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NEVADAN AT WORK: Harrah's marketing exec uses credit card experience to build brand loyalty




Hiring management and executive talent from industries far removed from the casino industry has been one of the hallmarks of Chairman and CEO Gary Loveman's 10-year tenure as an executive of Harrah's Entertainment.

David Norton, who was a rising star at American Express' consumer card group in 1998, was one of those early hires.


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Then in his late 20s, Norton was building cross-selling capabilities, establishing stronger relationships between the customer and the card.

Introduced to Loveman in 1998, two months after Loveman was named chief operating officer, Norton was hired away from the credit card world to help build up the casino company's Total Rewards customer loyalty card, which was then little more than a slot club card.

"My interview was at about 11 o'clock at night in the lobby of Harrah's Atlantic City," the 40-year-old father of three said. "We talked for a couple hours and it sounded like a great opportunity. Who would have predicted 10 years later all the things we've done?"

Last year, the Las Vegas-based gaming giant became the first casino company to generate $10 billion in revenue, largely off that piece of plastic.

After nearly a decade with the company, Norton became an officer in January when he was named chief marketing officer.

Today, he oversees various departments, from the branding of the company's various property names -- Caesars Palace, Harrah's, Horseshoe and Bally's -- to Internet, teleservices and media planning, direct V.I.P. marketing, revenue management, retail operations and multicultural marketing.

Of course, he still has his hand in the growth of Total Rewards and the data it captures to drive customers to Harrah's casinos.

Question: How has the Total Rewards card evolved from 1998 when you arrived?

Answer: When I started we had 15 properties. It started with one tier; it was really a slot club. The two first things we did were adding multiple tiers for differentiated service. That's where you see the diamond lines or the platinum lines. That was also the mechanism that convinced them to be more loyal. So if you go from Tunica, (Miss.), to St. Louis, and you want to go to another casino and you're already a diamond member, you're going to get better service at Harrah's than going to another casino. Adding those tiers from an operational perspective as well as a customer loyalty perspective is very important. Then we truly started using that data from a marketing perspective to build the relationships.

Question: What was the opportunity?

Answer: The analogy we use is, "the plane had been built, but we need pilots." So the exciting thing to me was a lot of the technology stuff had been built. At American Express, we were able to do a few things, then we ran into some road blocks where we had to build out new technology. The exciting thing was that, here, the infrastructure was built so we could actually start doing stuff as opposed to getting an IT project begun that might take a long period of time.

Question: What were you doing at American Express that caught Loveman's attention?

Answer: I worked in the consumer card group, which is credit cards. I ran all the teleservices pieces. We built cross-selling capabilities to convince somebody calling in -- how do you get them to buy another product? So although the (casino) industry is different, a lot of things were similar in how you convince people to be more loyal. How do you build those relationships with customers from an analytical perspective, but also with a project management, technology spin?

Question: Is there a difference in trying to draw someone to a floating card and trying to convince them to come to a casino?

Answer: The concepts are similar and we've spent time talking to a lot of great companies who want to come in and talk about our (customer relations management). What I was able to show in those meetings is that what we do is relevant for a broad set of industries. It's really about convincing people to be more loyal, to do more of their casino trips with us. In our credit card example, will you pull out the American Express card over Visa? So it's making sure you capture as much of their spending that they intended to do. I think the spirit of it all is very similar. I think the great news about our business is that you walk around the casino and see the customers and see what kind of fun they're having. With a credit card, certainly as a corporate person, you don't tend to see the customer very often.

Question: What is your background, and how did you get into analyzing data?

Answer: I grew up in Baltimore, and went to Boston College where I was a finance major. I worked two summers during college at MBNA, the credit card company that was just bought by Bank of America. My dad had been in banking so that was part of it. Then I started there in management development. It was a yearlong program where there were 30 of us or so who started, and who got cross-functional training. Then coming out of that program, I helped build up the loyalty group. They had focused so much on acquisition that they had all these cards nobody was using. We put together a case of, how do we actually get people to use their card? So I started in loyalty space, based in analytics but also in technology.

Question: What was the reaction of your friends and family when you told them you were going to work in casinos?

Answer: Now it's evolved into a pretty cool job. It's fun with great properties, great entertainers, great restaurants. Especially on the East Coast, I think at that time in particular, and it is something I work on a lot, the perception of Atlantic City. If you live in that New York-Washington (D.C.) corridor you think about Atlantic City. Certainly at that time it didn't have the best perception. Nobody said I was crazy. It's all worked out pretty well.

Question: After 10 years, what keeps you motivated and interested in this industry?

Answer: I spend a lot more time thinking about where we need to go, especially now with the economy. How do we get a broader set of customers to think about us? How do we get a broader set of people to come visit our properties who may have not thought about it previously? There is still a lot we want to do. We do a lot of things well, but there are some things I would like us to continue to do better. How do we do cool things both domestically and internationally? How do we take what we've done and bring that to the London Clubs, or South Africa or Uruguay and other places going forward?

DAVID NORTON

Age: 40

Occupation: Chief marketing officer, Harrah's Entertainment

Quotable: "I spend a lot more time thinking about where we need to go, especially now with the economy."

VITAL STATISTICS

Name: David Norton.

Position: Chief marketing officer, Harrah's Entertainment.

Family: Married, three children.

Education: The Wharton School of the University of Pennsylvania, master's degree in technology management; Loyola College, master's degree in business administration; Boston College, bachelor's degree in finance

Work history: Harrah's Entertainment, July 1998-present; American Express; Household International; MBNA.

Hobbies: Golf.

Favorite book: "Straight Man," by Richard Russo.

Favorite movie: "Match Point"

Hometown: Baltimore.

In Las Vegas since: 1999.

Harrah's Entertainment is at www.harrahs.com and can be reached at 407-6000.

Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.

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Mona wrote on October 29, 2008 12:30 PM: Lila baby..I hardly think this to be the place to ask for comps or reservations. and uh.... please don't post your number.


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Lila-Don Conley wrote on August 21, 2008 08:13 PM: I ENJOY YOUR CASINO HERE IN ARIZONA,AND I HAVE NOT BEEN TO LAS VEGAS IN 35 YEARS.I WOULD LIKE TO STAY AT YOUR HOTEL ON MY GOLD CARD SOMETIME IN THE LATER PART OF OCTOBER FOR TWO IS THIS POSSIBLE?.I HAVE HAD MAJOR SURGERY,AND HAVENT BEEN ABLE TO EVEN GO OUT TO AK-CHIN,BUT I DO GAMBLE QUITE A BIT,AND THE REASON FOR THE GOLD CARD,IS THAT I HAVEN'T HAD THE CHANCE TO ENJOY THE FACILITIES ,BUT I WOULD JUST LOVE TO COME TO HARRAHA'S IN OCTOBER..MY GOLD CARD #11502202383-THANKS FOR YOUR CONSIDERATION-LILA-DON CONLEY


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B. Fellini wrote on August 08, 2008 04:52 PM: If you live in Vegas, like going to Vegas and/or working in Vegas then you had better start saying your prayers that those mega-casino company's hire more people like Dave Norton and not someone who wants to "run" the world. Most places I've stayed at in Vegas have gone out of their way to please the guest. The town is great but those new billion $ resorts are going to turn the town into two cities, one for the rich & one for the regular "guy". Hopefully, they'll let the cheap ho's back into the "soon-to-be-old" Strip hotels too!!!


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M wrote on August 05, 2008 11:03 AM: LOL! @ Gumby!

Such a simple mind you have! Don’t you realize that they know when you’re winning and when you’re loosing. They know exactly how much money you spend and when you visit them. They know what brings you back. For someone like you it’s the jackpots, to others it may be that free buffet or that free show or that free room. The marketing is quite sophisticated. But keep collecting your cards and living in ignorance. Keep thinking your beating the system.

thats what they want you to think gumby


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Gumby wrote on August 04, 2008 02:04 PM: These marketing 'cards' are nothing more than a gimmick to try to keep you coming back. Uh, word to the wise marketing morons - I have 8 cards - I return to the places I hit jackpots at or get my money's worth in play, not the ones that give me a free buffet after I drop $300. It's not rocket science Harrah's.


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David wrote on August 04, 2008 02:02 PM: LOL - from flunkie to Chief Marketing Officer in 10 years - yep, that's Harrah's for you. Ha! Ha!


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MB wrote on August 04, 2008 01:17 PM: “"Marketing people..it's our worst enemy..convicing people to buy things they don't need”….

Hey wonder

Its called business and capitalism, were have you been in the history of the world…
If you have a product or service how in the heck will you get people to buy or “visit” if you don’t market to them? It doesn’t matter the industry, be it sports, casino entertainment, religion, fashion, food whatever.

I guess according to your logic if you build it they will come! So just sit back and wait, that’s how you make money in business and life!


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mike d wrote on August 04, 2008 09:40 AM: Losing is relative word. What about getting Starbucks coffee, happy meal for you kids, eating at Asia Buffet or even gambling.


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wonder wrote on August 04, 2008 09:05 AM: I am not bashing Mr. Norton's accomplishment....but loyalty to a casino? Are people that shallow and/or addicted to losing their money that they would prefer it go to one place rather than many? Don't people realize this loyalty/rewards program is for the benefit of the casino and not them ? Marketing people..it's our worst enemy..convicing people to buy things they don't need.


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dt wrote on August 04, 2008 06:11 AM: In other words how can we make sure they will lose more at our casinos, not other casinos?


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