No Marshmallows, Just Term Papers
Heather A Caldwell
October 29, 2012
Kudler Fine Foods Frequent Shopper Program
In order to create more business and do some research about what it is customers are buying, Kudler Fine Foods is going to roll out a frequent shopper program. Customers who frequent Kudler Fine Foods will receive points based on what they buy that they can exchange for upgraded seats on airlines, high end gifts, and other specialty items. In order to promote this program KFF will use direct marketing and word of mouth. There will be employee training and then an assessment and refinement of the program to get it started properly.
When it comes to frequent shopper programs, it is easy to have information stolen, especially if the program is based on a phone number entered in order to track items bought and points received. An example, a firefighter in Tukwila, WA was arrested and accused of setting fire to his own house while his wife and children were in the house. They were able to track his purchase from his frequent shopper card. All items bought were the same as what was used to set the fire. In his case he was lucky because the person who actually set the fire came forward and admitted to it. There is not really a way to secure this type of program, because, should anyone get a hold of the card used, know the phone number, or even code, once taken there is no way to track who took it.
The potential for legal issues regarding the frequent shopper program can be great or minimized as long as KFF takes the proper precautions. In working with other companies like the airlines, or specialty gifts, there is a risk that these companies could take and sell the consumers information or even misuse it themselves. The right contract should be set up before going into this program with other companies and the proper research should be done to check on companies and see what their background is. There is a lot to be done...