Blog# 11: Harrah’s High Payoff from Customer Information Pre- and Post-Presentation Blog

Problem/Issue Statement

• The problem presented in the Harrah’s case is maintaining a competitive advantage in the area of data warehousing, data mining, and business intelligence. As more competitors begin to integrate information technology in understanding and capturing customer information, Harrah’s must continue to evolve and update the way they utilize the gathered information.
• The distinction between the problems and symptoms within the case analysis are as follows:
• Main Problem: Although it was addressed in the case, the main problem was the growing business that Mr. Harrah pursued in his efforts to making his organization the world’s largest gaming company. Mr. Harrah wanted to find a way (e.g., branding) to create commonalities among the various casinos.
• Symptoms: While not many symptoms were discussed, it did stem from the continued growth from 1937 into the current millennium. By early 2000s, Harrah’s was located in every major U.S. market where gambling was allowed and hosted:
• Over 40,000 people
• Over 19 million customers
• 11,521 hotels
• 92 restaurants
• 36,635 slot machines
• 1,075 table games
• Over 1 million sf² of gaming space
• The scope of the problem involves Harrah’s business strategy, which is focusing on developing and building a lasting brand as well as a loyal customer base. Through this model, Harrah’s has needed a solid IT framework for gathering, capturing, analyzing, and understanding all the customer information it is compiling. From there, having a strong marketing strategy will enable to tailor promotions and find attractive ways to bring in and keep customers over their competitors.

Situation Assessment

• The context of the problem is looking at Harrah’s IT investment that has gone into creating a creative marketing strategy and developing a core brand. By undertaking this venture, Mr. Satre saw a need to expand the company’s operation, but at the same time find a way to collect all the information that goes on within the casinos and utilize this to enhance customer loyalty/retention. This would involve management, IT, customers, and even competitors as they would be looking to see what Harrah’s is doing right and what can be improved upon.
• The decision criteria to consider include the costs of continuing to improve the IT infrastructure and software to gathering, mining, and using information. From that, I would state that the marketing department would have to conduct new research to determine what promotions and incentives would work best. From there, management as a whole could take this information to see what can be changed/remain the same to continue increasing spending and positive branding. The overall purpose was to better identify specific target customer segments and respond to each one’s preferences while maximizing profitability.

List of Plausible Alternative Courses of Action and Evaluations of Alternatives

• The plausible alternatives that Harrah’s can pursue involve:
• Increasing Marketing initiative
• Increase promotional redemption
• Mobile Application

• Each of these address the key problem as follows:
• Alternative #1: Increasing Marketing initiative
• As Harrah’s has already seen, marketing campaigns are efficient in bringing customers in as well as keeping them from other competitors. However, there are always new methods to entice customers. With the key problem focusing on continuing the growth path of Harrah’s, any new opportunity that can be explored to enhance the brand and customer retention should not be overlooked. Harrah’s closed-loop marketing enables the marketers to see which promotions are working and the response rate. Depending on the level of loyalty per customer (or segment as a whole), new ideas can be generated. One such is sending out a survey to let the customers choose the type of reward/promotion they feel best suits their needs. Based on the feedback, Harrah’s can create a reward and send out to all those who participated as well as everyone fitting the criteria in that certain customer segment.
• A second option is to perform qualitative analysis in the form of focus groups. This is similar to surveys, but now you have an experienced interviewer/leader conducting the meeting and getting real-time feedback. This is Harrah’s opportunity to hear directly from their customers as to what works vs. what can be improved in enhancing customer satisfaction. After the focus group has concluded, Harrah’s marketing and IT department can meet to improve the system’s ability to track and break down the various components in determining customer behavior.
• Alternative #2: Increase promotional redemption
• This is similar to alternative #1, but requires more involvement from IT. As Harrah’s can already track redemption rates of promotions, there has to be a way to have a higher “claimed” percentage. One option is to trial run offering a quicker turnaround time to getting another promotional incentive. For instance, if someone receives free slot dollars, then we might want to provide another slot dollars in the same visit, should the customer spend a certain amount. Another alternative is to send out reminders via e-mail (another way to capture customer information) or regular mail. In the reminder, explain the promotion as well as upcoming events.
• Alternative #3: Mobile Application
• As mobile application is becoming bigger, Harrah’s would be wise to invest in an app that allows customers to check their status as well as get updates (daily, weekly, monthly, etc.) to inform them of new promotions, promotions expiring soon, or just news pertaining to Harrah’s. Another benefit is to offer tips on certain casino games and access to a directory of existing restaurants, shops, and entertainment at each location (based on typing in a user’s zip code). As many individuals carry phones, it would be easy to get someone’s phone number at the time of sign-up or even when claiming an existing reward. I would recommend making the app for free and to maybe give $5 in chips/slot dollars when someone does sign-up. There is a good chance that if someone were to redeem, they would end up spending more than that initial free amount.

• I would be very imaginative when it comes to the evaluations as this is about attracting and retaining customers. As I am sure that Harrah’s competitors are trying to do the same thing, Harrah’s has to differentiate itself from others and to make customers want to gamble or just visit one of their locations. This is why focus groups, surveys, and random “trial” promotions would work best. Each customer is different, but there are enough to create segment groups and determine a best course of action for each one.  

Recommendation

•  For Harrah’s, I would state that the quality and logical recommendation are the same. First and foremost, I would introduce the mobile app as this is just another outlet to get a customer’s attention and to remind them of Harrah’s. From there, increasing the marketing initiative would allow for further research and studies to be done to see how best to entice customers. By holding focus groups and other methods of gathering information, we can determine best practices and what works for building customer loyalty. This would go hand-in-hand with improving upon current promotional incentives as the customer would have a bigger role in selecting the type of “reward” he/she chooses.

Presentation

• I would recommend using a PowerPoint to illustrate the main points as well as to show examples of revised promotions and customer testimonials.
• The visual aids to use would be:
• PowerPoint Presentation
• Flowchart of gathering customer information all the way to the end use by the company
• Explanation of Loyalty Reward Program
• Examples of Mobile App messages
• SWOTT Analysis to see what Harrah’s is currently doing right vs. the direction needed to go in.
• I would sell the recommendation by explaining the potential for growth for Harrah’s as we move more into the 21^st century. As more casinos and other gambling facilities look to also gain market share and a bigger customer base, Harrah’s has to remain the leader in information mining, gathering, and retrieval. This will be a key factor in moving the company further. At the end of the day, Harrah’s wants to make a profit and customers are required as they are the ones spending the money and looking for a return as well (money-wise and enjoyment factor).
• Other delivery considerations include:
• Staying on point
• Making the information relevant to today’s business needs
• Being empathetic from the business side as well as consumer side. 

FOLLOW-UP

Good morning Mr. Satre,

After taking a few days to assess the information presented by the consultants, I wanted to follow-up with you on how we can improve and expand upon our BI/BA capabilities over the next 2-3 years. The consultants explained that three actionable items we can undertake include: Increase data mining, implementing online reservation and concierge, and enhancing data analytics. What really struck me was the online reservation and concierge. As we progress through the 21^st century and as it becomes more technologically advanced, moving to an electronic format seems like a wise investment. It enables our customers to access room reservations at the convenience of his/her home and gives us information pertaining to that customer in advance of the stay. One question I did have was how quickly would the system update itself to ensure that double booking does not occur?

Given that this would potentially be a new option for our customers, we would want to ensure that no issues occur when reservations and bookings are made at the casinos. This is a question that we would want answered prior to proceeding with the online system. Yet, as stated before, by collecting data prior to a visit, it allows us to possibly provide benefits to the guest(s) upon his/her stay. For example, knowing one’s age, how many are staying, etc., can be very informative when determining if restaurant coupons, show discounts, or free slot credit are to be used as a “welcome” incentive. This, I believe, goes hand-in-hand with the consultant’s other suggestion of increasing data mining and enhancing data analytics. This enables us to create quality customers and maximize ROI.

Another option I want to propose was the use of a mobile application. I mention this as more consumers are purchasing smartphones and want information available instantly. With our Total Rewards program, giving members access to their available credit, current status, and other saved data via phone is an added benefit to the program. Plus, if Harrah’s was to embark on the move to digital, how convenient would it be to send a message through the phone about a new promotion or an advertisement to a new show, restaurant, or other attraction at one of the locations. We have to remember that our competitors will also be making the move to digital and given our expertise in BI/BA, our company does not want to lose that competitive advantage.

An interesting point raised by the consultants was increasing data analytics. Currently, our information is updated at the end of the day, when customers may have already left our facility. By investing in updating our infrastructure and allowing for real-time updates, this speeds up the process for collecting and analyzing new data transferred by new members signing up or activity on the various games, restaurants, and hotels. Plus, we learned that being able to take an Instant Saneness Test and identifying (and stopping) at least one minor from entering our casinos can result in a $40,000 gain instead of a penalty if caught. While it is important to retain customers, we also want to maintain the company’s brand and reputation.

There are many factors to consider and aside from the costs, we want to make sure our resources are being used efficiently. If other casinos will also be following a similar path, it will be imperative to determine alternate means to differentiate. However, I strongly agree with the recommendations provided by the consultants in that these are the next steps needed to maintain our position in the market. By having quicker technology to data mine and perform business intelligence, as well as continuously providing new benefits to members (potential and existing), it allows Harrah’s to receive more and more data while ensuring that quality over quantity are reflected in the way that business is handled.

As always, I thank you for your time and look forward to speaking more on this with you soon.

Blog# 10: MS Project 2013 Tech Tool

Good morning Mr. Rolando,

As per our previous discussions of introducing new software into the workplace, I have researched and experimented with Microsoft Project 2013. From a realistic viewpoint, I considered our five Project Managers (one from each business unit) as the starting point for possibly implementing Project and for the basis of my calculations.

            Right off the bat, I know that training will be needed as none of the five project managers are familiar with this software. I will go into costs a little bit later as I would like to discuss the practicality of why Project would be beneficial for our Project Managers. Currently, the Project Managers are operating on limited technical know how when it comes to computer programs. They are using Microsoft Word and Excel to document the various assignments (both closed and ongoing). When it comes time for meetings, the information is presented in a conference room with some attending via web/phone. At the end of the meeting, the Project Manager will collect his notes, write them up, and distribute them to all involved via e-mail (primarily by updating his spreadsheet/word document.

            With Project, the workflow, responsibilities, resources, and costs are all accounted for in an organized format. According to Microsoft’s website, Project allows you to “aggregate everyday work, project tasks, important details, and timelines in a visually rich and contextual interface” (link #1).  The general description also makes mention of the ability to connect via Microsoft’s SharePoint and Office 365, both sold separately, and to use Project to anticipate changes and plan accordingly. However, as our company is not set-up with SharePoint and Office 365, I would start small and just look at the costs associated with obtaining the Project program. The cost, according to www.amazon.com , is currently $504.26 (link #2). This would mean that a one-time spending of $2,521.30 would be necessary to provide each Project Manager with the software.

            I was able to download a trial version and play around a bit within the program. I will say that a drawback was the lack of a true tutorial to help guide a new user. Yet, by doing a quick search online, I found a very user-friendly “how-to” video (link #3) that showed the early steps needed to create a project, assign resources, and output the data in various formats (charts, summaries, graphs, etc.). By the end of the quick video, I was familiar with the basics, but did not feel confident that I could utilize this in my daily tasks. For that reason, I would then have to recommend that training be given to the five Project Managers. By doing a quick search online, I do see external classes offered that would provide them with the necessary skill level to begin making use of Project and to build the experience. The cost of the 2-day training (in the one company I found) per person is $995.00. So another cost that would have to be considered equates to $4,975.00.

            At this point, you are probably pondering what the benefits are that would justify spending $7,496.30 on software and training that might not even be necessary in our organization? My answer to you is to look at the efficiency in the long-run. With the proper training, our Project Managers can keep track of the status of their assignments through Project, which also aids in determining constraints, making suggestions of getting back on track when delays occur, and providing a clear picture of costs and roles. This in turn can be disseminated to all those involved in an easy to access report. We know from past experience that on long-term projects, not every individual meets their deadlines for various reasons. This may include forgetting, getting tied up in another project, or just not clearly understanding the impact of timeliness.

We have seen that a one day delay can cause a meeting to get rescheduled, which means that everyone has to now stop what they had planned to attend. If this is unannounced, then imagine the employees’ lost-time costs. As in the past, we have individuals who enter samples for prospective and existing customers. A sample can ultimately lead to sales ranging from $100-$100,000 dollars (depending on the end use). If that individual now has to go into an emergency meeting due to a previous delay, then just picture the potential of missing a sample and an opportunity to spread our product to market.

My biggest concern would be the learning curve associated with implementing a new piece of software to those not previously familiar to older versions. However, with the proper training and resources available to new users, I can see the benefits over the first few months to the first few years: meeting deadlines, being organized, easily pulling up various reports for costs and progress trackers, etc. By being on target to reach goals and mitigating delays, our Project Managers can take on more tasks simultaneously, which can lead to new business. By even allowing one more trade show (with conjunction from the Marketing Department), this can display our brand to more companies and can help generate revenue and customers at a faster pace.

If we were to proceed forward, I would ask that we re-evaluate how well the Project Managers are faring in 6 months-1 year as I would then suggest looking into SharePoint and Office 365 to allow for easier sharing of information from those not directly in the same facility. Thank you as always for your time and I look forward to speaking with you soon.

Link #1: http://office.microsoft.com/en-us/project-help/project-portfolio-management-project-professional-2013-FX103797571.aspx

Link #2: http://www.amazon.com/Microsoft-Project-2013-1User-Download/dp/B00B1TG1GQ/ref=pd_cp_sw_1

Link #3: http://www.youtube.com/watch?v=sPwURRG9_Gs