Kudler Fine Foods

Frequent Shopper Program (Revenue Increase) – Kudler’s new initiative is tracking purchase behavior at the individual customer level and providing high value incentives through a partnership with a loyalty points program. The customer purchase behavior patters will help Kudler refine its processes and offerings to best satisfy their valued customers. Price is not the primary differentiating 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 first-class upgrades, or other specialty foods.

Kudler Fine Foods will be tracking purchase behavior at the individual customer level and provide high value incentives through a loyalty program. For Kudler Fine Foods to initiate the frequent shopper program a decision will have to be made to determine if the customers are interested. Personal information will be required from each individual participating in the program for tracking purposes. The customer purchase behavior patterns will allow Kudler Fine Foods to develop its process and offerings to best satisfy their customers. Kudler’s customers will be focused on quality, not price and specialized items. Kudler Fine Foods, with the loyalty points program will provide customers with points, which can be redeemed for reduced cost items such as discount on items purchased most frequently (University of Phoenix, 2008).

The largest obstacle that the creation of this type of program will be the initial setup and whether the internal IT department should set the program up or if an outside business should be brought in. The new system should be compatible with what is already in place throughout the stores as to avoid the cost of setting up all new systems. The existing Point...