Memo
To:
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Senior Management
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From:
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Allison DeLorenzo
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Date:
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April 18, 2014
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Re:
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Harrah's High Payoff for Customer Information Reflection
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This
memo is prepared in response to the presentation held on Tuesday, April 15, 2014 with the consultant
team, Four Experts, regarding how Harrah's Entertainment Inc. can continue its superior positioning within the gaming/casino industry. Harrah's has developed a technologically advanced patron database, customer rewards program and closed-loop marketing. It is estimated that Harrah's has two years before competitor casinos advance their customer technologies to match Harrah's. Action is needed now to maintain the market leader position. As stated in the presentation, there are two specific courses of action Harrah's can undertake: (1) continue to improve and enhance the already successful IT and marketing programs or (2) invest, improve and expand the brick and mortar establishments.
After analyzing the decision criteria stemming from Harrah's new business strategy, it is in the company's best interest to continue to improve and enhance the IT and marketing programs. Investment in properties as seen by competitor casinos (example adding extravagant roller coasters and other attractions) is frivolous. Due to slim profit margins, Harrah's needs to be cautious with spending and investing on items that do not produce significant returns. However, Harrah's should maintain properties to the highest standards and continuing offering superior service at casinos.
The consultants discussed insightful ways for Harrah's to enhance the customer experience which aligns strategically with the Total Rewards program and closed-loop marketing already implemented. For example, the suggestion was to leverage the internet by offering online booking for the hotels. Harrah's competitors and other hotel chains offer online hotel booking to customers. Harrah's should enable this feature to provide fast convenient way for customers to plan their trips. In addition, since Harrah's is revamping its website, the company can use this time to experiment with advertising offers and measure customer responsiveness. This also gives the company the opportunity to request customer email addresses which can be used for the rewards program and other marketing techniques.
Since Harrah's is a market leader in their decision to create one brand image, integrate all customer databases throughout the 21 casinos and offer a superior customer rewards program, the company should continue to expand on the already successful strategy. The new business strategy aided by the IT solutions resulted in a 62% internal rate of return on investments in information technology. In addition, Harrah's had 14% revenue growth in same store sales and increased frequency of visits by customers. It is in Harrah's best interest to grow the proven capable patron database and customer rewards program.
After analyzing the decision criteria stemming from Harrah's new business strategy, it is in the company's best interest to continue to improve and enhance the IT and marketing programs. Investment in properties as seen by competitor casinos (example adding extravagant roller coasters and other attractions) is frivolous. Due to slim profit margins, Harrah's needs to be cautious with spending and investing on items that do not produce significant returns. However, Harrah's should maintain properties to the highest standards and continuing offering superior service at casinos.
The consultants discussed insightful ways for Harrah's to enhance the customer experience which aligns strategically with the Total Rewards program and closed-loop marketing already implemented. For example, the suggestion was to leverage the internet by offering online booking for the hotels. Harrah's competitors and other hotel chains offer online hotel booking to customers. Harrah's should enable this feature to provide fast convenient way for customers to plan their trips. In addition, since Harrah's is revamping its website, the company can use this time to experiment with advertising offers and measure customer responsiveness. This also gives the company the opportunity to request customer email addresses which can be used for the rewards program and other marketing techniques.
Since Harrah's is a market leader in their decision to create one brand image, integrate all customer databases throughout the 21 casinos and offer a superior customer rewards program, the company should continue to expand on the already successful strategy. The new business strategy aided by the IT solutions resulted in a 62% internal rate of return on investments in information technology. In addition, Harrah's had 14% revenue growth in same store sales and increased frequency of visits by customers. It is in Harrah's best interest to grow the proven capable patron database and customer rewards program.
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