Kudler Fine Foods Shopper Program Concerns
Kudler Fine Foods is interested in rolling out a new system in which its consumers are involved in a rewards system labeled, “Frequent Shopper Program”. Many companies use some sort of rewards program to differentiate themselves from other companies, in hopes of eventually attracting more customers. It is an agreement between the company and its customers where if the customer chooses to continue with the company’s services, they will be rewarded somehow. This is usually in the form as a rewards card, where the customer presents it to the cashier and at the end of the transaction, they are given some sort of discount that non-rewards members do not receive. Kudler Fine Foods wants to expand on this idea, and ultimately provide the customer with much more satisfying rewards versus simple discounts. The program in which they want to use mostly resembles that of a program a credit card company would offer. 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’s purchase behavior patterns will help Kudler refine its processes and offerings to best satisfy their valued customers. 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. In order to accomplish this, Kudler will need a system that will track each customer’s purchases and covert those over to loyalty points. With a system such as this, many different concerns arise. Potential legal, ethical, and information security issues, cost related issues, and how this will have an effect on the organizational structure are all concerns when implementing a system such as this.
Kudler’s new program is going to have to be done over an online system. First the customer will make purchases at one of the...