Kudlerfinefoodsfreqshopperprog Sr-Kf-013 Paper

Kudler Fine Foods Frequent Shopper Program

Kudler Fine Foods is interested in developing a system to track customer purchases through a Frequent Shopper Program to award loyalty points for redemption. This paper will describe the potential electronic commerce aspects related to the development of the Frequent Shopper Program. It will include the legal, ethical, and security considerations for the development of the program and a description of the financial analysis recommended, justifying the expenditures related to the development of the Frequent Shopper Program.

Strategic Purpose

The strategic purpose of the Frequent Shopper Program is to track purchase behavior at the individual customer level and providing high value incentives through a partnership with a loyalty points program. The customer purchase behavior patterns will help us 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 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.

Objective

The objective of the Kudler Fine Foods Frequent Shopper Program is to track purchases of individual customer’s and use that information to allow the sales team to promote and incentivize targeted products. The sales team will be trained on these programs, including in-depth training on data analysis. This is an important facet of their quest to delight the customer.

Legal and Ethical Considerations

The only ethical issues that might arise are if the program was covert in nature or discriminatory in any way. There will be full program disclosure and the customers will be asked to opt-in to participate and can...