Kudler Fine Foods is a specialty food store which provides fine foods, wines, and related needs to the San Diego metropolitan area. The company has three locations and offers bakery and pastry, produce, meat and seafood, condiments, packaged foods, cheese, and specialty dairy products. Kudler is collecting data to determine the business and cost relevance toward a revenue increase through a frequent shopper program.
To properly decide the value of a frequent shopper program, Kudler is relying on tracking purchase behavior at the individual customer level as well as providing high value incentives through a loyalty points program (University of Phoenix, 2010). ...view middle of the document...
There must also be copyright protection on the site with a display of the terms and conditions along with policies within the site (Nasir, 2001).
Security is a main concern when it comes to e-commerce because a properly secured site makes stealing customer information nearly impossible. When the customer’s browser uses a secure connection, the credit card number and other information is encrypted before being sent. This information stays encrypted even after it reaches the merchant (E-Commerce Security: Fact or Fiction, 1999-2010).
Kudler developed a marketing budget to outline new initiatives, marketing communications, and marketing research. A twelve month plan will summarize goals to increase customer loyalty by offering high-margin services. This plan shows customer purchase patterns to better enable Kudler to provide more efficient operations. In turn, profitability will be increased.
To develop the Frequent Shopper Program, the company should focus on sales where the projected revenue lift should reach a total of 4.75% by the end of the fourth quarter (see Table 1).
Frequent Shopper Program Projected Revenue Lift
1st Quarter Includes employee-wide training and a frequent...