MD253 – Electronic Commerce

Sept. 22, 2005

Single & Multi-Channel firms

Issues Covered

• Single Channel Case Study– ING Direct

• Classifying Online Retail Efforts– Characteristics & reason for focus

• Efficiency Machines• Niche Players• Traffic Drivers• Triple Plays

• Success in a multi-channel enviornment– “Right Channeling” / “Re-Routing”– Success factors & technologies

Mitigating Risk in ‘Re-Routing’

• Understand channel economics– ‘true cost’ beyond raw margins: loyalty, frequency,

acquisition costs, freight, returns, service

• Incentives to guide customers to the right channel– “carrots & sticks”

• Provide a safety net• Communication program

– for internal & external constituencies

True Cross-Channel Design

Customer clicks “Save Application” from any application page

Banker in store retrieves all saved application data and can Complete the application.

Source: Watson, Latinbanking.com

Rightchanneling Messages & Results

Messaging & alerts