Harrah's Entertainment, Inc. Essay

This strategy is vital and attracts customers that have been loyal and meet the company vision of customer first. This strategy boosts sales in their industry.

After profitability and lifetime values are determined, these measures are included for determining customer decisions for -

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.

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)

How does Harrah’s integrate the various elements of its marketing strategy to deliver more than the results of Data Base marketing?

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

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

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)

It is imperative to satisfy customers and give them an amazing experience at the company. While it cost less to sell to existing customers and companies can increase profit by selling to the same customers; if customers are satisfied, there is more chance they will come back for more services or products. Satisfied customers are a free marketing for the company. However, it is the opposite if customers are dissatisfied. Dissatisfied customer will tell 8 to 10 people about his or her experience (O’Brien, A & Marakas, G. 2004). If by any reason, representatives see that the customer is not satisfy, they should act fast and fix the problem. Furthermore, there is more chance for sale representatives to sell to an existing customer that to a new customer. A good strategy for customer retention is to reward good customers. Companies can easily do

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

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

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.

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

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.

Recommend Article Article Comments Print Article Share this article on Facebook Share this article on Twitter Share this article on Google+ Share this article on Linkedin Share this article on StumbleUpon Share this article on Delicious Share this article on Digg Share this article on Reddit Share this article on Pinterest