Harrah's Entertainment, Inc. Essay

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Individual Case Assignment: Harrah's Entertainment, Inc.

1. What are the objectives of the various Database marketing (DBM) programs and are they working?
There are two main overall objectives of Harrah’s Database marketing (DBM) programs. First, Harrah’s strived to build, increase and retain customers’ loyalty to their brand, similar to the way people tend to be loyal to their mechanic or hair dresser. The strategy to achieve this goal was to ensure that they crafted and sustained a relationship with their customers and reinforced the emotional tie with personalized attention and fast service. The second objective piggy-backs on the first – that customer loyalty will yield incremental business and increase company revenue. …show more content…

2. Why is it important to use the “customer worth” in the DBM efforts rather than the observed level of play?
The case study article defines customer worth as “the theoretical amount the house expects to win, over the long term, from a customer based on his level of play.” This calculation allows Harrah’s management to more strategically analyze and predict a customer’s future spending as opposed to analysis of ‘observed level of play’ which is only based on a customer’s previous spending patterns. The example contained in this article of Ms. Maranees best exemplifies the benefits of calculating customer worth as opposed to an observed level of play. Ms. Maranees only played a limited amount in a short timeframe at Harrah’s, so if one were to solely judge her future habits by her observed level of play during that trip, they likely would not feel that she was a customer worth targeting. However, in analysis of her customer worth and theoretical wins, it was evident that Ms. Maranees was likely a very profitable customer who was probably bringing a majority of her business to Harrah’s competition, so it would in fact be advantageous for Harrah’s to win her business.

3. How does Harrah’s integrate the various elements of its marketing strategy to deliver more than the results of Database Marketing?
When Gary Loveman was hired as Harrah’s COO, one of his goals was to change the focus from bringing customers in to individual Harrah’s locations

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