INFLUENCING INDIVIDUAL CHOICE:

Marketing Using Data Mining and Econometric methods

I want you to make a grammatical four-word sentence as quickly as possible out of each set. (scrambled-sentence test)

1. him was worried she always2. are from Florida oranges temperature3. ball the throw toss silently4. shoes give replace old the5. he observes occasionally people watches6. be will sweat lonely they7. sky the seamless gray is8. should not withdraw forgetful we9. us bingo sing play let10. sunlight makes temperature wrinkle raisins

• Malcolm Gladwell - Blink

How do you Feel?

1. him was WORRIED she always

2. are from FLORIDA oranges temperature3. ball the throw toss silently

4. shoes give replace OLD the5. he observes occasionally people watches

6. be will sweat LONELY they

7. sky the seamless GRAY is8. should not withdraw forgetful we

9. us BINGO sing play let

10. sunlight makes temperature WRINKLE raisins

Priming

• Priming is in which subtle suggestions to the subconscious mind can influence subsequent behavior.

Overloading the rational brain allowing the emotional brain to make decision

• Overloading with technical details.– (the rule of 7)

• In a business where the customer is VERY LIKELY to have a bad customer experience

• By law cannot intervene by changing game odds.

• Highly competitive with other casinos – Lots of Glitz and Glamour

The Solution

What Harrah’s has done

• Using Cognos, IBM, SAS, Teradata, Tibco, and others to create a highly integrated and customized solution to meet their BI and CRM needs

• Like many reward cards • Changing in the way that they view the

customer as an extension of the supply chain• Parsing data down to the finest grain, mining

each person separately

Total Rewards

TRACKS• What type of room, where,

and when• What games you play, how

log you play for, and how much you spend

• Where and when you eat• Where you go in the casino

MINED• When you like to vacation• What you favorite game is • What you loss threshold is

How is Harrah’s Pushing Influence?•Intervening in the process to try and assure a a great customer experience

How Slippery is this Slope?• Does this feel like big brother?• Is this going to far?• What limits should a company go

to make a profit?

– How do you feel about the subject after the presentation?