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The ethical issue of encouraging gambling through the development of promotions that will resonate with consumers based on their previous purchasing experiences also raises ethical concerns. There is also the ethical concern of knowing what percentage of someone's budget they spend gambling and being able to extrapolate entire financial profiles of customers based on years of data about them. For all these reasons and more, Harrah's has a serious responsibility to keep the data private and highly secure.
What problems can database technology and customer relationship management software solve at Harrah's? What problems can't it address?
The problems of customer and lifestyle (sometimes called psychographic) segmentation, defining pricing and promotional programs, focusing on maximizing the highest lifetime value of customers, and designing media and marketing campaigns that generate results are all possible using database technology and customer relationship management software. These technological tools however cannot alone predict if a competitor will be...
The combination of database technology and customer relationship management software also will not specifically predict if and when any given customer will leave the Harrah's program for any reason, or predict the level of competitive pressure over time that will occur at any of the 25 locations of the Harrah's chain of casinos and entertainment locations. Lastly, the database management software and customer relationship management software cannot predict how the demographic shift in baby boomers and their approach to more active entertainment will affect Harrah's from a company-wide standpoint. In short, the broader more strategic issues and questions cannot be ascertained with these two technological tools; yet the precise positioning of the ideal customer in each of the 90 segments tracked is a very significant competitive advantage relative to other gambling, casino and entertainment companies in the field.
In this regard, Higgins (2002) reports that Micros Systems Inc. introduced a custom application specifically for the hospitality industry early on, and despite the lingering effects of the September 11, 2001 terrorist attacks on the market, this company and others such as BDM International Inc. are continuing their efforts to provide hotels, restaurants and other organizations competing in the hospitality industry with the information technology they need to become
When comparing the theoretical wins of customers targeted with the budget upside program with its incremental cost, the difference is $1,927, which amounts to 4%. This is significantly less than the results of the frequency upside program, but nonetheless a positive value that resulted in profit. The initial investment in this program is also significantly lower than that of the frequency upside program. Harrah's CRM strategy is to focus entirely on
One issue on which a need for emphasis is felt at this time, and which has only succinctly been mentioned previously, revolves around the internal operations of the organization. In this order of ideas, MGM Mirage's operations consist of "17 wholly-owned casino resorts and 50% investments in four other casino resorts, including Bellagio, MGM Grand Las Vegas, Excalibur, Circus Reno and Silver Legacyof Grand Victoria [...]. Other operations include
Superior Customer Value Beginning in 1998, Harrah's decided that it wanted to change its business culture from an operations-driven company that viewed every casino as a stand-alone property to a marketing-driven company with a holistic view of its properties and customers (Blight and Turk, 2004). The organization structure was revamped to become a national distribution network with a single, unifying brand. The company was then able to execute its corporate growth
As Christopher Hosford (2009) best put it, "to marketers, lists are still important but the uses to which they are put seem to be in transition." With the aid of predictive analytics, marketing activities make a transition from the simple identification and attraction of customers, to more complex endeavors of customer loyalty and retention, generation of sustainable revenues as well as other elements of marketing ROI (return on investment). This
The major benefits to using a SaaS platform for integrating social networking, CRM and marketing systems are the significantly lower costs of operation, the pay-as-you-go approach to leasing only the application areas used, and the flexibility of scaling the computing workload up or down based on the unique requirements of a given company's strategy. SaaS has become the platform of choice for managing social networks, as Facebook, Twitter, Friendfeed,