Slide 1 : Harrah’s CRM Strategy Presented By:
Kshitiz Goel
Priyanka Pimparkar
Ritika Jangid
Roshan Rangari
Sandip Singh
Slide 2 : Company Info
Why CRM?
CRM Strategy
Analysis
Benefits
Co-relation Agenda
Company’s Overview : World’s largest provider of branded casino entertainment -
4 million square feet of casino space
40,000 hotel rooms
100,000 employees
40 million Total Rewards members
Harrah’s Entertainment Inc., an entertainment company had business interests in casinos, food & beverages and hotel rooms.
Harrah’s Entertainment -- data warehousing supported a successful shift to a CRM oriented corporate strategy. Winner of the 2000 TDWI Leadership Award
Operates 21 casinos across the country Company’s Overview
Harrah’s Entertainment : Harrah’s Entertainment
Why CRM? : Why CRM? Change in gaming laws, started rivalry, instead of opening lavish properties, Harrah initiated CRM.
Leveraging IT. Harrah’s decided to compete using a brand strategy supported by information technology
Needed to know their customers exceptionally well.
The heart of Harrah’s CRM was customer loyalty program called total rewards.
A happy customer will increase spending by 24%/year
An unhappy customer decreases spending by 10%
Increased cross-market play from 13% in 1997 to 23% in 2000
Harrah’s CRM Strategy : Harrah’s CRM Strategy Customer loyalty program.
Decision Science based tools.
Hotel Revenue Management.
Personal Contact Management.
Customer Loyalty Program : Customer Loyalty Program Total Gold program customers were given electronic card
The customer information colleted using this card is stored in central repository.
This information also used to reward customers.
some weaknesses in Total gold program that are:-
There was nothing different about harrah’s rewards as compared to competitors.
No consistency in rewards earned by customers
Earned different rewards at different properties.
different approach i.e. tiered approach where customers were divided into tiers:
Gold,
Platinum &
Diamond.
Another objective of Total Reward program was cross-market.
Harrah’s Data Analysis : Harrah’s Data Analysis 1997 a loyalty program was initiated
Data is gathered at all points of sale
1998 they started mining and analyzing the data the found:
A Harrah’s customer only spent 36% of gaming dollars with them
26% of their customers produced 82% of revenue
“Best” customers were NOT the high rollers
They are slot playing middle aged folks, retired teachers, bankers and doctors with time and discretionary income
They often did not stay at the hotel, but visited in the evening to game
The reason that they visited was the anticipation and excitement
Decision Science Tools : Decision Science Tools Harrah’s used COGNOS Impromtu to access data warehouse & run predefined reports & execute queries.
A tool SAS used by Harrah’s carrying out market segmentation.
primary purpose was to Estimate customer’s worth over period of time.
Determine Customer’s Preferences
Predict the services and rewards for customers
customize offering to its customers.
Hotel Revenue Management : Hotel Revenue Management Offering customer rooms at attractive tariffs.
The strategy was used for optimizing the sum of gaming and room revenues.
System made use of current & historical demand in order to come out with demand forecast.
Personal Contact Management
25% revenue came from just 5% of its customer base.
Harrah called this segment as ‘VIP Customer’ and this customers were assigned personal hosts.
A player contact system (PCS) was implemented to provide information about customers to the host. Personal Contact Management
Slide 11 : Historical Demand Current Demand Forecast Demand Revenue Management
Available Inventory
Forecasted Demand
Customer Worth Rate Availability Historical Demand Customer Profitability
Personal Contact Management : Personal Contact Management 25% revenue came from just 5% of its customer base.
Harrah called this segment as ‘VIP Customer’ and this customers were assigned personal hosts.
A player contact system (PCS) was implemented to provide information about customers to the host.
System also Prioritise host task and track their performance.
Slide 13 :
Using IT for CRM : Using IT for CRM Use of IT was central to success of Harrah’s CRM initiatives.
Massive dataware house & BI formed backbone of Harrah’s CRM strategy.
In 1994, harrah’s started developing a system called Winner Information network (WINet).
UNIX gateway was used to consolidate all data in single repository known as pattern database.
Employees across various properties could get consistent picture of each customer.
In June 2001, Harrah’s lauched eTotal Reward program.
WINet sources data from the casino, hotel, and event systems
The patron data base serves as an operational data store
The marketing workbench serves as the data warehouse
Benefits : Benefits
CPM (Cost per thousand) : CPM (Cost per thousand)
Slide 17 :
Threats : Internet gaming generates $1 billion in sales annually; 4.5 million people from US gamble on the Internet.
Most of the industry’s growth comes from Native American casinos.
Too many brand names.
Large number of casinos in hurricane-prone areas.
Web site is not as inviting as competitors.
Lack of theme-based properties. Threats
Questions : Questions