Harvard Business School Case Study: Diamonds in the Data Mine

Gary Loveman gives a great insight on how Harrah’s differentiated itself from its competitors by creating an extremely devoted clientele base.

They used two main techniques to achieve this. First, they use science based methods of data mining to determine their customers’ needs and wants. Second, they provide exceptional customer service.  These two techniques have made Harrah’s stand out amongst giant casinos on the Las Vegas strip with all the dazzle.

This makes complete sense to me because  a  fountain show can impress people once or twice but for frequent customers that come to Vegas to play big money, the service is the key factor that keeps them coming back.  Harrah’s seemed to have banked on this idea.

Loveman also focused on identifying the customers that were most valuable for the Casino in the long run.  They were able to create a method that predicted customers’ worth- the amount they could expect that customer to spend in the long-term.

They also split their customers into three segments: Gold, Platinum and Diamond Cardholders.  It created competition between the customers to try to upgrade to better cardholder status.

Harrah’s has been successful by relying on their human resources, customer service and scientific based marketing methods that show the real needs and wants of the customers.

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~ by aliahmadian on March 31, 2010.

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