8/9/2019 Harrah's Entertainment Case_CRM Assignment
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de'isions at the 'ustomer le,el?thus allo%ing the parti'ular oer
to be more
'ompetiti,e %ith %hat the 'ustomer %as 'urrently re'ei,ing )rom
their e(isting
s'enario o) 'hoi'e*
(oyalty &ro#ram)*re+uency ,pside'-his program %as designed
to identi)y 'ustomers that& HarrahBs predi'ted& %ere
only gi,ing HarrahBs a small share o) their total spending in a
parti'ular mar0et*
HarrahBs 'apabilities enabled it to de,elop programs that oered
in'enti,es )or
these 'ustomers to ,isit HarrahBs properties more
)re8uently?i*e*& s%it'h a trip
)rom a 'ompetitor to HarrahBs* HarrahBs 'al'ulated the
pro/tability o) these
programs by 'omparing the in'remental theoreti'al %ins to the
in'remental 'ost
o) the program*
(oyalty &ro#ram)Bud#et ,pside'HarrahBs also identi/ed
'ustomers %ith budget upside?'ustomers %ho %ere onlygi,ing a small
share o) their gaming budget to HarrahBs on ea'h trip* In
most'ases& a 'ustomerBs allo'ation o) budget %as dire'tly
related to the order in
%hi'h they ,isited 'asinos on a parti'ular trip?the /rst stop
re'ei,ed the largestshare& the se'ond re'ei,ed the se'ond
largest and so on* -here)ore& the obe'ti,eo) this program %as
to en'ourage the 'ustomer to ,isit HarrahBs /rst and thereby'apture
the maority o) the single 'asino trips*
-etention &ro#ram'-he obe'ti,e o) HarrahBs Retention 3rogram
%as to rein,igorate 'ustomers %hohad bro0en their histori'al
,isitation pattern* HarrahBs tested a ,ariety o) oers%ith 'ustomer
segments to determine ho% mu'h to rein,est in retaining
loyalguests* Harrahs re'ogni2ed that the )ull potential o) these
ideas %ould bereali2ed only i) these 'apabilities 'ould be used at
the lo'al property le,el*
-here)ore& they made signi/'ant eorts in edu'ating the lo'al
property managersand their mar0eting teams about the potential and
ee'ti,e use o) these .ata!ase Mar0eting 'apabilities*
