Kudler Fine Foods Frequent Shopper Program Case Study

1040 Words5 Pages
Kudler Fine Foods Frequent Shopper Program Overview of Kudler Fine Foods Frequent Shopper Program The Frequent Shopper Program is an integral part of Kudler Fine Foods overall sales plan. Kudler Fine foods customers are rewarded with high value incentives via accumulated loyalty points. These loyalty points are awarded by tracking individual customer purchasing habits. This purchasing behavior data will then be used by Kudler Fine Foods to refine its product offering to best satisfy its high value customers. Price is not the primary purchase decision factor for Kudler Fine Foods customers, so instead of offering every day discounts points will be redeemable for high end gifts such as travel discounts or upgrades or other specialty foods.…show more content…
Kudler should have a clear idea of what the data is to be used for and how it is to be treated. “Sure, a customer database has value, and a company can maximize that value in any number of ways -- growing the database, mining it, monetizing it. Marketers can be tempted, despite pledges about privacy, to use collected information in ways that seem attractive but may ultimately damage relationships with customers.’ (Davenport, et al, 2007) It is important to their success as a business that Kudler Fine Foods maintain their relationship with their customers. And by this they should maintain positive relationships with all of their customers. “Market analytics allow companies to identify their best and worst customers and, consequently, to pay special attention to those deemed to be the most valuable. Looked at another way, analytics enable firms to understand how poorly they can treat individual or groups of customers before those people stop doing business with them. Unless you are in the top echelon of customers -- those with the highest lifetime value, say--you may pay higher prices, get fewer special offers, or receive less service than other consumers.” (Davenport, et al, 2007) Another concern that may arise as a result of Kudler Fine Foods frequent shopper program is the tendency for retailers to ignore the…show more content…
One company has even proposed finger print scanners to eliminate the need for traditional check out by combining payment account, loyalty card, and biometric identification in the same retailer maintained database. (Bold, 2004) With all of the benefits that this type of information may enable in retail shopping, it also high lights the risks involved in having this much personal data available in one place. “If access to and use of customer data are to remain viable, organizations must come up with ways to address customers' concerns about privacy. First and foremost, they need to let customers opt in to their data-sharing arrangement. This would address the "unintended use of data" problem; customers would understand exactly what was being done with their information. Even better, both firms would be engaging in trust-building -- versus trust-eroding -- activities with customers. The result: improvement in the bottom line and in the customer experience.” (Davenport, et al, 2007) This should be one of the underlying motivators around data security for retailers who collect and maintain personal information on their

More about Kudler Fine Foods Frequent Shopper Program Case Study

Open Document