introduction
Harra Entertainment Co., Ltd. (Thara) is intended to take a business strategy that concentrates on its customers to reach its leadership in the entertainment industry. It provides customers with quality service and rewards their loyalty to the company. Customers will choose to entertain in the Harra's casino anywhere. The implementation of this strategy involves creative marketing, innovative use of information technology, and its excellent performance. These components are first integrated in 1997 and lead to a lot of benefits, including:
¨¨ Double increase in the response rate for customers
¨ 一 Consolidated customer return and different qualities of entertainment projects
¨ I played the brand of Harra Casino.
¨ Add customer reserved worth of millions of dollars
¨ The number of customer groups in Harra Entertainment has increased by 72%, resulting in more than $ 50 million.
¨ Moreover, the endogenous income rate of information technology is 62%
Hereinafter, we will discuss that Bill Hara advances into the entertainment industry and the customer-oriented values he hold. These values have been maintained to the world's 21-hal-industries. We will depict the business strategy of Hara, focusing on Hara's brand image and customer relationship management. To implement their business strategies, there is a need for a large number of investment in information technology to combine the large amount of data resources used in the Hardon Pairman database and the data on the business table. This infrastructure supports specific operations, service providers, total rewards (customer loyalty programs), and analysis. We will also pay special attention to how information technology is supported by its "closed loop marketing" system. We will also discuss the impact of this planning of Hara, and investigate its future development direction and experience that can be taken.
company background
In October 1937, Bill Hara held a bingo game business hall in Renault, Najaa. He value if the customer has a comfortable, fairly business game, and guarantees that customers can have fun. In 1946, Harra acquired the Mingdom Club, which brought him from a large-scale casino from the bountane business office business. After innovating the club, it reopened the name of the Hara club and started the Hara style entertainment. Harra is "Friendly Casino", its employee knows the name of all customers. In 1955, Harra opened another casino, this time is in the south bank of Tawhuo. With the continuous expansion of Hara and the improvement in these industries, its game clubs in Renault and Tawhuo are prosperous throughout 1960 and 1970s. By 1971, Hara realized that the growth of the local bank or gambler borrowed was too limited. He listed the company and became the first pure gambling company listed in the New York Stock Exchange.
Bill Harra continued by Philip Sart, the latter led the Harra company to advance in the market in Atlanta, and was appointed as president in 1984. In 1993, a new legislation was passed, allowed to gamble in the Indian colonial and inland river basin. The Harra has seized this opportunity and quickly expanded into these new markets quickly through the construction of new properties and won the new property and won the Showboat Casino, Rio All-Suite Casino. On the occasion of the millennium, Hara already has 21 casinos, making it one of the world's largest gambling companies. In every big market in the United States, there is almost all markets in every big market in the gambling industry. Figure 1 shows the location of a different casino. These casinos and corresponding hostees have more than 40,000 employees, they can serve 11 million customers, with 11,521 hotel rooms, 92 restaurants, 36,635 roots tilapers (automatic gambling), 1,075 Gambling table and exceed
One million square feet
Gambling.
Figure 1: 21 Casino of Hara
Harra business strategy
This decision to expand to other additional gambling market is a key part of the Harra business strategy. Growth of these markets is considered to be inevitable and help Harra and the entire industry. Because managers think about how to create the greatest value for his shareholders, it determines the brand strategy should be used. Under the guidance of this strategy, different casinos will operate in a unified manner rather than as a single material property. This is a very radical shift in the gambling industry, because traditionally, the managers of the casino use their property as their own independent seals, and the business is also based on property ownership. Under the new strategy, the customer's cross-site gambling will be usually. Advertising and suggestions will help to improve the brand of Harra. Customers who have across a cross-departmental amusement in Hara are appreciated and rewarded. Harra's mission is to establish long-term contact between customers. The experience of Some hotels and casinos (such as the bellagio and paris) have also stimulated this strategy, they invest large amounts of funds in luxury hotels, shopping centers, and, such as mass water skiing performances and Eiffel Tower. Attractive things like replica. However, after these shopping centers and attractive things are very common, their huge cost makes investment income halves. Hara hopes that the craftsmanship is unique, using a more cost-effective route, not only to attract customers, but also maintain and strengthen customer relationships.
The key point of the Hara strategy is necessary to understand the relationship with our customers and manage this relationship. They think this strong customer service contact should be based on customer awareness. To establish this foundation, Hara must understand its customers' behavior and preferences. They want to figure out where the customers gamble, how much gambling is, what gambling games they play, how much gambling, and what kind of service will lure them to visit the Hara's casino. With this information, Hara can better divide specific target customers, and maximize the profit of each casino based on their preferences.
One of the main additions to the Harra management team is to appoint Gary Loveman as Chief Operating Officer (COO). Professor of the former Harvard has strong insights and skills to analyze customer behavior and preference data, and use the appropriate procedure to capitalize this knowledge. With his help, Harra's Customer Relationship Management (CRM) strategy has become reality.
In order to produce the necessary data, Hara has a lot of investment in information technology. He wants to capture data from the customer's contact, synthesize in our customers, and stores the use of afterwards. To master customer preferences, Hara is going to exploit the data, conduct tests through different business methods (such as providing special services), to understand which of the different casinos can best satisfy customers. Adapt to these requirements, the Hara Winner Information Network (Winet) was born.
Winet: Create a single customer view
In 1994, Harra began working on Winet, John, take the information supervisor (CIO) and strategic marketing director under Winet, John under the leadership of John Boushy. Winet's purpose is to collect customer data data from different information channels, synthesize data, confirm market segmentation and customer traits, and create attractive facilities to induce customers to Harra casinos, making data easy to operate and Other analysis. This database uses a patronaut database (PDB) as an operating data center. It provides a landscape to the concept of Harra customers. In 1997, a customer loyalty plan for the patent "Total Gold" was introduced. After the plan, customers can win points after their participation in gambling activities, you can use their integration points to replace free products: room, Food and cash. The function of the business workbench (MWB) is also implemented.
The development of Winet is not a smooth sailing. For example, some complex quotes are always run for a long time, so that it seems that it is okay to be endless on the computer monitor. NCR has provided the coordinates of the Harra service, which uses Teradata database software and hardware to provide inquiry services. This performance improvement is so amazing, so that the Harra has redesigned the Teradata database and the NCR World Mark 4700 Unix System. By 1999, PDB has increased to 195GB on the scale, and stores more than 15 million customer data, and MWB is smaller than the PDB. It is small because the performance issues existing in the database limit it can be stored. At the same time, Hara considers the movement to NCR technology and thus makes a decision to review the data acquisition tools used in the business. The result is turned to the Cognos Impromtu and SAS (Tool). Business analysts in the company and individual property hierarchy use Impromtu to run a predetermined report and challenge and perform a special question. Analysts use SAS to make market segmentation analysis and customer traits.
Figure 2 shows the time history of Winet development, and Figure 3 represents its structural system. The part of the Winet will be described in the following sections.
Figure 2: Time history of Winet development
Figure 3: Winet structure system
Data and resource systems
Data is captured and collected from a large number of resource systems. The hotel system records the specific details of the customer, and the population statistics (such as home address), and preferred materials (such as smoking or smoke-free rooms). Also included in the competition and special events (such as beer tasting week, slot championship). Many players can get a loyal card (such as a full gold card), which can use this card to get the integral point of free items (food or visit). Taking the slot machine game as an example, the customer is inserted into the machine, and each game will be recorded. In the desktop game, the player will bring the card to the manager, and then connect from the small PC to the PDB, playing people choose the minimum amount, average or maximum amount gambling in a period of time. As long as the customer visits Harra's casino, it will record in this system. He or she is a candidate for special offers (eg, if the guest re-visiting the Harr in the next two weeks and entertainment at least three hours Will receive $ 50 free chips). Each customer will be recorded and the information of some replacement will be recorded.
Here, a large number of resource systems are involved here. Some of them are only for gaming industries, such as slot machine information systems, which automatically captures data from slot machines. Other hotel registration systems are generally general, and involving people to enter information. These requirements for human investment use IBM5250S or Rumba terminal competition systems to acquire or enter data. All trading systems are operated on the basis of IBM400S. Harra has no body frame.
Paid people database
When each resource system is terminated in a day (different systems definitions in "one day end"), the relevant data should be extracted out to the PDB. After all, we must first guarantee effectiveness and robustness. An example of the valid address is an example of a validity check. The robustness test involves whether the data is reasonable, such as a slot machine to play with 25 cents, it is unreasonable to fall within 1,000 US dollars in an hour. However, the data is not tested is placed in a suspicious file and then manually checks. At 7 o'clock in the morning, the data is loaded from the casino, the hotel and some event management systems. After downloading, the data can be put into use at noon. According to the resource system, regardless of the customer to which casino, the details of each visit are recorded and will eventually enter the PDB. These materials can be obtained in any customer, casino, hotel or gambling products. Each customer is given an identity confirmation (ID) number, as the main key, about this customer, will be synthesized. The name and address of the customer is not used in Hara's applications unless necessary (for example, when providing supplies for promotional). Marketing
The business workbench (MWB) is created to serve the Harra database. Its resources come from paiders database. MWB can store daily detail data for up to 90 days, monthly information can be stored for 24 months, while the annual information data can be traced back to 1994. MWB supports customer online lookup, and is implemented on the MWB analysis operation. Business analysts can analyze hundreds of customers' features to find each customer's preference and predict the future services and rewards they need. For example, Harra will give some state-of-state customers, and for those who can take a few casinos, they will be more appropriate to give a free visiting ticket. One of the main use of MWB is what customers who have gave a list of books that should be given. These statteries are market segmentation analysis and use MWB to perform customer score results.
Operating application
The patronian database supports a large number of operating applications. If there is a distinguished customer, you may first visit a specific Harra industry. When he registered in the hotel, wait for students to find the customer's characteristics, and make a decision to entertain this customer, such as providing free racing tickets or food. Another example is that if a boss finds that this distinguished customer is already high in a quite a long time, he will give the customer a free preferential voucher.
Winet coupon
Winet coupons are developed by Hara, which is used to provide recommendations for Hara's customers. In order to generate a coupon, business analysts must deal with different customer levels and their characteristics in MWB, establish a customer IDS table column in the target market segmentation to meet specific features. These IDs will be entered PDB, and then the program will create custom mail and coupons for customers. The PDB also records whether these coupons are accepted. Gift coupons are often connected to the hotel system, and those who accept coupons will receive a reserved room. Some activities are daily, while others are special. Gift coupons can be proposed at the company level to support the brand of Hara, or may be proposed by a single owner (such as sponsoring the slot championship held once a Wednesday). There will be more than 200 million customer coupons every year, and the Harra will track each coupon to decide when these coupons can be exchanged, and how to decide how to affect customer behavior at each customer-level marketing activity.
Full reward
The full reward is a customer loyalty plan of Hara. It tracks, maintains and rewards the 15 million customers of Hara, no matter which casino is doing staying. Full rewards first appeared in 1997, but was renamed in July 1999, it was a plan with three level cards - all gold, all platinum and full diamonds, introduced these cards to give The most active and most profitable customers of Harra are more recognized. Customers can accumulate the reward credit card according to its game and other activities in the Harra industry. These reward credit cards can be exchanged for free hotel accommodation, food, visit tickets, and cash and anything else. Starting from a particular credit card, the customer has accumulated to the next higher level card (such as from gold to platinum), and also achieves the right of this level (such as a better hotel seat, priority accommodation, etc.). Customers can check their reward credit card at any time, just put the card into the slot machine or log in to the Harra website. Members of the full reward can also receive cash, can be used in local Harra casinos, and can also go to Las Vegas or Towero. Figure 4 shows a full reward plan in a customer's eyes. Figure 4: Customers of the Gold Plan
Closed ring sales
Like other casinos, Hara has a long-term gift of customers to the customer based on the value of the other party as a gambler. Over the years, a intuitive belief - calling "Haraism" - developed and applied to those related or not related to marketing activities. Harraism has never received any testing. With Winet, this intuition foundation is more suitable for this new more modern way. Marketing activities can be designed and subjected to testing, and the results can also be used later. This data-driven monitoring and understanding is called "closed loop sales", which is shown in Figure 5. Its goal is to understand how to generate a positive impact on customer behavior. Harra knows what type of marketing activities and treatment can provide the highest net value for yourself.
Closed ring sales begins with the qualitative definition of the sales target, the characteristics of the test process and the desired value of the selected customers, which are divided into experimental groups and control groups. Based on the known understanding of the customer, the test activity is to design a suitable gift and signal when appropriate. The customer's choice and their treatment part are based on the Hard customer relationship lifecycle model, see Figure 6. According to the location of the customer in the life cycle and the last time I last travelers, I have designed an incentive factor designed to build, strengthen or revitalize customer relationships. For example, a new customer may exhibit feature of its potential lifecycle value. Harra is willing to provide a particularly generous offer to establish contact between customers. Alternatively, a customer data analysis shows that a customer has "path dependence", will visit some Harra casinos who have previously been ". This type of customer may receive a targeted information and a discount to fix this connection.
Figure 5: Closed ring sales process
Figure 6: Harla's customer relationship lifecycle model
Each customer will be tracked and analyzed in detail for a certain activity. Not only should be measured, other aspects, such as such excitation, and whether it can cause positive behavior changes (eg, increasing the tube rate, profit margin or cross entertainment) of the casino, etc. also to be measured. Based on the net value of an activity and its profitability relative to other activities, Hara learns that those incentives can effectively affect customer behavior or provide optimal profitability improvement opportunities. This awareness is for continuous improvement of marketing pathways. In fact, thousands of such practical activities have been carried out.
There are several cases to confirm the use and value of the closed loop sales. Two groups of slot machine masters from Jackson and Mississippi have done a group of experiments. Members of the first group are provided with a combination of complimentary housing, two steak dinner, and a chip in TUNICA casino worth $ 30. The second group includes more appropriate discounts and attracts more gambling behaviors, proves that Hara provides free housing and food for Jackson's customers is an economical waste. Subsequently, pay attention to free chips, and found that every time you gamblers can get a profit of $ 60.
Another test focused on a group of players playing once a month, Harra believes that they can attract more frequent gambling because they all live near, and also show that some features such as pressing, for example, on the slot machine ( High speed player). In order to induce them frequently review, Hara gives them free cash and food within two weeks. The average number of patriants of this population rose from 1.1 to 1.4. The process and technology of closed loop sales are shown in Figure 7.
Figure 7
: Activate the technology of closed loop sales
influences
The use of Hara's business strategy and information technology is unique in the gaming industry, which looks more like being used in retail and financial services. It is indeed remarkable, and some other casinos also follow some of the more easily identified practices. The total stock price of Hara has also risen in the past, the total income of the company. The creation of the Harra brand, a full reward plan, and cross-marketing method have led to a 72% income rate in information technology investment.
The results of Hara's closed loop sales can be seen from its influence on "same casino sales" (for example, a gambling gambling gambling income). In 1999, Harra has increased by 14% in the same casino, and increased by $ 422 million on the basis of 1998. As long as Harra is doing business anywhere, his income growth is far from its competitors - in some cases, the average sales of "same casino" is doubled.
The growth of the sales performance of the same store is a certification of customer loyalty growth, and this is attributable to three key factors contributing to business value: (1) Access frequency, (2) Each access, (3) Event cross entertainment. Let's examine the special cases of improvement in these areas.
Harra segments those customers who are not high in historical records, successfully increases the frequency of walking. Before the sales activities are carried out, the customer patron those the frequency of the Harra casino (e.g., central partial) set in the central location is 1.2 times per month. After the service is customized and reducing the information, the tour of Hara from the same group is 1.9 times a month. Moreover, more and more customers are joining, which can be expressed by the percentage of customer access, see Figure 8.
Figure 8: Addition of access frequencies
The effectiveness of the Direct Mail Contact Plan of Harra has also been greatly enhanced. This is an example in the Casino in the Tunica area. In this way, Harra has doubled more than one more profitable in the customer's customers. See Figure 9
. Figure 9: Direct mail contacts the impact of the Casino profitability in the TUNICA area, MS
Figure 10 Prove that Hara succeeded in entertainment in Harra's casino. In the past two years, the total profit margin generated by cross entertainment has risen from 13% to 22%. In the Harralas Vegas Casino, this data even turned over, from $ $ $ $ $ 48 million in 1999, from 1997. This growth comes from that time with the new luxury casino with a total investment capital of more than $ 350 million, Las Vegas's room supplies have almost doubled.
Figure 10: Cross Recreational Entertainment (Plus)
Future direction
The ability of Harra developed has formed its basis for its sustainable competitive advantage, and has laid a solid foundation for its use of more technology and decision-making science in the future. Its future development direction includes:
¨ Hara will introduce a profit management mechanism to ensure that the housing can be provided to our customers at an appropriate speed. This mechanism will help Hara to optimize customer return rates under limited housing restrictions. The price of the room will respond to the current and historical needs of the housing during the year of the year, as well as the customer's theoretical value on the Harra Casino.
¨ Harra will extend its system to ECRM, not only can contact current customers through more advanced Internet, but also get new customers. All current information obtained through non-Internet channels will be obtained through Internet relationship management channels. ¨ Harra will strengthen its database to provide information sources in the industry range. This strengthening includes the increase in the information of customers, sales, financing results, and labor costs / employees. The storage of this data makes Hara to analyze and understand its customers, products, and customer services in a new way. For example, Harra will have the ability to analyze those who have the most hobbies and most profitable customers in the slot machine gambling, and use this information to decide where to place slot machines.
Learned experience
Harra's experience provides some experience that benefits other companies to promote their initiative to study customer relationship management.
¨ Contact our business strategy and software library strategy. Viewing its entire development process, Harra has always focused on establishing contacts and customers. The advancement of information technology and the increasing expansion of the betting market, so that Hara has the opportunity to use the database to perform its brand strategy. The business strategy supported by the database has led to the change in how the company is working and its leadership in the gaming industry.
¨ Pay attention to business changes management and link it with the success of the business program. Because Hara is stepping from an industry to a brand-centric customer view, it is necessary to make business changes, not just technical changes. High-strength high-level manager support is the key to the global victory. The transformation of the incentive mechanisms that encourage the cross-distribution transverse business in each division is also important.
¨ High intensity intervention from commercial entities. Fortunately, Hara started from its database plan, and its CIO is also the director of strategy marketing. This situation runs through the entire program. They set some tasks, such as using a database, helping to develop a training and qualification plan for new users to develop reports of the items used.
¨ There is a fairly scale architecture. Although the initial system of Hara applies to patronauts database, it has been proven to be not applicable to the marketing workbench. After a large amount of effort has passed the existing thing, the Hara finally turned to NCR to provide a system that provided a satisfactory response to the user. The company has experienced a lot of failure attempts in creating a database system that is sufficient to meet future needs.
¨ 包括 Includes short-term miles and forming specifications. At the beginning, the company did not use short-term mileage and forming specifications. This is a mistake, which has led to many problems, such as performance issues of user challenges. After this test, the future stage of the program includes the need to prove the concept, forming specifications and faster delivery.
¨ Management consultation relationship. Since Hara has no database experience, he seeks an external help. Hala invited NCR's professional service personnel to expand the inner staff. Harra did not show the "resource extermination", but the opposite "resource coexistence", which regards the management and NCR of the inner information technology responsible for the project and contacts as the same.
¨ Knowledge transformation and cultivate internal experts. It is common to hire consultants to help build database projects. Most companies have almost no experience in establishing their databases, and consultants can quickly transfer them into the right track. However, it is important to end uphold your own database experts. This goal can be achieved by hiring experience with database experts and through a formal plan to achieve the transfer of consultants to internal personnel. Harra success uses these two ways. They also use a lot of internal training methods for the database.
in conclusion
The space to be changed to the Harra is already small. It has invested $ 100 million on computers and software, and has been developed in generally believed that the industry's most complex "frequent gampers" project. Under the full reward program, Harra has the world's largest customer database, and they can build sustainable loyalty, this is a leading competitive advantage and can be affected by regional market.
The Jara's innovation is still continuing, and more services are available on existing underlying customers. This is different from popular buildings and colorful new casinos. Gary Laverman returned their success to the "Software in the gambling industry to win the hardware".
The full reward program increases the traffic volume of the Harra casino, and the customer retention is added by the database data driven marketing plan. Suppose the customer maintains a benchmark consumption, the customer retention degree gives a net profit of $ 2 million per year every additional percentage point. So far, Hara has profitable from a few percentage points that increase from customer retention, which is largely thanks to its database. Closed ring marketing fuels the competitive advantage of Harra. According to the vice president of the Information Technology Development Committee, Tracy Austin claims that by combining product information and customer behavior, "we have no enemy". All in all, database technology has enabled Halahan to rank among the gaming industry. Harra is technically "gambling".
