Caesars Entertainment (formerly Harrahis Entertainment) him feel valued as he gets a very special deal just when is the world's largest gaming company with its number of key brands, including Caesars, Harrah's, Horseshoe, otherwise wasted capacity in its shows and restaurants he wanted to stop playing. At the same time, it uses its, can then and the London Clubs family of casinos. It is a leader in the use of highly sophisticated loyalty programs. Harrah's was first to launch a tiered customer loyalty program in the gaming industry, which covers all Caesars Entertainment's brands today. It has four tiers in its loyalty program Gold, Platinum, Diamond, and Seven Stars (which is by invitation only). The program is integrated across nearly all its properties and services, Customers dentify themselves (and earn points) at every touchpoint throughout the company, ranging from its gaming tables estaurants, hotels, to gift shops and shows. The points collected can be used to obtain cash, merchandise, lodging, show tickets, vacations, and events. Likewise, when a customer makes a call to its call cent the staff have detailed real-time information about tailor promotions that cross-sell or up-sell its services customer's preferences and spending h Caesars does not do Manket promotions that target all its customers at the same time, which is, according to Caesari Chairman, President and CEO Gary Loveman. a margin eroding nightmare. Rather, it uses highly targeted promotions that create the right incentives for each of its different customers. It also uses control groups to measure the success of a promotion in dollars and cents, and to further fine-tune its campaigns What is special about Caesars Entertainment is not its loyalty program, but what it does with the information gathered about its customers when they use their cards to earn points. At the backend, the firm has linked all its databases from casino management, hotel reservations, and events to allow it to have a holistic view of each of its customers. It now has detailed data on over tens of millions of customers, and knows each customer's preferences and behaviors. These range from how much they spend on each type of game and their likes in food and drinks, to entertainment and lodging preferences. All this information about the customer is captured in real time. With its data-driven customer relationship managemen (CRM), Caesars is able to transdorm customer interaction into personal and differentiated ones. This enabled Rewards Program, to increase the share-of-wallet of its Harrah's, the first brand in the group to launch the Total Total Rewards card holders to an impressive 50%, up from 34% before its CRM program was implemented Caesars Entertainment uses this data to drive its marketing and on-site customer service. For example, if Diamond card holder on slot machine 278 signals for service, a Caesars associate is able to ask, "The usual, Mr. Jones?" and then track the time it takes for a server to fill the guest's request. In another example, when a customer wins a jackpot, Caesars can tailor a customer-specific reward to celebrate that win. Caesars also knows when customer is approaching his maximum gaming limit on a particular evening and when the customer is likely to stop playing Just before the limit is reached, Caesars can offer him a heavily discounted ticket in real time via text message for a show with available seats. This keeps the customer on the premises (and spending), and makes

Caesars Entertainment (formerly Harrahis Entertainment) him feel valued as he gets a very special deal just when is the world's largest gaming company with its number of key brands, including Caesars, Harrah's, Horseshoe, otherwise wasted capacity in its shows and restaurants he wanted to stop playing. At the same time, it uses its, can then and the London Clubs family of casinos. It is a leader in the use of highly sophisticated loyalty programs. Harrah's was first to launch a tiered customer loyalty program in the gaming industry, which covers all Caesars Entertainment's brands today. It has four tiers in its loyalty program Gold, Platinum, Diamond, and Seven Stars (which is by invitation only). The program is integrated across nearly all its properties and services, Customers dentify themselves (and earn points) at every touchpoint throughout the company, ranging from its gaming tables estaurants, hotels, to gift shops and shows. The points collected can be used to obtain cash, merchandise, lodging, show tickets, vacations, and events. Likewise, when a customer makes a call to its call cent the staff have detailed real-time information about tailor promotions that cross-sell or up-sell its services customer's preferences and spending h Caesars does not do Manket promotions that target all its customers at the same time, which is, according to Caesari Chairman, President and CEO Gary Loveman. a margin eroding nightmare. Rather, it uses highly targeted promotions that create the right incentives for each of its different customers. It also uses control groups to measure the success of a promotion in dollars and cents, and to further fine-tune its campaigns What is special about Caesars Entertainment is not its loyalty program, but what it does with the information gathered about its customers when they use their cards to earn points. At the backend, the firm has linked all its databases from casino management, hotel reservations, and events to allow it to have a holistic view of each of its customers. It now has detailed data on over tens of millions of customers, and knows each customer's preferences and behaviors. These range from how much they spend on each type of game and their likes in food and drinks, to entertainment and lodging preferences. All this information about the customer is captured in real time. With its data-driven customer relationship managemen (CRM), Caesars is able to transdorm customer interaction into personal and differentiated ones. This enabled Rewards Program, to increase the share-of-wallet of its Harrah's, the first brand in the group to launch the Total Total Rewards card holders to an impressive 50%, up from 34% before its CRM program was implemented Caesars Entertainment uses this data to drive its marketing and on-site customer service. For example, if Diamond card holder on slot machine 278 signals for service, a Caesars associate is able to ask, "The usual, Mr. Jones?" and then track the time it takes for a server to fill the guest's request. In another example, when a customer wins a jackpot, Caesars can tailor a customer-specific reward to celebrate that win. Caesars also knows when customer is approaching his maximum gaming limit on a particular evening and when the customer is likely to stop playing Just before the limit is reached, Caesars can offer him a heavily discounted ticket in real time via text message for a show with available seats. This keeps the customer on the premises (and spending), and makes

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

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Transcribed Image Text:Case Study: Customer Relationship Management Cesars Entertainment (formerly Harrabi Entertainment) is the world's largest gaming company with its number of key brands, including Caesars, Harrah's, Horseshoe, otherwise wasted capacity in its shows and restaurants him feel valued as he gets a very special deal just wh he wanted to stop playing. At the same timurants the staff have detailed real-time information about Likewise, when a customer makes a call to its call center. customer's preferences and spending habits, and can then and the London Clubs family of casinos. It is a leader in the use of highly sophisticated loyalty programs. Harrah's was first to launch a tiered customer loyalty program in the gaming industry, which covers all Caesars Entertainment's brands today. It has four tiers in its loyalty program-Gold, Platinum, Diamond, and Seven Stars (which is by invitation only). The program is integrated across nearly all its properties and services. Customers dentify themselves (and earn points) at every touchpoint throughout the company, ranging from its gaming tables, restaurants, hotels, to gift shops and shows. The points collected can be used to obtain cash, merchandise, lodging, show tickets, vacations, and events. tailor promotions that cross-sell or up-sell its services Caesars does not do blanket promotions that target all its customers at the same time, which is, according to Caesars' Chairman. President, and CEO Gary Loveman a margin eroding nightmare. Rather, it uses highly targeted promotions that create the right incentives for each of its different customers. It also uses control groups to measure the success of a promotion in dollars and cents, and to further fine-tune its campaigns. What is special about Caesars Entertainment is not its loyalty program, but what it does with the information gathered about its customers when they use their cards to earn points. At the backend, the firm has linked all its databases from casino management, hotel reservations, and events to allow it to have a holistic view of each of its customers. It now has detailed data on over tens of millions of customers, and knows each customer's preferences and behaviors. These range from how much they spend on each type of game and their likes in food and drinks, to entertainment and lodging preferences. All this information about the customer is captured in real time. With its data-driven customer relationship management (CRM), Caesars is able to transform customer interactions into personal and differentiated ones. This enabled Harrah's, the first brand in the group to launch the Total Rewards Program, to increase the share-of-wallet of its Total Rewards card holders to an impressive 50%, up from 34% before its CRM programs was implemented. Caesars Entertainment uses this data to drive its marketing and on-site customer service. For example, if a Diamond card holder on slot machine 278 signals for service, a Caesars associate is able to ask, "The usual, Mr. Jones?" and then track the time it takes for a server to fill the guest's request. In another example, when a customer wins a jackpot, Caesars can tailor a customer-specific reward to celebrate that win. Caesars also knows when a customer is approaching his maximum gaming limit on a particular evening and when the customer is likely to stop playing Just before the limit is reached, Caesars can offer him a heavily discounted ticket in real time via text message for a show with available seats. This keeps the customer on the premises (and spending), and makes Questions 1. Why Caesars is popular and discuss some areas they shall focus more on to become more successful. 2. How Caesars is increasing customer loyalty and customer satisfaction, are they following the right? 3. Devise strategies targeted to enhance customer loyalty in Caesars for better business performance. 4. Why some companies do not focus on customer loyalty discuss in detail. 5. If you will be appointed as CEO of Caesars Entertainment what important steps, and why you will be taking to make the company great. 6. How COVID-19 has changed the customers' loyalty and satisfaction, what should be done to bring the situation to new normal?

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