CRM is a strategy used to learn more about a customer’s needs and behaviors in order to develop a stronger relationship with him or her, thereby creating a value exchange on both sides.

As Lovelock and Wirtz state in Services Marketing, People, Technology, Strategy, “from a customer perspective, well-implemented CRM systems can offer a unified customer interface that delivers customization and personalization.” Lovelock and Wirtz argue that at each transaction point, such relevant patron data as a customer's personal preferences, as well as his or her overall past history transactions are available to the clerk serving the customer, giving them valuable information about how to interact with that person.43 This is not an easy thing to do, however, especially when unstructured data like social media feeds are added to the equation. However, in this day and age, it is a necessity as consumers expect personalized service of this level from the companies with whom they interact.

According to Lovelock and Wirtz, most CRM solutions contain the following stages:

  • Data collection: the system captures customer contact details, such as demographics, purchasing history, service preferences, etc.
  • Data Analysis: data captured is analyzed and categorized into a unique set of criteria. This information is then used to tier the customer base and tailor service delivery accordingly.
  • Sales force automation: sales leads, cross-sell, and up-sell opportunities can be effectively identified and processed, and the entire cycle from lead generation to close of sales and after-sales service can be tracked and facilitated through the CRM
  • Marketing automation: the mining of customer data can help a company achieve one-on-one marketing to each one of its customers. Loyalty and retention programs can reduce costs, which can result in an increase of marketing expenditure ROI. By analyzing campaign responses, CRM systems can easily assess a marketing campaign's quantifiable success rate.
  • Call center automation: with customer information available right at their fingertips, call center staff can improve customer service levels because they will be able to immediately identify a customer's tier level, as well as compare and contrast him or her against similar customers so that only promotions that are likely to be accepted are offered.

Most casinos will have plenty of data collection, data analysis, sales force automation, marketing automation, and call center automation software to help them in their CRM endeavors, but it is not easy getting all of these complicated systems and processes working together to provide a level of personalized service that wows a customer.

Casino operators can utilize CRM to:

  • Create databases of customers segmented into buckets that allow more effective marketing.
  • Generate more accurate sales leads.
  • Gather market research on customers.
  • Rapidly coordinate information between the sales and marketing staff and front-facing hosts and reps, increasing the customer experience.
  • Enable pit bosses to see and understand the financial impact of different product configurations before they set prices.
  • Accurately gauge the return on individual promotional programs and the effect of integrated marketing activities, and redirect spending accordingly.
  • Accumulate data on customer preferences and problems for product and service designers.
  • Increase sales by systematically identifying, managing, and automating sales leads.
  • Improve customer retention by uncovering the reason(s) for customer churn.
  • Design proactive customer service programs.

CRM is ultimately a strategy used to learn more about a customer’s needs and behaviors in order to develop a stronger relationship with him or her, thereby creating a value exchange on both sides of the equation.


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