Harrah's Entertainment, Inc. Essay

In 1998, the financial group decided to implement a more robust profitability measurement to his CRM data system. This new system called “Value Analyzer” represent for the company a tool much more efficient than its old customer system. This new software adds a new data in the RBC’s vision. “We came to understand that customers can be both profitable and have the potential to be profitable”. (case study page 8)

Customers enable the organization to treat each customer in a different way on the basis of the contribution they make towards the firm (Kleinaltenkamp & Wengler, 2007). The analysis of customer lifetime value aids the organization to rank and order customers on the basis of their contribution to organization’s revenues. It also helps the organization to determine as to how much it can invest in retaining customers to gain positive returns on the investment.

A customer profitability analysis, when done right, shows the customers that are not only profitable but also those that are

Why is it important to use the “customer worth” in the DBM efforts rather than observed level of play?

One of the most expensive and difficult tasks facing any business is acquiring new customers. Acquiring a new customer can cost five times as much as retaining an existing customer. Research has shown that 2% increase in customer retention can decrease costs by as much as 10% for a business. To retain current customers, businesses engage in relationship marketing strategies to continually attract repeat

1. How can companies deliver customer value, satisfaction, and loyalty? 2. What is the lifetime value of a customer, and why is it important to marketers? 3. How can companies cultivate strong customer relationships? 4. What is the role of database marketing in customer relationship management?

5. RELATIONSHIP MARKETING: In this competitive era, companies are always looking for ways to develop and maintain a long lasting relationship with customers, employees and even suppliers. Relationship marketing is two way traffic; it goes beyond just making ‘sales’ and companies are beginning to realize. Good relationship with customers is a strategic weapon for any company, this is because long term customers buy more, do referrals and give back valuable and truthful feedback. Keeping a customer requires an extra effort. According to the founder of Walmart: “There is only one boss, the customer, and he can fire

Define and describe Database Marketing and CRM. What are the pros and cons of Database Marketing and CRM? Provide an example

3. To implement extensive marketing measures, (for the company’s brand name and products), and investment strategy (for both on and off premise operations)

In order to operate a successful and profitable business, certain strategies must be put in place. One very important strategy is customer relationship management. To ensure that every customer has the opportunity to receive exceptional customer service and the ability to become a loyal customer, an organization must follow these steps. First, the organization must evaluate their current customer service strategies and organizational goals. This will help decipher strengths and weaknesses of the organization. Once the organization’s weaknesses are determined, action must be taken immediately. The weaknesses should act as opportunities, while the strengths can be used as something to capitalize off of. If an organization lacks a loyalty program, their next step would be to design one that correlates with their business model and organization goals. Once an organization redesigns their customer service strategies and customer loyalty programs, they will need to accurately apply metrics to successfully measure the value of the changes being made.

and customer goes hand in hand, if the customer is unhappy then this will badly effect the business and that might lead to loss and if the customer is happy then profit will surely go up. But in achieving the needs and demands of the customer, most of the company forgets

The goal of this module is to explain the concept of customer loyalty, its significance, its benefits, and the factors that affect customer loyalty. Here it is explained why customer loyalty is beneficial for a business and how it helps in profitability. This module discusses the types of customer loyalties, which ones among them are profitable and which are not, as well as the methods to turn non-profitable loyalties into profitable loyalties. It also shows the reasons why a business should invest in customer loyalty programmes. Some statistics are shown which explain why some companies who invest in customer relationship programmes profit more than their rivals do. The factors that affect customer loyalty are described. It also points out the principles that a company needs to follow, to reap the benefits of customer loyalty.

A Customer Value Model is a comprehensive accounting of the value, expressed in monetary terms, that a supplier delivers, or could deliver, compared to the value of competing solutions. In building a Customer Value Model the company examines the way in which all the components of its offering (products, programs, systems, and services) impact, or could impact, functionality and performance in the customer’s unique situation. It expresses this impact in monetary terms (e.g., cost per transaction, productivity per hour, etc.) It must then conduct a similar analysis for the competitive offering or offerings (whatever the “next best alternative is”). Because this research is conducted with real customers in real usage situations, it provides an objective and data-driven basis for comparison. It helps companies exploit opportunities in customer segments where they provide superior value, and shore up weaknesses in segments where their value proposition is inferior. It is important to do this because, as Anderson and Narus point out, in choosing between competitive alternatives business customers look at two factors: price and value. Suppose, for example, that a company were considering proposals from two Learning Management System (LMS) providers: Saba and Docent. It will compare the two offerings in terms of the following equation: (ValueSaba – PriceSaba ) vs (ValueDocent - PriceDocent)

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Value is considered to be an important constituent of marketing and the ability of a company to provide superior value to its customers. The essential idea of marketing is offering customers superior value (Doyle, 2008). By adding more value to commodity, companies seek to improve customer satisfaction so that bonds are strengthened in order to achieve customer loyalty. The most frequently used definition of value is that value is relationship between what one sacrifices and what one benefits (Ravald, Gronroos, & Annika, 2011). The set of the activities designed to inform, communicate with and motivate the target consumers about the company’s product or service.