When its competitors entered new markets with advantages of innovation and lower cost during the 1990s, Harrah’s capped the business growth. However, the company rather chose to make use of an existing advantage – customer loyalty, instead attempting to create new resources. A marketing database contains information about individual customers or potential customers that is relevant to the marketing process. DBM is an important tool to build up customer relationship and increase the loyalty. To strengthen the loyalty competency, requiresd Harrah’s to process sophisticated database analysis of customer profiles, so that the company could market the right customers with right ways, in order to attract repeated visits and retain the loyalty (See Appendix A and B).
Harrah’s used the data base in three programs – new business program, loyalty program, and retention program – to build up the customer relationship and strengthen the loyalty.
Another objective of DBM is to predict consumer behavior and “customer worth”. Customer profiles provide information about customers’ play preferences, betting patterns, how often they visit, how much they play, etc. After retrieving detailed information from every customer, Harrah’s could predict potential customer playing behavior at all of its properties through quantitative models. After the models identified some opportunity-based customer segments for rationalized reinvestment, Harrah’s sent customized incentives to these customers, seeking relationships with them based on their future worth, rather than on their past behaviors.
The Research paper on Case Analysis Pizza Hut A Customer Loyalty Program
Case Analysis: Pizza Hut - A Customer Loyalty Program List of Facts In 1958 the Carney brothers opened their first Pizza Hut restaurant. The company was so successful that by 1977 it had more than 3,200 restaurants. Further it was acquired by PepsiCo. The quantity of restaurants increased to 12,300 and Pizza hut became the worlds largest pizza restaurant chain. In 1986 Pizza Hut implemented the ...
One more important objective of DBM is to track customers over time and conduct some “marketing experiments”, so that Harrah’s can find the right marketing instrument, for the right behavior modification, for the right customer. When Harrah’s issues special promotions, it needs to know which kind of promotion is the most effective at the lowest cost. For example, through marketing experiments, Harrah’s found that a less attractive offer was more profitable, and the return of a portion of customer’s bet was unnecessary. Through the DMB program, Harrah’s could gain a better understanding of customers to increase customer satisfaction and achieve organization’s objective at a profit level.