Harrah's Case

2641 WordsNov 1, 201011 Pages
What are the elements of Harrah’s business intelligence strategy? What specific initiatives have they undertaken to develop customer insight? Harrah’s business strategy was hinged on three key aspects: 1) Excellent Customer Service 2) Focus on increasing customer loyalty 3) Geographic diversification. Harrah’s business intelligence strategy was very much aligned to support its business strategy. The two important elements of Harrah’s business intelligence strategy were: 1. Ability to combine data from all their properties and create sophisticated customer profiles With an integrated IT network linking all Harrah properties, data is fed into a central data-warehouse. This data can then be sliced and diced to create target…show more content…
c. The number of guests increased from an average of 31 to 130.3 which is a massive jump. d. Increase in the number of guests resulted in an increase in the average theoretical win per month from $8074.8 (Jan-May 99) to $49829.16 (Jul-Dec 99). 3) Loyalty Program (Budget Upside): This program was targeted at those customers who spend a small portion of their total budget at Harrah properties and aimed to increase the share per dollar spent at Harrah’s. The first round of the promotion offers of this program was mailed from Oct to Jan and second in Feb-March. Comparing pre-Oct and post-Oct figures from exhibit 2d: e. The budged spending per guest increased by 30%. f. The redemption rate also increased from an average of 30.5% to 63.4%. g. Total theoretical win data shows an increase in average from $18176.25 to $32664.8. 4) Retention Program: This program aimed to control the attrition of Harrah’s customers and incentivized customers who deviated negatively from their historical visitation pattern through special offers. From exhibit 2e: h. The incremental cost to Harrah’s for this offer was $10 per customer, after it increased from $30 to $40, amounting to a total of $80000. i. This cost was more than justified to control the decline in the average of theoretical win average which
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