This week in New York City is the National Retail Federation (NRF) where hospitality and retail organizations from 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 is significant change to Caesars Entertainment original business model. Such changes or inflection points can be transformative for the business. But, only for those who are able to recognize the opportunity.
In the entertainment and hospitality segment there are no shortage of competing options for a 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 was entered into and stored. This served Caesars Entertainment for many years.
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. The ability to distinguish your organization from the pack is paramount and in order to do so, Caesars realized they needed to know more about their customers. It became clear that in order to better understand the customer, their interests and ultimately willingness to spend a new approach would be necessary.
Much like 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 they know. Caesars Entertainment instead 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. It is through the collection of this data they are able to perform deep analysis to further engage the client.
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.
Cloudera will be working with the Intel team at their NRF booth #2543.