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#OptimizeWeb Shift Your Web And Mobile Performance Into High GearPresented by Sponsored by

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Welcome Webinar Attendees Type ques)on here

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Follow This Webinar On Twitter#OptimizeWeb

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About Retail TouchPointsü Launched in 2007ü Over 23,000 subscribersü To provide executives with relevant, insightful content across a variety of digital medium Free subscription to our weekly newsletter: WWW.RETAILTOUCHPOINTS.COM/SIGNUP

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Panelists MODERATOR Alicia Fiorletta Associate Editor Retail TouchPoints Steve Rowen M.J. JohnsonManaging Partner Director of Product RSR Marketing, Mobile and Site Performance Akamai

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What Is RSR?• Market Intelligence, focused on retail• Context: the business challenges & opportunities that drive technology investments• Pragmatic insights• Powered by extensive retail experience• Fueled by a deep bed of research data• We help retailers keep their IT strategies aligned with corporate objectives• We help solution providers align their products and messages with retailers’ needs 6

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Our BOOT Methodology Business Organizational Opportunities Challenges Inhibitors Technology Enablers Retail Winners: Year-over-year comparable store sales outperform inflation. They sell more “stuff” but… they also think and act differently than their competitors. 7

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What Makes the Mobile StoryUnique?• Consumer-driven• Internal organizations not pre-established, not a free-standing operation• Bread-and-butter component of successful, customer-centric retailing• So is it unique, or is it just happening faster? 8

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Winners Already Seeing MoreSales What percent of your annual sales come from the mobile channel? More than 5% 3-5% Less than 2% None Don’t knowWinners 17% 24% 41% 7% Others 5% 27% 55% 9% Source: RSR Research, September 2011 9

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Winners Cite Mobile Presence MoreOften than Peers What Channels do you operate today? Winners Others 83% Stores 86% 38% Catalog 33% 72% Online/eCommerce 81% 31% Dedicated mobile/mCommerce site 10% 28% Mobile SMS campaigns 38% 28% Downloadable mobile app 19% 48% Social channels 48% Source: RSR Research, September 2011 10

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The Case for a Mobile Compass… Smartphones Value in Driving Traffic TO the Store Lot of Value Some Value No Value2011 56% 13%2010 45% 35% Source: RSR Research, June 2011 11

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Only More Powerful Once In-store Smartphones Value Once Customer is WITHIN the Store Lot of Value Some Value No Value2011 26% 33%2010 41% 48% Source: RSR Research, June 2011 12

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Technology: Key to CustomerCentricity What are the TOP THREE (3) uses of in-store technologies? 2012 2011 52% Maintain and/or improve the customer experience 69% 43% Put actionable information into the hands of managers 32% 41% Help the company win new customers and retain current customers 29% 41% Increase revenue while holding down operational costs 39% 30% Create competitive advantage and new sources of revenue generation 26% 29% Make our employees “smarter” and better informed 51% 24% React quickly to changes in the business environment 26% 14%We view in-store technologies as “utilities” like light and heat: it’s just part of the cost of doing business 8% 10% Help us keep up with the competition (avoid competitive disadvantage) 20% 13 Source: RSR Research, May 2012

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Business ChallengesA BUMPY ROAD AHEAD 14

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Different Lens, Different Picture Please select the TOP THREE (3) business challenges you face in your retail stores: Winners Laggards Need for more consistent store execution/employee productivity 68% 33% Need to improve customer service while holding the line on payroll costs 47% 39%Store managers lack information they need on the selling floor – too much time spent in the back room 37% 17% Lost sales due to store out of stocks 32% 11% Customer dissatisfaction caused by lack of integration between the store and other selling channels 26% 22% Price is re-emerging as an important customer concern 21% 78% Difficulty differentiating ourselves from our competitors 21% 50% Need to reduce shrink 16% 6% Consumers know competitor prices for the same products 16% 28% Need to control and streamline the returns and exchange process 5% 0% Consumer complaints about their in-store experience 5% 11% 15 Source: RSR Research, May 2012

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Skating Towards the Puck Top 3 Mobile Business Challenges Winners Others 92%Consumers are using mobile as part of their shopping experience and we need to be there 81% 42% Were seeing significant online traffic from mobile sources and need to respond 29% 38% Mobile technology is moving too quickly; we cant keep up 48% 38% Store sales are getting cannibalized; mobile can help 33% 31% Our competitors dont have a mobile strategy 24% 23% Our competitors have a mobile strategy and we need to respond 33% 4% Mobile price comparison at the shelf is hurting our business 24% Source: RSR Research, September 2011 16

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Uncertain End-Users, BusinessProcesses and Technology Top 3 Challenges to Mobile Differentiation Winners Others 64% Understanding and accommodating how different customer segments engage with us 60% 60%Difficulty coordinating with other channels to create a seamless cross-channel experience 60% 44% The consumer technology landscape evolves too quickly 25% 36% Consumers privacy concerns over how we collect or use data 15% 28% We don’t know what the customer perceives as valuable/differential 30% 16% The transparency - competitors can see and copy innovations too easily 25% 16% Consumer expectations limit how quickly we can innovate 20% 12%The technology is not advanced enough to create the kind of experience wed like to offer 10% 12% We dont want to do what our competitors are doing 5% Source: RSR Research, September 2011 17

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Consumers Moving Too Quickly Mobile Philosophy - Statement Agreement Strongly agree Agree Neutral Disagree Strongly disagreeThe customer has evolved so rapidly that we are forced to have a mobile presence 35% 43% 13% 6% 3% Mobiles impact/best uses are not yet fleshed out 24% 57% 9% 9% 1%We have completely different goals for mobile shoppers than eCommerce shoppers 9% 37% 35% 16% 3% Source: RSR Research, September 2011 18

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Consumer Price-Check Ignorance What is the best policy for store employees to contend with mobile-informed consumers? Winners Others 40% Not yet an issue 32% 13%Encourage employees to utilize their own devices in stores 9% 17% Provide mobile devices to store/department mangers 18% 23% Provide mobile devices to all employees 27% Source: RSR Research, September 2011 19

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OpportunitiesNO SHORTAGE OF WAYS TO IMPROVE 20

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Opportunity to Differentiate Mobile Opportunities Very valuable Somewhat valuable Not valuable Deeper customer engagement to build loyalty through mobile channels 73% 25% 2% Identify innovative mobile use cases that no one else is doing yet 61% 27% 11% Deeper customer engagement to drive sales through personalized offers 61% 27% 11% Deeper insights into shopper behavior through mobile site or app insights 59% 34% 7% Empower store employees through mobile site or app access in stores 41% 41% 18% Mobile "save the sale" at the shelf 40% 42% 18% Stop the decline in store sales 30% 36% 34% Mobile in-store concierge to alleviate some of the sales burden from store staff 27% 44% 29%Disrupt other retailers by providing a mobile experience that encourages the use of my app/site at their 27% 48% 25% shelf Discourage the use of price comparison by offering another mobile option 16% 41% 43% Source: RSR Research, September 2011 21

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A Race Up the Mobile Learning Curve Consumer Mobile Strategy Winners Others 12%We’ve been using it, are already targeting the right audience, and are happy with the results 5% 12%We’ve been using it, know what we are trying to achieve, but need to know how to measure 5% 50% We are working on selecting the right components to our mobile offering(s) 43% 15% We would be willing to experiment if we could measure the impact we are having 14% 12% We are willing to experiment even if we don’t yet know the outcome 19% 0% No plans 14% Source: RSR Research, September 2011 22

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Organizational InhibitorsFRUSTRATION IN THE WORKS 23

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Stuck in the Mud Please identify the top three (3) organizational inhibitors standing in the way of taking advantage of these opportunities: ROI is hard to quantify 60% Budgeting - there is little capital investment available 51% We dont have enough eCommerce/Mobile resources to manage all the available opportunities 40% Difficulty getting IT resources for eCommerce/Mobile projects 37% Mobile technology changes too quickly for us to be able to make solid investments 28% Stores dont understand the mobile, social, or cross-channel opportunities 19% Stores are a higher technology investment priority 19% Our executive team doesnt understand the mobile opportunity 16% We don’t know how to turn data gained from mobile channels into actionable business intelligence 16%The marketing organization does not understand the digital strategies we need to support eCommerce/Mobile 9% Source: RSR Research, September 2011 24

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Much Help Needed Please rate the value of the following in overcoming the organizational inhibitors you face to improving the mobile customer experience:An executive tasked with managing and improving the overall customer experience 60% More coordination between selling channels and marketing 51% Solutions that dont burden our IT department 47% More experimentation 37% Third parties to help guide us through a bewildering mobile landscape 36% Investment in a streamlined technology platform or infrastructure 33% Case studies/success stories in my vertical 26% More customer involvement in mobile development programs 24% Source: RSR Research, September 2011 25

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Technology EnablersVARIED VISIONS, LOTS OF PRIORITIES 26

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Early Days How long has your company been actively involved in the following technology-enabled processes in attempting to improve your Mobile presence? More than 1 year Less than 1 year Budgeted Project Planned, not Budgeted No plans An ecommerce site that can extend to mobile 10% 36% 18% 23% 13% Public WiFi in stores 8% 18% 13% 5% 56% A mobile-specific development provider 8% 21% 18% 21% 33% Downloadable shopping app 5% 26% 5% 31% 33% Mobile-capable content management 5% 33% 18% 33% 10%Device/OS management and maintenance services (to keep up with changing devices) 3% 15% 18% 21% 44% Mobile capabilities delivered via the cloud/SaaS 3% 10% 21% 23% 44% Downloadable branded apps (games, lookbooks, etc) 3% 16% 8% 26% 47% Write once/deploy many mobile development platform 3% 23% 23% 23% 28% Mobile PCI certification 15% 18% 18% 49% An advertising agency with mobile experience 23% 15% 21% 41% Source: RSR Research, September 2011 27

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Winners Take the Long View How do you perceive the value of the following technologies? (% Very Valuable) Winners All Others 73%Write once/deploy many mobile development platform 35% Source: RSR Research, September 2011 28

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Retailer Recommendations 29

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Shift your Web & Mobile Performance into High Gear:Optimizing Performance for on-the-go Shoppers

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Accelerating Innovation in a Hyperconnected World CLOUD MEDIA MOBILE SECURITY Cloud services market More than 90% of 10:1 ratio of connected Cyber attacks will grow >3x by Internet traffic will be devices to Internet cost companies 2015 to $177B1 video in 2 years2 users by 20203 up to $100,000/min4 1 Gartner, 2 Cisco, 3 Akamai 4 McAfee ©2012 AKAMAI | FASTER FORWARDTM

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The Akamai Solution Family Service & Support from Internet Experts Unprecedented visibility, control and collaborationOptimize and mobilize Gain business agility Web security so you Engage your audience Monetize your network to grow revenues by leveraging cloud can innovate fearlessly globally and at scale and control costs Site Performance Application Performance Web Security Broadcast Video Operator CDN Mobile Performance Cloud Performance Software Distribution Custom Networks Advertising Decisions Akamai Intelligent PlatformTM ©2012 AKAMAI | FASTER FORWARDTM

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Mobile Is Reaching Critical Mass, but Is… Slow Source: Morgan Stanley • 80% would access mobile sites more often if fast and reliable • 71% expect Web sites to load on smartphones as quickly as they do on desktops • 74% won’t wait 5 seconds for a mobile page downloadSource: http://www.gomez.com/wp-content/downloads/GomezWebSpeedSurvey.pdf ©2012 AKAMAI | FASTER FORWARDTM

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Why does this matter?Clear correlation between increase in mobile site load time & abandonment Abandonment Rate Across 200+ Web Sites / 177+ Million Page 30 Abandonment Rate -­‐ All Browsers 25 Abandonment Rate -­‐ Abandonment Rate (%) iPhone Safari 20 15 Slower pages = higher abandonment 10 • Reduces revenue • Increases costs 5 • Damages brand 0 0 0.5 1.5 2 2.5 3 3.5 4.5 5 5.5 6 6.5 7 7.5 8.5 9 9.5 10 10.5 11.5 12 12.5 13 13.5 14.5 15 11 14 1 4 8 Page Load Time (sec.) Source: Gomez Real User Monitoring ©2012 AKAMAI | FASTER FORWARDTM

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Reality of Mobile Performance: Desktop vs. Mobile 3 9 Top 30 Desktop Commerce Sites Top 30 Mobile Commerce Sites Seconds Seconds to load to load We havent seen 9 seconds since 2001!Source: Keynote Commerce Index ©2012 AKAMAI | FASTER FORWARDTM

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A Closer Look at a “Popular” Mobile Site Popular mobile pages are 300+kb in size …and generate over 30 requests Images are over half of the page sizeSource: http://mobile.httparchive.org ©2012 AKAMAI | FASTER FORWARDTM

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Latency is the Mobile Performance Killer Network Latency: The distance between the client and the server measured in milliseconds RTT = 10–50 ms Mobile Sites & Apps GGSN Internet “Origin” - m. sites - API services - App data Mobile RTT = 130–250 ms* RTT – Round Trip Time ©2012 AKAMAI | FASTER FORWARDTM

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Problem: Too Many Round TripsChatty Protocols (both HTTP and TCP)Richer Content requires more page elementsAdditional Functionality (device detection, geo locations, redirects) Mobile Sites & Apps GGSN Internet “Origin” - m. sites - API services - App data ©2012 AKAMAI | FASTER FORWARDTM

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Aqua Mobile Accelerator – A Cloud Service A cloud service built on the Akamai Intelligent Mobile Detection & Redirect Platform, designed to improve mobile delivery by Redirections issued from the Edge, with device DB managed by Akamai introducing performance optimization and intelligent servicesMobile TCP OptimizationsNetwork settings tolerant of latency anddata retransmission in MNO Mobile Caching Caching close to the MNO IP GatewayHTTP PipeliningMaximize TCP connections to deviceswith limited resources Dynamic Site Acceleration Middle mile optimization Mobile Network Map Reduce distance to MNO IP Gateways ©2012 AKAMAI | FASTER FORWARDTM

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Optimizing the Mobile Experience from End-to-End First Mile Middle Mile Last Mile GGSN Customer Mobile Network Infrastructure Akamai Intelligent Operator PlatformFirst Mile Optimizations Middle Mile Optimizations Last Mile Optimizations • Short distance to nearest Akamai • SureRoute • Mobile Network Map Server • Persistent TCP connections • Akamai Mobile Protocol • Persistent TCP connections • Connection pooling • Mobile Detection & Redirect • Connection pooling • TCP Window optimization • Mobile Front-End Optimization • Compression • Edge Device Characterization ©2012 AKAMAI | FASTER FORWARDTM

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Aqua Mobile Accelerator Delivers …. More consistent Performance by targeting the two biggest challenges with mobile operators networks: Reduced Roundtrips Minimized Latency Better connection Reliability and load times for that all-important first hit to your mobile site Mobile Intelligence to ensure every end user gets the right device- specific content, whether they are on a tablet, a smartphone, or a desktop ©2012 AKAMAI | FASTER FORWARDTM

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©2012 AKAMAI | FASTER FORWARDTM

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Q&A // Submit Your Questions Type ques)on here

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Panelists MODERATOR Alicia Fiorletta Associate Editor Retail TouchPoints Steve Rowen M.J. JohnsonManaging Partner Director of Product RSR Marketing, Mobile and Site Performance Akamai

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Thank Your For Attending This Webinar You can download this presentation at: http://rtou.ch/optimizeweb