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Harrah’s Customer Loyalty / Rewards Program

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Gamblers do not just win money when they play at one of Harrah's 26 casinos. When they swipe their loyalty cards, they are also eligible to win a variety of perks, from appetizers to Swedish massages, depending on their level of spending and the information Harrah's has collected about them. So popular is Harrah's loyalty program that it now includes 6 million active members who have used their memberships within the past year and 26 million members overall. What further distinguishes Harrah's approach is the complexity of its loyalty program. It is designed to appeal to both big-time spenders and small but steady gamblers. According to Woolf, the problem with most companies running loyalty programs is they have only enough resources to focus their customer strategies on the top 30% of their customers. With Harrah's, that move has its own strategy to construct loyalty and growth at all levels.

Companies can learn from this example, to provide tangible benefits by offering customers perks through rewards program. Key to the enablement is to NOT to alienate the customers (big-time versus small spenders) and to make services tangible or show the benefits of using the service.

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YouSigma. (2008). “Harrah’s Customer Loyalty / Rewards Program." From http://www.yousigma.com.

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