Service Request SR-kf-013 Paper Dana Shaw BSA/310 02/28/2010 Michele Petrone SERVICE REQUEST SR-KF-013 2 Abstract SERVICE REQUEST SR-KF-013 3 Frequent Shopper Program The electronic commerce aspects of the Frequent Shopper Program are part of the strategic objectives of the Sales and Marketing Department to “increase loyalty and profitability of consumers. ” Under this program, customer shopping trends will be identified and rewarded. This in turn will assist Kudler to provide the inventory of specialty foods that their customers are seeking and have come to identify with the Kudler name.
In order for this program to be efficient, it would be necessary for customers to be given a bar-coded card which would be swiped at the time of purchase and electronically record their points. The point system could be a point:dollar one. For each dollar spent, one point would be accumulated. The current information technology database has what is identified as a “customer table” with demographic information for birthday and anniversary mailings. This will need to be modified to include the Frequent Shopper purchases on a cumulative basis.
After accumulation of a certain number of points (to be determined by Kudler), the customer will be able to redeem the points for a gift of his/her choice. SERVICE REQUEST SR-KF-013 4 Information Technology Department: The IT department will be responsible for expansion of the ecommerce website to include customers’ purchases. They will also install and manage any required hardware or software integral to the development of this program SERVICE REQUEST SR-KF-013 5 Legal, Ethical and Security Considerations Security considerations can be addressed by use of tracking software which also allows for data storage.
It provides intelligence about buying patterns which is exactly what Kudler’s new program would do. To manage this, Kudler can use a Customer Relationship Management (CRM) tool which costs approximately twenty five dollars a month. It gives a 360 degree view of what the program is doing at all times. Other advantages to using this software are: Customer identification Customer retention Protection from hackers Increase in sales and profits for the company An efficiently run program Financial Analysis The cost-benefit analysis is used to determine whether the proposed program will be profitable for the company.
Taken into consideration were the expenses for training and implementation of the project, in addition to staff salaries. Assuming that implementation was successful, there would be a 21% gain on the initial investment. Expenses $ Amount Training 6000. 00 Implementation 8000. 00 Salaries 60,000. 00 Total Cost 74,000. 00 Cost saving Increased customer loyalty 83,000. 00 Inventory efficiency 7000. 00 Conclusion With the 21% return on their investment, it is safe to conclude that Kudler Fine Foods Frequent Shopper Program has been a success. SERVICE REQUEST SR-KF-013 7 References 1