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1- Harrah's marketing strategy focuses on "knowing their customers well, giving them great

service, and rewarding their loyalty so that they seek out a Harrah's casino whenever and
wherever they play." Unlike its competitors, Harrah's avoided investing in lavish hotels and
attractions and instead concentrated on customer loyalty and satisfaction. Their strategy is
different from competitors who invested heavily in luxury accommodations and
entertainment centers. Harrah's aimed to maximize return on investment (ROI) by
understanding customer behavior and preferences, emphasizing that customer loyalty and
satisfaction are critical in the competitive gaming market.

2- Harrah's Total program, now known as the Total Rewards program, is a customer loyalty
program. It rewards customers with cash and complimentary services for their gaming and
non-gaming activities at any of Harrah's properties. More importantly, it collects vast
amounts of real-time transaction data about customers and their behaviors, allowing
Harrah's to gain insights into their preferences and activities.

3- The basic elements of Harrah's closed-loop marketing system include:

- Collection of customer data via the Total Rewards card, which records various guest activities,
such as gaming, purchases at restaurants, and wins and losses.
- Centralized data warehouse where the collected data is stored.
- Access to data by staff at any of Harrah's properties.
- The data warehouse serves as the foundation for a marketing system that defines marketing
objectives, executes and monitors campaigns, and measures campaign effectiveness for
different customer segments.

4- The results of Harrah's marketing strategy included:

-The establishment of a brand identity for Harrah's casinos.

-Increased customer retention, resulting in several million dollars in value.

-More customers playing at multiple Harrah's properties, increasing profitability.

-High internal rates of return on their information technology investments.

-Significant increases in customers' discretionary spending compared to competitors, resulting in


hundreds of millions of dollars in additional revenue.

5- Harrah's faces economic issues, primarily stemming from a high debt load incurred in 2008 when it
was taken private by equity firms Apollo Management and TPG Capital. The company posted
operating losses and was at risk of potential bankruptcy. The Total Rewards system may help by
continuing to drive customer loyalty and spending, but it cannot directly address the debt and cost-
cutting measures that Harrah's is currently undertaking.
6-Business Performance Management (BPM) is a management and analytical process that
helps organizations optimize their performance by monitoring and managing key
performance indicators (KPIs), aligning strategies with objectives, and making data-driven
decisions. It involves the use of data, analytics, and performance metrics to measure,
monitor, and improve various aspects of business operations. In Harrah's case, BPM is
implemented through the Total Rewards program and the closed-loop marketing system,
which allows them to continuously monitor and improve customer service interactions and
business outcomes based on data and analytics.

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