GROUP

A J A Y K A L E
A B H I J E E T
B H A V E S H
S H U B H A M
V I J A Y

21 17 Harrah Cities
Casinos William Founder
2.42 Milion USD R e v e n u
e
Database Marketing

New Business Program

Loyalty Program

Retention Program

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 Objectives of DBM

New Business Program

O1 To encourage customers to take repeated trips
by predicting customer worth and giving
appropriate offers

Loyalty Program-Frequency
Identifying customers who gave only small fraction
of their spending to Harrah’s and incentivizing them
to visit frequently
O2
O3
Loyalty Program- Budget
This program was aimed to make Harrah’s first
choice while visiting multiple casinos

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O4
Retention Program
TI C
It was targeted for customers who were regular
visitors but showed differing patterns in visiting
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 Opinion on DBM
NEW BUSSINESS PROGRAM

Loyalty- Frequency upside

• Out of test group of • There was a significant

Loyalty- Budget upside

• Each month
953 customers, earlier increase in trips per

RETENTIO
witnessed newvintage
customers signing up 30 customers were guest from 1.6 to 2.5
after application of visiting frequently from June 1999 to
this program which increased to March 2000.
• However, the offers

N
• The rate of customers 150 after this program
revisiting increased • Theoretical win from were slightly more
from 31 % in April ‘99 customers wen up, costlier than direct
to 50% in Jan 2000 making program mail piece($15
effective compared to $10)
• The number of guests were declining and reached all time low of 10 in Dec 1998.
• After application of retention program and provision of $40 instead of $30, consistent increase in customers was observed.

Based on above mentioned facts, we come to a conclusion that the programs seems to
work in favor of Harrah’s. The four divisions of Database Marketing are well targeted and
has achieved satisfactory results in the year 1999.
Importance
Irtc off using
s ‘Customer‘str Worth’ rt ’
i
1. It helps in identifying Avid Gamblers – the customers whom Harrah’s must target and focus
upon extensively
2. The quantitative models of determining customer worth accurately predicts the theoretical
wins for the house per customer and hence helps in devising offers for different segments
of customers
3. This Proactive approach compared to observed level of play provides competitive
advantage to Harrah’s over it’s competitors who are focusing on making their properties
attractive
4. Customer Worth helps in building Customer relations and making loyal customers
5. Customer worth approach helps a casino to move from operations driven I company
INFO (using
G RAPHI I
observed level of play) to a Marketing driven company EDUCATIONTI C
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THANK YOU
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