PROBLEM STATEMENT

 Analyse contribution of marketing efforts on overall performance of Harrah’s

Entertainment
 Decide whether and how it can maintain the competitive advantage in
 attracting new customers
 strengthening relationships with loyal customers and
 reinvigorating relationships with customers who had shown signs of attrition
WHAT IS DECISION ANALYTICS ?

Decision Analytics is the discipline of leveraging analytics and performance modelling to

Fact
create a tight link between key operational processes and desired strategic outcomes.

Based
Guesswork Decisio
n
Making
IMPACT OF DECISION ANALYTICS ON HARRAH’S
PERFORMANCE

50%
Revenue
100% Growth
100%
growth
growth
in stock
in Profits
price
Overall
Performan
ce
HOW HARRAH’S ENTERTAINMENT LEVERAGED DECISION
ANALYTICS?
Datab
ase Transaction
Total Gold Decision

CR
Marke al Data
Program Analytics
ting (collected)
Higher
Total
Gold
Progr
M ROMI
(Return on
Marketing
Marketing
Strategies
am Inv.)

The transactional data collected from Total Gold Program is used to

build quantitative models that accurately predicted “Customer
Worth” – the theoretical amount the house expects to win from a
customer in long run.
TOTAL REWARDS
ISSUE
• Harrah’s Entertainment was able to
capture only a limited share of the
customers gaming budget. This was
primarily due to
• Low frequency of visits
What they did?
Launched total rewards with a tiered
customer loyalty program which can be
earned an redeemed across any Harrah’s
property.
• Total Gold (no minimum customer worth)
• Total Platinum ($1500 customer worth
How they did?
• Harrah’s designed an integrated IT
network that linked all the properties
together.
• The network enabled customer level
information to be shared real time across
various casinos
• Built competitive advantage by patenting
the technology
What was the desired
outcome ?
Enable customers to earn and redeem
rewards seamlessly at any of Harrah’s
properties across the country. This would
help in capturing the revenue lost due loyal
customers visiting destination markets and
 SWOT ANALYSIS

S W
• Total Rewards
• Patented integrated IT network • High capital costs for building “must
• Customer Service see
• Biggest Casino Brand in US
• Presence in prominent gambling
Strengths locations
Weakness

• Chasing potential markets – Asian • Increasing Competition

O T
and Middle Eastern markets have a • Tough business environment
high potential growth • Decreasing profitability
• IT integration across industries
• Take government projects
Opportunity Threats