Hotmail

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Hotmail

• Who are the customers

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Hotmail

• Who are the customers
• How do they get customers to come to their site

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Hotmail

• Value added relative to traditional email
• Free
• Additional (priced) services

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Hotmail

• Value added relative to competitors
• Turning one time customers into repeat customers
• Email is a very sticky application
• Switching costs are high

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Hotmail

• Hotmail sold in January 1998 to Microsoft for
  300-400 million
• Nice example of a business plan
• Use with the article on writing a business plan
  to begin thinking about your business plan
• Where should Hotmail go from here? Is the day of
  free email over?

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Wells Fargo

• Early leader in online banking
• 1998 trying to refocus
• Attract and retail high value and high potential
  value customers
• Increase revenue per customer
• Reduce cost per customer

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Wells Fargo

• Eleven proposals, need to prioritize given
  limited resources
• Online account applications
• Bill Presentment
• Discount broker
• Mortgage applications
• Contact management system (internal)
• OFX (Open Financial exchange) for Money and
  Quicken accounts

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Wells Fargo

• Online community offering advice, chat, tools
• Interbank transfers
• Mondex (smart card) on the Internet
• Computer/telephony integration (internal)
• Online statements
• Suppose that WF can only afford to carry out four
  of these at this time
• Which four will offer the most value added for
  consumers?