Crm in Casinos

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Casinos in the United States have invested billions of dollars on elaborate architectural themes to expensive light shows in an effort to differentiate themselves from their competitors. Although successful at attracting spectators who marvel at Bellagio’s dancing fountains and Luxor’s grand pyramid, this investment has failed at bringing in gamblers, the main source of casinos’ revenues because the games they offer are identical and therefore commoditized. In order to attract customers and gain market share, casinos have had to provide a personalized gambling experience in the form of excellent customer service, lavishing comps and rewards on players, and making them feel special and important. Before the technology age, all this was done solely at the discretion of pit bosses and floor supervisors, who based their decisions on whom to reward solely on their impressions as well as the image patrons gave off. The movie, 21, accurately depicts this, where college students fly into Vegas, dress fashionably, bet large, and get comped luxurious suites, as well as a personal casino host who knows them by name, greets them and make them feel like VIPs . However, casinos have realized that this practice was not efficient in maximizing their profitability as the return on their marketing and rewards depended on arbitrary decisions based on appearances and perceptions, which a player, in reality, may not have qualified for . With the advent of Customer Relationship Management (CRM) technology, casinos have found a solution to more accurately classify its patrons and properly direct its marketing efforts to the right customer segment. The essential objective of CRM is to attract and maintain loyal, profitable customers. Loyal because it is common knowledge that longtime customers tend to patronize more and are easier and cheaper to maintain rather than trying to acquire new customers. Profitable because this is what makes or breaks the business. With the use of...
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