Kudler Frequent Shopper Program Case Study

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Kudler Fine Foods Frequent Shopper Program I. Introduction Kudler Fine Foods is a local upscale specialty food shop that was started by Kathy Kudler in June of 1998 that after having much success with their three locations have been looking to implement a frequent shopper program (Apollo Group Inc. 2010). The programs original task is to try and track the purchase behavior of the individual customers in order for Kudler to help provide high value incentives through a partnership with a loyalty points program. The development of this program will require Kudler to address legal requirements and follow ethical responsibilities related to the collection and storage of consumer information. Kudler will also have to put in place additional security…show more content…
The company should consult Anne Shousha, its legal counsel, regarding consumer privacy laws, antitrust laws, and laws governing the collection of consumer information. The company should draw up a contract for customers to agree to upon entering into the loyalty program. The company should also ensure the proper security measures are in place to protect customer data. Political Kudler must adequately train management and make sure to meet with managers from each facility to make sure that they understand the changes that are taking place. The company will have to forge alliances with partners to participate in the loyalty program which will affect the sales department as well as upper management. Operational The loyalty program should be functional during the times that the company is open for business. It should passively collect customer data as customers swipe their loyalty cards during transactions. The system should make reports available to management so that they can focus on reducing the cost of orders and stock-outs while increasing customer purchase behavior with targeted offerings.…show more content…
Management would like the project to be completed in a 12 month period of time. Thus, it makes more sense for Kudler to purchase an existing software module that comes with support rather than try to build one from scratch. With only two low-level IT staff members, Kudler does not even have the capabilities to build an in-house system. IX. System Requirement List Kudler will have to consider several detailed requirements (listed below) prior to determining the system architecture and process designs. Each requirement has been designated as mandatory or optional. Technical Environment Requirements -Connections at the three locations should remain on during hours of operation to enable real-time updates to the database (Mandatory) -The system should function with a cable connection (Optional) -The system must be able to store and retrieve data in order to calculate and manage customer’s loyalty points (Mandatory) -The system should provide the customer with a loyalty points update on their printed receipt (Optional) -Kudler’s website should provide customers with access to view their loyalty point’s balance and the ability to redeem loyalty points for rewards

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