April 6, 2011

Diamonds in the Data Mine and Rewarding Our People

Posted in BADM 720 tagged , , , , , , , at 8:29 pm by Sarah

These two readings describe two great programs used by Harrah’s CEO Gary Loveman to put the company at the top of the industry.  “Daimonds” focuses on the use of collected customer data to create the perfect customer loyalty program, while “Rewarding” is all about the collective bonuses used to reward improving customer service ratings.

The loyalty card program that Harrah’s used to collect information about customers is, of course, brilliant.  The tiered levels of customer rewards appeals to the customers’ sense of achievement, while every use of the card gathers data about customer preferences, all in one sleek technology.  The system is simple and streamlined, and it practically improves itself by telling the marketing department which incentives will be most effective.  I just have to wonder what customers would say if they knew their gambling habits were being recorded for the purpose of the company being better able to relieve them of their cash.

The other reading paints a clear picture of how the company lived up to its desire to be the pinnacle of customer service in their
industry.  While I personally dislike filling out those annoying customer surveys, there really is no better way to find out what customers want than to ask them.  It gives the business an objective, measurable way to examine how their services are being received.

Finally, the collective bonus system had its pros and cons.  Giving the same bonus to the entire department gives the team a common goal and promotes working together to achieve it.  Basing the bonus entirely on customer service scores ensures that employees will be focused entirely on improving that score.  On the other hand, one employee providing bad service can bring down the entire team.  The bonus itself is not that much, but it is a good gesture to show that the company is committed to recognizing employees’ hard work.

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