Big Data… Fueling

Entertainment ExperiencesChicago AMA Presentation

FEBRUARY.2013

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STEALING SHARE FROM COMPETITORS

LEADING IN MARKETING INNOVATION

INCREASING CUSTOMER LOYALTY

GROWING MARGINS

The Future of Marketing…

From now on, all of these require mastery of the disciplines and technologies collectively known as

BIG DATA

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Big Data will be required to win in any category… and

failure to master Big Data could make a company irrelevant

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What is “Big Data”?

VOLUME VELOCITY VARIETY

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Why haven’t we acted on Big Data in the past?

♦ Website browsing data

♦ What you eat atthe restaurant

♦ How much time in advance you book your rooms

WHY?

Lack of Intuition?

Insight?

Commitment?

Diligence?

DATA WE’VECOLLECTED BUT NOT ACTED ON IN THE PAST…

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Map Reduce

Hundreds of New Tools

Emergence of Realtime

Hadoop (HDFS)

HISTORICAL CHALLENGES NEW SOLUTIONS

STORAGE SPACE

PROCESSING POWER

ANALYTICAL METHODS

TIMELINESS OF ANALYTICAL RESULTS

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New solutions overcome historical challenges

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Caesars’ Total Rewards is the gaming industry’s biggest

and best loyalty program, and an enabler of Big Data

Members

45MM members

RewardsMore ways to earn and redeem than any other program

Properties

nearly 40 properties in

20 markets

ExperiencesExclusive access to unparalleled entertainment experiences

Brands

Over 20 premiere brands

OVERVIEW OF TOTAL REWARDS

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Total Rewards allows us to understand our customers’

preferences as well as their value to our businessIMPACTS ON TRACKED PLAY

Rated (tracked) revenuePercent of gaming revenue

8182828279

7673

58

85100

80

60

40

20

0

201220112010200920082007200620052004

More than $4 of every $5 played in one of our properties is associated with a Total Rewards account

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Leisure Activities

Dining

Gaming

WebTravel

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Through Total Rewards, Caesars can understand and

react to every element of the guest’s experienceHOLISTIC VIEW OF THE GUEST EXPERIENCE

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Big Data also enables much more intelligent pricing of

limited inventory

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A Hadoop-powered environment builds guest-specific

predictive models to measure engagement

I L LUSTRAT ION:T R E N D - Z O N E M O VE M E N T O F A F L A G G E D D E C L I N E R

PER

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FLA

GG

ED

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ER

280

260

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FLAGGING PERIOD

Zonedrop alert

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Zone A’

Zone B’

Zone C’

Centerline

Zone C

Zone B

Zone A

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Slot handle-pull data can be used for realtime marketing

DISENGAGEMENT TRIGGER

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Surveillance footage can be used to optimize guest

experience through staffing, merchandising or via mobile

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These guest-facing enhancements enable Caesars to earn

much more than our “fair share” within key markets…IMPACTS ON SHARE OF SPEND

“Fair share”100%

Las Vegas

Atlantic City

134% 140%

230%

144%136%

Southern Indiana

Bossier City

Tunica Hammond

123%

158%

Kansas City

113%

Metropolis

115%

Atlantic City

120%

Las Vegas

Market share analysis of key markets

Actual versus “fair share” revenue

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… and to deliver significant benefits to businesses that

participate in our Total Rewards loyalty program

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TOTAL REWARDS IMPACTS BY OUTLET TYPE

Caesars Palace Las Vegas

(acquired 2005)

Imperial Palace Las Vegas

(acquired 2006)

FlamingoLas Vegas

(acquired 2006)

Planet Hollywood Las Vegas

(acquired 2009)

+22%

+29%

F&BRetail

Post-Total Rewards

Pre-Total Rewards

+7%

+11%

F&BRetail

+5%

+14%

F&BRetail

+27%

+23%

F&BRetail

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Big Data has made Total Rewards a favorite with

entertainment-seekers, and a leader across industries

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64%

29%24%

19%14%

9%

Comp # 5Comp # 4Comp # 3Comp # 2Comp # 1

Most Preferred Loyalty Program% of Program Members

IN THE END, IT’S ALL ABOUT LOYALTY

2-8x Competitors

2012 winner of the Colloquy

Master of Enterprise

Loyalty award