These tools also helped Harrahs acquire important information like 80 per cent

These tools also helped harrahs acquire important

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individual customer over a period of time. These tools also helped Harrah’s acquire important information like; 80 per cent of its casino revenues came from customers who spent only between $100 and $500 per visit and that an ‘ideal player’ would be a woman, 62 years of age, who lived within 30 minutes of a casino. Such customers would have spare time, disposable cash and easy access to a casino. Decision science tools also helped Harrah’s in segmenting the entire customer base. Customers broadly fell under four categories – Prospect, Non-Loyal, Loyal and Attritor. The Prospect segment mainly consisted of non-gamers or gamers who were loyal to another casino. Harrah’s marketing treatment to this segment lowered their switching cost, thereby inciting them to come to Harrah’s. The marketing treatment for the Non-Loyal segment encouraged customers to consolidate their play at Harrah’s. The Loyal segment was encouraged to maintain loyalty and the Attritor segment was given a marketing treatment that would re-instil loyalty. The differential marketing treatment meted out to each segment was aimed at strengthening customer loyalty. 13 Relationship Marketing, 27 th Annual Symposium on Racing, , December 07, 2002. 14 A touch-point is a point of contact between the organization and the customer. Call centers and websites are examples of touch-points. 15 Daniel McGinn and Steve Friess, “From Harvard to Las Vegas,” Newsweek, April 18, 2005. 6
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Decision science tools that acted upon the data warehouse were used by analysts in Harrah’s marketing department to customize offerings to its customers. Harrah’s analysts used the COGNOS Impromptu 16 to access the data warehouse and run pre-defined reports and execute queries. For instance, Harrah’s could use the COGNOS tool to obtain a list of customers who reside close to one of Harrah’s properties. It was the COGNOS tool, which made Harrah’s realize that customers liked to move from property to property instead of being loyal to a single property. This led Harrah’s to bring in the element of encouraging cross-market play in the Total Rewards program. Using the tool, Harrah’s was also able to link staff reports to sales receipts which helped in identifying its best staff. The company was also able to anticipate seasonal customer behaviour. Commenting on the benefits of COGNOS, Tracy Austin, Vice President of IT Development at Harrah’s said, “Using COGNOS in our Total Rewards card program, we can track each player’s gaming patterns and preferences across our 21 locations in the US. By uncovering trends in the data, COGNOS BI allows us to determine the destination, dining, and gaming choices of our customers. Using this insight, we are able to build complimentary and special offer programs that are customized to the individual customers.” 17 SAS was instrumental in carrying out market segmentation, profiling and predictive modelling.
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