Diamonds in the Data Mine free essay sample

1. Customer Relationship Management is a strategy used by many businesses in order to improve their relations with their customers; in this case Harrah’s entertainment differentiated itself from its competitors thanks to its CRM strategies. The most important strategy would be the clients’ significant database whereas Harrah’s main objective is to gain its clients loyalty by collecting as much information as possible about them. In order to get more into details they gathered the data in a very efficient way to be able to understand firstly the Customer’s worth, and then use it depending on the clients’ activities and preference. All of this information wouldn’t be gathered efficiently if it wasn’t from the use of recent technology facilities. Second of all, the customer service is necessarily to gain the customer’s trust and keep him coming back frequently. And the best way to do so is to train and encourage employees and this by rewarding them each time they highly considered the client’s needs. We will write a custom essay sample on Diamonds in the Data Mine or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Lastly, in order to gain the customers loyalty, promotions and price discounts were taking into consideration. 2. First of all, the fact that Harrah’s put to use the most recent technology by focusing on developing the intellectual and technological capabilities in order to gather as much information as possible in a very detailed way, puts him ahead from all its competitors. In fact the creation of the innovative player-card program â€Å"Total gold† helped increase the client’s loyalty, this program wasn’t only able to gather simple data, but advanced enough to track the clients’ activity and identify him prior to his preferences and activities (300 GB transactional database). Another technology that Harrah’s was able to develop was quantitative models in order to predict the customer worth by understanding his lifetime value. 3. Harrah’s customers’ database focus was first of all a success, being able to gather database in such an efficient way and having for objective to gain the customer’s loyalty depending on his preferences. However, this can be a violation of privacy concerning the private lifestyle and activities of the client and then lead to misunderstandings. Not only that, but one of the technology implementation that Harrah’s tried to use (Total Gold) wasn’t as efficient as they predicted; they weren’t credible enough. In other words, they didn’t differentiate themselves from the competition, there wasn’t any uniformity in the program and customers weren’t motivated enough to come back. 4. Privacy can be a very sensible issue to handle, this is why clients hould be aware of the fact that all of their activities and lifestyle are recorded and gathered in a data mining program. Harrah’s should prevent them of that as soon as they enter the entertainment center. This would be a very good way to avoid miscommunication with customers and keep their trust. 5. Gather and analyze the clients’ database and gain their loyalty, having one of the most advanced technology tools to collect information as efficient as possible -Analyzing the clients’ activities. In other words measuring the amount of times the client was spending in a specific store, in order to understand how he thinks and get him to visit more frequently the store -Measure the lifetime value of the client by developing a quantitative model, where Harrah’s could focus on the potential worth over time of the customer -Pushing the customer service to its maximum, by inviting unsatisfied clients back or even calling loyal customers to get their feedbacks -Lastly, creating different tiers of customers (Gold, Platinum, and Diamond) a very efficient way to push clients to be more involved and wanting to earn the higher tiers because of the difference in the customer service.