What are the objectives of various Database Marketing Programs and are they working
The objectives of the various Database marketing Programs is to collect information related to Customer such as betting patterns, to formulate strategies and predict customer worth to increase the effectiveness and efficiency of the company’s Marketing Dollars.
Harrah’s Entertainment Essay Example
Yes, The programs are effective as they increased the Net Income of the company from $99388 in 1997 to $208,470 in 1999.With the help of their data base programs they were able to determine customer preferences and predict the rewards and services for them. This resulted in increase in new customers and retention of the old customers.
2.Why it is important to use “The customer worth” in the Database Marketing Program efforts rather than observed level of play.
The prediction of Customer worth with the help of quantitative models helped them to build relationships with Customers based on their future worth rather than their past behaviors. For example, with the help of observed level of play, they were able to predict the customer’s behavior in their Casino only.
Based on this observation they could not infer how worthy the customer was to their Casino. With the help of prediction they were able to monitor the Customer’s behavior in other Casinos too. This helped them formulate strategies to acquire customer’s from their competitors and retain their old customers by following their betting patterns.
3.How does Harrah’s integrate various elements of its marketing strategy to deliver more than the results of Data Base Marketing ? Can Harrah’s Strategy be replicated?
By integrating various elements of its marketing strategy Harrah’s was able to track its customers over time. This helped them discover the right marketing instrument, for the right behavior modification, for the right customer.
Thus they were able to customize incentives paid to their customers. With the help of this they were also able to link all their properties together and create a differentiation in Brand and Service. Yes, Harrah’s strategy can be replicated so they should constantly improvise on their loyalty programs as they are key source of their competitive edge over their competitors.