Harrah’s Ups the Ante
Limo rides, gourmet food, lots of bling bling: They’re all part of the high-roller persona. The challenge for casinos is finding the right enticements to keep the player in the game.
Like many of its competitors, Harrah’s Entertainment recognizes the importance of rewarding its most faithful patrons. In April 2000, it launched Total Rewards, a loyalty program that allows members to earn points at all Harrah’s properties.
Since 2003, however, Harrah’s has been upping the ante by strategically leveraging its database and partnering with willing brands. The company now offers rewards ranging from Macy’s shopping sprees to Royal Caribbean cruises. High rollers can cruise to a Harrah’s property in a limousine and opt to leave on a John Deere tractor. Okay, the winner might have that reward shipped home, just as he might with other hefty spoils such as Coca-Cola vending machines and Sharper Image recliners.
Harrah’s taps Dallas-based Tracy-Locke, its promotional AOR since December 2003, to tie-in with clients like Coca-Cola, Godiva Chocolatier, American Airlines and The Sharper Image, to craft packages that excite current Total Rewards members and entice new ones.
With Total Rewards membership approaching 30 million, brands are eager to sit at Harrah’s table. “We have this rich database, and it can be leveraged to provide their brands increased [exposure],” says Holly Way, VP-retail marketing for Harrah’s.
Take Harrah’s summer 2004 “Winning will find you” promotion, which tied into Coke’s “Unexpected Summer” campaign. Total Rewards members got a free 12-pack of Coke, and could search for a specially marked winning can worth $25,000. Each of Harrah’s 28 properties had at least one winner, who flew to Las Vegas for a chance on a $1 million grand prize.
Nearly 300,000 12-packs, bundled with a free movie rental coupon from Blockbuster, were also distributed at Harrah’s; more than 225,000 new members signed in six weeks. Harrah’s saw 8% same-store (AKA “casino”) revenue growth over 2003. The promo repeats this quarter.
It’s all in the game. Total Rewards members earn points based on the type and frequency of games played. The program uses this transactional data (i.e., what games they play or what type of slot machines they prefer) plus demographics to structure offers and rewards. Direct mail is crucial; a Total Rewards member can receive an average of 150 pieces a year.
Harrah’s will need to extend its formula in June, when it acquires Caesars Entertainment and its 28 casinos. The largest cash and stock deal in gaming-industry history (approximately $9.44 billion), it includes Caesars Connection Club’s 28 million loyalty members, who will be integrated into Total Rewards.
Harrah’s will draw on its experience with the three-casino Horseshoe chain, bought last June. It worked to make transactions for Horseshoe members seamless when they visited Harrah’s properties. Beyond incorporating databases, the casino surveyed which benefits drove those consumers to join a loyalty club, Way says.
One thing is certain — a combined Harrah’s-Caesars database will deal its brand partners a full house.
