1) Describe and comment on CRM at Harrahs?

o Change in gaming laws , started rivalry ,instead of opening lavish properties, Harrah initiated CRM.
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Leveraging IT. Harrahs decided to compete using a brand strategy supported by information technology. Needed to know their customers exceptionally well. The heart of Harrahs CRM was customer loyalty program called total reward. A happy customer will increase spending by 24% year. An unhappy customer decreases spending by 10%

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CRM INITIATIVES Customer loyalty program Decision science based tools Hotel revenue management Personal contact management CUSTOMER LOYALTY PROGRAM Total Gold program customers were given electronic card. The customer information collected 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 Harrahs 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

2) What are the objectives of various database marketing program and are they working? o Collect customer data from various source systems. o Integrate the data around the customer. o Identify market segments and customer profiles o Create appealing offers for customers to visit Harrahs casinos, and make the data available for operational and other analytical purposes.

3) Is Harrahs strategy sustainable? Harrahs business strategy and the use of information technology are unique in the gaming industry and are more like the approaches taken in retail and financial services. The results are impressive and other casinos are copying some of Harrahs more discernable methods. Harrahs stock price has risen in response to a doubling of the companys earnings over the past year. The creation of the Harrahs brand, Total Rewards, and cross marketing have resulted in a 72 percent internal rate of return on investments in information technology. The effectiveness of Harrahs closed loop marketing approach can be seen by how it has affected same-store sales (i.e., gambling revenues at a single existing casino). In 1999, Harrahs experienced truly significant same-store sales revenue growth of 14 percent, which corresponds to an increase of $242 million over 1998. Harrahs grew revenues faster than their competition almost everywhere they do business in some cases doubling and even tripling the market average of same-store sales. Same-store sales growth is a manifestation of increased customer loyalty, which is driven by three key contributors to business value: (1) frequency of visits, (2) profitability per visit, and (3) cross-market play. Consider some specific examples of improvements in these areas.

The capabilities that Harrahs has developed form the basis for a sustainable competitive advantage and are the foundation for complementary segues into future growth using additional technologies and decision-making science. Future directions include:

Harrahs will introduce a revenue management system that insures that customers are offered rooms at the right rates. This system will help Harrahs optimize the returns from its scarce room inventory. The price of the room will reflect the current and historical demand for rooms at that time of year and the customers expected theoretical value from gambling at Harrahs casinos. Harrahs will extend its systems to eCRM, through advanced Internet access, networking their reach to current customers as well as acquiring new ones. All information that is currently available through non-Internet channels will be available through the Internet relationship management channel. Harrahs will also enhance its data warehouse to provide one source for enterprise-wide information about customers, product sales, financial results, and labor costs/employees. This single repository of data will allow Harrahs to analyze and understand its customers, products, and customer service in new ways. For example, Harrahs will be able to analyze the slot machine play patterns of its most avid and profitable customers and to use this information in deciding where to place particular slot machines.