Earlier this year technology and retail companies descended on New York City for the National Retail Federation Conf. (NRF). This is where hospitality and retail organizations around the globe gather to learn about the next big thing in their industries, share best practices and identify ideas for taking advantage of technology to drive better business decisions, create business opportunities and capture efficiencies as they face rapidly changing customer dynamics. Hospitality and retail organizations constantly face fierce competition and who can capitalize on changes in customer behavior to capture profit opportunities is critical.
Caesars Entertainment is recognized as one of the world’s most geographically diverse casino entertainment operator. However, what may be surprising is to learn that Caesar’s customers are spending the majority of their personal income on non-gaming entertainment, lodging and dining experiences. The change in customer demographics & spending patterns was a significant change to Caesars Entertainment original business model. Such changes or inflection points can be transformative for the business. But, only if the organization recognizes the opportunity.
In the entertainment and hospitality segment there are no shortage of competing options for consumer’s entertainment budget. How did Caesar Entertainment respond? Their core business and brand were synonymous with elegant, high-end gaming experiences. This business model relied on a relational database – which means “known and structured data” about a customer, entered into and stored for later engagement. This served Caesars Entertainment for many years.
However, as the customer’s buying patterns changed, from gaming to entertainment; from buffet to fine dining; from basic room to a luxury accommodations – so did Caesars business model and competitive differentiation. They realized in order distinguish their organization from the pack was paramount and in order to do so, Caesars’ needed to know more about their customers. It became clear in order to better engage their customer, their interests and ultimately their willingness to spend, required a new approach.
A great concierge, or professional assistant knows their clients inside and out, often through the use of a little black book and writing down everything about their likes and preferences. For Caesars Entertainment they leverages non-structured data from, geo-presence or location services, social media monitoring, video and audio listening to pull together a more complete customer profile. This level of engagement more closely matches services and experiences with interests. It becomes a business and operating competitive advantage. With a more thorough focus on serving the customer Caesars differentiates in a way that is unique, delivering high-customer value without sacrificing margins or negatively impacting its brand image.