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Harrah's Use Of CRM And Term Paper

The ethical issue of encouraging gambling through the development of promotions that will resonate with consumers based on their previous purchasing experiences also raises ethical concerns. There is also the ethical concern of knowing what percentage of someone's budget they spend gambling and being able to extrapolate entire financial profiles of customers based on years of data about them. For all these reasons and more, Harrah's has a serious responsibility to keep the data private and highly secure. What problems can database technology and customer relationship management software solve at Harrah's? What problems can't it address?

The problems of customer and lifestyle (sometimes called psychographic) segmentation, defining pricing and promotional programs, focusing on maximizing the highest lifetime value of customers, and designing media and marketing campaigns that generate results are all possible using database technology and customer relationship management software. These technological tools however cannot alone predict if a competitor will be...

The combination of database technology and customer relationship management software also will not specifically predict if and when any given customer will leave the Harrah's program for any reason, or predict the level of competitive pressure over time that will occur at any of the 25 locations of the Harrah's chain of casinos and entertainment locations. Lastly, the database management software and customer relationship management software cannot predict how the demographic shift in baby boomers and their approach to more active entertainment will affect Harrah's from a company-wide standpoint. In short, the broader more strategic issues and questions cannot be ascertained with these two technological tools; yet the precise positioning of the ideal customer in each of the 90 segments tracked is a very significant competitive advantage relative to other gambling, casino and entertainment companies in the field.

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