1. MD253/MK252 Electronic Commerce Feb. 8, 2006 Single & Multi-Channel firms

2. 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 environment –“Right Channeling” / “Re-Routing” –Success factors & technologies

4. Fire Bad Customers! If someone has a lot of demands we'll say "This is not the right thing for you. You need to go back to your community bank, which will gladly charge you for the service you want." Arkadi Kulhmann CEO ING Direct USA A ‘bad’ customers might Call customer service too often Ask for paper copies of statements Demand special treatment b/c they have high account balances

11. 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

12. 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

13. Rightchanneling Messages & Results

14. Messaging & alerts