Case Analysis Of Harrah's Total Gold Program

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Harrah’s Total Gold programme allowed customers to earn rewards as they played; this was modelled after the airline industry’s frequent-flier programme. The Total Gold loyalty programme had no marked differentiation from that of Harrah’s competitors and led to the implementation of its successor, the Total Rewards programme.
Harrah’s mined the data gathered through Total Rewards in an effort to cultivate deep customer loyalty and assert their competitive advantage. Total Rewards relied on “a 300 gigabyte” transactional database that recorded customer activity at various points of sale. Database managers fed information from the Total Rewards system into Harrah’s enterprise data warehouse, which contained millions
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Through their data mining and analytical efforts, Harrah’s management team recognised that there was a link between loyalty and exceptional customer service and hence developed strategies to match that. They allowed the data they had gathered to lead in the development of the brand’s marketing and general operations strategies. It is agreed that this was a remarkable strategy.
It is evident that Harrah’s data was well organised, frequently cleaned and accurate, as the case presents instances when the company was able to easily slice and dice the data to drive its marketing strategy. This illustrated that Harrah’s had good data governance and total quality management practices in place to constantly improve the reliability of their analytics and resultant strategies.
The company’s multi-pronged approach which involved the use of data analytics to gather information supported by additional research and experimentation, rather than relying on instinctive decision making is also commendable
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The management team through the information provided in the case failed to fully capitalise on this as their primary focus was on customer retention. So, the new customer who came to Harrah’s may have received the least attention and did not return, possibly converted their loyalty to its competitors. What Harrah’s could have done was to gather industry-wide data (possibly buying it), not just transactional data from its slot machines or from their database, and developed strategies to convert those visitors to loyal customers and work on retaining them

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