This case study looks at the application of Database Marketing (DBM) for Harrah's. It looks into the objectives of the DBM program and whether it was effective or not for the company.
Rajiv Lal and Patricia Martone Carrolo
Harvard Business Review (502011-PDF-ENG)
October 25, 2001
Case questions answered:
Case study questions answered in the first solution:
- What are the objectives of the various Database Marketing programs, and are they working for Harrah’s Entertainment, Inc.?
- Why is it important to use the “customer worth” in the DBM efforts rather than the observed level of play?
Case study questions answered in the second solution:
- What are the three key aspects of Harrah’s Entertainment, Inc.’s overall strategy that helped them differentiate from competitors?
- Is Harrah’s IT strategy aligned with its business strategy? What compliments do they need to manage to achieve alignment?
- Is their Strategy Sustainable? Explain.
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Harrah's Entertainment, Inc. Case Answers
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1. What are the objectives of the various Database Marketing programs, and are they working for Harrah’s Entertainment, Inc?
The objectives of various Database Marketing (DBM) programs in the case of Harrah are illustrated below:
Objectives of DBM
New Business Program
- It is meant to encourage customers to take repeated trips by predicting customer worth and giving appropriate offers.
Loyalty Program-Frequency
- It helps in identifying customers who gave only a small fraction of their spending to Harrah’s and incentivizing them to visit frequently.
Loyalty Program-Budget
- This program was aimed to make Harrah’s Entertainment, Inc. the first choice while visiting multiple casinos.
Retention Program
- It was targeted at customers who were regular visitors but showed differing patterns in visiting.
Opinion on DBM
NEW BUSINESS PROGRAM
- Each month, Harrah’s Entertainment, Inc.’s witnessed…
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