Harrah Entertainment

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Harrah’s Entertainment Inc.

• Describe and comment on CRM at Harrah’s?
Though CRM activity existed at Harrah, It was implemented in full force and became more result oriented only after the appointment of Loveman. Soon transactional data became resource to increase profitability in the face of stiff competition (from better & flashier properties) and the limited market. Effective CRM was focussed as a part of 3 fold new approach that Harrah undertook in 1998. CRM at Harrah consisted of two elements

Total Reward program (previously called Total Gold).
The focal point of Harrah‟s CRM was customer loyalty program called total reward. Previously the Harrah was not able to leverage the cross-market visitation which was high Customers earned different reward points at different properties of Harrah. Plus there was no differentiation with the competition. Total Reward leveraged the IT and effectively tracked customers preference, betting preference, etc. And with the Data on hand Harrah effectively customised incentives and program for the customers. It not only encouraged Cross-Market visitation (Significant growth from 13% in 1997 to 23% in 2000) but also boosted of an integrated IT network that was patented. The customers were further divided into 3 distinct segment Gold, Platinum & Diamond.

DATABASE MARKETING
The use of decision science tool by Harrah to predict Customers Worth over a period of time changed completely the way Harrah invested in customers. Harrah’s approach was customer centric and Harrah used right marketing instrument for right customers. As per the DBM the 3 key phases that determine customer relationship are;

New Business – focussed on establishing relationship with new to business of property customers Loyalty – Focussed on strengthening relationship with customers who patronise Harrah for atleast 6 months or 3 trips.

Retention – Focussed on customers who have shown signs of attrition.

• What are the objectives of...
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