Frequent Shopper Program
Frequent Shopper ProgramKudler fine foods frequent shopper program
The topic discussed below addresses the frequent shopper program that Kudler Fine Foods is currently in the process of developing. The use of this type of program can cause potential legal, ethical, and information security concerns. These concerns, if not addressed, will cause cost impacts to the company as a result of developing and implementing this program. The frequent shopper program is a customer point system that allows customers to cash in their accumulated points for incentives which will increase product sales and customer satisfaction.
Kudler Fine Foods is an upscale specialty food store located in the San Diego metropolitan area. They specialize in traveling the world and purchasing the finest epicurean delights to sell to their customers. In an effort to increase revenue and customer satisfaction Kudler Fine Foods has begun development of a frequent shopper program. This program will track the purchase behavior of their individual customers and provide incentives through a partnership with a loyalty points program. This program will help identify a customer’s purchase behavior to allow Kudler to better satisfy their customers. According to Kudler Fine Food’s sales and marketing website, price is not the primary differentiation factor for Kudler consumers; these consumers are focused on quality and finding specialized items. Therefore rather than providing everyday discounts to the customers for their purchase frequency like lower end markets, Kudler has partnered with a loyalty points program to provide customers with points which can be redeemed for high end gift items, airline tickets, or other specialty foods. This program is anticipated to increase revenue due to larger customer satisfaction and an increase in sales from customers hoping to gain incentives from the points received. Since the system will be tracking customers and identifying trends Kudler needs to understand...