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In the establishment of Harrahs customer relationship strategy it was accessed that their customers are able to obtain great services and rewarding their loyalty so that they seek out a Harrahs…
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15 September 2009 Case study Questions and Answers Harrahs Casino Discuss the factors that drove Harrahs customer relationship strategy.
There is variety of factors those drove Harrahs customer relationship strategy. In the establishment of Harrahs customer relationship strategy it was accessed that their customers are able to obtain great services and rewarding their loyalty so that they seek out a Harrahs casino whenever and wherever they play. As well, the management of the Harrahs casino is aimed at providing greatest value to its shareholders, it was decided that a brand approach should be taken (Watson and Volonino). Harrahs casino offers new approach that provides the commonalties in the gambling experience for customers across the various casinos. The main attraction that is established for the Harrahs customer relationship strategy is presenting the customer a combination of all facilities at the same place (Watson and Volonino). These can be lavish hotels, shopping malls, and attractions such as massive dancing water shows and a replica of the Eiffel Tower. Here the Harrahs customer relationship strategy is established by seeing and understanding relationships with their customers. They believed that strong customer service relationships are built on customer knowledge. This is done through gathering each and every aspect of customer behaviors in the form of the marketing data and information. This whole structure provides for the effective implementation and execution of Harrahs customer relationship strategy (Watson and Volonino).
2) Give examples of how Harrahs has implemented closed loop marketing.
“In closed loop marketing, data can simply be transferred between marketing and sales, and clients can be examined through the suspect-to-sale range” (Anderson). In implementing closed loop marketing a customer or player is selected that is already known to the Harrahs business (Watson and Volonino). In this campaign a special offer according to customer behavior and playing position is offered. In this offer a special message is sent. This involves the presentation of some hotel stays, special visits, special playing offers and credit. The decision of offer is presented according to the past visits of client to the Harrahs casino. The overall pervious data regarding customer playing is recorded and decision is made on the basis of that data if he requires some offer. For example a player has lost his pervious five games and now he is really dissipated with the Harrahs casino. His all record will be analyzed, like his lost money, main playing behaviors and additional details. After that a special offer that offers him one night stay in luxurious hotel, $30 credit or and additional offer. This will attract the customer and he will come once more. In this way his confidence will enhance. Customer relation to the business will also be strengthened (Watson and Volonino).
3) What function of Harrah’s business can be outsourced?
The development of the WINet for the Harrahs casino business will comprise the huge and complex system implementation. This business supported structure comprises some confidential areas of the business and some are simple database based structure. The decision of the function those need to be outsourced depends on the factors that which areas are more critical in nature regarding the Harrahs casino business and secret policy. We will only outsource those areas of the business that are less critical regarding the Harrahs casino business and it’s secreting information. Like these areas are: (Watson and Volonino)
Customer information database
Customer playing record management system
NCR Teradata database implementation
Customer services management system (Call Center)
Special Cards handling system
4) What are the pros and cons of outsourcing the function selected?
Advantages
For the new business system for the Harrahs casino we need outsourcing for functions that are mentioned above:
Cost reformation: In service influence is calculation that evaluates enduring outlays to unpredictable expenditures. Outsourcing transforms the equilibrium of this relation through presenting a shift from stable to changeable expenses as well as through creating erratic costs more unsurprising.
Build quality: Attains a step transform in excellence in the course of astringent out the service by means of innovative service altitude conformity.
Knowledge: Right of entry to logical possessions as well as wider knowledge and understanding.
Operational knowledge: Contact to working greatest performance that would be as well hard or time overwhelming to build up in-house.
Access to talent: Way in to a greater capacity pool as well as a sustainable establishment of proficiencies in scrupulous in knowledge as well as engineering.
Improve capacity: Harrah can make use of outside knowledge service suppliers to addition inadequate in-house capability for invention modernism.
Expenditure savings. The minimization of the general prices of the service to the Harrah. These will entail minimizing the important excellence levels, cost re-structuring, re-negotiation, capacity and reprising. Entrance to minor accusation of financial system in the course of off shoring described "employment arbitrage" produced through the income gap among developed and developing countries.
Tax Advantage. States proffer tax inducements to shift developed processes to oppose elevated business taxes inside one or more states.
Disadvantage
We can have following disadvantages regarding outsourcing for new network based business system for the Harrahs casino:
Less or No privacy to developer (we have tell all aspects of business for effective development)
Information theft (loss of any critical business information through business system developers)
No better interaction to business processes
System received not same as Harrahs casino business wanted because developers did not know the real business secretes.
Technology conflicts

Bibliography
Anderson, Greg. "Closed Loop Marketing: Making a Match Between Sales and Marketing ." 28 June 2007. ManageSmarter.com. 15 September 2009 .
Laudon, Kenneth. C. and Jane. P. Laudon. Management Information Systems, Sixth Edition. New Jersey: Prentice Hall , 1999.
Shelly, Cashman and Vermaat. Discovering Computers 2005. Boston: Thomson Course Technology, 2005.
Watson, Hugh J. and Linda Volonino. "Harrahs High Payoff from Customer Information." 07 June 2001. The University of Georgia, Terry College of Business. 15 September 2009 . Read More
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