1.41 The Bookworld Reward Scheme
In this section I will outline what our system will do, what data it needs, what data it will give out and who it is for.
1.411 What our system will do
Our system will aim to reward your existing customers for their loyalty and also bring their attention to new releases in store and online. We aim to get to know your customers a lot better and be able to market promotions targeted at the people that want them. We want to give your cashiers the information to be able to call customers by their first name when they pay for something at the counter. Through this system we also want to attract new customers and hold on to them rather than lose them to your competitors for their next purchase by offering coupons and discounts the more often they shop with Bookworld.
1.412 What data our system requires
To get this system up and running we need a way of collecting data on every purchase and transaction your customers make. As we have both online services as well as in store sales we must have ways of collecting data from both of these sources. This will be done via a loyalty card with magnetic strip; this is swiped every time any transaction is made and the information stored. With those that use the Internet we offer a unique username and password to each customer and data is recorded this way. When each customer requests a loyalty card or unique username we will need to take some basic details off them to initiate their personal profile. Questions such as name, times shopped with Bookworld, favourite writer/director/actor, how long this customer has been shopping with Bookworld etc may be asked. To store the data we need to have a wide area network (WAN) which links all stores with the central office if one is not already in place, this will also require a central database store at central office. This is where the profile of each customer is built up over time.
1.413 What data our system will provide
Over time a larger and larger profile will be built up of your customers and we will know their interests and tastes a lot better. Every time a customer comes to a point of sale (POS), the loyalty card is swiped and a request is sent to the central file store for the customer’s details. The cashier can address the customer by his/her first name and present them with targeted promotions, the cashier can let the customer know of other authors/directors/actors etc they may be interested in. The same process can be carried out online but electronically, the central database will be use to notify online customers of offers and new releases. For instance, if a customer buys a book the system can inform them what other people bought after they bought that book. With the knowledge of the central database Bookworld knows who to send offers to and when depending on their profile, this can also be automated so the system knows when to mail/e-mail information to certain customers.
1.414 Who is it for?
This system is primarily aimed at gaining more loyal customers and getting to know your existing customers better than you already do. It also aids Bookworld to lead the field in this department and make your company far more personal with its customers.
1.5 Justification
As detailed earlier in our report, Bookworld has a large amount of repeat customers and we feel that you company really needs to get to know their customers a little better. Your existing customers are your great strength but with this system you will be able to extend your loyal customer base. Your company seems to be up to date with progress in technology in other areas and this was the one that stood out to us as a weakness.
1.6 Discussion
We will now discuss the benefit s for Bookworld by introducing this system:
- Bookworld has many loyal customers and does not want to lose sight of them, as they are your most important assets. This system will make sure this does not happen and furthermore make existing customers more loyal.
- With the use of the reward scheme Bookworld will find it easier to attract new customers and draw them away from their competitors. On top of this Bookworld now has the ability to encourage those customers to keep coming back.
- Your company will now be able to make more revenue out of the any customer that is on your loyalty scheme. Before Bookworld had no efficient means of informing customers of new releases and merchandise they might like. Now you can do that and target very specific customers that match what you are trying to sell.
- A great advantage of this system is that the possibility of different programs that can be implemented once it is set up is more or less infinite.
- A reward scheme is not something that will go quickly out of date and this is a system that you at Bookworld will be able to work with for many years to come.
We at BIS Correspondence believe that this system will significantly increase sales, your customer base and profit for years to come at Bookworld.
1.7 Possible problems and Resolutions
- This system is reliant on the fact that your company does have or is prepared to install a WAN with central file store. If not already installed this can be a costly process. There is also the issue of maintenance of the central store and staff may have to be trained or appropriately skilled staff hired for this purpose. Of course the central store must also be secure and a back up system is advisable. However, the advantages of resource sharing and communication make this a very worthwhile investment.
- Having a wide area network will involve some security issues as it will use a public network and will not be controlled by Bookworld itself. We have chosen to use a WAN for speed purposes and provided that you use a reputable telecommunications company no problems should arise.
- Some customers may become disgruntled with large amounts of junk mail if Bookworld does not use the mailing of coupons and offers with discretion. We suggest that to overcome this problem Bookworld should make sure that letters are made personal to the customer they are being sent to and mailing of offers should only be of absolutely relevant material to the customer in mind. If your company does this we think it can only work to your advantage in creating more business.
1.8 References
Foundations of Business Systems (2nd edition) - P.Oflaatten / D.J.McCubbrey / P.D.O’Riordan / K.Burgess
Human Factors in Information Systems – Jane M. Carey
Benyon-Davies, P. Information Systems, Palgrave Macmillan, 2002.
