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Interesting Info On 7 Stars, ADT and Offers From CET

Discussion in 'Comps' started by JohnnyBlackjack, Nov 6, 2014.

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  1. JohnnyBlackjack

    JohnnyBlackjack Tourist

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    Hey All,

    So have always been intrigued about reward programs and the math behind them. As you know, Caesars uses ADT and MDV as a baseline for formulating offers for their players. I was searching around and found some interesting insights on Total Rewards that I figured I would share. It's from another forum I found and 2011 info, but still think it's quite interesting - apologies if this has already been posted (but couldn't find it anywhere):

    He then goes on to explain how MDV works:

    and finally into information about formulating offers:

     
  2. dankyone

    dankyone VIP Whale

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    Thanks for posting this! I remember coming across this a year or two ago--what was the source?

    I think the concept of "MDV" is not widely understood. CET looks at how much it will cost them once you are there (are you a cheap date or a comp whore?) when determining what to offer you. Explains a lot.

    Imagine two solid mid level players, each with the same ADT, say $1000. Player A stays at Caesars Palace. He always negotiates for the best room he can get, increasing the "comp value" of his room. Prior to the trip, he reminded the host of his big loss and got his free play bumped up. He visits the diamond lounge twice a day and always argues to bring in extra guests. He always has a limo pick him up and drop him off at the airport. He visits qua every day with 2 guests to sweat out the hangover. His visit was from Sept 30-Oct 2, so of course he uses his diamond benefit to get 2 tickets to Jubilee on the 30th and 2 tix to Penn and Teller on the 1st. He doesn't want to see either show or set foot in Rio or Ballys, so he sends his diamond companion girlfriend to pick them up while he plays. She sells them for $20 each to tourists in front of Serendipity 3. He eats like a king, but doesn't drink much at dinner since he can get drinks at the tables that don't hit his comp account. He expects all food and bev to be picked up if he loses. Even if he wins, he asks the host how much room he has to charge more food and bev--he will take the minibar home if necessary to max out these discretionary comps. Of course, he has been to the gift shop to burn through his reward credits before his negotiation with the host. He leaves happy knowing he has squeezed every cent he can get out of the comp system.

    Player B drives in from LA and stays at the Rio. He takes whatever room they give him since he doesn't spend much time in the room and he's on his own. He doesn't enter the diamond lounge because he doesn't drink. He likes Burger King so he always eats lunch there, but doesn't realize he can charge it to the room. He likes the Rio buffet for some reason so he has dinner there. When he goes to the strip he takes a taxi, since limos are for high rollers. Upon checkout, he doesn't want to bother the host so he goes up to the front desk. The young lady informs him that the reward credits he earned will cover his buffets, and he goes home happy that he had "everything comped".

    Who is getting more free play? Who should get more free play?
     
  3. nostresshere

    nostresshere Mr. Anti Debit Card

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    Most of this needs to be a must read to people new to the comp world... Or even an oldtimer that has never asked how it works.
     
  4. avg35

    avg35 Tourist

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    player B doesn't exist if they are a highroller, but I do see your point haha.
     
  5. Jordan

    Jordan Caveman

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    I used to be a Player B, but my wife likes the nicer hotels, and we usually stay in a suite, and eat at least one fancy meal, and she likes for us to visit the diamond lounge etc...

    Moral of the story, the casino's have to appease my wife more than me, personally as long as there is Jordan cabernet to be had, I'm a happy camper!
     
  6. JohnnyBlackjack

    JohnnyBlackjack Tourist

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    It's from the forums on a site called EverythingLV.com, not sure if I am allowed to post a link?

    What I think is interesting that I didn't know is how they are using lots of historical factors and weighting in the way they are assigning value. Another interesting thing I'll mention is that MDV is the number that's the most important, not ADT, which I've concluded after various conversations with people at CET, since this is truly what you're worth to them including ADT and all the other factors.

    On the flip side, the biggest weakness I see to the way they have their system setup is it takes too long to recognize changes in play. For example, I made diamond on a recent trip and had a ton of play (doubled MDV from the past year), but since the offers are set (I think) 3 months ahead of time, I won't see anything reflected until that time, what if I want to go back sooner? From a marketing standpoint, I am sure they are aware of this but haven't figured out a way to integrate recency into their formulas. For example, let's say you are a low level diamond and decide to up your play and come in and lose $50,000. Your offers won't reflect the new information until they pull lists from their databases that include that trip, which I think in the end can turn some players off going back, as they'll feel they are under comped. Anyways very interesting stuff...
     
  7. dankyone

    dankyone VIP Whale

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    Yes, it is!

    If you lose $50k today and you want to come back next week you call a host and you will be taken care of. In that situation they would would even let that "10% of losses" concept carry over for you into the next visit, and they will push your free play up to match your recent action. You don't have to wait for snail mail offers at that level.

    If "making diamond" is a big deal to someone, CET is fine with waiting a few months for its computers to chase that person back.
     
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