CRM at Harrah’s Cashing in on Customer Loyalty

Many gambling casinos like Harrah’s (see CRM at Harrah’s (Cashing in on Customer Loyalty) on Required

Readings use CRM strategies to aggressively target loyalty programs to the middle-aged and retirees with time
(and presumably) the discretionary income to spend on gambling entertainment. By estimating a customer’s
propensity to gamble and comparing that with their past gambling behavior, Harrah’s can target players with
untapped gambling revenue potential.

Some argue that loyalty programs like these used by casinos could lead to an increase in the incidence of
problem gamblers among these socio-demographic groups, and therefore, such marketing practices are unethical
and should be regulated.

Discuss your views on this issue. At the end of your discussion attach a brief written answer to the
question, “How can gambling casinos get the maximum marketing benefit from their loyalty programs without
increasing the incidence of problem gamblers?”

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