Rise of The Hyper Connected Shopper
Harish Menon
Head – Web Experience Products, Asia Pacific & Japan

@harishmenon
Agenda

• Rise of Hyper Connectivity
• What do Hyper-Connected Shoppers Want?
• …And why do we need to give it to them?

•...
Digital Commerce Has Become HyperConnected…

©2013 AKAMAI | FASTER FORWARDTM
Huge upside for online retailers and commerce companies
137Mn Users Online in
2012, 26% YoY Growth
STILL only 11% pop
pene...
E-Commerce In India
2009

2012

Expected to be
Rs. 64,000 Crores
in 2013!
Figures in INR ‘000 Crores

Source: Business Sta...
Mobile Traffic has already Surpassed Desktop in India

Grow revenue opportunities with fast, personalized
web experiences ...
Mobile Revenues Keep Growing
“…20 per cent revenue from mobile
phone transactions by 2013-end and 40
per cent in the next ...
3 out of 4 internet users in rural
India
access it on a mobile network

Grow revenue opportunities with fast, personalized...
But Mobile Doesn’t Exist In A Vacuum
Lines between offline & online shopping experiences are blurring

+
17%
Visit a store...
Engaging HyperConnected Shopper Is Key To Success
According to recent survey HyperConnected
shoppers spend 71% more than s...
What Hyper Connected Shoppers Want
Ability to Purchase
or Place an order
Product Information
Store Directions or Operating...
And Why Do We Need To Give It To Them?
If dissatisfied with website performance
•
•

49.3% of tablet & 40.3% of smartphone...
Speed Matters: Conversion Rates
POPULATION PERCENTAGE

CONVERSION PERCENTAGE

CONVERSION
RATE VERSUS
LOAD TIME

0−1

1−2

...
Performance means business
As response time increases …

Bounce Rates Increase
Conversion Declines
2012 Wal-Mart Performan...
Delivering Fast, Quality Experiences To HyperConnected Shoppers Is Difficult

Devices

Browsers
Networks
Pages

Different ...
Delivering Fast, Quality Experiences To HyperConnected Shoppers Is Difficult

Devices

Browsers
Networks
Pages

Avoid data...
Delivering Fast, Quality Experiences To HyperConnected Shoppers Is Difficult

Devices

Download (Mbps)
30

Browsers

160
1...
Delivering Fast, Quality Experiences To HyperConnected Shoppers Is Difficult
Larger pages

Devices

More JS
More 3rd parti...
Also, keep Security At The Top Of Mind
DDoS attacks by vertical
– 32% travel sites
– 16% retail sites

When your site goes...
Complexity in Protecting Online Retailers
Attacks have become more sophisticated…

… and easier to carry out

Source: hack...
Flash Crowds Can Be A Reason For Concern Too

©2013 AKAMAI | FASTER FORWARDTM
Many Retailers Fail To Deliver Fast, Quality Experiences
Average Website Response Time Of The Top 20 Retailers

2.1

9.5

...
How To Deliver Quality Web & Mobile Experiences
Across All Digital Channels
Identify your end-users’ situation

Which devi...
Top 5 “Easy Wins” For Response Time Improvement
3rd Party Content
Move javascript to the end of the page, after the core c...
How Fast Is My Website?
Major
ISPs

Local
ISPs

Mobile
Carriers

Operational

Real Customers /
Employees

Experiential

Sy...
Akamai — Faster Forward

We remove the complexities of technology so our
customers can capture the opportunity and meet th...
Akamai Powers The Commerce Internet

©2013 AKAMAI | FASTER FORWARDTM
Optimize Omnichannel Experiences End-To-End
Customer
Infrastructure

First Mile
•
•
•
•

Traffic Offload
Connection Offloa...
Akamai Kona Security Solutions
Stand-aloneor Augment Existing Infrastructure
DDoS Protection (Network and Application Laye...
Any experience. Any device. Anywhere.
Grow revenue opportunities with fast, personalized
web experiences and manage comple...
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Rise of The Hyper Connected Shopper

  1. 1. Rise of The Hyper Connected Shopper Harish Menon Head – Web Experience Products, Asia Pacific & Japan @harishmenon
  2. 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. 3. Digital Commerce Has Become HyperConnected… ©2013 AKAMAI | FASTER FORWARDTM
  4. 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 FORWARDTM Source: KPCB
  5. 5. 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
  6. 6. Mobile Traffic has already Surpassed Desktop in India 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 ©2013 AKAMAI | FASTER FORWARDTM
  7. 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.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 Source: InMobi
  8. 8. 3 out of 4 internet users in rural India access it on a mobile network Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. ©2013 AKAMAI | FASTER FORWARDTM
  9. 9. But Mobile Doesn’t Exist In A Vacuum Lines between offline & online shopping experiences are blurring + 17% Visit a store and then purchase online 51% Research online and then visit store to purchase 89% Use smartphones while shopping in stores ©2013 AKAMAI | FASTER FORWARDTM Source: Ipsos OTX/Google, Nielsen
  10. 10. Engaging HyperConnected Shopper Is Key To Success According to recent survey HyperConnected shoppers spend 71% more than single channel consumers 8X 4X “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 Ecommerce, Marks & Spencer 1X 1 Channel 2 Channels 3 Channels ©2013 AKAMAI | FASTER FORWARDTM Source: Guardian.co.uk; Deloitte
  11. 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 Less 50% 61% 74% 81% Source: Google and Sterling Commerce, 2013 ©2013 AKAMAI | FASTER FORWARDTM
  12. 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 iPhone iPad Abandonment Rate (%) 18 25 20 15 10 16 14 Slower pages = higher abandonment 12 10 8 6 4 5 0 0 Page 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 14-14.5 2 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 14-14.5 Abandonment Rate (%) 30 Page Load Time Band (sec) ©2013 AKAMAI | FASTER FORWARDTM Source: Gomez UEM
  13. 13. Speed Matters: Conversion Rates POPULATION PERCENTAGE CONVERSION PERCENTAGE CONVERSION RATE VERSUS LOAD TIME 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 LOAD TIME (SECONDS) Page Performance & Site Conversion – Feb 2012 ©2013 AKAMAI | FASTER FORWARDTM
  14. 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. 15. Delivering Fast, Quality Experiences To HyperConnected Shoppers Is Difficult Devices Browsers Networks Pages Different Android devices accessing OpenSignal App 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. 7,000+ different types of mobile devices access Facebook every day Source: OpenSignal; TechCrunch ©2013 AKAMAI | FASTER FORWARDTM
  16. 16. Delivering Fast, Quality Experiences To HyperConnected Shoppers Is Difficult Devices Browsers Networks Pages 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. 2005 • IE had over 80% of the browser market 2012 • 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. 17. Delivering Fast, Quality Experiences To HyperConnected Shoppers Is Difficult Devices Download (Mbps) 30 Browsers 160 140 25 Networks 20 100 15 80 60 10 Latency (ms) 120 Download (Mbps) Pages Latency (ms) 40 5 20 0 0 3G (HSPA) 4G (LTE) Wifi Cable ©2013 AKAMAI | FASTER FORWARDTM
  18. 18. Delivering Fast, Quality Experiences To HyperConnected Shoppers Is Difficult Larger pages Devices More JS More 3rd parties Browsers Networks Pages More images 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. More CSS Source: httparchive.org ©2013 AKAMAI | FASTER FORWARDTM
  19. 19. Also, keep Security At The Top Of Mind DDoS attacks by vertical – 32% travel sites – 16% retail sites When 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 loss 53% 50% 47% 67% Travel IT Retail 82% 56% Finance Telecom Over $10K Per Hour Over $100K Per Hour Source: DDoS Survey: Q1 2012 When Business Go Dark, 2012 ©2013 AKAMAI | FASTER FORWARDTM
  20. 20. Complexity in Protecting Online Retailers Attacks have become more sophisticated… … and easier to carry out Source: hackmageddon.com/, Neustar Insights DDoS Survey Q1 2013 ©2013 AKAMAI | FASTER FORWARDTM
  21. 21. Flash Crowds Can Be A Reason For Concern Too ©2013 AKAMAI | FASTER FORWARDTM
  22. 22. Many Retailers Fail To Deliver Fast, Quality Experiences Average Website Response Time Of The Top 20 Retailers 2.1 9.5 9.3 seconds seconds seconds Broadband Wifi 3G ©2013 AKAMAI | FASTER FORWARDTM Source: Keynote Commerce Index, Gomez Benchmarks
  23. 23. How To Deliver Quality Web & Mobile Experiences Across All Digital Channels Identify your end-users’ situation Which 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. 24. Top 5 “Easy Wins” For Response Time Improvement 3rd Party Content Move javascript to the end of the page, after the core content loads Load Stylesheets First As CSS applies the design, content is readable more quickly Minimize Content Size ** Compression and Minification Image Optimization Minimize the number of Requests ** Consolidation of JS and CSS files CSS Sprites Cache Aggressively and Granularly Long Expires on Static objects Dynamic Page Caching and AJAX ** Critical for Mobile Delivery!! ©2013 AKAMAI | FASTER FORWARDTM
  25. 25. How Fast Is My Website? Major ISPs Local ISPs Mobile Carriers Operational Real Customers / Employees Experiential Synthetic Monitoring Backbone Synthetic 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/devices Real User Monitoring (RUM) • All end-users’ locations, pages visited & browsers/devices End User Experience Fidelity ©2013 AKAMAI | FASTER FORWARDTM
  26. 26. 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
  27. 27. Akamai Powers The Commerce Internet ©2013 AKAMAI | FASTER FORWARDTM
  28. 28. Optimize Omnichannel Experiences End-To-End Customer Infrastructure First Mile • • • • Traffic Offload Connection Offload Persistent Connections Attack Traffic Filtering Local ISP / Mobile Network Operator Akamai Intelligent Platform™ Last Mile Middle 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. 29. Akamai Kona Security Solutions Stand-aloneor Augment Existing Infrastructure DDoS Protection (Network and Application Layers); Web Application; Direct-to-Origin; and DNS attacks Network Firewall Web Application Firewall Web Server (Origin) Application or Database Server Akamai Web Site Security Traditional Data Center Security Massively scalable solution Coordinated response Highly differentiated Proven Customer Database Limited scalability Self-managed or MSSP Off the shelf solution ©2013 AKAMAI | FASTER FORWARDTM
  30. 30. Any experience. Any device. Anywhere. Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. Please visit the Akamai Booth Q&A with our Experts @harishmenon See the “Internet Visualization” Demo Find out why top Ecommerce Retailers trust us hmenon@akamai.com ©2013 AKAMAI | FASTER FORWARDTM
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