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Subject: RE: UKNM: Tesco (was Toys R Us!)
From: Leslie Bunder
Date: Mon, 1 Feb 1999 16:55:17 GMT

Some charge, some don't, some waive it for the first year and then say
they will chartge later eg: Barclays. I suspect, once customers get it
for free or see someone else offering it for free eg: Nationwide,
Citibank, First Direct then it is difficult for the bank to charge
unless there is some added value to the free cost.

And also, free online/PC banking also involves making a phonecall! I
note that one of the banks, used to/still does charge a national rate
telephone call to access its PC banking services!

In theory, branch banking and phone is free, but you pay for the charges
elsewhere!

Alas, free banking is never really free, there are hidden costs that
allow it to be "free".

Leslie




infoatqiq [dot] co [dot] uk said:

"It is interesting that the banks charge for PC & Internet
banking that are supposedly cheaper to service, yet Phone and
Branch banking is free - at least for a personal account!"


___________________________________________________________
Leslie Bunder, technology writer, Teletext on the Web

e-mail: LBunderatteletext [dot] co [dot] uk (work) or leslieatbunder [dot] com (home)
web: http://www.teletext.co.uk

tel: 0171 386 3667 (inside UK) or +44 171 386 3667 (outside UK)

mobile: 07010 701967 (inside UK) or +44 7010 701967 (outside UK)



> -----Original Message-----
> From: infoatqiq [dot] co [dot] uk [SMTP:infoatqiq [dot] co [dot] uk]
> Sent: 28 January 1999 21:20
> To: uk-netmarketingatchinwag [dot] com
> Subject: UKNM: Tesco (was Toys R Us!)
>
> The whole new media thing is an opportunity, but only if you can
> realise it. Now, I am not being pessimistic here, just realistic.
>
> I think the Tesco example below is interesting...in summary
> everyone shops online, the bricks and mortar buildings are used for
> something else, and supermarkets make a killing because of the
> reduced overheads.
>
> This is fine once the transition has happened, but hey, how many
> businesses are going to be able to afford the servicing of more and
> more channels and existing ones too.
>
> Take Banking for example (boy do those guys get some stick!).
> Firstly they have a large network of typically 2-3,000 branches.
> Then their customers want Phone Banking, then PC Banking
> (cause the net isn't secure) then they want Internet Banking (cause
> the net is secure). Then the customer wants to see their balance
> and do flash things on a mobile phone, digital TV and so it
> continues. In the mean time, the banks get a slating as the small
> local branches are closed down, and non net savvy start using the
> Post Office!
>
> So, loads of channels at extra expense. Which do you choose to
> service? Okay, database technology should make the servicing of
> many platforms easy, but who's really got to grips with that yet and
> each one is still more expense. And as for the customer
> expectation, they want all the extra ones for nothing - and the
> earlier ones too.
>
> So yup, pricing models will have to change. If it is cheaper to
> service the customer it should be cheaper for the customer. So
> suddenly the Internet supermarket does not make such a rich
> killing for Sainsburys, Tesco etc.
>
> This therefore supports the model of jumping existing infrastructure
> and creating a new Internet Supermarket (i.e. the Amazon type
> model) without any physical branches as a separate new business.
>
> Okay the vision will happen. Point here is that there will be pile
> ups on the Motorway way before the junction where it joins into the
> Information Superhighway. regardless of this, I for one am enjoying
> the road race!
> Pete
> www.QiQ.co.uk
>
> P.S. It is interesting that the banks charge for PC & Internet
> banking that are supposedly cheaper to service, yet Phone and
> Branch banking is free - at least for a personal account!
>
> -----Original Message-----
> From:Andrews, Stephen
> [SMTP:Stephen [dot] Andrewsatplc [dot] cwplc [dot] com]
> Sent:28 January 1999 09:35
> To: 'uk-netmarketingatchinwag [dot] com'
> Subject:RE: UKNM: Toys R US - site, outdated - who does it???
>
> Don't the big retailers need someone to tell them that this
> whole thing
> is an opportunity rather than a threat (isn't that the new media
> marketeer's message?).
>
> Hypothetically, take Tesco : they move from selling everything
> off the
> shop floor to selling 70%+ online and then distributing it
> themselves to
> the consumer or have the consumer "drive-thru" and collect
> (impulse buys
> and petrol etc still possible). Suddenly they can put their "brix
>
> &
> mortar" to a different use - they utilise what is already a
> mammoth,
> organised, efficient distribution mechanism for shifting other
> people's
> stuff. Overnight (well in conventional re-engineering terms
> anyway),
> they have moved from retailer to logistics company, have
> somewhere
> approaching the same level of sales, less cash tied up in large
> stores
> stocked to the gunnels, lower cost of sale, still get the hugely
> profitable petrol and impulse sales happening, forge closer
> relationships with their customers (if delivery to my home
> works once,
> why would I then change), compile a bigger/better consumer
> database for
> other ancillary marketing activities, and still utilise their
> investment
> in transport/storage/warehousing to a truly profitable end.
>
> Pie in the sky? Maybe but not really beyond the wit of anyone
> who lets
> the imagination run a bit and doesn't get freaked by the idea
> that this
> thing is a threat to conventional business/retailing. Of course
> it
> is -
> why should that be a negative?
>
> Spread the word!
>
> Steve Andrews
> Business Analyst
> Cable & Wireless PLC

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