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Bsa/310 Kudler Loyalty Program

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Kudler Loyalty Program

Adam Love

BSA/310

5/30/2011
Deborah Marshall

Kudler Loyalty Program

Kudler Fine Foods is a well-known California grocer specializing in high quality and specialty foods. Since Kudler does not consider the price of its products to be a primary differentiator from other grocers their intent is to produce more profit through increasing their customer purchase cycle. To achieve their goal Kudler has partnered with a loyalty points program to provide customers with points which can be redeemed for high end gift items, airline first-class upgrades, or other specialty foods. This program will also enable the ability to track customer transactions and identify trends that will allow Kudler Fine Foods to customize its product base to better serve its customers. Before implementing this program, Kudler will need to identify legal, ethical, and security considerations as well as complete a financial analysis to justify the expenditures of the loyalty program. The Program According to Kudler Fine Food’s Sales & Marketing intranet website, customers prefer high quality and specialty foods are more important than high value prices. Kudler’s Sales and Marketing Department is developing a Frequent Shopper Program which will offer incentives to its members through point accumulation and offer Kudler valuable insight into the shopping tendencies of customers. Initially, this program should promote customer loyalty and give Kudler additional opportunities to react to customer spending habits. Customers will present a rewards membership card that will identify them when making purchases. After just a few purchases customers will have enough reward points accumulated on the rewards card to exchange for airline upgrades, assorted gifts, and free specialty foods. Currently, Kudler maintains a database that only

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