Mice Dont Know You

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Section E - Group No 4 (A) Harrah’s Entertainment Inc. – Case Analysis 1. Discuss the factors that drove Harrah’s customer relationship strategy. With the advent of new luxury casino hotels like Mirage and Bellagio and the rapid expansion of casinos due to relaxation of gambling laws, Harrah’s witnessed intense competition in the late 1990s. Customers were not making repeat visits and Harrah’s was losing its customers to other flashier properties. Since it was difficult for Harrah’s to make huge capital investments to spruce up its properties, it realized that a shift was required from its existing people management strategy to a new customer relationship strategy. Company COO Gary Loveman reinvigorated the existing marketing function and rebuilt it with experts who preferred quantitative methods to qualitative inputs. Customer Relationship Management was based on the following major elements: Database Marketing and the Total Gold program. Database marketing – Harrah’s used tools based on decisions sciences to predict customer worth rather than relying on observed customer worth from his first visit to the casino. Data about customer preferences was collected each time a customer used his loyalty card at any of Harrah’s properties. This helped Harrah’s to predict potential customer playing behavior, a customer’s worth over a period of time, customer preferences and helped Harrah’s in customizing its services. It helped Harrah’s in developing a more customer centric approach to marketing. Total Gold Program – The total Gold program was based on the premise that a happy customer will increase spending by 24% per year while an unhappy customer decreases spending by 10%. The total gold program was a loyalty program designed to facilitate and encourage cross market visitation patterns of Harrah’s customers. Total Gold Program customers were given electronic cards

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