rise of the hyper connected shopper
TRANSCRIPT
Rise of The Hyper Connected Shopper Harish Menon
Head – Web Experience Products, Asia Pacific & Japan
@harishmenon
©2013 AKAMAI | FASTER FORWARDTM
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
Digital Commerce Has Become HyperConnected…
©2013 AKAMAI | FASTER FORWARDTM
Huge upside for online retailers and commerce companies
Source: KPCB
43%
137Mn Users Online in
2012, 26% YoY Growth
STILL only 11% pop
penetration!!
©2013 AKAMAI | FASTER FORWARDTM
E-Commerce In India
2009 2012
Expected to be
Rs. 64,000 Crores
in 2013!
Figures in INR ‘000 Crores
Source: Business Standard, Sep 2013
©2013 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices and data collection.
Source: Mary Meeker, KPCB, Dec. 2012
Mobile Traffic has already Surpassed Desktop in India
©2013 AKAMAI | FASTER FORWARDTM
Mobile Revenues Keep Growing
Source: InMobi
“…20 per cent revenue from mobile
phone transactions by 2013-end and 40
per cent in the next two years…"
Mukesh Bansal, Myntra.com
“30%of all orders are now being placed
over mobile phones. This trend has
witnessed a 10 times growth in the last
12 months”
SnapDeal Statement
“India 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 FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices and data collection.
3 out of 4 internet users in rural
India
access it on a mobile network
©2013 AKAMAI | FASTER FORWARDTM
But Mobile Doesn’t Exist In A Vacuum
Source: Ipsos OTX/Google, Nielsen
51% Research online and then
visit store to purchase
89% Use smartphones
while shopping in
stores
+ 17%
Visit a store and
then purchase
online
Lines between offline & online shopping experiences are blurring
©2013 AKAMAI | FASTER FORWARDTM
“Shoppers 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 E-
commerce, Marks & Spencer
Engaging HyperConnected Shopper Is Key To Success
Source: Guardian.co.uk; Deloitte
According to recent survey HyperConnected
shoppers spend 71% more than single channel
consumers
1 Channel 2 Channels 3 Channels
8X
4X
1X
©2013 AKAMAI | FASTER FORWARDTM
What Hyper Connected Shoppers Want
Source: Google and Sterling Commerce, 2013
Ability to Purchase
or Place an order
Product Information
Store Directions or Operating
Hours
Sites Loading in 3 Seconds
or Less
50%
61%
74%
81%
©2013 AKAMAI | FASTER FORWARDTM
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
And Why Do We Need To Give It To Them?
Abandonment Rate Across 280+ Websites/271 Million Page Views
0
5
10
15
20
25
30
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
.5-1
1
11
-11.5
11
.5-1
2
12
-12.5
12
.5-1
3
13
-13.5
13
.5-1
4
14
-14.5
Ab
an
do
nm
en
t R
ate
(%
)
Page Load Time Band (sec)
iPhone
0
2
4
6
8
10
12
14
16
18
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
.5-1
1
11
-11.5
11
.5-1
2
12
-12.5
12
.5-1
3
13
-13.5
13
.5-1
4
14
-14.5
Ab
an
do
nm
en
t R
ate
(%
)
Page Load Time Band (sec)
iPad
Slower pages =
higher abandonment
Source: Gomez UEM
©2013 AKAMAI | FASTER FORWARDTM
Speed Matters: Conversion Rates
CONVERSION
RATE VERSUS
LOAD TIME
POPULATION PERCENTAGE CONVERSION PERCENTAGE
LOAD TIME (SECONDS)
Page Performance & Site Conversion – Feb 2012
0−1 1−2 2−3 3−4 4−5 5−6 6−7 7−8 8−9 9−10 10−11 11−12 12−13 13−14 14−15 >15
©2013 AKAMAI | FASTER FORWARDTM
Performance means business
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
As response time increases …
©2013 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center and
protect from increasing frequency, scale and
sophistication of web attacks.
Devices
Browsers
Networks
Pages
Different Android devices accessing OpenSignal App
7,000+ different types
of mobile devices
access Facebook
every day
Source: OpenSignal; TechCrunch
Delivering Fast, Quality Experiences To HyperConnected Shoppers Is Difficult
©2013 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center and
protect from increasing frequency, scale and
sophistication of web attacks.
Delivering Fast, Quality Experiences To HyperConnected Shoppers Is Difficult
Devices
Browsers
Networks
Pages
Source: www.evolutionoftheweb.com/; Netmarketshare & Wikimedia Traffic Analysis Report, Aug 2012
2005
• IE had over 80% of the browser market
2012
• No browser has more than 28% share
• 4 browsers have more than 10% share
©2013 AKAMAI | FASTER FORWARDTM
Delivering Fast, Quality Experiences To HyperConnected Shoppers Is Difficult
Devices
Browsers
Networks
Pages
0
20
40
60
80
100
120
140
160
0
5
10
15
20
25
30
3G (HSPA) 4G (LTE) Wifi Cable
Late
ncy (
ms)
Do
wn
load
(M
bp
s)
Download (Mbps) Latency (ms)
©2013 AKAMAI | FASTER FORWARDTM
Avoid data theft and downtime by extending the
security perimeter outside the data-center and
protect from increasing frequency, scale and
sophistication of web attacks.
Delivering Fast, Quality Experiences To HyperConnected Shoppers Is Difficult
Devices
Browsers
Networks
Pages
Source: httparchive.org
Larger pages More JS
More images More CSS
More 3rd parties
©2013 AKAMAI | FASTER FORWARDTM
Also, keep Security At The Top Of Mind
DDoS attacks by vertical
– 32% travel sites
– 16% retail sites
Threats to retailers under DDoS attack
– Customer experience impact
– Negative brand impact
– Revenue loss
Source: DDoS Survey: Q1 2012 When Business Go Dark, 2012
When your site goes down, what does it cost in
revenue?
82%
18%
44%
56%
50%
50%
53%
47%
33%
67%
Over $10K Per Hour Over $100K Per Hour
Finance Telecom Travel IT Retail
©2013 AKAMAI | FASTER FORWARDTM
Complexity in Protecting Online Retailers
Attacks have become more sophisticated…
Source: hackmageddon.com/, Neustar Insights DDoS Survey Q1 2013
… and easier to carry out
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Flash Crowds Can Be A Reason For Concern Too
©2013 AKAMAI | FASTER FORWARDTM
Many Retailers Fail To Deliver Fast, Quality Experiences
Source: Keynote Commerce Index, Gomez Benchmarks
Average Website Response Time Of The Top 20 Retailers
Wifi
9.5 seconds
3G
9.3 seconds
Broadband
2.1 seconds
©2013 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices and data collection.
Which device?
Which browser?
Which version?
Which network type?
What latency?
IPv4 or v6?
How To Deliver Quality Web & Mobile Experiences
Across All Digital Channels
Identify your end-users’ situation
©2013 AKAMAI | FASTER FORWARDTM
Top 5 “Easy Wins” For Response Time Improvement
Cache Aggressively and Granularly
Long Expires on Static objects Dynamic Page Caching and AJAX
Minimize the number of Requests **
Consolidation of JS and CSS files CSS Sprites
Minimize Content Size **
Compression and Minification Image Optimization
Load Stylesheets First
As CSS applies the design, content is readable more quickly
3rd Party Content
Move javascript to the end of the page, after the core content loads
** Critical for Mobile Delivery!!
©2013 AKAMAI | FASTER FORWARDTM
Real User
Monitoring (RUM)
• Real world
• All wireless carriers/local ISPs
• All end-users’ locations, pages visited & browsers/devices
End User Experience Fidelity
Synthetic
Monitoring -
Backbone
• Clean room environment
• Over Internet backbone
• Limited # of pages, locations & browsers/devices
Synthetic
Monitoring - Last
Mile / Mobile
• Clean room environment
• Over limited # of wireless carriers/local ISPs
• Limited # of pages, locations & browsers/devices
How Fast Is My Website?
Major
ISPs
Real Customers /
Employees
Operational Experiential
Local
ISPs
Mobile
Carriers
©2013 AKAMAI | FASTER FORWARDTM
Akamai — Faster Forward
We remove the complexities of technology so our
customers can capture the opportunity and meet the
demands of the hyperconnected world.
©2013 AKAMAI | FASTER FORWARDTM
Akamai Powers The Commerce Internet
©2013 AKAMAI | FASTER FORWARDTM
Optimize Omnichannel Experiences End-To-End
Customer Infrastructure
Akamai Intelligent Platform™ Local ISP / Mobile Network Operator
• Traffic Offload
• Connection Offload
• Persistent Connections
• Attack Traffic Filtering
First Mile
• Akamai Routing Protocol
• Akamai Communication Protocol
• Akamai Compression
• Akamai Pre-Fetching
Middle Mile
• Adaptive Image Compression
• Above-the-fold Prioritization
• JavaScript Rescheduling
• Round trip Reductions
Last Mile
©2013 AKAMAI | FASTER FORWARDTM
Akamai Kona Security Solutions
Akamai Web Site Security
Massively scalable solution
Coordinated response
Highly differentiated
Proven
Traditional Data Center Security
Limited scalability
Self-managed or MSSP
Off the shelf solution
Customer
Database
Web
Application
Firewall
Web
Server
(Origin)
Application
or Database
Server
Network
Firewall
DDoS Protection (Network and Application Layers);
Web Application; Direct-to-Origin; and DNS attacks
Stand-alone or Augment Existing Infrastructure
©2013 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with fast, personalized
web experiences and manage complexity from peak
demand, mobile devices and data collection.
Any experience. Any device. Anywhere.
@harishmenon [email protected]
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