Harrah's Case
Objectives:
1. Develop marketing-driven company
A. Focus on target customers
B. Increase brand loyalty
2. Solutions
A. Total Gold Program 1997 - Change organizational structure a. Lines of communication between execs shortened b. Increased brand cohesion among all Harrah's properties - Build Harrah's brand
a. Connect Harrah's with feelings of anticipation and exuberance
b. $15-20 million spent on advertising focused on good feelings associated with gambling at Harrah's
- Extraordinary service
a. Service process design, reward and recognition, measurement of executives b. Voted "best service" three years in a row - Relationship marketing A. Database Marketing b. Customer Relationship Marketing Sophia Pappis
1. Customer Relationship Management
A. Database Marketing
1. Proactive Marketing
a. Opportunity-based customer segmentation
i. Total Gold Cards : Develop customer profile
- Tracks play preferences
- Where players eat in casino
- Where players stay
- How often they visit
- How much/long they play ii. Target Customers
- Players who spend $2000 annually provide 82% revenue 2. Customized Marketing a. Compared observed value to predicted behavior to id opportunity segments i. Drive incremental frequency ii. Drive Growth iii. Drive both b. Letters to customers i. Exciting messages ii. Bold upper case font in strategic places
3. Experiments a. Proved less attractive promotion is more profitable i. Eradicated same day cash program with no customer complaints B. Results of Database Marketing
1. New Business Program
a. Improve effectiveness of converting new Total Gold members to loyal customers
i. Resulted in significant revenue increase ($1,619,210 to $3,024,428) ii. Net income increased($99,388 to $208,470) 2. Loyalty Program
a. I.D
1. Develop marketing-driven company
A. Focus on target customers
B. Increase brand loyalty
2. Solutions
A. Total Gold Program 1997 - Change organizational structure a. Lines of communication between execs shortened b. Increased brand cohesion among all Harrah's properties - Build Harrah's brand
a. Connect Harrah's with feelings of anticipation and exuberance
b. $15-20 million spent on advertising focused on good feelings associated with gambling at Harrah's
- Extraordinary service
a. Service process design, reward and recognition, measurement of executives b. Voted "best service" three years in a row - Relationship marketing A. Database Marketing b. Customer Relationship Marketing Sophia Pappis
1. Customer Relationship Management
A. Database Marketing
1. Proactive Marketing
a. Opportunity-based customer segmentation
i. Total Gold Cards : Develop customer profile
- Tracks play preferences
- Where players eat in casino
- Where players stay
- How often they visit
- How much/long they play ii. Target Customers
- Players who spend $2000 annually provide 82% revenue 2. Customized Marketing a. Compared observed value to predicted behavior to id opportunity segments i. Drive incremental frequency ii. Drive Growth iii. Drive both b. Letters to customers i. Exciting messages ii. Bold upper case font in strategic places
3. Experiments a. Proved less attractive promotion is more profitable i. Eradicated same day cash program with no customer complaints B. Results of Database Marketing
1. New Business Program
a. Improve effectiveness of converting new Total Gold members to loyal customers
i. Resulted in significant revenue increase ($1,619,210 to $3,024,428) ii. Net income increased($99,388 to $208,470) 2. Loyalty Program
a. I.D