offers.