What is ‘CRM’?
CRM, which stands for customer relationship management, is a term used to describe the organisation of methods and tools which businesses utilise to help effectively manage their customer relationships. In casinos and other gaming establishments, CRM is used to collect information about guests, build relationships with customers and encourage customer loyalty.
Customer relationship management practices in casinos tend to focus on four main objectives: building customer lifetime value through loyalty schemes, offering competitive technology, improving existing relationships and training employees to effectively manage and use CRM. Each of these four aspects should be delivered with the idea of “change management” in mind.
Change management focuses on the factors which affect the cost and outcomes of services offered by establishments, in particular the competition from other, similar organisations. Casinos must use effective customer relationship management and change management together to attract new customers, keep existing customers and compete with an ever-growing number of competitors.
An example of effective customer relationship management and change management in a casino establishment can be seen at Station Casinos, who have 18 hotels and casinos across the state of Nevada. This casino group used customer relationship management to collect data on 1.5 million customers, planning targeted marketing strategies with the information they received. This not only resulted in an increased monthly player profitability of $2 million but also allowed Station Casinos to decrease their marketing budget by $1 million per month – giving them a larger profit margin. Through their target customer loyalty program, they also saw an increased customer retention rate of 10%.
The gambling industry is becoming increasingly dominated by online gaming websites, making it even more important for land-based gambling establishments to plan and execute effective customer relationship management and adjust their change management to compete against these new online competitors.