Harrahs used SAS on its data warehouse in order to segment its entire customer

Harrahs used sas on its data warehouse in order to

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Harrah’s used SAS on its data warehouse in order to segment its entire customer base in 90 segments based on demographics. The tool also helped Harrah’s to develop a detailed profile for each customer, based on the gaming habits, which would allow it to study how profitable the customer was to the company. Predictive analysis was then carried out by SAS on these profiles in order to identify those customers who were most likely to respond to Harrah’s campaigns. Harrah’s then targeted these customers with specific campaigns, tailored to each individual customer, in order to steal him/her away from the competitor and increase his loyalty towards Harrah’s. SAS allowed Harrah’s to be more precise and effective in its communication with customers, which in turn increased the profitability of its campaigns. Commenting on the benefits of SAS, David Norton (Norton), Senior Vice President, Relationship Marketing said, “Our profitability around marketing interventions is much higher because of the precision of understanding that SAS provides.” 18 By using SAS, Harrah’s was able to group data into clusters and seek trends. HOTEL REVENUE MANAGEMENT Harrah’s Hotel Revenue Management System (HRMS) was aimed at offering customers rooms at attractive tariffs. Apart from achieving higher room occupancy rates, the revenue management initiative allowed Harrah’s to maximize profit on each room. In order to achieve this, trade-offs were made between gaming revenues and room tariffs. The gaming revenue from a customer was tracked from the Loyalty program. For example, a customer who had a history of wagering $4,000 a night at Harrah’s casinos, may be offered a complimentary room at one of the Harrah’s properties but another customer unknown to Harrah’s may be turned down, even if he/she was willing to spend $400 a night for that room. The aim was to optimise the sum of gaming and room revenues. Norton explained, “It’s not about filling each room. It’s about maximizing out the profit from each room.” 19 The Hotel Revenue Management System (HRMS) determined the availability and the room rates across Harrah’s properties (Refer Exhibit I for a diagrammatic representation of HRMS). The system made use of current and historical demand in order to come out with a demand forecast for a particular time of the year. Customer profitability and competitive conditions were then taken into consideration by the system in order to work out the room rates. 16 Developed by Cognos Inc., the Impromptu is a database query and reporting tool that distributes reports over the web. 17 “Harrah’s Entertainment Hits the Jackpot with Cognos Business Intelligence,” News Releases, . 18 “Harrah’s Hits Customer Loyalty Jackpot,” .
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