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Harrah's Casino Operations

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1. What is the purpose of database marketing programs at Harrah's Casinos?

Ð'* Create individualized marketing programs for customers based on their projected worth.

Ð'* New customers initiative Ð'- objective was to obtain new customers to the brand or property. The goal was to encourage customers to take a second or third trip. The program used predicted customer worth to make more effective investment decisions at the customer level. Percentage wise the returning customers were more valuable.

Ð'* Loyalty program Ð'- focused on customers known for at least 6 months or 3 trips. The goal was to extend continuously the relationship.

Ð'* Retention program Ð'- focused on customers who had broken their historical visitation pattern. The goals was to reinvigorate customers who had demonstrated signs of attrition.

Ð'* Total Rewards Ð'- tiered loyalty card program. When a player inserts her card into the slot machine or the video poker machines, the amount of time she plays and her wins and losses are recorded in the customer database.

Harrah's ranked 3rd in overall revenue but first in profit growth. Harrah's is trying to be most successful at marketing to their customers and they were successful. Harrah's focused on branding, not building, and Harrah's has the best same-store sales growth in industry.

Satre argued that encouraging customers to visit different casinos would result in them being loyal to the Harrah's brand - and bring in more revenues for the company overall. He also maintained that the value of guests being able to earn points with their player cards all over the US outweighed the potential cost of internal competition.



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