Loyalty Program and Frequent Shopper Program

1069 Words5 Pages
Service Request SR-kf-013 Frequent Shopper Program Paper
Gerard Gonzalez
Business Systems/BSA310
October 7th, 2010
Joseph Gorman

Service Request SR-kf-013
Kudler Fine Foods founder and manager, Kathy Kulder, has requested information on developing a system to track customer purchases through a Frequent Shopper Program. This Program will award loyalty points for redemption to repeat customers. Purchases made by customers whom participate in the program will be tracked and converted into loyalty points for redemption for future purchase, gift items, and other products or services made possible through partnerships with external companies. The following will cover information and recommendations for Kudler Fine Foods Frequent Shopper
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Halagera also goes on to say “A 2% increase in customer retention has the same effect on profits as cutting costs by 10%.” (Halagera, n.d.). This shows that keeping customers returning to Kulder Foods will increase business. The Frequent Buyer Program will promote repeat buisness in Kulder Foods and will aid in profit increase, so long as the customer is satisfied with Kulder’s Foods products and services. Although there are a lot of upsides to the Frequent Shopper Program, there are also concerns that Kulder Foods will have to take into account.
The overall cost for the Frequent Buyers Programs must be monitored consistently by Kulder Foods. Kulder must ensure that redemption estimates are perceived higher to the customer than actual cost to Kulder(MTI Market Techniques and Innovations Inc., n.d.). As well as ensuring redemption is cost effective, Kulder will also have to make sure points are realistic and appealing to customers. Customers must feel as if these points are attainable, and easily usable. This will help keep customers interested and keep them using the program.
Kulder Fine Foods will see increased profit with a Frequent Shoppers Program. It will undoubtably help with repeat business and customer loyalty. To keep the Frequent Shoppers Program running smoothly, Kulder will have to ensure that it stays up to date with customers information and shopping data. Kulder Foods must also ensure they will keep customers

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