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By hitesh garg - Posted in: Cheery Side
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Sunday 17 may 2009 7 17 /05 /May /2009 14:26
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Most Casino companies in Las Vegas strongly depended on better facilities’, luring façade. But Harrah’s though something different from other companies operating there. It did not have billion dollar facilities like other companies. It even did not beckon the people who passed by. Unlike other casino companies they even did not invest much of their money bank in constructing costly mustee casino. Instead of attracting customer with facilities they provided better services to them. They knew that competing in this competitive condition with billion dollar facilities wouldn’t be a profitable. They even knew main source of revenue comes from Casino Table. They invested in development of the intellectual and technological capabilities for collecting the customer information. They tried to build long lasting relationship with the customer that would get their customers with them for the longer term.

At Harrah’s they heavily depended on their data collection. They believed on forming strategies based on their database Information collected by them about their customers, unlike others who first formed their strategies and then collected the customer information. They believe that to engage in such data driven marketing strategies, they need to collect more and more and specific information about customer preference and analyze the data to infer information about the customer. They deeply run their database to explore their customers’ preferences, their views, how much worth do they bring for the company. They deeply mined their database to develop marketing strategies and to create customer loyalty programs.  From their data warehouse they deferred that 26% of their customers accounted for more than 80% of their revenue.  They found exactly who their customers are.  They were able to find the potential customers and each one’s worth.  With their vast amount of data, technology and analytics tools they were able to predict how much each of their potential customers is going to spend in longer term. They went against the fundamentals of marketing strategies and segregated their customers in three tiers and provided the service of the worth they are. It eventually encouraged other customer to spend more to earn more and attain better service level.

From their transactional database Harrah’s were even able to find out the pattern of why customer chose to play at certain machines. This knowledge allowed them to configure the Casino floor with a mix of slot machines that benefited both their customer and company. At Harrah’s to form even good relationship with customers they linked their employee’s rewards to customers’ satisfaction. The employees were trained to deliver excellent service to their customers. The more the customer satisfied the more the employees stood to make money. Many competitors adopted Harrah’s strategies but could not keep their face away from luring customers with their costly facilities. Harrah’s relied solely on their customer information -cum - marketing strategies and differentiated themselves from their competitor.

One thing Harrah’s proves that in today’s competitive scenario evey company need to focus on their customers.  World’s leading Casino company “Harrah’s” data driven market strategy helped them to know their customer well. Company first found what type of rewards would actually customer prefer and then decide to offer it. Collecting detailed data about your customer give us a competitive advantage over us competitors. It helps us to know our customer better and create personal relationship with them. 

By hitesh garg - Posted in: students's hangout
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