Harrah’s Taps Caesars’ Loyalty Members

Harrah’s Entertainment plans to merge its 30 million loyalty club members with Caesars 28 million Connection Club members, creating a mega-database of faithful consumers who often spend without abandon in the hopes of hitting the big jackpot.

In a surprise finding, Harrah’s discovered that there is less overlap in the club memberships than it expected. Only 18 million of Caesar’s 28 million club members were enrolled in Harrah’s Total Rewards, which means Total Rewards will grow to 40 million members (about 10 million are active), said Harrah’s VP-Loyalty Marketing David Norton.

“There was not as much overlap as we thought there would be, given the number of shared casino markets,” Norton said.

Once the databases are combined and points are rolled over to Total Rewards, Harrah’s will work to customize awards for members who frequent Caesars properties. The process is expected to be completed by January, Norton said.

Harrah’s launched Total Rewards in April 2000 allowing devoted gamblers to earn points at any Harrah’s property. Members swipe their loyalty card at the tables or slot machines and earn a point for every dollar gambled. Points can be redeemed onsite or used toward branded prizes or merchandise or lifestyle experiences selected from an online catalog.

Since 2003, Harrah’s has upped the ante by strategically leveraging its database and partnering with willing brands to offer rewards ranging from Macy’s shopping sprees to Royal Caribbean cruises to Coca Cola vending machines.

Harrah’s will likely combine the best attributes of both clubs. For example, unlike the Connection Club, Total Rewards members can customize their own reward programs based on the region they gamble in. The individual properties, however, have flexibility in what the base rewards structure will be, and base the rewards on trends set by their loyal customers.

“We’re going to keep it a one-tiered, portable program, and we will still have a national merchandise menu (for rewards redemption)” Norton said. “It won’t be any different than it is today by any stretch of the imagination.”

Harrah’s acquired Caesars in June in the largest cash and stock deal in gaming-industry history (approximately $9.44 billion). Harrah’s now owns 56 properties. In addition to Caesars, Harrah’s also owns casino brands Horeshoe, Showboat, Rio and Harveys.