Harrah's Entertainment - Study
Management Information Systems
A Case Analysis Report on
HARRAH’S ENTERTAINMENT INC.
Submitted By
Group 6 | Subgroup 2
17th March 2011
Harrah’s Entertainment Inc.
1) Discuss the factors that drove Harrah’s customer relationship strategy. Harrah’s had decided to make customer loyalty as their core competency since they believed they could become the industry leader based on this skill. The initial focus was to trace the customers who were showing little loyalty to Harrah’s and visiting their competitors, and try converting them to regular customers. For this, Customer Relationship Management (CRM) tools were implemented across all Harrah’s properties. CRM at Harrah’s consisted of two elements – Database Marketing (DBM) and Total Gold program. The Total Gold program motivated customers to consolidate their play, and the data collected through the program allowed Harrah’s to execute direct marketing strategies that increased the efficiency and effectiveness of their marketing dollars. This program was designed to facilitate and encourage the cross-market visitation patterns of Harrah’s customers. The Total program was intended to capture the lost business to its competitors by making it easier for Harrah’s customers to earn and redeem rewards. Harrah’s ability to accurately predict play enabled them to build relationships with customers based on their future worth, rather than on their past behavior. They also adapted to proactive marketing, which was opportunity-based customer segmentation. Harrah’s quantitative approach also made it possible to conduct marketing experiments and track customers over time. This helped Harrah’s discover the right marketing instruments, for the right behavior modification, for the right customer. Harrah’s developed a customer centric approach to direct marketing. There were three key phases to a customer relationship. These phases focused on establishing good relationship with customers, develop new relations with
A Case Analysis Report on
HARRAH’S ENTERTAINMENT INC.
Submitted By
Group 6 | Subgroup 2
17th March 2011
Harrah’s Entertainment Inc.
1) Discuss the factors that drove Harrah’s customer relationship strategy. Harrah’s had decided to make customer loyalty as their core competency since they believed they could become the industry leader based on this skill. The initial focus was to trace the customers who were showing little loyalty to Harrah’s and visiting their competitors, and try converting them to regular customers. For this, Customer Relationship Management (CRM) tools were implemented across all Harrah’s properties. CRM at Harrah’s consisted of two elements – Database Marketing (DBM) and Total Gold program. The Total Gold program motivated customers to consolidate their play, and the data collected through the program allowed Harrah’s to execute direct marketing strategies that increased the efficiency and effectiveness of their marketing dollars. This program was designed to facilitate and encourage the cross-market visitation patterns of Harrah’s customers. The Total program was intended to capture the lost business to its competitors by making it easier for Harrah’s customers to earn and redeem rewards. Harrah’s ability to accurately predict play enabled them to build relationships with customers based on their future worth, rather than on their past behavior. They also adapted to proactive marketing, which was opportunity-based customer segmentation. Harrah’s quantitative approach also made it possible to conduct marketing experiments and track customers over time. This helped Harrah’s discover the right marketing instruments, for the right behavior modification, for the right customer. Harrah’s developed a customer centric approach to direct marketing. There were three key phases to a customer relationship. These phases focused on establishing good relationship with customers, develop new relations with