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  • Essay / CRM In Casinos - 1099

    Casinos in the United States have invested billions of dollars in elaborate architectural themes and expensive light shows in an effort to differentiate themselves from their competitors. Although successful in attracting spectators amazed by the dancing fountains of the Bellagio and the great pyramid of Luxor, this investment did not succeed in attracting players, the main source of income for casinos because the games they offer are identical and therefore trivialized. In order to attract customers and gain market share, casinos have had to offer a personalized gaming experience in the form of excellent customer service, offering perks and rewards to players and making them feel special and important. Before the age of technology, all of this was done solely at the discretion of booth managers and floor supervisors, who based their reward decisions solely on their impressions as well as the image given off by customers . The movie, 21, accurately depicts this, where college students arrive in Vegas, dress fashionably, bet big and get luxurious suites, along with a personal casino host who knows them by name, welcomes them and makes them feel like VIPs. However, casinos realized that this practice was not effective in maximizing their profitability because the return on their marketing and rewards depended on arbitrary decisions based on appearances and perceptions, for which a player, in reality, was not. maybe not qualified. Using customer relationship management (CRM) technology, casinos have found a solution to more accurately classify their customers and properly direct their marketing efforts to the right customer segment. The essential objective of CRM is to attract and retain loyal and profitable customers. Loyal because it is common knowledge that long-standing customers tend to be more frequent and are easier and less expensive to maintain rather than trying to acquire new customers. Profitable because it’s what makes or breaks the business. Through the use of loyalty card based CRM systems, casinos are now able to proactively identify high margin customers daily throughout their operations and once they are identified, casinos go to great lengths to ensure that these guests receive extraordinary service, free meals, tickets to shows, venue and even limousine and helicopter services. These rewards are not cheap and, at first glance, may seem like an unnecessary expense. This might have been a valid argument in the past, where casinos might have spent more on marketing to each customer than they could ever get back..