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Caesars Entertainment 101011010010 101011010010 101011010010 A major research initiative at the MIT Sloan School of Management Caesars Entertainment: Digitally Personalizing the Customer Experience About Caesars Entertainment Caesars Entertainment1 is one of the world’s largest gaming and entertainment companies, with multiple brands and operations spanning four continents. It operates over 50 casinos, hotels and golf courses including Caesars Palace and 9 other properties in Las Vegas, as well as properties in other cities such as Harrah’s Atlantic City and Caesars Golf in Macau, China. It also owns the World Series of Poker and the London Clubs International series of casinos. Since the arrival of CEO Gary Loveman in 1998, the company has been highlighted as a leader in its use of technology and analytics to drive customer satisfaction.2 2 Introduction Today, Caesars is extending this analysis of offering complimentary strategy with mobile technologies services to improve the Amid the glitz and grandeur in ways that go beyond just a slick- experience. of the casino industry, Caesars looking app. The company aims Entertainment has placed its to deliver a superior customer While it is common across strategic chips down on customer experience by leveraging SMS, the industry to lavish this kind relationships. The company apps, location data and QR codes of personalized attention on pioneered this strategy in the in a number of complementary big spenders (or “whales” early 2000s with its Gold Rewards ways. Senior executives point to in industry parlance), most loyalty program, which evolved three fundamental components casino-goers receive a relatively 3 into the award-winning Total underpinning this strategy: undifferentiated experience. Rewards. The program adopts customer data, mobile and Caesars’ data-driven approach, on a data-driven and closed-loop company culture. the other hand, allows it to scale approach to deliver a personalized its personalized touch to a far experience for Caesars’ guests. Turning customer data larger group of customers. From CEO Gary Loveman’s perspective, into customer loyalty “You can’t just fail to service the Caesars’ approach begins with tens of millions of people that We sell a stochastic data. The company collects constitute the middle of the product; sometimes vast amounts of transactional, market.”4 demographic and gameplay data you win big, sometimes through its loyalty program to you lose big. But, if create a detailed profile for each you’ve played very Caesars guest. Employees then You can’t just fail to ‘disadvantageously,’ and use this information throughout service the tens of the company to make better we market to you as if operational decisions. For millions of people that that’s not the case, we example, the company’s marketers constitute the middle of have very little chance can create and target special the market.4 offers with precision. Meanwhile, of getting you back. If hospitality staff can use the same you’ve had a very bad information to personalize nearly – Garry Loveman, CEO visit, then we have to every aspect of a guest’s stay, from give you more, treat you how she is greeted on arrival, to how her room is made up. Should 4 better. a guest have an unlucky evening at the casino, managers on the floor – Garry Loveman, CEO can even perform a cost/benefit 3 Innovating the guest relevant special offers. “If you’re during their stay. The company’s experience through at Paris, we could send you two “myTR” app allows Total Rewards free admissions to the Eiffel Tower members to keep track of special mobile ride or if you’re at Caesars Palace offers, manage reward points A customer’s mobile experience after 6 p.m., we could send you an and even book rooms in any at Caesars begins before he offer for the Bette Midler show,” one of Caesars’ properties. For or she even walks in the door. explains a member of Caesars’ guests in the company’s Las Before arriving at one of Caesars’ marketing team. “We might have Vegas or Atlantic City properties, 40 properties, guests that have some additional show tickets apps provide access to a mobile opted into the company’s Texpress left over, so knowing where the concierge, real-time event 6 service can check-in via SMS. customer is is a great way to get information and room service. 5 This enables them to bypass those tickets pushed.” Staff are using apps to improve the registration lines and pick up their guest experience as well. keys at the bell desk. Texpress also Caesars has also taken advantage combines mobile location data of mobile apps to put more of and SMS to deliver timely and its services at guests’ fingertips Figure 1: Caesars’ guests can use its Texpress Figure 2: Caesars’ applications for mobile devices service to check in with a mobile phone and avoid allow guests to manage Total Rewards points, make lines when they arrive reservations, and even order room service 4 The company’s new Beverage iApp mobile access “sleek and easy to service that has made the allows wait staff to submit drink navigate.”9 Caesars also integrates company famous. Moreover, as a orders directly to the bar, cutting mobile and physical world mechanism to integrate channels the time to deliver a drink in half.7 promotions through QR codes. For at the customer level, mobile Rich Kang, Head of Omnichannel example, a guest may scan a code enables Caesars to deliver a more Innovation, commented on the associated with a Jerry Seinfeld comprehensive and personalized Beverage iApp’s success, “We set promotion that directs her to a experience. out to use an emerging technology video where she can learn more platform like mobile to transform about the show, and a link where As the functionality of mobile traditional beverage service in she can purchase tickets. expands into social and other the casino and increase customer domains, opportunities to service scores.”8 Caesars’ executives believe that enhance the guest experience mobile is a natural fit, given the will multiply. “There will continue The possibilities for mobile extend company’s focus on data, closed- to be more opportunities with far beyond the handset. Caesars’ loop learning and personalization. mobile devices to engage with our mobile strategy includes ways According to one executive, “Most guests both when they plan travel to deliver a seamless experience decisions with our guests happen and while travelling,”10 explained across virtual and real-world on the casino floor. That’s where a Caesars advertising executive. channels. To bridge the gap you have to reach them.” Every “Social, local, and mobile are huge between mobile and traditional phone in the pocket of a guest areas of innovation and places to web experiences, the company represents a unique opportunity win.”11 has optimized its website to make to deliver the personalized Figure 3: Caesars website is optimized for mobile access. Users can enroll to receive special offers and information for each Caesars property via text 5 Sustaining a technical novelty with on-the- rooted in a common pursuit: using ground operational experience. information to deliver a superior customer-focused Commenting on the relationship customer experience. Looking culture between centralized data analysis forward, the company expects to At Caesars, technology has been teams and on-the-ground continue leveraging new tech- fundamental to delivering a operators, Loveman says, “If what nologies to innovate the customer different kind of experience to we’re asking him or her to do experience, while maintaining its customers. The company has isn’t working, they’ve got to be the level of service its customers combined a deep understanding screaming. That’s their right. They have come to expect. According 13 of its guests – gleaned through can’t be deferential.” He also tells to Loveman, “The experience has analytics – with new mobile the story of Jadwiga Maruszewska, to be what our customers want it channels and opportunities to a member of the housekeeping to be. There’s a whole engine that 15 interact. staff at the Flamingo Las Vegas, needs to get that right.” whom guests request by name Yet executives highlight solid because of her attention to details management practices and like children’s names and room company culture – rather preferences.14 than technological prowess alone – as the cornerstones of Whether drawing on insights continued success. The company’s from advanced analytics, mobile “aggressively collegial”12 or good old-fashioned attention culture seeks to complement to detail, the culture at Caesars is 6 References 1 Formerly known as Harrah’s Entertainment Inc. 2 See https://caesars.hodesiq.com/careers/Link_nav/about/awards.asp. 3 Master of Enterprise Loyalty Award, COLLOQUY (2012). 4 Interview conducted by Andrew McAfee on Dec 12, 2012 as part of the MIT CDB conference “Big Data: The Management Revolution.” 5 Harrah’s launches iPhone app; Caesars bypasses check-in, Las Vegas Sun, Jan 8 2010. 6 “Caesars Palace LV” app supports all Las Vegas locations: Bally’s Las Vegas; Flamingo Las Vegas; Harrah’s Las Vegas Casino; Imperial Palace; O’Sheas Casino; Paris Las Vegas, Bill’s Gamblin’ Hall & Saloon and Rio All-Suite Hotel & Casino. Total Connect app supports 3 Atlantic City locations. 7 CIO100: Caesars Entertainment Corp, 2012. 8 Caesars Wins Tech Award for its Beverage iApp, GGBNEWS, Oct 29, 2012. 9 See Caesars website (http://www.caesars.com/mobile/wap/). 10 Understanding Emerging Trends and Opportunities in the Online Travel Sector, 4Hoteliers, June 24, 2011. 11 Understanding Emerging Trends and Opportunities in the Online Travel Sector, 4Hoteliers, June 24, 2011. 12 Interview conducted by Andrew McAfee on Dec 12, 2012 as part of the MIT CDB conference “Big Data: The Management Revolution.” 13 Interview conducted by Andrew McAfee on Dec 12, 2012 as part of the MIT CDB conference “Big Data: The Management Revolution.” 14 Caesars Entertainment and Gary Loveman Receive Prestigious Honors from the Nevada Hotel & Lodging Association, PR Newswire, Dec 7, 2011.
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