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Harvard Business Review on Increasing Customer Loyalty by Harvard Business Review

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Diamonds in the Data Mine

by Gary Loveman

IT’S A FRIDAY NIGHT ON the Las Vegas Strip, and all of the neighbors are making spectacles of themselves. The $750 million Mirage boasts a Vesuvian volcano that erupts loudly every 15 minutes. Next door, at Treasure Island, a faux British frigate battles a pirate ship at regular intervals. Further down the Strip, the Bellagio sports a lake festooned with sparkling, dancing fountains that beckon to passing tourists.

Meanwhile, the customer pulling into Harrah’s Las Vegas is dazzled more by the service than the building. A smiling valet greets her by name. Instead of having to wade through a crowded lobby to reach the casino, she steps quickly into the gaming room and sits down at a slot machine. The card ...

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