Instructions Caesar’s Entertainment How can you optimize your customer loyalty a

Instructions
Caesar’s Entertainment
How can you optimize your customer loyalty and retention efforts? We look at the amazing efforts of Caesar’s. Former Harvard marketing professor Gary Loveman created the gold standard in loyalty programming when he joined Caesar’s, eventually becoming their CEO. Watch the video of Loveman. Read the case about Caesar’s and their Total Rewards (now Caesar’s Rewards) loyalty program on pages 440-441. Answer the questions at the end of the case.
Questions —————————————————–
1. What is the role of customer relationship management in the entertainment industry? What is the relationship among customer satisfaction, customer loyalty, and company profitability?
2. What are the key aspects of Harrah’s customer loyalty program? What are the key drivers of its success?
3. How should Harrah’s use the recent developments in data analytics, machine learning, and artificial intelligence to enhance customer loyalty and create shareholder value?
Website for Video- ———
Dropbox Assignments Requirements- —————–
There are 6 written dropbox assignments. These assignments allow you to apply course concepts to real products or businesses. Each is worth 40 points. Format the papers using the current APA style. Sources used must be cited in the current APA style. Each paper should be a minimum of 500 words in length. These assignments are due by 11:59 pm CT Sunday of the assigned week.
Preview Rubric
Dropbox Assignments
Print
CriteriaExcellentSatisfactory
Needs Improvement
Criterion Score
Content
30 points
Analysis is well‐ developed and fully addresses the topic. Evidence and examples are ample. Meets or exceeds the 500-word length requirement.
25 points
Analysis addresses the topic, but lacks detail in a few areas. May be slightly under the 500-word length requirement (480-499 words)
21 points
Analysis is poorly developed and lacks sufficient details or examples to support the argument. May be moderately under the 500-word length requirement (450-479 words)
Score of Content,
/ 30
Grammar, Mechanics, and Citation
10 points
Grammar, mechanics, and spelling are error‐ free and college level. References are correctly cited
8 points
Grammar, mechanics, or citing may have a few minor errors which do not interfere with meaning.
6 points
Numerous grammar, mechanical, or citation errors that impact flow or understanding.
Score of Grammar, Mechanics, and Citation,
/ 10
TotalScore of Dropbox Assignments,
/ 40
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marketing SPOTlIGHTCaesars Entertainment Caesars Entertainment dates back to
1937, when founder Bill Harrah opened his first club in Reno after the state of Nevada legalized casino gambling. Harrah’s Entertainment quickly became one of the largest casino companies and, in 1973, was the first casino company to be listed on the New york Stock Exchange. In the late 1980s, Harrah’s Entertainment expanded farther across the united States as more and more jurisdictions legalized casino gambling, eventually becoming one of the most recognizable names among American casino companies. Following its 2005 acquisition of Caesars Entertainment, in 2010 Harrah’s Entertainment was renamed Caesars Entertainment. The longtime focus of Harrah’s Entertainment on
customer loyalty was sparked by Bill Harrah, who was famed for trying to get to know his customers and asking for feedback on his casinos to improve customer satisfaction. Guided by the same ideas, Phil Satre, who became CEO of Harrah’s in 1984, began sending feedback forms to customers who had won slot machine jackpots. These forms showed Satre that many of Harrah’s patrons visited more than one Harrah’s location. Previously, management had assumed that customers typically visited only one property. In addition, Satre learned that the customers who frequented many of the company’s locations were responsible for a growing segment of Harrah’s revenue. To target this consumer segment, Harrah’s expanded its existing loyalty program in 1997 to all u.S. locations. The new program was called “Total Gold.” When members inserted their cards into game machines, the database would record the number of games they had played and their record. As they played, members earned points that could be redeemed for rewards such as meals, hotel rooms, and airline tickets. Despite the popularity of Harrah’s rewards program, the
company experienced slow growth in the mid-1990s. At that time, Harrah’s hired Gary loveman—a Harvard Business School professor—as the new COO and tasked him with transforming Harrah’s operational strategy and improving the company’s performance. looking into the data Harrah’s had collected over the years, loveman noticed that many patrons visited different casino companies. loveman believed that by reducing customer “disloyalty,” Harrah’s could massively increase sales without the need to open new locations. He noticed that 26 percent of the gamblers who visited Harrah’s locations generated 82 percent of the company’s revenue.
Taking a closer look at Harrah’s customer demographics, loveman saw that the bulk of these customers were middle-aged or senior adults who prioritized free casino chips, instead of hotel visits, when redeeming rewards points. loveman concluded that by rewarding customers differently based on the frequency of their visits and playing behavior, Harrah’s could improve customer loyalty and increase its sales. using this newfound information,
loveman overhauled the Total Gold
program and changed the name to “Total Rewards.” The new program rewarded customers based on the tier in which they were categorized: Gold, Platinum, or Diamond. These categories reflected the customer’s expected lifetime value to the company, calculated by the estimated frequency of visits and amount spent per visit. Each tier provides customers with different perks, such as skipping the lines at restaurants and reception desks for Platinum and Diamond cardholders. Diamond cardholders also receive benefits that include personal visits from chefs at Harrah’s restaurants and personalized treatment from staff at hotel locations. The system is backed by Harrah’s extensive database and analytics. The program allows Harrah’s to collect information on who their customer is and the customer’s behavior during casino visits. Customers’ data are collected from the instant they book their visit until the moment they leave. This results in highly personalized service for frequent patrons. Harrah’s also began prioritizing direct mail and phone
calls to encourage loyal customers to keep coming back. Telemarketers were trained to offer incentives to customers who hadn’t visited a Harrah’s location in three months. Five years after loveman’s arrival, Harrah’s had doubled its spending on direct mail. The company’s high response rate from direct messaging and phone calls to loyal customers allowed it to reduce spending on traditional advertisements. In addition to redesigning its loyalty program, the company also overhauled its customer service to improve the overall customer experience. loveman believed that exceptional service was crucial to winning the loyalty of customers. Harrah’s began providing management with more tools and information to effectively hire and train new employees. This resulted in a drastically lower turnover rate and a superior customer service team. The company also implemented new employee incentives designed to prioritize customer service: locations that reported high customer satisfaction scores would receive employee bonuses. In 2002, Harrah’s paid $14.2 million in bonuses under the new employee compensation system. Caesars Entertainment’s longtime focus on building
long-term customer loyalty has resulted in the company becoming one of the biggest u.S. gaming companies. In 2018, Caesars Entertainment had over 40 locations worldwide and earned nearly $5 billion in revenue. Its Total Rewards program also received the “Best Players Club” award, part of USA Today’s 2018 10 Best Readers’ Choice Awards. At the time, the program had over 55 million members receiving access to various casino, hospitality, dining, and other rewards.69
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