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In the high stakes world of casino gambling, customer loyalty often trumps liquidity.
That's true of Harrah's Entertainment Inc. a casino network that says it keeps its eye, not so much on the high rollers, as on small-time gamblers who return to their establishments more often.
Several years ago Las Vegas-based Harrah's was struggling to compete with other gambling conglomorates and was even seen as a possible takeover target.
However, instead on spending cash on infrastructure, the company bet on business intelligence (BI) software from SAS Institute Inc., to turn the tables on competitors.
The plan was to identify "disloyal" customers, and develop reward programs that encourage fidelity.
"Customers are inherently disloyal," says David Norton, senior vice-president of relationship management for Harrah's which now runs 26 casinos in 13 states including the Rio All-Suites, Caesar's Palace and six other venues in Nevada.
Norton said casino gamblers tend to move from one casino to another as there are lots of other facilities available, and also because they want to "change [their] luck."
The challenge is how to make it more painful for them not to come to you, said Norton. Harrah developed a strategy to meet this challenge dubbed the Harrah Total Reward program, which offers customers credits each time they visit the casino and play.
Credits are stored in reward cards, and can be traded for rewards, cash, coupons or complimentary services. Credits are also tallied to determine customer loyalty levels of gold, platinum or diamond. Associated services and privileges become increasingly valuable with each new level.
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