Harrah's Entertainment, Inc. is a private gaming corporation that owns and operates over 50 casinos, hotels, and seven golf courses under several brands. The company, based in Paradise, Nevada, is the largest gaming company in the world, with yearly revenues around $10.8 billion. Harrah’s is owned by Hamlet Holdings (Apollo Management and Texas Pacific Group). While Apollo and TPG own a large majority, Blackstone Group LP owns a minority stake in Harrah's. The company known as Harrah's Entertainment was founded on October 30, 1937 as a small bingo parlour in Reno, Nevada operated by William F. Harrah. He went on to buy 'The Mint Club' on North Virginia Street in downtown Reno. He ensured that his customers were very comfortable while they played bingo. He even had steam pipes installed at the club entrance so that they need not walk on snow while coming to the club. In the mid-1950s, Mr. Harrah began acquiring and developing several clubs at Lake Tahoe in Stateline, Nevada. Harrah's had emerged as a leading name in the casino business by the late 1950s. In 1962, he went on to build a 400-room hotel tower in Reno. A 400-seat Headliner Room theatre-restaurant was opened in 1966. In 1971, public trading began in Harrah's shares as the company issued 450,000 over-the-counter shares. The company went public in 1971 with 450,000 shares. Following that, in 1972, it was listed on the American Stock Exchange and in 1973 Harrah's became the first casino company listed on the New York Stock Exchange. COMPANY PROFILE
Customer Relationship Management (CRM) software allows companies to manage their contact with their customers. It is critical for every industry to have a wealth of information about each customer’s preferences. CRM allows companies to integrate customer information with marketing promotions that results in higher profitability for the company. For the gaming industry, CRM software has allowed them to manage their customers’ preferences, track their expenditures, and provide them with offers and services that generate value for each customer. However, technology must be supplemented by a customer-centric organizational policy to fully realize the benefits of CRM. Here I have tried to give a detailed account of customer relationship management (CRM) initiatives pursued by Harrah's Entertainment Incorporated, a leading casino entertainment company in the US. It explains the various elements of Harrah's CRM strategy and how each element contributed to the overall success of the strategy. Here I have also tried to describe the Total Gold customer loyalty program and explains how it evolved into a Total Rewards program that helped Harrah's win the loyalty of its customers. It also details the use of IT in CRM by Harrah's including data warehousing initiatives and the use of decision science tools that allowed the company gain insights into its customers' gaming behaviour and provide them with personalized services.
THE MAIN ISSUES CONSIDERED IN THE REPORT ARE AS FOLLOWS:
Understand and appreciate the importance of customer focus and relationship building in a successful CRM program. Examine the importance of capturing and using customer information in a CRM initiative. Study and analyze the role played by loyalty programs in developing and nurturing customer relationships. Understand the role played by IT in a CRM initiative.
CRM IN SERVICE SUPPLY CHAIN OF HARRAH’S
Harrah's competitors were opening lavish properties that had spas, shopping malls and extravagant hotel rooms, apart from gambling, in order to lure customers. Harrah's, however, decided to pursue a different strategy. The company knew that the majority of its revenues came from its casinos and not from the hotels, stores or spas. Casinos have typically been at the forefront of realizing the enormous value of truly detailed customer information and using this information in managing their customer...