Kudler Fine Foods SR-KF-013 Paper
Kathy Kudler, and her company, Kudler Fine Foods, are attempting to initiate a customer loyalty program. According to Kudler (2007)This loyalty program, also called the frequent shopper program, is designed to award points for customer purchases which can then be redeemed for valuable gift items such as airline seat upgrades to first class or other specialty foods offered by Kudler. This program is designed to benefit Kudler by increasing customer loyalty and improving their profitability and bottom line. The ability to accomplish this goal in a manner that will produce the expected results efficiently and in a timely manner will be greatly enhanced through the development of a comprehensive business systems plan. (Sales & Marketing: Strategic Objective, para 3) Business Systems Analysis for Kudler Fine Foods
With the advent of the Frequent Shopper (Loyalty Points) program, Kudler fine Foods is intending to assist its customers by providing them with the products and services that they desire most. Kudler (2007) intends to accomplish this by tracking individual customer purchasing decisions and patterns (Sales & Marketing: Sales Plan 2007, para. 1). With this program, Kudler intends to satisfy their customers’ needs and desires and in the process, increase their revenue.
Scope and Goals
Kudler’s frequent shopper program is specific in scope and contains very attainable goals that can be met with a modicum of effort targeted at specific business and technical functions. Enhanced interdepartmental communication between the sales & marketing and the purchasing departments will go a long way in augmenting the effort to be more responsive to customer demand by streamlining the supply-chain process. One of the first among the business functions to be addressed will be to devise a marketing plan that will inform current and prospective customers and encourage them to join the upcoming program. Kudler’s' intention of partnering with an outside source for the loyalty program necessitates establishment of a viable interface between the computer resources of the outside partner and the internal sales and inventory control systems. Another technical aspect that needs to be addressed is the compatibility of the two different database schemas along with the GUI layouts and business logic. There will most likely be a need to modify these data aspects in order to facilitate a smooth data transfer capability. The specific goals of the frequent shopper program are: the improvement of customer satisfaction which will increase brand loyalty, cost reduction by improving the efficiency of the supply chain and lastly, increased sales which translates into higher revenue. The increased revenue expectations from the frequent shopper program can be observed in the table below
Frequent Shopper program
| | Projected Revenue Lift|
Q1| Employee-wide training session
Frequent shopper program rollout| .25%|
Q2| Assessment and refinement of program
Frequent shopper promotion, increased customer satisfaction| .50%| Q3| Frequent shopper promotion, increased customer satisfaction| 1.75%| Q4| Frequent shopper promotion, increased customer satisfaction| 2.25%| Total| | 4.75%|
Figure 1 --- Frequent Shopper Program Projected Revenue Lift (Sales & Marketing: Sales Plan 2007: Frequent Shopper Plan, para. 9):
In order to ascertain the success of this project, it will be necessary to monitor specific metrics that are associated with this project. By tracking these metrics, Kudler will be able to see the successes of the program as well as the areas that may need improvement. The following metrics will be tracked on a quarterly basis: * Website enrolment of new customers in the frequent shopper/loyalty program. A target of ten customers per month has been established. * Kudler will track purchases from...