Customer Worth: Why is it important?

win from a customer based on their level of play

Definition: The theoretical amount the house expects to
Uniqueness of the Metric: Predicts a customer's future spending instead of analysis based on "observed level of play"

PROBLEM WITH OBSERVED
0 LEVEL OF PLAY
1 Customers with short stints of play at
Harrah's are not evaluated adequately.
THE SOLUTION
0 Comparison with the database
used for predicting customer
2 worth gives cues that limited data
about past playing records cannot.

THE CASE OF MS. MARANES CONCLUSION

Ms. Maranes played for a short
0 while at Harrah's. "Observed Level
3 of Play" would have analyzed her
as "lousy" and not profitable
enough to pay special attention to.
CUSTOMER WORTH
The database predicted that her
0 profile matched wth people who
4 are great customers. She
probably played at one of
Harrah's competitors'.
Evaluating Customer Worth
0 gave insights irrespective of
previous records of play at
5 Harrah's, thereby increasing
the scope of understanding
about the customer.