Megan Burns – Principal Analyst, Forrester Research Inc.



Matt Poepsel – VP Performance Strategies,    Problems with PC
                                                    audio?
 Compuware Gomez                            Dial-in: 866-900-5706
                                            Passcode: 2813729
2   © 2010 Forrester Research, Inc. Reproduction Prohibited
Best Practices For Improving Online Customer
Experience
Megan Burns, Principal Analyst



December 9, 2010




3   © 2010 Forrester Research, Inc. Reproduction Prohibited
      2009
Agenda



What is the state of online customer experience today?


Why are today’s online experiences the way they are?


What should online customer experience professionals do
 improve the experiences they deliver?




4   © 2010 Forrester Research, Inc. Reproduction Prohibited
Agenda



What is the state of online customer experience today?


Why are today’s online experiences the way they are?


What should online customer experience professionals do
 improve the experiences they deliver?




5   © 2010 Forrester Research, Inc. Reproduction Prohibited
How customers feel about their
6
    interactions with your organization
    © 2010 Forrester Research, Inc. Reproduction Prohibited
Web site satisfaction levels can vary dramatically




7   © 2010 Forrester Research, Inc. Reproduction Prohibited
In 2010 there were big increases and big descreases

                                                                                Percentage-point change
Company                                             Industry
                                                                                      since 2008
Cox Communications                                  TV Service Provider                  + 16
Sprint                                              Wireless service provider            + 15
AAA                                                 Insurance provider                   + 13
Cox Communications                                  Internet service provider            + 11
Old Navy                                            Retailer                             +10
JCPenney                                            Retailer                              -7
Allstate Insurance                                  Insurance provider                    -7
Citibank                                            Bank                                  -9
Washington Mutual                                   Bank                                 -11
America Online (AOL)                                Internet service provider            - 13

8   © 2010 Forrester Research, Inc. Reproduction Prohibited
Distribution of Web Site User Experience Review scores
(November 1999 – October 2010)
    Number of sites




                      All external uses of this deliverable are subject to Forrester's prior approval.
                      This is consistent with our Citation Policy which can be found on Forrester's Web site, www.forrester.com.
9                     © 2010 Forrester Research, Inc. Reproduction Prohibited
When it comes to online
      customer experience, there’s
     plenty of room for improvement.




10     © 2010 Forrester Research, Inc. Reproduction Prohibited
Agenda



 What is the state of online customer experience today?


 Why are today’s online experiences the way they are?


 What should online customer experience professionals do
  improve the experiences they deliver?




11   © 2010 Forrester Research, Inc. Reproduction Prohibited
Companies aren’t focused on their customers

                               Percentage of respondents who agree with the following statements


      Our company has a clearly defined set of
            target customer segments
                                                                                                          60%

          Primary research is used to fully
       understand the needs and behaviors of                                                        43%
                 target customers

            The quality of interactions with target
              customers is closely monitored
                                                                                              31%


     Decision making processes systematically
     incorporate the needs of target customers
                                                                                              30%

      Employees across the company share a
       consistent and vivid image of target                                            24%
                   customers
                      Base: 141 customer experience decision makers at large North American firms

       Source: February 19, 2010, “The State of Customer Experience, 2010” Forrester report
12     © 2010 Forrester Research, Inc. Reproduction Prohibited
         2009
What functionality should we offer?                              What user goals do we need to support?



  I don’t like the way this is written.                          Joan (our target persona) wouldn’t
                                                                 understand this product description.


   How can we sell more product?                                 How can we help Joan find and buy
                                                                 more of what she needs?




   We need to convey more of our                                 To build our brand we must satisfy
               brand messaging.                                  Joan’s needs.



  13   © 2010 Forrester Research, Inc. Reproduction Prohibited
It’s easy to ignore customer experience fundamentals



                                                               How enjoyable was it to accomplish
                                                               your goal on the site?
                        Enjoyable

                                                                    How easy was it to accomplish
                                                                    your goal on the site?
                             Usable


                                                                        Were you able to accomplish
                                                                        what you came to the site to do?
                              Useful


14   © 2010 Forrester Research, Inc. Reproduction Prohibited
It’s easy to ignore customer experience fundamentals




                                                               MIT Media Lab “Sixth Sense”


15   © 2010 Forrester Research, Inc. Reproduction Prohibited
Agenda



 What is the state of online customer experience today?


 Why are today’s online experiences the way they are?


 What should online customer experience professionals do
  improve the experiences they deliver?




16   © 2010 Forrester Research, Inc. Reproduction Prohibited
Find the overlap between user and business goals




                   What users                                  What businesses
                   want to do                                   want them to do




17   © 2010 Forrester Research, Inc. Reproduction Prohibited
Find the overlap between user and business goals




18   © 2010 Forrester Research, Inc. Reproduction Prohibited
Make sure key user goals are supported before you
 allow anything else on the site


                         1. What did you come to the site to do today?

                         2. Were you able to accomplish that goal?

                                    Yes

                                    No

                                    I’m not sure

                         3. If not, why not? What could we do to make the
                                experience easier?




19   © 2010 Forrester Research, Inc. Reproduction Prohibited
20   © 2010 Forrester Research, Inc. Reproduction Prohibited
Know what customers consider a good experience




21   © 2010 Forrester Research, Inc. Reproduction Prohibited
August 2009 “Persona Best Practices Of Interactive Agencies”
              Whittmanhart’s Persona For A Pharmaceutical Company




22   © 2010 Forrester Research, Inc. Reproduction Prohibited
Leverage a full portfolio of tools to evalute your
 online customer experience – BEFORE it goes live!

Type                                 Good For…                 Common Pitfalls
Surveys                              Measuring satisfaction    Opinion based
                                     and user perception
Web Analytics                        Locating trouble spots    Tells you where but not
                                                               what or why

Focus groups                         Testing concepts          Opinion based
                                                               Small numbers

Expert reviews                       Identifying specific      Only finds previously
                                     problems                  known problems

Usability labs                       Identifying specific      Poor price performer
                                     problems

23   © 2010 Forrester Research, Inc. Reproduction Prohibited
Start planning now for digital experiences of the future




                                                               C ustomized
                                                               C
                                                               A ggregated
                                                               A
                                                               R elevant
                                                               R
                                                               S ocial
                                                               S
24   © 2010 Forrester Research, Inc. Reproduction Prohibited
25   Weather.com
      © 2010 Forrester Research, Inc. Reproduction Prohibited
                                                                CARS
26   Weather.com
      © 2010 Forrester Research, Inc. Reproduction Prohibited
                                                                CARS
27   Weather.com
      © 2010 Forrester Research, Inc. Reproduction Prohibited
                                                                CARS
Recommendations

 1. Achieve your business goals by supporting related customer goals.
       –      It's easier!

 2. Focus on the fundamentals – usefulness, useability, and enjoyability.
       –      They'll never go away.

 3. Leverage custmer feedback and primary research to understand what
    customers want from online experiences beyond the basics.
       –      Many companies won't bother. Those that do will differentiate.

 4. Validate new experiences early and often against customer criteria to
    avoid launching something that customers won't like.
       –      You can't afford to waste money on stuff that isn't going to work.

 5. Prepare yourselves now for the online experiences of the future.
       –      The future is already here…it’s just not evenly distributed.


28   © 2010 Forrester Research, Inc. Reproduction Prohibited
Thank you


Megan Burns
+1 617.613.6294
mburns@forrester.com
www.forrester.com




  © 2009 Forrester Research, Inc. Reproduction Prohibited
Best Practices for Improving Online
Experiences

   Matt Poepsel, VP of Performance Strategies, Compuware Gomez
Web & Mobile Site Performance Impacts Business Results
                                    Abandonment Rate Across 200+ Sites/177+ Million Page Views
                                                 All Browsers vs. iPhone Safari
                       30


                       25
Abandonment Rate (%)




                       20                                                                                   Abandonment Rate -
                                                                                                            All Browsers

                       15
                                                                                                            Abandonment Rate -
                                                                                                            iPhone Safari
                       10


                        5


                        0
                            0   1    2   3   4     5    6    7    8    9      10   11   12   13   14   15
                                                 Page Load Time Band (sec.)
Source: Gomez real user monitoring
The Challenge of Delivering Web Applications
    Systems                                                                      …user is
management                                                                       NOT happy
 tools: “OK”
                         The Web Application Delivery Chain

                                       3rd Party/                   Browsers
Load                                 Cloud Services    Local ISP   and devices     Users
Balancers
Web
Servers
Mobile
Components
App
Servers                                 Internet
DB                       Major
Servers                   ISP
Storage
Mainframe
Network                             Content Delivery   Mobile
                                       Networks        Carrier

      Traditional zone
         of control
Users Access The Web On A Variety Of Devices

         Morgan Stanley predicts mobile users will outnumber desktop
         internet users within 4 years




Source: Mary Meeker, Morgan Stanley
Users Access The Web With A Variety Of Browsers

         Browser market share across 200+ sites with 117+ million page views
         from Nov 16 to 23, 2010

                                                      iPhone             iPad Safari
                                                       Safari               Other
                                           Safari 5
                             IE6                                                       IE8
                       Chrome 7                                                        FF 3.x
                                                                                       Safari 4

                                                                          IE8          IE7
                                                                                       Chrome 7
                                     IE7                                               IE6
                                                                                       Safari 5
                                                                                       iPhone Safari
                                           Safari 4                                    iPad Safari
                                                                FF 3.x                 Other

Source: Gomez Real User Monitoring
Significant Performance Differences Across Browsers & Devices

                                           Load Time     Perceived Render
  12


  10


   8


   6


   4


   2


   0




Source: Gomez Real-User Monitoring         (October 2010)
   Real users around the world               526 million page measurements
   Broadband & wireless connections only     200+ sites
Content is Distributed Across Geographies

      How many cities does content come from to form the average
      transaction?
                              Distribution of host cities by test
                             (measured from multiple locations)

                                              >30
                                 21-30        8%
                                  7%
                                                           1    1
                                                          27%
                                                                2-5
                                      11-20
                                       12%                      6-10
                                                                11-20
                                      6-10                      21-30
                                      15%           2-5         >30
                                                    31%



Source: Gomez Active Backbone Monitoring
   Sample of 12,000 transactions
   Multiple runs over 24 hours
And, So Are Users



                               Chicago
                             4.1 Seconds
    San Francisco                               New York
     8.2 Seconds                               2.7 Seconds

                              Dallas
                           4.3 Seconds



             Los Angeles
             6.8 Seconds                    Atlanta
                                         3.4 Seconds
The Browser Is Becoming The Integration Platform




Number of hosts accessed directly by the browser,
per user transaction, averaged across 3,000 companies   10.5
Gomez: Ensuring Quality Web Experiences
                  Find and fix issues across the entire Web Application Delivery Chain
               Data Center                  Backbone           Virtual Test Bed             Last Mile         Real User
               • Internal monitoring       • Monitoring        • Cross-browser             • Monitoring     • Monitoring
               • EMS integration           • Load testing        testing                   • Load testing

                                                       3rd Party/                                Browsers
Load                                                 Cloud Services             Local ISP       and devices      Users
Balancers
                                                                                             100,000+
Web                                                                                          consumer-
                                                                                             grade
Servers                                                                                      desktops
                                                                     500+
Mobile                                                               combos
Components                                                           of                      168+
               Private                                               browsers
              agents &                            100+                                       countries
                                                  enterprise-        and O/S
App             peers                                                                                         Your
Servers                                           grade                                                       real
             Data center                          nodes & Internet                           2,500+           users
                event                             data                                       ISPs
DB
             transponder
                                   Major          centers
Servers                             ISP                              5,000+
                                                                     supported               Major
Storage                                                              mobile                  mobile
                                                                     devices                 carriers
Mainframe                                                                                    around
                                                                                             the globe
Network                                             Content Delivery             Mobile
                                                       Networks                  Carrier


                                             Your zone of control with Gomez
Questions

Gomez Customers Enjoy
Measurable Benefits
Increased conversions 10%
Reduced homepage load time from
11.3 seconds to 3.4 seconds
Improved page load times 23%
Saved 50%+ in staff and fees
Reduced seven-step
transaction time by 50%
Reduced downtime 45%
Achieved under 3 second
response time and 99%+
availability
Validated decision to consolidate
three data centers

For more information visit Gomez.com or contact us at +1 781.778.2700

Webinar: Best practices for improving online experiences

  • 1.
    Megan Burns –Principal Analyst, Forrester Research Inc. Matt Poepsel – VP Performance Strategies, Problems with PC audio? Compuware Gomez Dial-in: 866-900-5706 Passcode: 2813729
  • 2.
    2 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 3.
    Best Practices ForImproving Online Customer Experience Megan Burns, Principal Analyst December 9, 2010 3 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • 4.
    Agenda What is thestate of online customer experience today? Why are today’s online experiences the way they are? What should online customer experience professionals do improve the experiences they deliver? 4 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 5.
    Agenda What is thestate of online customer experience today? Why are today’s online experiences the way they are? What should online customer experience professionals do improve the experiences they deliver? 5 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 6.
    How customers feelabout their 6 interactions with your organization © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 7.
    Web site satisfactionlevels can vary dramatically 7 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 8.
    In 2010 therewere big increases and big descreases Percentage-point change Company Industry since 2008 Cox Communications TV Service Provider + 16 Sprint Wireless service provider + 15 AAA Insurance provider + 13 Cox Communications Internet service provider + 11 Old Navy Retailer +10 JCPenney Retailer -7 Allstate Insurance Insurance provider -7 Citibank Bank -9 Washington Mutual Bank -11 America Online (AOL) Internet service provider - 13 8 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 9.
    Distribution of WebSite User Experience Review scores (November 1999 – October 2010) Number of sites All external uses of this deliverable are subject to Forrester's prior approval. This is consistent with our Citation Policy which can be found on Forrester's Web site, www.forrester.com. 9 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 10.
    When it comesto online customer experience, there’s plenty of room for improvement. 10 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 11.
    Agenda What isthe state of online customer experience today? Why are today’s online experiences the way they are? What should online customer experience professionals do improve the experiences they deliver? 11 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 12.
    Companies aren’t focusedon their customers Percentage of respondents who agree with the following statements Our company has a clearly defined set of target customer segments 60% Primary research is used to fully understand the needs and behaviors of 43% target customers The quality of interactions with target customers is closely monitored 31% Decision making processes systematically incorporate the needs of target customers 30% Employees across the company share a consistent and vivid image of target 24% customers Base: 141 customer experience decision makers at large North American firms Source: February 19, 2010, “The State of Customer Experience, 2010” Forrester report 12 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • 13.
    What functionality shouldwe offer? What user goals do we need to support? I don’t like the way this is written. Joan (our target persona) wouldn’t understand this product description. How can we sell more product? How can we help Joan find and buy more of what she needs? We need to convey more of our To build our brand we must satisfy brand messaging. Joan’s needs. 13 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 14.
    It’s easy toignore customer experience fundamentals How enjoyable was it to accomplish your goal on the site? Enjoyable How easy was it to accomplish your goal on the site? Usable Were you able to accomplish what you came to the site to do? Useful 14 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 15.
    It’s easy toignore customer experience fundamentals MIT Media Lab “Sixth Sense” 15 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 16.
    Agenda What isthe state of online customer experience today? Why are today’s online experiences the way they are? What should online customer experience professionals do improve the experiences they deliver? 16 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 17.
    Find the overlapbetween user and business goals What users What businesses want to do want them to do 17 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 18.
    Find the overlapbetween user and business goals 18 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 19.
    Make sure keyuser goals are supported before you allow anything else on the site 1. What did you come to the site to do today? 2. Were you able to accomplish that goal?  Yes  No  I’m not sure 3. If not, why not? What could we do to make the experience easier? 19 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 20.
    20 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 21.
    Know what customersconsider a good experience 21 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 22.
    August 2009 “PersonaBest Practices Of Interactive Agencies” Whittmanhart’s Persona For A Pharmaceutical Company 22 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 23.
    Leverage a fullportfolio of tools to evalute your online customer experience – BEFORE it goes live! Type Good For… Common Pitfalls Surveys Measuring satisfaction Opinion based and user perception Web Analytics Locating trouble spots Tells you where but not what or why Focus groups Testing concepts Opinion based Small numbers Expert reviews Identifying specific Only finds previously problems known problems Usability labs Identifying specific Poor price performer problems 23 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 24.
    Start planning nowfor digital experiences of the future C ustomized C A ggregated A R elevant R S ocial S 24 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 25.
    25 Weather.com © 2010 Forrester Research, Inc. Reproduction Prohibited CARS
  • 26.
    26 Weather.com © 2010 Forrester Research, Inc. Reproduction Prohibited CARS
  • 27.
    27 Weather.com © 2010 Forrester Research, Inc. Reproduction Prohibited CARS
  • 28.
    Recommendations 1. Achieveyour business goals by supporting related customer goals. – It's easier! 2. Focus on the fundamentals – usefulness, useability, and enjoyability. – They'll never go away. 3. Leverage custmer feedback and primary research to understand what customers want from online experiences beyond the basics. – Many companies won't bother. Those that do will differentiate. 4. Validate new experiences early and often against customer criteria to avoid launching something that customers won't like. – You can't afford to waste money on stuff that isn't going to work. 5. Prepare yourselves now for the online experiences of the future. – The future is already here…it’s just not evenly distributed. 28 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 29.
    Thank you Megan Burns +1617.613.6294 mburns@forrester.com www.forrester.com © 2009 Forrester Research, Inc. Reproduction Prohibited
  • 30.
    Best Practices forImproving Online Experiences Matt Poepsel, VP of Performance Strategies, Compuware Gomez
  • 31.
    Web & MobileSite Performance Impacts Business Results Abandonment Rate Across 200+ Sites/177+ Million Page Views All Browsers vs. iPhone Safari 30 25 Abandonment Rate (%) 20 Abandonment Rate - All Browsers 15 Abandonment Rate - iPhone Safari 10 5 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Page Load Time Band (sec.) Source: Gomez real user monitoring
  • 32.
    The Challenge ofDelivering Web Applications Systems …user is management NOT happy tools: “OK” The Web Application Delivery Chain 3rd Party/ Browsers Load Cloud Services Local ISP and devices Users Balancers Web Servers Mobile Components App Servers Internet DB Major Servers ISP Storage Mainframe Network Content Delivery Mobile Networks Carrier Traditional zone of control
  • 33.
    Users Access TheWeb On A Variety Of Devices Morgan Stanley predicts mobile users will outnumber desktop internet users within 4 years Source: Mary Meeker, Morgan Stanley
  • 34.
    Users Access TheWeb With A Variety Of Browsers Browser market share across 200+ sites with 117+ million page views from Nov 16 to 23, 2010 iPhone iPad Safari Safari Other Safari 5 IE6 IE8 Chrome 7 FF 3.x Safari 4 IE8 IE7 Chrome 7 IE7 IE6 Safari 5 iPhone Safari Safari 4 iPad Safari FF 3.x Other Source: Gomez Real User Monitoring
  • 35.
    Significant Performance DifferencesAcross Browsers & Devices Load Time Perceived Render 12 10 8 6 4 2 0 Source: Gomez Real-User Monitoring (October 2010) Real users around the world 526 million page measurements Broadband & wireless connections only 200+ sites
  • 36.
    Content is DistributedAcross Geographies How many cities does content come from to form the average transaction? Distribution of host cities by test (measured from multiple locations) >30 21-30 8% 7% 1 1 27% 2-5 11-20 12% 6-10 11-20 6-10 21-30 15% 2-5 >30 31% Source: Gomez Active Backbone Monitoring Sample of 12,000 transactions Multiple runs over 24 hours
  • 37.
    And, So AreUsers Chicago 4.1 Seconds San Francisco New York 8.2 Seconds 2.7 Seconds Dallas 4.3 Seconds Los Angeles 6.8 Seconds Atlanta 3.4 Seconds
  • 38.
    The Browser IsBecoming The Integration Platform Number of hosts accessed directly by the browser, per user transaction, averaged across 3,000 companies 10.5
  • 39.
    Gomez: Ensuring QualityWeb Experiences Find and fix issues across the entire Web Application Delivery Chain Data Center Backbone Virtual Test Bed Last Mile Real User • Internal monitoring • Monitoring • Cross-browser • Monitoring • Monitoring • EMS integration • Load testing testing • Load testing 3rd Party/ Browsers Load Cloud Services Local ISP and devices Users Balancers 100,000+ Web consumer- grade Servers desktops 500+ Mobile combos Components of 168+ Private browsers agents & 100+ countries enterprise- and O/S App peers Your Servers grade real Data center nodes & Internet 2,500+ users event data ISPs DB transponder Major centers Servers ISP 5,000+ supported Major Storage mobile mobile devices carriers Mainframe around the globe Network Content Delivery Mobile Networks Carrier Your zone of control with Gomez
  • 40.
    Questions Gomez Customers Enjoy MeasurableBenefits Increased conversions 10% Reduced homepage load time from 11.3 seconds to 3.4 seconds Improved page load times 23% Saved 50%+ in staff and fees Reduced seven-step transaction time by 50% Reduced downtime 45% Achieved under 3 second response time and 99%+ availability Validated decision to consolidate three data centers For more information visit Gomez.com or contact us at +1 781.778.2700