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    Harrah'S Crm-Capitalising On Customer Lifetime Value

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    Suvashis Mahapatra
    Harrah's implemented a CRM strategy to capitalize on customer lifetime value. They used customer data collected from a loyalty program card to segment customers and determine spending habits. Harrah's developed a tiered reward program and used data to personalize the customer experience. Their strategy helped increase annual customer spending and cross-market play. However, threats included internet gaming and increased competition from other casino brands.

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    Harrah'S Crm-Capitalising On Customer Lifetime Value

    Uploaded by

    Suvashis Mahapatra
    74 views20 pages
    Harrah's implemented a CRM strategy to capitalize on customer lifetime value. They used customer data collected from a loyalty program card to segment customers and determine spending habits. Harrah's developed a tiered reward program and used data to personalize the customer experience. Their strategy helped increase annual customer spending and cross-market play. However, threats included internet gaming and increased competition from other casino brands.

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    Harrah's crm

    Original Title

    Crm

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    Harrah's implemented a CRM strategy to capitalize on customer lifetime value. They used customer data collected from a loyalty program card to segment customers and determine spending habits. Harrah's developed a tiered reward program and used data to personalize the customer experience. Their strategy helped increase annual customer spending and cross-market play. However, threats included internet gaming and increased competition from other casino brands.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    74 views20 pages

    Harrah'S Crm-Capitalising On Customer Lifetime Value

    Uploaded by

    Suvashis Mahapatra
    Harrah's implemented a CRM strategy to capitalize on customer lifetime value. They used customer data collected from a loyalty program card to segment customers and determine spending habits. Harrah's developed a tiered reward program and used data to personalize the customer experience. Their strategy helped increase annual customer spending and cross-market play. However, threats included internet gaming and increased competition from other casino brands.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 20

    HARRAH’S CRM-CAPITALISING ON

    CUSTOMER LIFETIME VALUE

    Presented by ;

    SIBASISH PATNAIK (10DR001)


    AVISHEK KUMAR (10DR007)
    SUVASHIS MAHAPATRA(10DR009)
    .

    • .
    Solve tomorrow's problems today – by
    introducing Life Time Value

    .
    Customer lifetime value - Definition

     
    This is a long-term marketing principle which
    looks at the value to the company of a
    customer over the whole time that they relate
    with the company. This includes knowing that
    although a customer may temporarily use
    another company's products/services, they can
    return.
    Calculation in customer retention cases

    • Churn rate
    • Discount rate
    • Retention cost
    • Period
    One of the ways to calculate CLV

    m r
    1+I-r
    • Where,
    • m is the average gross margin
    i is the discount rate
    r is the customer retention rate
    • In using this simplified formula we to pick one average profit
    margin value and one average customer retention rate.
    • We can calculate m for each segment as
    • m = revenue - product or service costs - cost of servicing
    (includes acquisition and promotion costs)
    Objective

    • Company info
    • Why CRM?
    • CRM strategy
    • Analysis
    • Threats
    Company Information

    • In 1937 it was bingo parlour (A game in which


    numbered balls are drawn at random and players
    cover the corresponding numbers on their cards)
    • Harrah’s entertainment Inc. an entertainment
    company had business interests in casino, food &
    beverage &hotel rooms.(1950 become No. 1 player
    in casino business.)
    .

    • In 1962 began foray into hotel business by opening


    a400 rooms hotel.
    • Company won the 2000 TDIE (related to casino
    award) leadership award based is CRM orientation.
    • Operate in13 state with 26 Casinos chain.
    Harrah’s Entertainment

    • KENO
    • SLOT
    • PACHINKO
    • RANDAM NUMBER GENERATOR
    • ROULETTE
    • KENO or BINGO
    Why CRM in Harrah’s ?

    • Change in gaming laws, started rivalry, instead of


    opening lavish properties.
    • Leveraging IT. Harrah’s decided to compete using
    a brand strategy supported by information
    technology.
    • Need to know their customer expectation well.
    • To provide total reward to loyal customer through
    loyalty program.
    Because……

    • A happy customer will increasing spending by


    24% / year.
    • An unhappy customer decreased sending by 10%.
    • Increasing cross-market play from 13% in 1997 to
    23% in 2ooo
    Technology

    • A tool SAS & COGNOS software used by Harrah's


    carrying out for decision making.
    • Benefit are:-
     Understanding the individual customers
    spending habits and personal preferences .
     Products & Services demanded by the
    customer.
     Easy and quick sharing of data & information
    (winner information network)
    Cont…….

    Attributes
    • Age,
    • Distance of travel to casino,
    • Game played by the customer
    • Times of bets & value of the bets,
    • They are segmented as :-
    Prospected, Non – loyal, loyal & Attritor.
    Harrah’s CRM Strategy

    • Customer loyalty program.


    • Hotel revenue management.
    • Personal contact management.
    • Multi-tier reward programme.
    Customer loyalty Program

    • Total gold program customer were given electronic


    card.
    • The customer information collated using this
    card is stored in central repository.
    • This information used to reward customer.
    • Different approach i.e. tiered approach where
    customer were divided into tiers:
    gold, platinum $ diamond .
    Cont……

    • Some weakness in total gold program that are:-


     There was no difference between the reward
    compare to the competitor.
     No consistency in reward earned by the
    customer.
    Hotel Revenue Management

    • Offering customer room at attractive rate.


    • The strategy was used for optimizing the sum of
    gaming and room revenue.
    • System made use of current & historical demand
    in order to come out with demand forecast.
    Personal contact management

    • 25%revenu came from just5% of its customer


    base.
    • Harrah called this segment as VIP customer and
    this customer assigned personal hosts.
    • A player contacts system was implemented to
    provide information about customer to the host.
    • Magnetics card are being provided to identify
    individual customer.
    Threats

    • Internet gaming generates $1 billion in sales


    annually ; 4.5 billion from us casino .
    • Competitors (too many brand name)

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