I really enjoyed reading this case study about Harrah's because I am a frequent gambler and I do receive many offers from Harrah's properties. Being that I do live within 45 minutes of Atlantic City, where there are numerous Harrah's properties, I do visit them frequently. I always wondered why it was the Total Rewards program that was the one that kept on sending me free room offers and free play money. This case validates the main reason: data warehousing.
Being that I hold a degree in Mathematics, I understand that casino games are in favor of the casino. If this was not the case, casinos would not exist. This case does not focus on the inherit profitability that exists with people gambling, it more so focuses on the marketing plan that Harrah's employs. If Harrah's is expected to make 10 cents on every customer per visit, then it would only make sense to increase the amount of times that a customer visits. The case states that the success of Harrah's is more based on software than it is hardware, which means that the market analysis is much more important than the actual games that exist in the casino.
It makes me wonder why they always offer me a free room on days Sunday through Thursday. Duh! I wouldn't normally go down there on those days, but if they bait me into spending my $60 in free slot play, I will certainly take a trip down and take my chances. Free food, free rooms, free shows... WHY NOT?!?
We are talking about large numbers here. Being that Harrah's operates in every single place that casinos can operate, it only makes sense to increase the efficiency of their marketing plan to draw patrons to their casinos. It's not about winning or losing while playing the games because casinos always win when we talk about an extended period of game play and expand that over a larger amount of customers. The numbers do not lie! The games are designed that way. Card counting is a fallacy, only the most brilliant minds can perform such a feat. As stated in the case, Harrah's market plan has increased the amount of visits per person by nearly half a visit per month (and this doesn't mean that you got in a fight with your spouse halfway down to AC and turned back to go home). This means millions/billions of revenue that Harrah's can potentially generate. Sorry, not potentially... indefinitely!
I like spending the Total Rewards points on a free meal at a 5 star restaurant that is located exclusively at a Harrah's property, but then I also like to take numerous pit stops at the tables to test my luck. NUMEROUS!! I am a loyal patron to Harrah's and it is because they keep in touch with me because their mailings. I almost feel obligated to continue playing a Harrah's because I do not want the rewards to stop coming. Good Job Harrah's! You make me want to work for you.
Oh yeah, my gambling statement did not come up as a loss this year! ; )
No comments:
Post a Comment