The Potential Electronic Commerce Aspects Related to the Development of the Kudler Fine Foods’ Frequent Shopper Program
Kudler Fine food is a local food store based in the metropolitan area of Sab Diego. The three stores of the company in Encinitas, Del Mar, and Encinitas are based in upscale shopping regions and are stored with both domestic and imported foods. The variety of foods include fresh produce, diary products, fresh pastries and bakery, fresh meat and sea foods and other packed foods and condiments. Through the customer purchase records, Kudler has the ability to provide tits customers with a program of loyalty points based on the purchase behavior. This is the E-commerce mode which will help customers to be updated about the company’s business and to make them frequent the stores for their foods shopping.
From the E-commerce program, consumers will also benefit from getting discounts for stuff of the high end (Reynolds, 2004, p 34). Another benefit of the points program is that the potential customers outside the region of the Kudler stores will be informed about the business and the food products they can get from the stores. Through the demographic feedback found by the company through survey the company can use the information to improve its services and to provide exactly what the consumers need. A consumer centered approached is developed through E-commerce where customers can make orders and inquire for special mailings for occasions like birthdays and anniversaries.
Anne Shausah is the legal counsel of Kudler Fine Foods. . She is also the San Diego tax attorney. She is responsible to inform Kathy Kudler and the managers of the company on legal; issues affecting the company. She is also an informant of the leaders of the company by providing all the necessary legal advices they are interested in. Other legal considerations are issues of privacy with detailed and specific privacy policy which are agreed and signed my the members. This ensures that each member’s and customers personal information is kept confidential and secured signing a membership agreement shows that the customers have accepted the ecommerce program are to adheres to the service terms. The agreement also shows in-depth details on what is expected of the company members and the customers such as on how points of loyalty are redeemed delivered and obtained. In regard to the wish of customers to share and sale personal information to a third party, security policies need to be implemented. The customers have to be assured of the confidentiality and privacy of their personal information. To uphold ethical concerns, customers have to be aware of instances when there personal information may be needed to be provided to third parties.
According to historical records of Kudler, Fine Foods based on each transaction’s profit margin, dollar value each day’s profit level and dollar sales of each item. With the aim of being closers to customers and to develop a closer relationship, the company is aiming to develop an integrated system for tracking the customer’s behavior of purchasing. For Kudler customers, price is not the only factor of differentiating but customers are focused getting items which are specialized and are of high quality. Kudler therefore instead of providing discounts to customers who frequently visit the store, the company has decided to have a loyalty points programs in which customers are able to redeem for a higher prize like specialty goods and first class airline upgrades.
With the ecommerce program, Kudler will be capable of focusing on the internal processes and improving delivery services to its customers. This leads to increases value to customers especially in terms of efficiency. The firm has also managed to provide training top its employees and integrate the new software system to create efficiency through information sharing (Tipton,& Krause, 2006, p 89).
Through marketing the Kudler stores have seen ways of reducing costs of the foods within the stores and those ordered. A supplier relations program has developed as a result of the reduced costs. The Frequent shopper program will inspire customer loyalty and instill customers to respond according to the shopping orientation offered by Kudler Fine foods. Customers will benefit from the reward system by being members of the company and are identified with the company.
Each of Kudler stores will have the program implemented. The company will have access the program and it will help in knowing the success of the program. This will help in answering the important of whether the company should proceed with the program or not (Hofstrand & Hold-Clause, 2009). The assessment points of this program are the technical, economic and operational feasibility. The company has discovered that as a means to capture customer loyalty, the frequent shopper program is the solution. The end result of the program therefore is the increase of customer loyalty.
References
Tipton, H.F. & Krause, M. (2006). Information Security Management Handbook. CRC Press.
Hofstrand, D. & Holz-Clause, M. (2009) What is a Feasibility Study? Retrieved from
http://www.extension.iastate.edu/agdm/wholefarm/html/c5-65.html
On February 20, 2011
Reynolds, J. (2004). The complete E-Commerce Book: Design, Build & Maintain a Successful Web-Based Business
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