Case Study in Business Intelligence
Slots, Tables, and All That Jazz: Managing Customer Profitability at the MGM
Grand Hotel (HBS 9-106-029)
Instructions: Read the case and make notes on each question. We will discuss the case in class.
You will NOT submit a writeup for this case, but there will be a short quiz on its content. So
make sure you read it carefully!
1) What are the challenges faced by the “Mega Resort” hotels in Las Vegas?
2) What are the primary sources of revenue for these hotels? How has that balance changed over the
3) The ultimate objective for MGM is, of course, to maximize profitability. How is this different from
4) What data would you need to determine what segment a customer belonged (i.e., a “whale” versus
a “high roller” versus a regular customer)?
a. Is “total spent on gaming” sufficient?
b. What are the metrics that would determine if a “comp” was successful (be specific)?
5) How does the “Player’s Club Card” facilitate MGM’s strategy?
a. Why do you think MGM focused on gaming for program points?
b. John Shigley is considering expanding the program to non-gaming expenditures. Do you
agree? What data (be specific) would MGM need to collect and what analysis would they
conduct to answer this question?
c. If you were Shigley, how would you justify the expense of collecting, storing, and analyzing
the data? What are the metrics you’d use to determine if the investment was “worth it?”