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INFORMATION SYSTEMS FOR MANAGERS

CASE ANALYSIS
HARRAH’S ENTERTAINMENT INC.

Submitted By:
Section – C
Group – 8
•ARNAB KUMAR DAS (2017PGP069)
•DINESH KUMAR YADAV (2017PGP111)
•DISHARI BANERJEE (2017PGP113)
•JANANI S (2017PGP144)
•KARTHEEPAN K (2017PGP164)
•REUEL DANIEL LUNGLENG (2017PGP297)
•SANJNA SANJIV (2014IPM079)
WHAT ARE THE OBJECTIVES OF THE VARIOUS DATA BASE
MARKETING PROGRAMS AND ARE THEY WORKING?
Program Objective Effectiveness
New To improve the effectiveness at As of 2007, the programme had
Business converting new Total Gold members around 40 million members, which
Program into loyal customers was around 80% of their customer
base.
Loyalty To identify customers that, Harrah’s The number of customers visiting
Program – predicted, were only giving Harrah’s Harrah’s per month increased. The
Frequency a small share of their total spending theoretical win from these
Upside in a particular market customers also increased
accompanied with the increase in
offer redemptions.
Loyalty To encourage the customer to visit One way they did this was to
Program – Harrah’s first and thereby capture reconfigure the way in which the slot
Budget the majority of the single casino trips machines were ordered. They
Upside earned 45% more revenue.
Retention To reinvigorate customers who had The program seemed to be working
Program broken their historical visitation even though the cost of the offer
pattern or had demonstrated other had gone up.
signs of attrition
WHY IS IT IMPORTANT TO USE THE “CUSTOMER WORTH” IN
THE DBM EFFORTS RATHER THAN OBSERVED LEVEL OF PLAY?

 Customer Worth – The theoretical amount the house expects to win,


over the long term, from a customer based on his level of play.
 Historically, the casino industry had determined customers worth
based only on observed play.
 Harrah’s ability to accurately predict play enabled them to begin
building relationships with customers based on their future worth,
rather than on their past behaviour.
 Using customer worth in DBM will generate more revenue per
customer, since we can give them perks of using our service(to play
them for longer period) on the basis of accurate data.
 Also it will decrease the expanse on the low worth customer , from
which we are not generating much revenue(as 82% of revenue
comes from 26%)
HOW DOES HARRAH’S INTEGRATE THE VARIOUS ELEMENTS OF ITS MARKETING
STRATEGY TO DELIVER MORE THAN THE RESULTS OF DATA BASE MARKETING?

 To execute Total Gold, Harrah’s designed s


completely integrated information technology
network that linked all their properties together.
 The network enabled customer level information,
like customer gaming theoretical value, to be
shared in real time across the various casinos.
 This technology was then patented so as to bar
Harrah’s competitors from replicating what Phil
Satre believed to be the company’s future.
WHAT IS THE SUSTAINABILITY OF HARRAH’S
ACTIONS AND STRATEGY?

 Harrah’s realized that sustained competitive advantage


can only come from rigorous customer focus and
effective utilisation of DBM was the way forward. They
also realized that by improving the customer service
they can also improve their bran image
 Harrah’s developed the capabilities that form a
sustainable strategy with their new CRM strategy which
gave them the much required customer loyalty .This also
insulated their business model from the market volatility
and gave them a platform to build their future strategy

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