Terry Vavra’s Blog

2 Responses to “Stop Demoting Customers!”

1. 

   Jon Berry
   

   28. Apr, 2009

   Terry,

   I really like the point you make regarding the difference in actual cost to the casino vs. the perceived value, or rather lack of value that the customer is left feeling when being
2. 

   Doug Pruden
   

   05. May, 2009

   Some companies in the consumer services arena still lack the ability to fully track REVENUE generated per each customer. Even more businesses fail to measure PROFITABILITY at the individual customer level. Harrah’s seems to do a good job at both.

   But there’s a third component that’s key to managing for the growth of customer profitability – that’s POTENTIAL. Like most companies Harrah’s appears not yet to have a process that tells them which of their customers continues to spend (and could even spend more eith them) but simply has moved their loyalty elsewhere – and who needs further development rather than demotion.