Kudler Fine Food's Frequent Shopper Program
Kudler Fine Foods is a specialty food store located in the San Diego metropolitan area. Currently, they have three locations (La Jolla, Del Mar, and Encinitas). Kudler offers a wide variety of baked goods, fresh produce, meat, seafood, condiments, packaged foods, cheese, specialty dairy products, and fine wines.
Kathy Kudler, the owner of Kudler Fine Foods has requested that we create a frequent shopper program to reward customer loyalty. Kathy Kudler is always looking for new ways to expand and market her company. She believes that the frequent shopper program would be a great way to meet those goals. There are many potential legal, ethical, and information security concerns related to the development of the Kudler Fine Foods Frequent Shopper Program.
Description of the Frequent Shopper Program
The main objective of the frequent shopper program is to track purchasing behavior at the customer level and provide customer incentives through a loyalty points program. Other stores provide store discounts to customers based on their purchases, but Kudler Fine Foods has partnered with an existing loyalty points program that will allow customers to redeem their points for higher-end gifts, airline upgrades, and other specialty foods. The frequent shopper program will allow Kudler to refine its ordering and inventory processes, provide better customer service, and maintain customer loyalty.
We have chosen a web-based platform that will provide a number of advantages to both Kudler and its customers. Customers will need to enter personal information into the system so that Kudler can keep records of customer purchases. Also this will allow Kudler to keep track of the number of loyalty points that each customer has earned and the number of points that have been redeemed. In addition this will help Kudler build its customer database and keep the data organized to allow Kudler to keep providing the best service to its customers. The system will be able to track the products purchased by its customers and the frequency in which they buy those products. This information will allow Kudler the ability to maintain its inventory efficiently. This data will eliminate the costs of wasted food and excess stock. The greatest benefit of the frequent shopper program will be building a strong and loyal customer base that will continue to shop at Kudler Fine Foods for all of its specialty food needs.
Legal Concerns
Here are some legal concerns about the frequent shopper program. Since the program is run on a web-based application it must comply with both California state laws and federal laws as well. The online customers may not live in the same state as the company and that may cause legal issues.
Ethical Concerns
The ethical concerns about the frequent shopper program are that the company must be able to maintain the highest level of ethical standards. The information in the program must be complete, accurate and not misleading. If the company uses the information for any illegal, immoral or its personal use, it can have damaging effects on its reputation and trust that can lead to the loss of customers and revenue.
Information Security Concerns
The biggest concern about using a web-based application for the frequent shopper program is security. Critical customer data must be protected from theft or any other illegal activity. The privacy policies must be posted on the company's website and should state who will have access to this information.
Justification of the Frequent Shopper Program
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