Case study: Campaign management at Harrah’s Entertainment
Harrah’s Entertainment is the world’s largest gaming organization. Through Harrah’s Total Rewards programme customers earn credits each time they play and visit. Accumulated credits are traded for rewards, coupons, cash or complementary services, and tallied to determine customer loyalty levels of gold, platinum or diamond. Associated services and privileges become gradually more valuable at each higher level.
The Total Rewards programme is a key component of Harrah’s CRM strategy and underpins the company’s marketing campaigns. Customer-related data, gained primarily from card use, is enriched from other data sources so that Harrah’s obtains detailed understanding of his customer profiles and behaviours.
Harrah’s first established a data-based marketing approach in the year of1998. Using historical data, which showed how frequently customers visited and how much they spent, these early modelling efforts, provided essential segmentation based on numerous demographic trends. Currently Harrah’s applies predictive analytics to the customer-related data which can generate an accurate estimate of each customer’s potential value.
Historical data shows how frequently a customer visits Harrah’s casinos, but predictive models will reveal which customers are as well likely to visit other casinos in market. Based on share of wallet estimates, Harrah’s can target them with campaigns that attempt to increase their loyalty to Harrah’s casinos. As an effect, Harrah’s was capable to raise its share of customers’ gaming budgets from 36 per cent in 1998 to 45 per cent in 2005.
problem1. Describe the CRM strategy at Harrah’s Entertainment?
problem2. Making reference to theories, elucidate the development stages of customer acquisition and management procedures that Harrah’s Entertainment tries to establish in order to create a customer-centric enterprise.
problem3. According to you, at what stage of evolution is Harrah’s Entertainment describe fully your answer and make reference to foundation pillars for strategic customer care.
problem4. Using extensive theories, critically describe the effectiveness of loyalty schemes in building customer loyalty in customer relationship programmes.
problem5. Creating dissimilarity between the communication and service levels of so-called gold, platinum or diamond customers can lead to irritation among customers. How can this irritation be prevented? In your estimation, how should a company handle this situation?
problem6. As the marketing manager of “Mado Cosmetics”, you are asked to implement CRM system. What are the steps essential which you are going to initiate to implement the system?