Group 3 Harrah’s Entertainment Inc Session 5 Muthu 1. Why is Database marketing very important for Harrah’s? What would have happened in case Harrah’s do not use a database? I Muthu 2. Why does Harrah’s use “customer worth” rather than the observed level of play? GDA 3. Customer Relationship Management (CRM) is a core competency of Harrah’s. What type of IT infrastructure did the company use to implement its’ CRM and related strategy in the entire organization? (1/2) Harrah’s first investment toward this goal was the Winner’s Information Network, a national database. The plan was to follow up with both a common card and common analytical tools for making decisions that were based on the data from tracking customers’ play. Harrah had accumulated a huge warehouse of data from customer transactions at the many Harrah’s casinos scattered throughout the United States. Management decided to use it in a different way to customize the experiences in their casinos based on what we know about them. Realizing that this customer information was our key asset, in the mid1990, the company started collecting even more transactional data on customers through new Total Rewards Program. Customers who joined the program agreed to divulge detailed data about their activities. GDA 3. Customer Relationship Management (CRM) is a core competency of Harrah’s. What type of IT infrastructure did the company use to implement its’ CRM and related strategy in the entire organization? (2/2) The data is collected through cards inserted into slot machines and hotel and restaurant cash registers, as well as through handheld devices used at gaming tables. The program has about 40 million members – roughly 80% of our customer base. Company implemented Decision Analytics, which refers to both the practice and the software and technologies that enable it. Company leveraged technology solutions such as dashboards to provide insights to those on the front lines of the business. It enabled company to identify actionable information to adjust processes accordingly. Beyond traditional business intelligence, decision analytics became core to strategy execution. With data on 40 million people available, testing and refining process goes on constantly. And it has enabled Harrah’s to take some counterintuitive steps to increase profitability- not only through tailoring marketing efforts in new ways but also through managing assets differently. SPG 4. Explain why the CRM implemented in Harrahs is an EIT.(1/2) SPG 4. Explain why the CRM implemented in Harrahs is an EIT.(2/2) Swati 5. Explain the process of how Harrahs collected data from different sources and converted it to insights or intelligence. (2/2) Collection of Data: ★ Quantitative models to predict ‘customer worth’ based on level of play rather than on observed play. Theoretical Win from a customer/day = A * B * N * H, ★ Total Gold Cards used to track the following ○ Tracking play preferences ○ Betting patterns ○ where they liked to eat in the casino ○ Lodger/Non-lodger ○ Frequency of visits ○ How much & how long they played. ★ Basic information - birth date & home address, combined with above to form a sophisticated customer profile. Swati 5. Explain the process of how Harrahs collected data from different sources and converted it to insights or intelligence. (1/2) Data modelling for insights/intelligence: ★ I) Predicted worth of the customer used for Segmentation. (Ref. Graphic B aside) and communication Helped rationalization of investments on customer re-acquisition & retention. ★ II) Marketing Experiments- helped identify right marketing instrument for right behaviour modification. ○ Free rooms vs. Extra chips. ○ Elimination of ‘same day cash’ ★ III) Developed customer centric approach to Direct Marketing ○ New Business ○ Loyalty ○ Retention ★ IV) Total Reward program - customer worth used as criteria for earning membership into the program at different levels. Ipsita 6. Are the actions and strategies of Harrah’s sustainable? Justify your answer. (1/2) Ipsita 6. Are the actions and strategies of Harrah’s sustainable? Justify your answer. (2/2) Thank You Project Analysis ANALYSIS IMPLEMENT TESTING SPECIFICATION PROJECT DESIGN DEVELOP Project Analysis MARKET ANALYSIS TECHNICAL ANALYSIS FINANCIAL ANALYSIS ECONOMIC ANALYSIS ECOLOGICAL ANALYSIS Lorem ipsum dolor sit Lorem ipsum dolor sit Lorem ipsum dolor sit Lorem ipsum dolor sit Lorem ipsum dolor sit amet, consectetur amet, consectetur amet, consectetur amet, consectetur amet, consectetur adipiscing elit, sed do adipiscing elit, sed do adipiscing elit, sed do adipiscing elit, sed do adipiscing elit, sed do eiusmod tempor eiusmod tempor eiusmod tempor eiusmod tempor eiusmod tempor incididunt ut labore et incididunt ut labore et incididunt ut labore et incididunt ut labore et incididunt ut labore et dolore magna aliqua. dolore magna aliqua. dolore magna aliqua. dolore magna aliqua. dolore magna aliqua. Project Analysis Tasks Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Management Objectives Customer Objectives Project Objectives Implementatio n Plan Lorem ipsum Lorem ipsum dolor sit amet. dolor sit amet. Schedules Resources Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Project Analysis 25 20 15 10 5 0 LOREM IPSUM LOREM IPSUM LOREM IPSUM 5,980 -1.19 $ 113,200.50 Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do consectetur adipiscing elit, sed do consectetur adipiscing elit, sed do eiusmod tempor. eiusmod tempor. eiusmod tempor. Project Analysis Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed consectetur adipiscing elit, sed consectetur adipiscing elit, sed do eiusmod tempor incididunt. do eiusmod tempor incididunt. do eiusmod tempor incididunt. Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed consectetur adipiscing elit, sed consectetur adipiscing elit, sed do eiusmod tempor incididunt. do eiusmod tempor incididunt. do eiusmod tempor incididunt. Project Analysis 5,980,650.32 “Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis suscipit in tellus ac bibendum. Sed congue lacus vitae tellus finibus, eu faucibus nisi ullamcorper. Quisque volutpat leo at arcu placerat, quis pellentesque tellus bibendum. Proin et luctus nisl, ut viverra eros. Suspendisse pharetra mattis purus eu.” 18 Project Analysis EXTERNAL INTERNAL POSITIVE NEGATIVE STRENGTH WEAKNESS › Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt. › Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt. › Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt. › Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt. OPPORTUNITY THREAT › Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt. › Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt. › Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt. › Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt. Project Analysis Project Risk Analysis 18 Lorem ipsum dolor sit amet, consectetur adipiscing elit. 16 14 Duis suscipit in tellus ac bibendum. Sed congue lacus vitae tellus finibus, eu faucibus nisi ullamcorper. 12 10 8 Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis suscipit in tellus ac bibendum. Sed congue lacus vitae tellus finibus, eu faucibus nisi ullamcorper. 6 4 2 Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis suscipit in tellus ac bibendum. Sed congue lacus 0 vitae tellus finibus, eu faucibus nisi ullamcorper. Editing Data Slides If you would like to modify the data in the graphs and chart included in this template, simply right click on the diagram and select Edit Data in Excel. Excel will then open and you can edit the relevant data.
