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Decision Analytics Boosts Harrah's

Harrah's Entertainment wanted to analyze how marketing efforts impacted performance, and how to maintain competitive advantages in attracting new customers, loyal customers, and customers showing attrition. Decision analytics leverages data and modeling to link operations to strategic goals. For Harrah's, it resulted in 50% revenue growth, 100% profit and stock price increases, and improved overall performance. Harrah's collected customer transaction data to build models predicting "Customer Worth," amount expected to win. This informed marketing strategies to better retain customers.

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Sajal Gupta
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49 views6 pages

Decision Analytics Boosts Harrah's

Harrah's Entertainment wanted to analyze how marketing efforts impacted performance, and how to maintain competitive advantages in attracting new customers, loyal customers, and customers showing attrition. Decision analytics leverages data and modeling to link operations to strategic goals. For Harrah's, it resulted in 50% revenue growth, 100% profit and stock price increases, and improved overall performance. Harrah's collected customer transaction data to build models predicting "Customer Worth," amount expected to win. This informed marketing strategies to better retain customers.

Uploaded by

Sajal Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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PROBLEM STATEMENT

 Analyse contribution of marketing efforts on overall performance of Harrah’s


Entertainment
 Decide whether and how it can maintain the competitive advantage in
 attracting new customers
 strengthening relationships with loyal customers and
 reinvigorating relationships with customers who had shown signs of attrition
WHAT IS DECISION ANALYTICS ?

Decision Analytics is the discipline of leveraging analytics and performance modelling to


Fact
create a tight link between key operational processes and desired strategic outcomes.

Based
Guesswork Decisio
n
Making
IMPACT OF DECISION ANALYTICS ON HARRAH’S
PERFORMANCE

50%
Revenue
100% Growth
100%
growth
growth
in stock
in Profits
price
Overall
Performan
ce
HOW HARRAH’S ENTERTAINMENT LEVERAGED DECISION
ANALYTICS?
Datab
ase Transaction
Total Gold Decision

CR
Marke al Data
Program Analytics
ting (collected)
Higher
Total
Gold
Progr
M ROMI
(Return on
Marketing
Marketing
Strategies
am Inv.)

The transactional data collected from Total Gold Program is used to


build quantitative models that accurately predicted “Customer
Worth” – the theoretical amount the house expects to win from a
customer in long run.
TOTAL REWARDS
ISSUE How they did?
• Harrah’s Entertainment was able to • Harrah’s designed an integrated IT
capture only a limited share of the network that linked all the properties
customers gaming budget. This was together.
primarily due to • The network enabled customer level
• Low frequency of visits information to be shared real time across
various casinos
• Built competitive advantage by patenting
the technology

What they did? What was the desired


Launched total rewards with a tiered
outcome ?
customer loyalty program which can be
Enable customers to earn and redeem
earned an redeemed across any Harrah’s
rewards seamlessly at any of Harrah’s
property.
properties across the country. This would
• Total Gold (no minimum customer worth)
help in capturing the revenue lost due loyal
• Total Platinum ($1500 customer worth
customers visiting destination markets and
SWOT ANALYSIS

S W
• Total Rewards
• Patented integrated IT network • High capital costs for building “must
• Customer Service see
• Biggest Casino Brand in US
• Presence in prominent gambling
Strengths locations
Weakness

• Chasing potential markets – Asian • Increasing Competition

O T
and Middle Eastern markets have a • Tough business environment
high potential growth • Decreasing profitability
• IT integration across industries
• Take government projects
Opportunity Threats

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