Rise of The Hyper Connected Shopper

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  • 1.Rise of The Hyper Connected Shopper Harish Menon Head Web Experience Products, Asia Pacific & Japan@harishmenon

2. Agenda Rise of Hyper Connectivity What do Hyper-Connected Shoppers Want? And why do we need to give it to them? The Roadblocks..and Solutions Who is Akamai?2013 AKAMAI | FASTER FORWARDTM 3. Digital Commerce Has Become HyperConnected2013 AKAMAI | FASTER FORWARDTM 4. Huge upside for online retailers and commerce companies 137Mn Users Online in 2012, 26% YoY Growth STILL only 11% pop penetration!!43%2013 AKAMAI | FASTER FORWARDTMSource: KPCB 5. E-Commerce In India 20092012Expected to be Rs. 64,000 Crores in 2013! Figures in INR 000 CroresSource: Business Standard, Sep 20132013 AKAMAI | FASTER FORWARDTM 6. Mobile Traffic has already Surpassed Desktop in IndiaGrow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.Source: Mary Meeker, KPCB, Dec. 20122013 AKAMAI | FASTER FORWARDTM 7. Mobile Revenues Keep Growing 20 per cent revenue from mobile phone transactions by 2013-end and 40 per cent in the next two years" Mukesh Bansal, Myntra.com30%of all orders are now being placed over mobile phones. This trend has witnessed a 10 times growth in the last 12 months SnapDeal StatementIndia is all set to see a wave of new web businesses, which will entirely leap frog to the mobile and not even touch the PC. Phanindra Sharma, Co-Founder, RedBus.com 2013 AKAMAI | FASTER FORWARDTMSource: InMobi 8. 3 out of 4 internet users in rural India access it on a mobile networkGrow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.2013 AKAMAI | FASTER FORWARDTM 9. But Mobile Doesnt Exist In A Vacuum Lines between offline & online shopping experiences are blurring+ 17% Visit a store and then purchase online51% Research online and then visit store to purchase89% Use smartphones while shopping in stores2013 AKAMAI | FASTER FORWARDTMSource: Ipsos OTX/Google, Nielsen 10. Engaging HyperConnected Shopper Is Key To Success According to recent survey HyperConnected shoppers spend 71% more than single channel consumers8X4XShoppers who shop on our website as well as in our stores spend four times as much; throw smartphones into the mix and they spend eight times as much Laura Wade-Gery, Executive Director, Multi-channel Ecommerce, Marks & Spencer1X 1 Channel2 Channels3 Channels 2013 AKAMAI | FASTER FORWARDTMSource: Guardian.co.uk; Deloitte 11. What Hyper Connected Shoppers Want Ability to Purchase or Place an order Product Information Store Directions or Operating Hours Sites Loading in 3 Seconds or Less50% 61% 74% 81%Source: Google and Sterling Commerce, 2013 2013 AKAMAI | FASTER FORWARDTM 12. And Why Do We Need To Give It To Them? If dissatisfied with website performance 49.3% of tablet & 40.3% of smartphone users are unlikely to visit the site again 33.1% of tablet & 26.8% of smartphone users are less likely to purchase from that company across all channels Abandonment Rate Across 280+ Websites/271 Million Page Views iPhoneiPad Abandonment Rate (%)18252015101614Slower pages = higher abandonment12 108 6 4500Page Load Time Band (sec)0-0.5 0.5-1 1-1.5 1.5-2 2-2.5 2.5-3 3-3.5 3.5-4 4-4.5 4.5-5 5-5.5 5.5-6 6-6.5 6.5-7 7-7.5 7.5-8 8-8.5 8.5-9 9-9.5 9.5-10 10-10.5 10.5-11 11-11.5 11.5-12 12-12.5 12.5-13 13-13.5 13.5-14 14-14.52 0-0.5 0.5-1 1-1.5 1.5-2 2-2.5 2.5-3 3-3.5 3.5-4 4-4.5 4.5-5 5-5.5 5.5-6 6-6.5 6.5-7 7-7.5 7.5-8 8-8.5 8.5-9 9-9.5 9.5-10 10-10.5 10.5-11 11-11.5 11.5-12 12-12.5 12.5-13 13-13.5 13.5-14 14-14.5Abandonment Rate (%)30Page Load Time Band (sec)2013 AKAMAI | FASTER FORWARDTMSource: Gomez UEM 13. Speed Matters: Conversion Rates POPULATION PERCENTAGECONVERSION PERCENTAGECONVERSION RATE VERSUS LOAD TIME01122334455667788991010111112121313141415>15LOAD TIME (SECONDS) Page Performance & Site Conversion Feb 2012 2013 AKAMAI | FASTER FORWARDTM 14. Performance means business As response time increases Bounce Rates Increase Conversion Declines 2012 Wal-Mart Performance Case Study: For every 1 second of improvement, 2% increase in conversions For every 100 ms of improvement incremental revenue grew by up to 1% SEO benefits for entry pages and reduced bounces SF Web Performance Group February 16, 2012 Slides available at http://min.us/rrmTFI0 2013 AKAMAI | FASTER FORWARDTM 15. Delivering Fast, Quality Experiences To HyperConnected Shoppers Is DifficultDevicesBrowsers Networks PagesDifferent Android devices accessing OpenSignal AppAvoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks.7,000+ different types of mobile devices access Facebook every day Source: OpenSignal; TechCrunch 2013 AKAMAI | FASTER FORWARDTM 16. Delivering Fast, Quality Experiences To HyperConnected Shoppers Is DifficultDevicesBrowsers Networks PagesAvoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks.2005 IE had over 80% of the browser market2012 No browser has more than 28% share 4 browsers have more than 10% share Source: www.evolutionoftheweb.com/; Netmarketshare & Wikimedia Traffic Analysis Report, Aug 2012 2013 AKAMAI | FASTER FORWARDTM 17. Delivering Fast, Quality Experiences To HyperConnected Shoppers Is DifficultDevicesDownload (Mbps) 30Browsers160 14025Networks201001580 6010Latency (ms)120 Download (Mbps)PagesLatency (ms)40 520003G (HSPA)4G (LTE)WifiCable2013 AKAMAI | FASTER FORWARDTM 18. Delivering Fast, Quality Experiences To HyperConnected Shoppers Is Difficult Larger pagesDevicesMore JS More 3rd partiesBrowsers Networks Pages More imagesAvoid data theft and downtime by extending the security perimeter outside the data-center and protect from increasing frequency, scale and sophistication of web attacks. More CSSSource: httparchive.org 2013 AKAMAI | FASTER FORWARDTM 19. Also, keep Security At The Top Of Mind DDoS attacks by vertical 32% travel sites 16% retail sitesWhen your site goes down, what does it cost in revenue? 18% 33%44% 50%Threats to retailers under DDoS attack Customer experience impact Negative brand impact Revenue loss53%50%47%67%TravelITRetail82% 56%FinanceTelecomOver $10K Per HourOver $100K Per HourSource: DDoS Survey: Q1 2012 When Business Go Dark, 20122013 AKAMAI | FASTER FORWARDTM 20. Complexity in Protecting Online Retailers Attacks have become more sophisticated and easier to carry outSource: hackmageddon.com/, Neustar Insights DDoS Survey Q1 20132013 AKAMAI | FASTER FORWARDTM 21. Flash Crowds Can Be A Reason For Concern Too2013 AKAMAI | FASTER FORWARDTM 22. Many Retailers Fail To Deliver Fast, Quality Experiences Average Website Response Time Of The Top 20 Retailers2.19.59.3secondssecondssecondsBroadbandWifi3G2013 AKAMAI | FASTER FORWARDTMSource: Keynote Commerce Index, Gomez Benchmarks 23. How To Deliver Quality Web & Mobile Experiences Across All Digital Channels Identify your end-users situationWhich device? Which browser?Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection.Which version? Which network type?What latency? IPv4 or v6?2013 AKAMAI | FASTER FORWARDTM 24. Top 5 Easy Wins For Response Time Improvement 3rd Party Content Move javascript to the end of the page, after the core content loadsLoad Stylesheets First As CSS applies the design, content is readable more quicklyMinimize Content Size ** Compression and MinificationImage OptimizationMinimize the number of Requests ** Consolidation of JS and CSS filesCSS SpritesCache Aggressively and Granularly Long Expires on Static objectsDynamic Page Caching and AJAX** Critical for Mobile Delivery!! 2013 AKAMAI | FASTER FORWARDTM 25. How Fast Is My Website? Major ISPsLocal ISPsMobile CarriersOperationalReal Customers / EmployeesExperientialSynthetic Monitoring BackboneSynthetic Monitoring - Last Mile / Mobile Clean room environment Clean room environment Real world Over Internet backbone Over limited # of wireless carriers/local ISPs All wireless carriers/local ISPs Limited # of pages, locations & browsers/devices Limited # of pages, locations & browsers/devicesReal User Monitoring (RUM) All end-users locations, pages visited & browsers/devicesEnd User Experience Fidelity 2013 AKAMAI | FASTER FORWARDTM 26. Akamai Faster ForwardWe remove the complexities of technology so our customers can capture the opportunity and meet the demands of the hyperconnected world.2013 AKAMAI | FASTER FORWARDTM 27. Akamai Powers The Commerce Internet2013 AKAMAI | FASTER FORWARDTM 28. Optimize Omnichannel Experiences End-To-End Customer InfrastructureFirst Mile Traffic Offload Connection Offload Persistent Connections Attack Traffic FilteringLocal ISP / Mobile Network OperatorAkamai Intelligent PlatformLast MileMiddle Mile Akamai Routing Protocol Akamai Communication Protocol Akamai Compression Akamai Pre-Fetching Adaptive Image Compression Above-the-fold Prioritization JavaScript Rescheduling Round trip Reductions 2013 AKAMAI | FASTER FORWARDTM 29. Akamai Kona Security Solutions Stand-aloneor Augment Existing Infrastructure DDoS Protection (Network and Application Layers); Web Application; Direct-to-Origin; and DNS attacksNetwork FirewallWeb Application FirewallWeb Server (Origin)Application or Database ServerAkamai Web Site SecurityTraditional Data Center SecurityMassively scalable solution Coordinated response Highly differentiated ProvenCustomer DatabaseLimited scalability Self-managed or MSSPOff the shelf solution 2013 AKAMAI | FASTER FORWARDTM 30. Any experience. Any device. Anywhere. Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data coll