Factors That Drove Harrahs Customer Relationship Strategy - Essay Example

The main attraction that is established for Harrah's customer relationship strategy is presenting the customer with 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 Harrah's 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 by gathering each and every aspect of customer behaviors in the form of marketing data and information. This whole structure provides for the effective implementation and execution of Harrah's customer relationship strategy (Watson and Volonino).
2) Give examples of how Harrah's 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 Harrah's 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 the client to the Harrah's casino. The overall previous data regarding customer playing is recorded and the decision is made on the basis of that data if he requires some offer. For example, a player has lost his previous five games and now he is really dissipated with the Harrah's 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 a luxurious hotel, a $30 credit or an 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 Harrah's casino business will comprise a 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 Harrah's casino business and secret policy. We will only outsource those areas of the business that are less critical regarding Harrah's casino business and its 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 Harrah's casino we need outsourcing for functions that are mentioned above:
• Cost reformation: In-service influence is a calculation that evaluates enduring outlays to unpredictable expenditures. Outsourcing transforms the equilibrium of this relation by presenting a shift from stable to changeable expenses as well as by 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 into 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 the inadequate in-house capability for invention modernism.
• Expenditure savings. The minimization of the general prices of the service to Harrah. These will entail minimizing the important excellence levels, cost re-structuring, re-negotiation, capacity and reprising. Entrance to the minor accusation of the financial system in the course of offshoring 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 the following disadvantages regarding outsourcing for a new network-based business system for the Harrah's casino:
• Less or No privacy to the developer (we have told 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 Harrah's casino business wanted because developers did not know the real business secretes.
• Technology conflicts