Rainmaking Secrets

I can’t think of any company better than Harrah’s Entertainment – the Casino Operator – at using customer analytics to segment their customer base. Harrah’s analytics allows it to estimate the potential life time of millions of individual customers.

• Diamond customers have a prospective lifetime value of $100,000.
• Platinum customers have a prospective lifetime value of $20,000.
• Gold customers have a prospective lifetime value of $2,000.

Recently, Harrah’s added a new category Seven Star. Seven Star customers are reward members with a yearly value of $50,000 or more.

Seven Star and Diamond customers have lifetime values of at least fifty times those of Gold customers.

James L. Heskett, W. Earl Sasser and Joe Wheeler in The Ownership Quotient report that Seven Star and Diamond customers made 20 percent more recommendations to friend to visit Harrah’s properties that Gold customers the previous year Further, their recommendations to friends recruited customers that were 73 percent greater than those recommended by Gold customers.

The Ownership Quotient is a remarkable book which shows you how to put the Service Profit Chain to work for competitive advantage.

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