Diamonds in the Data Mine

My response to a HBR article on ‘Diamonds in the Data Mine’:

Attract loyal customers then reward them, then challenge them to earn more rewards by increasing their loyalty.  Seems simple.  The idea is to make the customer feel like a high roller.  Make your customers feel like they own the joint.  This method is no surprise for me because I live in Nevada and these casinos like Harrah’s are referred to as ‘local’s casinos’. 

24hr Fitness is a great gym to have a membership too because no matter where you are in the country there’s a chance there’s a gym nearby and your membership works at every one of them. 

Harrah’s has the same approach.  Give customers who are traveling, a comfort zone; a place they’re familiar with.  Give them a place where they can use their loyalty awards even though they’re across the country. 

Casinos have a lot to offer consumers and Harrah’s has developed a niche slightly different than its competition to help set them apart.  It’s a great idea to capitalize on the locals who simple enjoy gambling and the experience. 

It is interesting though that Harrah’s uses bonuses to reward its employees.  People like Daniel H. Pink, author of ‘Drive’, would say to remove the bonuses, pay your employees fairly and set other rewards for them.  Such as, rewards that make the employees feel like they are making a difference, intrinsic rewards that drive self motivated performance.  Maybe now that Harrah’s has a grasp on the customers and their wants it’s time to focus on the employee’s.  If customer satisfaction is the ultimate goal it’s likely that very happy and motivated employees will even further boost the customer’s happiness.


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