Individual Case Assignment: Harrah's Entertainment, Inc.
1. What are the objectives of the various Database marketing (DBM) programs and are they working?
There are two main overall objectives of Harrah’s Database marketing (DBM) programs. First, Harrah’s strived to build, increase and retain customers’ loyalty to their brand, similar to the way people tend to be loyal to their mechanic or hair dresser. The strategy to achieve this goal was to ensure that they crafted and sustained a relationship with their customers and reinforced the emotional tie with personalized attention and fast service. The second objective piggy-backs on the first – that customer loyalty will yield incremental business and increase company revenue.
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Using data from all Harrah’s locations proved beneficial as management could determine what was most important to their customers and what aspects of the experience kept customers coming back. From all the data from all of the casinos, Harrah’s determined that it was essential to focus on friendly, fast service and play to a gambler’s desire to achieve a feeling of excitement from playing and also to feel an emotional tie to Harrah’s brand specifically. The Total Gold program enabled customers to earn and redeem rewards such as a free night’s stay or a complimentary meal at all Harrah’s location instead of earning rewards specific to one location. This resulted in an increase in cross-market revenues (people who signed up at one casino redeeming or playing in another) from 13% in 1997 to 23% in 2000. Further, the Total Rewards program also provided incentive for customer loyalty in addition to being able to redeem points at any Harrah’s casino. With different levels of rewards which were visible to all guests, rewards also carried with them a certain feeling of prestige, thereby further