Kudler Customer Loyalty- Security & Ethics Paper Essay

Kudler Customer Loyalty Program Kudler Fine Foods would like to start a customer loyalty program. The program will be set up to track the customer’s purchases and will allow their customers to accumulate points from their purchases. The customer can redeem their points to be used towards specialty foods and other products and/or services from Kudler’s partners as well as other external companies. For starters Kudler will need to have a way for their customer’s information to be stored and securely kept.

They will most likely use some sort of paper application to start up the program per customer. The application will be very generic and should only consist of things that may already be public knowledge, ie, first and last name, home phone number along with address. All this information will be entered into a database and the paper application will be destroyed. The customers will then be issued a “Customer Loyalty Card”. The card will have the customer’s name only on it along with an encrypted barcode, which will still only contain the customer’s basic information.

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The barcode will also be able to store and send the purchases back to corporate office to customer purchase tracking can begin. The system will be set up similarly for customers who shop on-line and prefer to register on-line for a “Customer Loyalty Card” that way security is still maintained. EMC offers a Frequent Shopper Application Processing application that can convert paper records into digital files and stores the information. This program will capture the POS (point of sales) information, which can also be used to track loyalty points. EMC) Since the customer is key to making this program work effectively, Kudler needs to find a way to ensure the customer that they will not share any of their information, from name to purchases, with any other company, other than the company that Kudler is affiliated with as far as the Loyalty Rewards program. The last thing that any company wants to do is to lose a customer by having them think that their information was traded off to another company for gain. To promote the program, cashiers and store management will need to be ell informed and not just mention that customers will receive the discounted or special sale price with their card. It needs to be highlighted that with various purchases customers will earn points that are good are redeeming not only Kudler products, but products from the participating companies. Building the right kind of program will stimulate acquisition and usage. Integrated CRM (Customer Retail Management) programs not only provide points and reward schemes but also allow a retailer to make well-informed decisions. 1. It will also build credibility amongst potential buyers. . It will help you to analyze their buying trends and thus helps you in choosing right product and services your customers are looking at. 3. It helps you to focus on service excellence and quality. Kudler and the participating stores also need to ensure that customers can actually get what they have saved up their points to redeem or have a comparable replacement. This will not always be easy since one never knows when a person will be ready to redeem their points. So there needs to be a statement that allows for a certain amount of time to turn around orders for redemption.

With this Frequent Loyalty Program, Kudler Foods should see an increase in sales and an increase in revenue. Everyone knows that a happy customer means repeat business, and repeat business mean high sales figures. Which is the purpose of the program, and if executed properly the above should happen. References (n. d. ) Shah, Niles. Customer Loyalty Program- Frequent Shopper Program. Retrieved May 2, 2010 from http://www. evancarmichael. com/Retail/3844/Customer-Loyalty-Program–Frequent-Shopper-Program. html (n. d. ) Frequent Shopper Application Processing. From EMC2. Retrieved May

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