GENERIC BENCHMARKING WORKSHEET

Generic Benchmarking Worksheet

Generic Benchmarking Worksheet

Response to Task A:

The dissatisfaction and increased competition in CRM slowed down TeraTech's development near the end of the year. The company needed extra sources in sequence to continue to grow and have outstanding business results. The company decided that to maintain cost to a minimum they will not increase staff, but keep the present staff that they have. TeraTech senior management has a concern that the essential teams may be short of the skills necessary to develop and support an analytical product. The sales teams are optimistic about selling an analytical product to the customer and think that the customer will think about the purchase of an active product over one of the competitor's product.

Topic A: Look at Strategies to connect Internal Stakeholders in New Product Development

Response to Topic A: Harrah's Entertainment (successful)

Harrah's Entertainment, Inc. is a confidentially owned, Las Vegas based leading provider of labelled casino entertainment with a $7.11 billion in revenues. (Center for Management Research, 2005) Harrah's entertainment is an example of a company that used CRM technology successfully to accomplish customer satisfaction, employ stakeholders, consider internal and external risk linked with product development and analyze competition in sequence to achieve success. The company led the way with its innovative and trademarked CRM 'Total Rewards' program. In the late 1990s, Harrah's competitors were busy opening abundant gaming properties with spas, shopping, and exaggerated hotel rooms in order to attract customers. Harrah's knew that the majority of its profits came from its casinos and not from hotels, shopping, and spas and thus determined to follow a different strategy (Center for Management Research, 2005). The company decided to counter customer suggestions and selected the 'Total Rewards' strategy based on the assertion that the best way to improve business performance was not to attract new customers but as an alternative to get the existing customer to spend more money. Fundamentally each gambling transaction earned points and when a customer earned enough points, he or she can move from one tier level to the next with more points. Additionally, each gambling transaction cardholders made, flowed into Harrah's database where it could be analyzed to conclude ways to make that individual cardholder happier (Krell, 2006). This is a marketing strategy that TeraTech could use with the existing CRM product. This strategy was an endeavour to respond to customer suggestions but was a unsafe internal and external opportunity for the company since Harrah's would be the first Total Reward credit card program of its kind in the gaming industry. The card would widely be dependent on information technology as the source of success for the program. Harrah's did not have the internal talent to create the credit cards. Therefore, the company required to partner with FIA Card Services to concern and to program the Total Rewards credit card to produce information the company requisite about the key stakeholder, the customer, and the competition. Harrah's revealed that its customers spent only 36% of ...