2. Hotmail Who are the customers

3. Hotmail Who are the customers How do they get customers to come to their site

4. Hotmail Value added relative to traditional email –Free –Additional (priced) services

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

6. 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?

8. 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

9. 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

10. 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?