Topics and Objectives:

Here we will focus on the possibilities that information technology has enabled for marketing to individual customers. In particular we will examine how one company uses detailed individual customer information to benefit both the firm and its customers.

Finally, this topic raises privacy and ethical issues associated with the use of customer data.

Required Readings:

Winning in Smart Markets, Sloan Management Review

A thought-provoking article (meaning that I don't agree with everything said) focusing on changes to marketing strategy enabled by advances in IT. In particular, smart companies increasingly see information (particularly detailed customer information) as a corporate asset and a key priority is to maximize the return from this information

Diamonds in the Data Mine, Harvard Business Review, 2003. 

A great story chronicling Harrah's successful use of customer data to 'develop' and cultivate their customers.

Casinos Bet Big on RFID, Business 2.0, April 2005 )

A very short article on the next wave in customer data collection by casinos!

Case: Harrah's Entertainment, Inc. (Harvard case)

Case Preparation Questions:

• What are the objectives of the various database marketing programs?
• Are the Loyalty Programs (frequency and budget upside) working? Use the data in exhibits 2c and 2d to make the calculations.
• Why is it important to use "customer worth" rather than the observed level of play?
• How does Harrah's integrate the various elements of its marketing strategy?
• What is the sustainability of Harrah's actions and strategy?
• What privacy and ethical issues should Harrah's be concerned about?

Optional Reading:

Harrah's CRM Success is no technicality, CasinoJournal.com

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