SLOTS, TABLES, AND ALL THAT JAZZ –

MANAGING CUSTOMER PROFITABILITY

AT THE MGM GRAND HOTEL

GROUP 1
Shivam Mishra Vanshika Jalan
(21PGDM074) (21PGDM094)

Sonali Kothari Dhristi Agarwal

(21PGDM83) (21PGDM126)

Karan Shaktawat Nikhil Khandelwal

(21PGDM133) (21PGDM146)

Minal Gulgulia Rashi Banka

(21PGDM139) (21PGDM155)
 ABOUT MGM -
• MGM is a leading gaming and resort industry. It was established in Las
Vegas and renamed as MGM Mirage after it acquired Mirage Resorts in
2000
• The MGM brand never stopped renewing itself. It believed in good
quality service for its customers.
• With the unveiling of Show KA, MGM Grand is taken to a new level.

MGM STRATEGY -
• Complementary gifts and subsidies.
• Charging full price from customers.
OVERVIEW • Attract families.
• High –quality high prices.
• Contribution of line business.

MANAGING CUSTOMER EXPERIENCE -

There were 20 casino hosts at the MGM grand hotel who devoted their efforts to
make the gamers feel special.Hosts engaged with all segments of customers who
are qualified for complementaries. Hosts ultimately had decision rights on the
comps. Player card had utmost significance in creating loyalty among customers.
 Division according the Comp line :
CLASSIFICATION OF
MGM CUSTOMERS
1 Deserving Comps
• Whales
• High Rollers
• Low level Gamblers
2 Not deserving comps
There are 14 different segmentations according to “comps”.

Lower Level
Whale High Gamblers
s Rollers
Copy Line

Customer With No
Ranks
HOW COULD THE NON-GAMING
PROFITABILTY BE BETTER
CAPTURED?

• Creation of a comprehensive Reward Program like the ones for Gaming , in

order to build customer loyalty and generate repeat customers.

• Exclusive Offers for Non-gaming customers and using more marketing

schemes to attract customers on right time.

• Highly trained wait staff at the night clubs for personal care.
 UNDERSTANDING THE CUSTOMERS IN ORDER
TO IMPROVE THE OVERALL PROFIT ?
• The MGM Grand relied heavily on their hosts. The hosts maintained a one-to-
one connection with the customers. The hosts engaged with all segments of
customers who were eligible for complimentaries.
• The hosts used a combination of subjective observation, real-time concrete
data,and customer profitability reports to ensure profitability.

• Profitability from both slot machines and table games were calculated. The
calculations were based on the casino’s “theoretical win”.
• MGM Grand generated around 50% of its profits from non-gaming zone-
restaurants, hotels, spas and shows.
INSIGHTS:
• By treating each sector different as an independent profit center would be a
right approach as it would help MAM engagement to identify which segment is
generating more profit.
• For entertainment sector, since KA was a great success, focusing more on the
entertainment shows would be a great idea. They can also bring up premium
seating arrangements at shows and events.
• Since the food and beverage sector was profitable they can come up with food
testing events at MAM restaurant to give a new experience to customers.
• Other casino sector has not been explored, so this casino sector can also be
seen as the new profit center and can be explored