Friday, February 20, 2009

Caviar in the Walk-In

For those of you for whom my last post piqued your interest, here's an article that you might find particularly interesting.  Writing for the Harvard Business Review, Gary Loveman, CEO of Harrah's Entertainment, describes how investing in data mining produced dividends for his company far beyond that which could have been generated through elaborate casino design a la Las Vegas.  Using a variety of analytical techniques, Harrah's was able to determine who its most profitable customers truly were and how they might be able to better target and serve those individuals.  Although Harrah's initial investment in technology was large (but probably nothing compared to building a replica of Venice's canals), the knowledge gained from its implementation is without measure.  

And so I ask you this - If gaming companies have found data mining to be a profitable endeavor, why doesn't the restaurant industry give it a try? 

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