The paper "Analysis of Hurrah’ s Loyalty Program" is a perfect example of a business case study. One of the most integral components of the program is a Total Rewards Program. This is an initiative that was derived from the initial Total Gold Program. Through the program, the customers were rewarded with computers so as to motivate them into maintaining their loyalty with the firm. The main objective of this program was to gather information about clients and use it to customize the company’ s marketing plans for each client. The company’ s use of the strategy was one of the best decisions ever made in that it has several benefits.
Firstly, apart from improving customer loyalty, the program is influential in capturing and retaining more customers than its competitors. According to Harrah’ s Senior Vice President, Richard Mirman, the company understands its customers’ needs; therefore, it has unique ways of handling them. Moreover, there are various elements that are responsible for the program’ s success. One of these elements is an electronic card that is inserted in the machines used by the clients. This electronic card is of great significance in that it helps in the tracking of the clients’ preferences and collection of their data. In the process of tracking the customers’ data and preferences, the firm has extensively used information technology to improve the effectiveness of the electronic card.
Therefore, business intelligence (BI) and a large data warehouse were created in order to better understand its clients; the company used some science tools from the SAS and Cognos on their data. These tools are also instrumental in getting insight into their gaming preferences. Therefore, the company greatly benefits from the program in that it realized a 13% rise in the profit, within the first year of introducing the initiative despite its $251 million in expenses on rewards.
Moreover, the enrolment level of the loyalty card programs has risen from the 12million in 1997 to 26 million in 2006. The flexibility of the Reward program The loyalty programs used by the Harrah’ s company are adjustable to other forms of business. For instance, it can be used in a pedigree industry to perform the same functions as in the entertainment industry.
This is because it uses information technology strategies to carry out its operations. Information technology is beneficial in the corporate world because it fits in any setting. Just like in the entertainment industry, loyalty programs can be adapted to whatever a pedigree industry needs (Klein, & Newman, 2006, pp. 91-93). For instance, it can be used in the collection and consolidation of customer information, especially on assessing clients’ needs. Nonetheless, not all the elements used in the Harrah’ s company are applicable in the Pedigree firm. Particularly, electronic loyalty cards cannot be used in this firm, because it requires a gadget that the customers use.
Unfortunately, a pedigree firm is not a gaming industry where clients need to insert cards in the machines. Moreover, a pedigree firm does not have to know the clients; instead, it should understand the needs of pets. Therefore, cards are unnecessary because pets cannot function as human beings. For such a company, the collection of clients’ information can be done through other ways that are favorable to the business (Goldenberg, 2008, pp. 57-60).
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