To what extent is Harrah’s in danger of a competitor copying its system?
Joseph, a 30-something New Yorker, recently went on a weekend trip to Atlantic City, New Jersey, where he hoped to stay at one of his favorite Harrah’s resorts and enjoy some gaming and entertainment. Unfortunately for Joseph, he picked a weekend when all the hotels were booked solid. But after swiping his Harrah’s Total Rewards card to play the tables, the pit boss came by and directed him to the front desk. He was told that a room had become available, and he could stay in it for a reduced rate of $100 a night. When he checked out two nights later, Joseph was told that all the room charges were on the house. Was this sudden vacancy a case of lady luck smiling down on an Atlantic City visitor? Or was it a case of a company that knows what managing customer relationships truly means? If you ask any of Harrah’s Total Rewards program members, they will tell you without hesitation that it’s the latter. “They are very good at upgrading or in some cases finding a room in a full hotel,” Joseph reported later. “And I always liked the fact that no matter where I gambled, Atlantic City, Vegas, Kansas City, or New Orleans, or which of their hotels I gambled in, I was always able to use my [Total Rewards card].” Harrah’s customers like Joseph aren’t the only ones praising its customer-relationship management (CRM) capabilities. In fact, Harrah’s program is considered by CRM experts to set the gold standard. With the Total Rewards program at the center of its business and marketing strategies, Harrah’s Entertainment has the ability to gather data, convert that data into customer insights, and use those insights to serve up a customer experience like no other.