Harrah's Entertainment Essay
Harrah’s Entertainment Inc.
Abhra Mukherjee
Sachin Goel
To: Philip G. Satre, CEO Harrah’s Entertainment Inc.
From: Abhra Mukherjee, Sachin Goel
Subject: Analysis of the new Customer Relationship Management
Harrah’s CRM model has emerged successful in leading the gaming industry over its competitors. Its role in boosting the company’s revenue by 50% is admirable.
The implementation of the Total Gold program increased cross-market revenues from 13% in 1997 to 23% in 2000. Las Vegas property generated 50% of the total revenue of the entire property by the year 2004. Harrah's awarded three billion points for the first year and as a result, the number of members reached 16 million by the end of 1999. An analysis for a group of 100 customers shows that the average spending for the year 1998 was $65,620 and 88,470 for the year 1999.
The New Business Program designed to convert new Total Gold members into loyal customers failed to achieve fruitful results. The data shows that the number of customers declined over a 3 month period. The number of customers reduced from 1022 new customers to only 85 after a 3 month period. Further analysis suggests that less attractive investments fetch greater revenue. Hence, our advice would be to reduce the rewards for new customers, such as free rooms.
The Loyalty Program …show more content…
Also, the patent for the integrated information technology network, allowing all customer data to be shared across all Harrah’s properties, prevents any competitor to duplicate the same technology. Harrah's Customer Relationship Management developed by Mirman and his group of "propeller heads", including Database Marketing, Marketing experimentation, and Total Rewards, is unique to Harrah’s, and will continue to outmaneuver
Abhra Mukherjee
Sachin Goel
To: Philip G. Satre, CEO Harrah’s Entertainment Inc.
From: Abhra Mukherjee, Sachin Goel
Subject: Analysis of the new Customer Relationship Management
Harrah’s CRM model has emerged successful in leading the gaming industry over its competitors. Its role in boosting the company’s revenue by 50% is admirable.
The implementation of the Total Gold program increased cross-market revenues from 13% in 1997 to 23% in 2000. Las Vegas property generated 50% of the total revenue of the entire property by the year 2004. Harrah's awarded three billion points for the first year and as a result, the number of members reached 16 million by the end of 1999. An analysis for a group of 100 customers shows that the average spending for the year 1998 was $65,620 and 88,470 for the year 1999.
The New Business Program designed to convert new Total Gold members into loyal customers failed to achieve fruitful results. The data shows that the number of customers declined over a 3 month period. The number of customers reduced from 1022 new customers to only 85 after a 3 month period. Further analysis suggests that less attractive investments fetch greater revenue. Hence, our advice would be to reduce the rewards for new customers, such as free rooms.
The Loyalty Program …show more content…
Also, the patent for the integrated information technology network, allowing all customer data to be shared across all Harrah’s properties, prevents any competitor to duplicate the same technology. Harrah's Customer Relationship Management developed by Mirman and his group of "propeller heads", including Database Marketing, Marketing experimentation, and Total Rewards, is unique to Harrah’s, and will continue to outmaneuver