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    Harrah's Entertainment Inc: Submitted To: Prof. Shubhamoy Dey

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    Abhinav Utkarsh
    Harrah's data base marketing programs had the objectives of enhancing customer acquisition, building customer loyalty, and retaining customers. The programs identified customers to target for frequency increases, budget increases, and retention. As a result, Harrah's net income increased 100% while the industry grew only 12%, showing the success of their customer-centric strategy. Their integrated IT infrastructure and data-driven approach allowed them to understand customer preferences better than competitors and target customers more effectively.

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    Harrah's Entertainment Inc: Submitted To: Prof. Shubhamoy Dey

    Uploaded by

    Abhinav Utkarsh
    59 views6 pages
    Harrah's data base marketing programs had the objectives of enhancing customer acquisition, building customer loyalty, and retaining customers. The programs identified customers to target for frequency increases, budget increases, and retention. As a result, Harrah's net income increased 100% while the industry grew only 12%, showing the success of their customer-centric strategy. Their integrated IT infrastructure and data-driven approach allowed them to understand customer preferences better than competitors and target customers more effectively.

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    F10Harrah

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    Harrah's data base marketing programs had the objectives of enhancing customer acquisition, building customer loyalty, and retaining customers. The programs identified customers to target for frequency increases, budget increases, and retention. As a result, Harrah's net income increased 100% while the industry grew only 12%, showing the success of their customer-centric strategy. Their integrated IT infrastructure and data-driven approach allowed them to understand customer preferences better than competitors and target customers more effectively.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    59 views6 pages

    Harrah's Entertainment Inc: Submitted To: Prof. Shubhamoy Dey

    Uploaded by

    Abhinav Utkarsh
    Harrah's data base marketing programs had the objectives of enhancing customer acquisition, building customer loyalty, and retaining customers. The programs identified customers to target for frequency increases, budget increases, and retention. As a result, Harrah's net income increased 100% while the industry grew only 12%, showing the success of their customer-centric strategy. Their integrated IT infrastructure and data-driven approach allowed them to understand customer preferences better than competitors and target customers more effectively.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    Harrah’s Entertainment Inc

    Submitted to: Prof. Shubhamoy Dey


    Submitted by: group 10 (Section-F)
    Abhinav Utkarsh (2018PGP013)
    Bhavana H (2018PGP096)
    Kanupriya Phalke (2018PGP171)
    Rishabh Sancheti (2015IPM087)
    Romika Setia (2018PGP304)
    Sakthi Samyukta S (2018PGPH020)
    Tapis Gangwar (2018PGP398)
    Q1. What are the objectives of various data base
    marketing program? Are they working?
    • Data base marketing program’s objective was to enhance the Harrah’s performance on each key performance indicator-
    Customer Acquisition, Building Customer Loyalty and Customer retention.
    • Gary Loveman along with his team developed quantitative models to predict customer worth accurately which was
    radically different from the previous model of operational CRM that analyses past usage patterns of customers. CRM at
    Harrah’s consists of two elements: Database Marketing (DBM) and the Total Gold Program. This new DBM was
    implemented by following programs:
    1. New Business Program
    • Designed to enhance the effectiveness at converting new Total Gold members into loyal customers. Predicted customer
    worth (theoretical wins) was used to make more effective investment decisions at the customer level which allowed the
    specific offer to be relatively competitive with respect to the customer’s existing scenario of choice.
    2. Loyalty Program—Frequency Upside
    • Designed to identify customers who were giving Harrah's, a smaller share of their total expenditure in a particular market.
    In order to make customers visit Harrah's properties frequently programs were developed by property marketers to offer
    incentives, aided by Harrah’s capabilities. The profitability of these programs was computed by comparing the incremental
    theoretical wins to the incremental cost of the program.
    3. Loyalty Program—Budget Upside
    • Customers with a small share of their gaming budget were identified and encouraged to visit Harrah's first in order to
    capture more no of single casino trip as mostly customer’s budget allocation was based on the order in which they visit
    casino.
    4. Retention Program
    • In order to regain the loyalty of customer segments who had shown some signs of attrition Harrah's Retention Program
    tested a variety of offers. Harrah’s realized to implement these capabilities at the local property level for their full
    utilization. Hence, they educated the local property managers along with their marketing teams about the effective and
    potential use of Data Base Marketing capabilities.
    Q1. Cont…
    Result from DBM:
    • Net income of Harrah’s increased by 100% from 1998 to 1999 as per
    Exhibit 1 but gaming industry’s revenue rose by only 12 % that shows
    Harrah’s remarkable growth in a stagnant industry.
    • Harrah’s action and strategy are sustainable in long run as its
    competitors are unable to predict the behavior of the customers as
    Harrah’s has done.
    • Harrah’s customer centric approach helped them to achieve
    profitability while its competitors were busy in providing enriching
    experience to their customers.
    Q2. What are the core strength of Harrah’s IT
    infrastructure?
    • IT infrastructure enabled Harrah’s to provide a common platform consisting a
    single database linking different casino properties for analyzing customer
    behavior
    • IT system had made it simple and easy for the consumers to redeem the rewards
    across the different properties
    • Customer preferences playing habits and other information accumulated over the
    time rather than depending upon a single observation as other casinos were
    doing
    • Harrah’s developed a mathematical model that predicted the future worth of the
    customers, based on the data
    • By using such available information Harrah’s found population, which it could
    target using direct marketing strategy
    • They conducted market experiments to decide which incentive programs were
    there that produced increment in returns
    Q3. Are Harrah’s action and strategy sustainable in
    the long run?
    • Harrah’s noticed that strategy will be sustainable in the long run only when they
    will be customer centric and any other tool could only help the process.
    Implementation of IT and operational efficiency are the modes for keeping
    customers engaged so that they can come back to Harrah’s property
    • Harrah’s always tried to know their customer’s well at personal level by reaching
    them and this knowledge of customer led the company to serve its client in
    better way
    • For example:
    1. Customer’s loss of money while gambling makes them frustrated and at this
    particular time good customer service will handle the issue more gently and ensure
    have a good time
    2. Harrah’s hotel managers hold rooms in reserve for the guest who are willing to
    pay big Dollars and they book their rooms just before the event like New year eve
    or Christmas
    Q4. How does integration of various elements of its
    marketing strategy help Harrah’s?
    • Harrah’s focus marketing strategy on three aspects:
    building new business
    customer retention
    customer loyalty
    • These aspects play a significant role in satisfying customers and therefore help Harrah’s
    to achieve their marketing goal. Moreover, the Total Reward Program collect customer’s
    behaviour and data used to find out the best way to encourage customers to spend more
    money in casino in order to gain incentive from the program
    • For example, customers who lost their money can enjoy free dinner or upgrade the
    room. It forces customers to believe that their particular needs are taken care of by
    Harrah’s
    • Therefore, these programs ensure Harrah’s to retain more customers, maintain a sound
    and loyal relationship with them, hence generate more revenue and also build up a
    strong brand image

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