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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 need to be able to access the system to review purchase trends and to do any updating or servicing of the system and pass any information needed to marketing staff. A secure web site will need to be put in place; this will allow the customer at home access to view their points and to also use those points for rewards. Cashiers will need to be trained to always ask customers if they have a rewards points card or if they would like to sign up for one, signing up should be kept simple. The cashiers need to be able to give a simple and easy to understand explanation of the rewards points’ process or have written material available to hand out. The cash register system that is in place will have to be able to allow for the input of customer information as far as the individual address, web address, e-mail address and phone number. Once inputted the customer can then be issued an individual number or card that is unique to them and can be used at any of the stores or online to keep track of their purchases. This information must be able to be entered quickly and easily as to not hold up any other transactions. The easier for the customer and cashier to use this system the more likely the rewards point system will be used. Additionally a customer would be able to sign up for the rewards program on the web site with a quick and easy form to fill out. During any of the signup procedures whether at the store or online the customer should not be asked for any credit card information or any other type of information that may make them feel less secure about joining the rewards program. At the time of signup the customer must be assured that their individual information will not be shared with any third parties and that the accessible web site that they can use is a secure site. Once a customer has signed up and has access to the web site this site must be easy to navigate and find the information that they are seeking mostly what reward points they have accumulated and what these points can be cashed in for. These points should be able to be redeemed through the web site or at the individual store locations. By implementing this type of system Kudler Fine Foods will better be able to understand what the customer is spending their money on and how to better run marketing campaigns. This will better help the purchasing department when brining in product and allow them to better customize their orders based on individual consumer purchases. The system can be used to analyze sales and see if there is an increase or decrease in sales and allow us to adjust at a quicker pace. The quarterly sale figures can be analyzed and if there is an increase in sales then it will show that the new rewards system is working if there is a decrease in profits the system will need to be updated and fine tune it to make it work more efficiently for the company. The long-term cost over the initial setup would be when the system catches on and there is a large increase in the customer database the IT department may have to expand to handle this or the IT department will need to put in extra hours. The overall cost of implementing a new rewards points system should pay for itself. And will help all departments track purchases and understand buying and sales trends. The Frequent Shopper Program for Kudler Fine Foods will help to increase overall sales and give the loyal customers rewards for shopping that will keep them coming back. References Apollo Group (2008). Kudler Fine Foods. Retrieved May 1, 2009 from Kudler Fine Foods Intranet: https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler/KudlerHome002.htm