Legal Considerations A study of the consumer trends in this area will have to be conducted. The will enable the Sales and Marketing Department to allow for a smooth and functional program and give them an idea on how to better market the product. “Market research and demographics data can be used to better target products and produce better or customized products; such data are becoming increasingly valuable: (national Research Council, p. 156, 1994). Some of the legal issues that will be taken in to consideration are costumer privacy as this will have an increased attention in response to the initial data that we will be requesting.
It is important that Judder Fine Foods incorporate some sort of privacy statement onto the initial request form stating that the information will not be shared with anyone outside of Judder Fine Foods, and state the basic reason of why Judder Fine Foods is requesting such data. Employees of Judder Fine Foods will need to be trained on the proper handling of such data and what ramifications can happen in the event that costumer information is released without the expressed consent of the costumer.
Ethical Considerations The intent of the Frequent Buyers Programs with Judder Fine Foods is to be one of electronic commerce application. An e-commerce program can provide Judder Fine Foods another level of costumer shopping and potentially receiving new customers for Kidder’s. As the program grows so will be profit margins of the company. However, internet security will have to be in the foremost thought of the IT Department in the development stages through the employment of the Frequent Buyers Program launch.
The IT systems employed will “gather personal data about customer bases, and use it to support vital functions, such as the authentication of individuals requesting service, verification of credit and accounting information, delivery of services and goods, marketing, decision- aging and law enforcement” (Appeal, p. 156, 2006). Security Considerations The design and development of the database should not solely be focused on the access to and the protection of the personnel identifiable information that is being stored of the database.
This information should be considered sensitive as it could be access in the attempt of identification theft or other forms of fraud. Programs of the nature have shown that they release they sensitive information to third party buyers. (Appeal, 2006). Purchases that an individual makes should be held in a private and secure location and should not be shared tit anyone outside of Judder Fine Foods. An implementation of this should help ease a buyers concern that we are sharing their information with anyone who does not need to have it.
The development of Kidder’s e-commerce site should be designed to fully secure. This is to help any unethical occurrences form happening; however, it will not prevent them from being attempted. Financial Analysis This initial cost of the startup of this program will be a minimal impact on Judder Fine Foods. The initial advertisement effort will be done via social media; the companies Backbone page and Twitter account, email and word of mouth. Allowing for a reward system for costumer referrals can be used for current and new customers as the programs is employed and continues to grow.
Rajah and bell argue “customer retention costs are generally lower than customer acquisition costs, companies are better of focusing attention on their more loyal customers especially since the top 20% of customers account for 80% of revenues and often more than 100% of profits” (p. 180, 2003). Judder Foods could reduce their marketing expenses by using a customer loyalty system through the use of rewards. The sales increase from this program should be reflected by the increase of new customers and the increased returning customers increased spending.
The use of seasonal promotions only available to costumers enrolled into the frequent buyers program could also help in increased sales profits. Conclusion A frequent shopper program can be a successful tool is used correctly by a company. The difficult task will always be bringing in new costumers. This program should allow for the retention of existing customers with Judder Fine Foods. A rewards points system should be used for the exchange of costume items only available to customers enrolled in the frequent shopper program. This will entice customers to remain loyal to the company and refer the friends and family to the program.
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