Harrah's Entertainment Inc

Harrah’s Entertainment Inc.

Key Questions 3 Competencies to become Market Leader ? Shortcomings of Harrah’s ? How did Harrah’s overcome these shortcomings ?  What were the key focus areas of CRM initiatives at Harrah’s?  What should Harrah’s do to further consolidate its position ?   

3 Key competencies  Innovations of product  Cost structure  Relationships/ Customer intimacy

Weakness  Standalone business properties (21 casinos in 17 cities; in all 5 major casino markets)  50 year old company, old properties  Undistinguished service  Got only 36% of gaming dollars

Overcoming the Shortcomings  Changing the Organization structure, building Harrah’s brand & delivering extraordinary service and exploiting relationship marketing opportunities  Understood the pulse of gamers; “Exuberantly alive”…. “advertised around the felling of exuberance”…. “demonstrably better service”  Best service award for 3 years in a row

CRM Initiatives  Development of quantitative tools to accurately predict the customer worth  Building relationships…Sophisticated customer profile  Total Gold Program to capture data & integration of properties (Patented)  Marketing experiments – Low offer generated far more gambling. Eliminated same day cash  Direct relationship marketing – New business, Loyalty & Retention  Customer profitability based segmentation & target programs  Total Gold Program - Tiered Total Rewards Program – Gold, Diamond & Platinum

Usage of Customer Intelligence for effective CRM