Between 1998 and 2017, Gary Loveman revolutionized Harrah’s (now Caesars) Entertainment, setting a new standard in the casino industry. His data-driven approach to customer tracking and loyalty programs, known as Caesars Rewards, reshaped the way operators understand and engage with their customers.
In a two-part interview with ICE365 editor Robin Harrison, Loveman discusses his tenure at Caesars and the industry’s evolution. Part one delves into the development of Total Rewards, the analytical strategy that helped Caesars regain its market-leading position.
At the time, casino operators focused solely on their properties and amenities, neglecting the importance of understanding and catering to customer preferences. Loveman recognized the need to compete through personalized experiences based on customer interests. This led to the creation of Total Rewards, which utilized data to target customers effectively.
In collaboration with Richard Mirman and other talented executives, Loveman built a comprehensive customer database and implemented marketing interventions based on past preferences. The success of Total Rewards was quickly evident, leading to increased visitation and longer stays among targeted customers.
By valuing customers based on their future worth rather than past behavior, Caesars gained a significant advantage over competitors. Total Rewards became an industry-leading loyalty program, with over 60 million members on its database and a valuation of $523 million.
Loveman also applied the principles of Total Rewards to improve employee health through Wellness Rewards. This initiative addressed the paradox of employees neglecting their own health despite excelling in other aspects of life.
Caesars’ implementation of Total Rewards sparked a paradigm shift in the industry, attracting non-traditional gambling executives from industries like consulting, banking, and academia. Many of these executives, including Loveman’s former colleagues, have gone on to lead other successful businesses, expanding the impact of these innovative strategies beyond the casino sector.
While competitors have attempted to replicate Caesars Rewards, its unique advantage lies in the largest network of properties spanning multiple markets. This enables Caesars to effectively target players and drive customer visits across their extensive network.
Although Caesars Rewards has faced some challenges and competition in recent years, it remains a fundamental asset for the company. In part two of the interview, Loveman discusses the 2015 restructuring and the current wave of betting and iGaming expansion sweeping the US in 2021.
