PDF: Hello and welcome to this informative PDF file on Harrah's Entertainment Inc!

This case study highlights the impressive results and innovative methods of
Harrah's, positioning them as a leader in the casino industry.

Example questions:
1. What are some of the key strategies that have contributed to Harrah's success in
the casino business?
2. How have other casino companies responded to Harrah's methods and what impact
has this had on the industry?
3. What factors have contributed to the rise in Harrah's stock price and how has
this affected investor perception of the company?

Me: What are some of the key strategies that have contributed to Harrah's success
in the casino business?

PDF: Harrah's success in the casino business can be attributed to several key
strategies:

1. **Integrated Marketing Strategy**: Harrah's implemented an integrated marketing

strategy that included the use of the Trump card, a loyalty program that tracked
players' preferences and behaviors to offer personalized rewards and incentives.

2. **Total Gold Program**: Launched in 1997, the Total Gold program aimed to
increase customer loyalty through various marketing interventions, attracting
customers to think of Harrah's as their preferred casino destination.

3. **Organizational Restructuring**: Harrah's revamped its organizational structure

to emphasize that customers belonged to Harrah's as a brand, rather than to
individual properties. This shift encouraged customers to spend their money at
various Harrah's locations, enhancing customer loyalty.

4. **Brand Development and Service Excellence**: Harrah's focused on developing a

distinct gaming-oriented brand and delivering extraordinary service to
differentiate itself in the competitive casino industry.

5. **Customer Relationship Management (CRM)**: Harrah's implemented CRM tools and

programs, such as Database Marketing and the Total Gold program, to collect
customer data and execute targeted marketing strategies efficiently.

6. **Investment in Information Technology**: Harrah's invested $100 million in

information technology, leading to the development of the Winner's Information
Network, a national database that allowed for better tracking of customer play
across all properties.

7. **Focus on Customer Loyalty**: Recognizing the importance of customer loyalty as

a core competency, Harrah's prioritized building relationships with customers
through innovative loyalty programs and personalized marketing initiatives.

These strategies collectively contributed to Harrah's success in the casino

business, leading to significant growth in stock price, profits, and customer
satisfaction.

Me: How have other casino companies responded to Harrah's methods and what impact
has this had on the industry?

PDF: Other casino companies have responded to Harrah's innovative methods by

adopting similar strategies to enhance their own competitiveness in the industry.
Some responses and impacts include:
1. **Emphasis on Customer Loyalty**: Competitors have also started focusing on
customer loyalty programs and personalized marketing initiatives to attract and
retain customers, following Harrah's successful implementation of the Total Gold
program and CRM tools.

2. **Investment in Information Technology**: In response to Harrah's investment in

information technology and the development of a national database, other casino
companies have also started investing in technology to track customer play and
preferences across their properties.

3. **Enhanced Service Excellence**: Competitors have recognized the importance of

delivering exceptional service to customers, similar to Harrah's emphasis on
providing a world-class service experience. This shift has led to an industry-wide
focus on improving customer service standards.

4. **Increased Competition**: The adoption of Harrah's successful strategies by

other casino companies has intensified competition in the industry. Companies are
now striving to differentiate themselves through innovative marketing, customer
relationship management, and service excellence initiatives.

5. **Stock Price and Earnings Growth**: The industry-wide adoption of Harrah's

methods has led to improved financial performance for many companies, with rising
stock prices and increased earnings as investors recognize the value of customer-
centric strategies in the competitive casino business.

Overall, Harrah's pioneering strategies have not only elevated its own position in
the industry but have also influenced competitors to enhance their offerings and
customer engagement strategies. This collective response has led to a more
customer-focused and competitive landscape in the casino industry.

Me: What factors have contributed to the rise in Harrah's stock price and how has
this affected investor perception of the company?

PDF: The rise in Harrah's stock price can be attributed to several key factors:

1. **Marketing Success**: Harrah's successful marketing strategies, such as

targeting low rollers and implementing personalized loyalty programs, have led to
increased customer engagement and loyalty, translating into higher revenues and
profitability.

2. **Financial Performance**: The company's strong financial performance, including

a 100% growth in stock price and profits in the year leading up to December 1999,
has instilled confidence in investors regarding the company's growth potential and
financial stability.

3. **Investment in Information Technology**: Harrah's significant investment in

information technology, particularly the development of the Winner's Information
Network and CRM tools, has improved operational efficiency and customer
relationship management, contributing to the company's overall success and stock
price growth.

4. **Industry Leadership**: Harrah's position as a leader in the casino industry,

known for its innovative marketing methods and customer-centric approach, has
differentiated the company from its competitors and attracted investor interest.

5. **Competitive Advantage**: The implementation of unique strategies, such as the

Total Gold program and customer relationship management initiatives, has given
Harrah's a competitive edge in the market, leading to increased market share and
investor confidence in the company's long-term prospects.
The rise in Harrah's stock price and strong financial performance have positively
influenced investor perception of the company. Investors view Harrah's as a
forward-thinking and innovative company that is capable of driving growth and
profitability in a competitive industry. The company's ability to adapt to changing
market dynamics, focus on customer loyalty, and leverage technology for strategic
advantage has positioned it as a favorable investment opportunity in the eyes of
investors.

Me: This is a case study for me in the subject "Information Systems for Managers".
What are the possible questions that I can expect related to this case?

PDF: In your "Information Systems for Managers" course, you can expect questions
related to the Harrah's Entertainment Inc. case study that may cover various
aspects of information systems, management strategies, and business operations.
Here are some possible questions you might encounter:

1. How did Harrah's use information systems and technology to enhance customer
loyalty and improve marketing strategies?
2. Discuss the role of customer relationship management (CRM) in Harrah's success
and its impact on the company's performance.
3. Explain the significance of the Total Gold program in increasing customer
loyalty and driving business growth at Harrah's.
4. How did Harrah's organizational restructuring contribute to a customer-centric
approach and improved operational efficiency?
5. Analyze the impact of Harrah's marketing interventions on customer behavior and
revenue generation.
6. Discuss the competitive advantages that Harrah's gained through its innovative
use of information systems and technology.
7. How did Harrah's Total Rewards Program facilitate cross-market visitation
patterns and enhance customer experience?
8. Evaluate the importance of data analytics and customer data management in
Harrah's marketing and operational strategies.
9. Explain how Harrah's brand development and service excellence initiatives
differentiated the company in the casino industry.
10. Assess the overall impact of Harrah's strategies on its financial performance,
stock price growth, and investor perception.

These questions are designed to test your understanding of how information systems
and management strategies can drive business success, particularly in the context
of the Harrah's Entertainment Inc. case study.

Me: How did Harrah's use information systems and technology to enhance customer
loyalty and improve marketing strategies?

PDF: Harrah's effectively utilized information systems and technology to enhance

customer loyalty and improve marketing strategies in the following ways:

1. **Total Gold Program**: Harrah's implemented the Total Gold program, a

revolutionary technological innovation that allowed for real-time sharing of
customer-level information across its properties. This program enabled Harrah's to
track customer gaming behavior, preferences, and theoretical value, leading to
personalized marketing initiatives and enhanced customer loyalty.

2. **Integrated Information Technology Network**: Harrah's designed a comprehensive

information technology network that linked all its properties together. This
network facilitated the sharing of customer data in real-time, enabling the company
to provide personalized offers, rewards, and incentives to customers based on their
gaming patterns and preferences.
3. **Winner's Information Network**: Harrah's invested in the Winner's Information
Network, a national database that tracked customer play across all properties. This
database allowed Harrah's to gain insights into customer behavior, preferences, and
spending patterns, enabling the company to tailor marketing strategies and loyalty
programs to individual customers.

4. **Customer Relationship Management (CRM)**: Harrah's implemented CRM tools and

programs to collect and analyze customer data effectively. By leveraging CRM
systems, Harrah's was able to execute targeted marketing campaigns, improve
customer service, and enhance customer engagement, ultimately leading to increased
customer loyalty and retention.

5. **Personalized Marketing Initiatives**: Through the use of customer data and

analytics, Harrah's was able to create personalized marketing campaigns and offers
tailored to individual customers. This personalized approach not only increased
customer satisfaction but also encouraged repeat visits and higher spending levels,
driving customer loyalty and revenue growth.

6. **Cross-Market Revenue Growth**: The implementation of technology-driven

marketing strategies, such as the Total Gold and Total Rewards programs, enabled
Harrah's to increase cross-market revenues significantly. By incentivizing
customers to visit and spend across multiple properties, Harrah's was able to
enhance customer loyalty and maximize revenue generation.

Overall, Harrah's strategic use of information systems and technology played a

crucial role in enhancing customer loyalty, improving marketing strategies, and
driving business success in the competitive casino industry.

Me: How did Harrah's organizational restructuring contribute to a customer-centric

approach and improved operational efficiency?

PDF: Harrah's organizational restructuring played a significant role in fostering a

customer-centric approach and improving operational efficiency in the following
ways:

1. **Centralized Reporting Structure**: By shifting to a centralized reporting

structure where division presidents and their subordinates reported to a single
executive (in this case, Loveman), Harrah's emphasized that customers belonged to
the company as a whole, rather than to individual properties. This organizational
change encouraged a more unified and coordinated approach to customer service and
marketing initiatives.

2. **Focus on Customer Loyalty**: The organizational restructuring allowed Harrah's

to prioritize customer loyalty across all properties. Instead of each property
operating independently, the new structure encouraged a company-wide focus on
enhancing the customer experience, driving loyalty, and increasing cross-property
visitation.

3. **Integration of Brand Operations and Marketing Services**: Bringing brand

operations and marketing services under a unified leadership structure enabled
Harrah's to align its branding efforts with customer-centric strategies. This
integration ensured that marketing initiatives were consistent, targeted, and aimed
at enhancing customer satisfaction and loyalty.

4. **Operational Streamlining**: The organizational restructuring led to

operational streamlining and efficiency improvements. By breaking down silos
between different departments and properties, Harrah's was able to optimize
resource allocation, reduce duplication of efforts, and improve overall operational
effectiveness.

5. **Emphasis on Service Excellence**: The restructured organization placed a

strong emphasis on service excellence. By implementing service process design,
reward and recognition programs, and executive measurement metrics, Harrah's was
able to create a culture of exceptional customer service across all properties,
further enhancing the customer experience and loyalty.

6. **Data-Driven Decision-Making**: The organizational restructuring also

facilitated data-driven decision-making. By centralizing customer data and
analytics functions, Harrah's was able to leverage customer insights to tailor
marketing strategies, personalize offers, and improve operational efficiency based
on customer preferences and behaviors.

Overall, Harrah's organizational restructuring contributed to a customer-centric

approach by aligning the company's operations, marketing efforts, and service
initiatives towards enhancing customer loyalty and satisfaction. This restructuring
also led to improved operational efficiency through streamlined processes,
centralized decision-making, and a focus on data-driven strategies.

Me: How did Harrah's Total Rewards Program facilitate cross-market visitation
patterns and enhance customer experience?

PDF: Harrah's Total Rewards Program played a crucial role in facilitating cross-
market visitation patterns and enhancing the customer experience in the following
ways:

1. **Integrated Information Technology Network**: The Total Rewards Program was

supported by an integrated information technology network that linked all Harrah's
properties together. This network enabled real-time sharing of customer data and
gaming behavior across locations, allowing for a seamless and personalized
experience for customers regardless of where they were visiting.

2. **Cross-Market Revenue Growth**: The Total Rewards Program incentivized

customers to visit and spend across multiple Harrah's properties by offering
rewards, benefits, and incentives that were redeemable at any location. This
strategy led to a significant increase in cross-market revenues, with customers
being encouraged to explore different properties within the Harrah's network.

3. **Customer Loyalty and Consolidation of Play**: The Total Rewards Program

encouraged customer loyalty and the consolidation of play by providing a clear and
transparent reward system. Customers could earn reward credits based on their
gaming activity, which could then be redeemed for various complimentary offerings,
encouraging them to consolidate their play within the Harrah's network.

4. **Tiered Loyalty Program**: The Total Rewards Program was structured as a tiered
loyalty program, with different levels such as Total Gold, Total Platinum, and
Total Diamond based on the customer's annual worth. Each tier offered accumulating
benefits and rewards, motivating customers to increase their spending and loyalty
to reach higher tiers and unlock more exclusive perks.

5. **Personalized Customer Experience**: Through the Total Rewards Program,

Harrah's was able to provide a personalized customer experience by tailoring
rewards, offers, and incentives based on individual customer preferences and
behaviors. This personalized approach enhanced customer satisfaction, loyalty, and
overall experience across all properties.

6. **Emotional Connection and Brand Loyalty**: The Total Rewards Program aimed to
create an emotional connection with customers by rewarding them based on their
loyalty and play. This emotional bond fostered brand loyalty and encouraged
customers to choose Harrah's properties over competitors, leading to increased
visitation and spending within the network.

In summary, Harrah's Total Rewards Program effectively facilitated cross-market

visitation patterns by incentivizing customers to explore multiple properties,
consolidating their play, and enhancing their overall experience through
personalized rewards and benefits. This program played a key role in driving
customer loyalty, revenue growth, and brand differentiation within the competitive
casino industry.

Me: How have other casino companies responded to Harrah's methods and what impact
has this had on the industry?

PDF: Other casino companies have responded to Harrah's methods by adopting and
adapting some of its successful strategies and initiatives. The impact of Harrah's
innovative approaches on the industry has been significant, leading to changes in
how casinos approach customer loyalty, marketing, and operational efficiency. Here
are some key points regarding the response of other casino companies and the
industry impact:

1. **Emulation of Successful Strategies**: Other casino companies have started to

emulate some of Harrah's successful strategies, such as data-driven marketing,
personalized customer experiences, and loyalty programs. By incorporating these
elements into their own operations, competitors aim to enhance customer loyalty,
increase revenues, and improve overall business performance.

2. **Focus on Customer-Centric Approaches**: The industry as a whole has shifted

towards a more customer-centric approach, prioritizing personalized experiences,
targeted marketing, and loyalty programs. Inspired by Harrah's success, casino
companies are placing greater emphasis on understanding and meeting the needs of
individual customers to drive loyalty and profitability.

3. **Increased Competition and Innovation**: The adoption of Harrah's methods by

other casino companies has intensified competition within the industry. As
competitors strive to differentiate themselves and attract and retain customers,
there has been a greater focus on innovation, technology adoption, and customer
engagement strategies.

4. **Enhanced Operational Efficiency**: The industry-wide response to Harrah's

methods has led to improvements in operational efficiency and effectiveness. By
leveraging data analytics, technology, and customer insights, casinos are
streamlining operations, optimizing resource allocation, and enhancing overall
performance to stay competitive in the market.

5. **Elevated Customer Expectations**: The industry impact of Harrah's methods has

raised customer expectations regarding personalized experiences, rewards, and
service quality. As customers become more accustomed to tailored offerings and
seamless interactions, casino companies are under pressure to continuously innovate
and deliver exceptional experiences to retain and attract patrons.

Overall, Harrah's pioneering strategies and customer-centric approach have

influenced the broader casino industry, prompting competitors to adopt similar
tactics to drive customer loyalty, revenue growth, and operational excellence. This
shift towards data-driven, personalized marketing and service strategies has
reshaped the landscape of the casino industry, emphasizing the importance of
understanding and meeting the evolving needs and preferences of customers.

Me: What factors have contributed to the rise in Harrah's stock price and how has
this affected investor perception of the company?

PDF: The rise in Harrah's stock price and its impact on investor perception can be
attributed to several key factors:

1. **Marketing Success and Revenue Growth**: Harrah's success in targeting low

rollers and implementing effective marketing strategies, such as the Total Rewards
Program, led to significant revenue growth. This growth, coupled with the company's
ability to attract and retain customers, positively impacted its financial
performance and stock price.

2. **Operational Efficiency and Cost Management**: Harrah's focus on operational

efficiency, data-driven decision-making, and cost management contributed to
improved profitability and margins. Investors viewed the company's ability to
optimize operations and drive efficiencies as a positive indicator of long-term
financial health and sustainability.

3. **Innovative Customer Loyalty Programs**: The implementation of innovative

customer loyalty programs, such as the Total Rewards Program, helped differentiate
Harrah's from its competitors and enhance customer engagement and retention.
Investors recognized the value of these programs in driving revenue growth and
building a loyal customer base.

4. **Stock Performance Relative to Industry**: Harrah's outperformance compared to

industry peers in terms of stock price growth and financial results attracted
investor attention. The company's ability to deliver strong returns and navigate
market challenges effectively enhanced its reputation and investor perception.

5. **Strategic Investments in Information Technology**: Harrah's significant

investment in information technology, including the Winner's Information Network
and data analytics capabilities, demonstrated its commitment to leveraging
technology for business growth. Investors viewed these investments as key drivers
of competitive advantage and future success.

6. **Positive Earnings Reports and Financial Outlook**: Harrah's consistent

delivery of positive earnings reports, financial results, and growth projections
reassured investors about the company's financial stability and growth potential.
This transparency and track record of performance contributed to a favorable
investor perception.

The combination of these factors, including marketing success, operational

efficiency, innovative customer loyalty programs, strategic investments, and
positive financial performance, collectively contributed to the rise in Harrah's
stock price and positively influenced investor perception of the company. Investors
viewed Harrah's as a market leader with a strong competitive position, growth
opportunities, and a track record of delivering value to shareholders.