Routing customers when a customer calls one of Harrahs call centres heshe will

Routing customers when a customer calls one of

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- Routing customers – when a customer calls one of Harrah’s call centres, he/she will be attended according to the status acquired i.e. high spenders will be attended first if the call centres executives are busy. As Gary Loveman explains, “Decision-science-based analytic tools allow us to better understand our customers so that we can offer them the best reasons to visit and play at our properties.” -------------------------------------------------------------------------------------------------------------------- 5 CRM Strategy: Make Every Customer More Profitable;
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Harrah’s CRM Strategy Benefits gained by the company from using such tools Decision science tools help the company to estimate individual customer’s theoretical value. Harrah’s can predict with accuracy the amount a customer will spend in a visit, during a year or even over the course of a lifetime based on few initial transactions. This further allows Harrah’s to treat their millions of regular customers differently depending on their value to the company. Using the DSS tools effectively helped Harrah’s improve productivity levels and customer retention thus increasing revenues and cutting costs. High customer retention led to savings in acquisition costs for customers who would otherwise have been lost to competitors. Appropriate segmentation, precise targeting and thorough understanding of customer lifetime value helped to achieve the high levels of customer retention. An increase in retention of just 1 percent is worth $ 2 million in net profit annually to Harrah’s. The DSS tools also helped Harrah’s in cost savings by helping to sort customers such that incentives and promotions are not wasted on customers who do not deserve them or will not use them. Because these tools can consistently identify which customers will be most valuable over the long term, data mining is also useful to the company for determining when to avoid offering incentives to customers who are not lucrative. Harrah's estimates that it has saved some $20 million by withdrawing incentives from customers who are not likely to return. Harrah's creative marketing, and operational excellence, using DST output, have resulted in many benefits, such as - a brand identity for Harrah's; consistent guest rewards and recognition across properties; a significant increase in the response rate to offers to customers; and great customer loyalty. Without DST Harrah's would have to send blanket marketing materials to everyone on its mailing list, which would lower the profitability of its campaigns significantly. Instead, the company can divide customers into more than 80 different segments for each marketing campaign and target only those who are most likely to respond. According to David Norton, nearly 50 percent of Harrah's revenue is driven by marketing, and the precision of DST helps to ensure the effectiveness of those efforts. “Our profitability around marketing interventions is much higher because of the precision of understanding that SAS provides,” he explains.
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  • Fall '15
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