Question 1: Choose one or more definitions from the theory discussed in class to describe CRM as implemented by Harrah´s Entertainment Inc.
I believe that the combination of Kotler´s and Zigmund,McLeod, Gilbert definition of CRM perfectly describes the situation of Harrah´s Entertainment Inc. Kotler refers to CRM as: “the process of managing detailed information about individual customers and carefully managing all customer touch points to maximize customer loyalty”. Zigmund, McLeod,Gilbert definition is a bit more detailed: “A business strategy that uses information technology to provide an enterprise with a comprehensive, reliable, and integrated view of its customer base so that all processes and customer interactions help maintain and expand mutually beneficial relationships.”
In this case the use of information technology in all stages of customer interaction clearly provides HEI (Harrah´s Entertainment Inc.) with a competitive advantage. The use of different software programs and applications creates an efficient and effective CRM tool. Managers and employees know the information of any customer and they can customize individual offerings even at real time. This way of working creates the feeling of importance and recognition to the customer and leads to customer loyalty.
Question 2: Is CRM as implemented by HEI focused on IT or it comprises a total business strategy? Where would you position Harrah´s CRM on the relevant continuum? Explain your answer.
CRM as implemented by HEI is clearly comprises a total business strategy. HEI not only created a new marketing strategy but also changed the organization itself. Before the IT systems implementation, the different casinos used to run their own marketing programs and offerings for the customers. This decentralization led to different CRM approaches that tried to retain the customer locally. This changed after Phil Satre managed to convince local managers and CRM became centralized. By combining...
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