Loyalty Program and Frequent Shopper Program

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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 Program. With a struggling economy, majority of Americans consistently seek the best deal their money can buy(Setlow, 2002). Frequent Shopper Programs are a good way to promote repeat business. According to an article written on crmtrends.com(n.d) 12 to 15 percent of consumers are loyal to one retailer. This percentage may not seem like much however, the article goes on to say those 12 to 15 percent make up 55 to 70 percent of that retailers total sales(crmtrends.com n.d.). Crmtrends.com also states “Some food retailers find that as much as 65% - 95% of their sales go to members of loyalty programs 53% of food retailers offer loyalty programs with 3/4 of program customers using their loyalty cards at least weekly and 88% at least once a month.” This shows that Frequent Shopper Programs can help in acquiring new customers, increase in sales, and what is more important promote repeat business. Kulder Food’s Frequent Shoppers Program will require Kulder to gather information attaining to consumers who wish to take part in the program. This information will consist of customers previous purchases, frequency of visits, and contact information (i.e. home phone, address, etc.). It will be Kulders Fine Foods legal responsibility to...
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