Frequent Shopper Program
Robert Keith Pitts
University of Phoenix
Frequent shopper programs are becoming a good way to keep customers loyal and coming back for more. The program allows the company to track and monitor the customers’ needs and purchases and give the customer reward points based upon the amount of the purchase; which then can be exchanged in for in-store merchandise. Many companies that are currently using these types of reward programs are Best Buy, Office Depot, AutoZone as well as many credit card companies.
Kudler Fine Foods is a high end chain of markets that specializes in gourmet foods. The customers who shop at Kudler’s are more concerned with the quality of the product rather than the price. Therefore, instead of offering discounts on items; setting up a rewards system is a good way to help maintain our customer loyalty, allow for better sales, and allow us to track sales to the point that we can pinpoint marketing.
The largest obstacle that with this type of program is the initial setup, a decision will have to be made on whether to outsource the initial setup or use in-house IT personnel. The new system should be compatible with the existing system throughout the company to avoid the high cost of setting up all new systems. The existing system will be upgraded to allow cashiers to input customer information. The most long term and affordable way would be to bring in an outside firm to help with the initial setup in this way IT personnel will be free for training at the time of installation.
The new system that needs to be put into place should be easy to use by all persons as well as offer a secure access point. This new system should consist of a main database that will store the customers personal information, points, and purchases. Each individual store will use the existing system to enter in customer's information as well as keep track of purchases. The IT and purchasing departments also will...