Objectives of the Various Database Marketing Essay

When its competitors entered new markets with advantages of innovation and lower cost during the 1990s, Harrahs capped the business growth. However, the company rather chose to make use of an existing advantage guest loyalty, instead attempting to create new resources. A marketing database contains information about individual customers or potential customers that is relevant to the marketing process. DBM is an important tool to take in up customer relationship and increase the loyalty. To strengthen the loyalty competency, requiresd Harrahs to process sophisticated database analysis of customer profiles, so that the company could market the serious customers with right ways, in order to attract repeated visits and retain the loyalty (See Appendix A and B). Harrahs used the data base in ternion programs new business program, loyalty program, and retention program to build up the customer relationship and strengthen the loyalty.Another objective of DBM is to predict consumer b ehavior and customer worth. Customer profiles provide information about customers play preferences, betting patterns, how often they visit, how much they play, etc. After retrieving detailed information from every customer, Harrahs could predict potential customer playing behavior at all of its properties through quantitative models. After the models identified some opportunity-based customer segments for rationalized reinvestment, Harrahs move customized incentives to these customers, seeking relationships with them based on their future worth, rather than on their past behaviors.One more than important objective of DBM is to track customers over time and manners some marketing experiments, so that Harrahs can find the right marketing instrument, for the right behavior modification, for the right customer. When Harrahs issues special promotions, it needs to complete which kind of promotion is the most effective at the lowest cost. For example, through marketing experiments, Har rahs found that a less attractive offer was more profitable, and the return of a portion of customers bet was unnecessary. Through the DMB program, Harrahs could gain a better understanding of customers to increase customer comfort and achieve organizations objective at a profit level.