To inspire customer loyalty and respond to customer shopping preferences, the Sales and Marketing department of Kudler Fine Foods is initiating a Frequent Shopper Program to track customer purchase patterns and provide shopper incentives through a loyalty points program. (University of Phoenix [UoP], 2007). Specialty items are more important to Kudler customers than the price of items, so instead of providing everyday discounts for purchase frequency, Kudler has partnered with a loyalty points program to reward customers with redeemable points for high-value gift items, airline upgrades or other specialty foods. "Building unique rewards programs that differentiate the brand--along with integrating in-store loyalty programs with Web shopping--is what figures to pay off in the future." (Van Riper, 2005, para. 9).
Project Definition
Program Scope and Goals
The goals of the Kudler Fine Foods Frequent Shopper program are to inspire customer loyalty, to better respond to customer's buying needs, and to increase food ordering efficiency. A successful implementation should increase revenue over time by increasing loyalty and satisfying customer needs, and reduce costs by improving inventory processes. The initiative is scheduled to be implemented within 12 months and involves the following stakeholder representatives:
Each Kudler Fine Foods location: La Jolla, Del Mar, Encinitas the program will be initiated at all locations
Purchasing Department data collected by the new program will be used by the purchasing department to forecast food orders
Sales and Marketing the sales and marketing team is the primary customer of the program
Information Technology (IT) Department IT representatives must be involved in requirements definition to help determine feasibility
Loyalty points program a representative from the loyalty points program partner must be involved to define interfaces between