The document discusses the increasing adoption of smartphones, which is driving greater mobile internet usage, and emphasizes the importance of convenience in mobile services. It outlines a methodical approach for companies to calculate the ROI of their mobile initiatives, highlighting benefits such as increased revenue and consumer satisfaction. Additionally, it addresses the challenges of providing quality mobile experiences and stresses the need for effective performance management across mobile and web platforms.

1. Julie Äsk- Vice President, Forrester Research Inc.Imad Mouline - CTOAPM Solutions, CompuwareAUDIO VIA PC SPEAKERS & PHONE# 866-900-5706 ID# 028663372

2. How To Maximize Mobile Web Site And Application ROIJulie Äsk, Vice President, Forrester ResearchDecember 15, 2010

3. People of all nationalities and incomes have sophisticated handsets

4. Key QuestionsWhat are the key trends in mobile today?What kinds of experiences do consumers adopt and use with frequency in the mobile environment?How should companies think about quantifying the ROI of their mobile initiatives?

5. Smartphone adoption is growing quickly“What kind of mobile phone do you own?”Base: 41,249 US adult mobile subscribersBase: 37,327 US adult mobile subscribersBase: 30,453 US adult mobile subscribers***Source: North American Technographics® Benchmark Surveys 2008-2010

6. Mobile phone Net use is growing, but frequency is really growing“How frequently do you access the Internet on your mobile phone?”In mid 2009 daily users become the majority of mobile Net users22%15%10% Base: 41,249 US adults with a mobile phone *Base: 37,327 US adults with a mobile phone**Base: 31,343 US adults with a mobile phoneSource: North American Technographics® Benchmark Surveys, 2008-2010

7. Smartphone owners are by far the most active users of mobile InternetBase: 31, 343 US adults with a mobile phoneSource: North American Technographics® Benchmark Surveys, Q2 2010

8. Adoption of smartphones is the primary driver of mobile Internet usageToo many sites without optimized contentFeature phones still represent majorityLack of consumer need or demand for Internet on the goCost of data servicesMobileCouponAdoption(Consumer)Consumer mobile Internet adoptionQuality of experience including site / application designSmartphone adoptionImproving network speeds and capacityCost of data services

9. Forrester uses a framework called the Convenience Quotient to evaluate mobile servicesA product or service is considered to be convenient if:Σ Benefits > Σ Inhibitors

10. Mobile services should offer three core benefitsConvenience QuotientImmediacySimplicityContext

11. Amazon.com is an example of a very convenient serviceImmediacySimplicityContextOffers automatic sign-in plus one-click buy on purchases.Offers daily deals – common in mobile to take advantage of immediacy benefit. Uses both barcode scanning and photos to create lists and offer competitive pricing.

12. Calculating the ROI of your mobile services may feel like peering into a bottomless canyon and thinking … how do I get there?

13. Calculating the returns on mobile is challenging — you need to be methodicalStep 1: Identify the benefits of your mobile servicesIncreased revenue through consumer purchasesLower costsIncreased satisfaction and loyaltyStep 2: Quantify the benefits using consumer data and modelingStep 3: Calculate the total cost of ownership (TCO)Vendor costsInternal supportCannibalization of existing channelsStep 4: Build a model to summarize the financials

14. Step 1: Identify the benefits of your mobile serviceStep 1: Identify the Benefits of Your Mobile Services

15. Mobile can support consumers throughout the buying cycle generating revenue …

16. … saving money …

17. … and offering convenient services

18. Step 2: Quantify the Benefits Using Consumer Data and Modeling

19. Calculate the value of each benefit — examplesSource: January 10, 2011, “The ROI Of Mobile” Forrester Report

20. Calculating consumer usage is part art and part scienceSource: January 10, 2011, “The ROI Of Mobile” Forrester Report

21. A number of factors will affect adoption and usage rates

22. Next, forecast usage — with mobile, there is not often absolute displacement at least initiallyConceptualNumber of times used annually

23. In this model, you’ll also need a device forecast70%ConceptualSmartphone aggressiveQMD expectedQMD alternative scenario2015Base: 41,249 US adult mobile phone subscribers *Base: 37,327 US adult mobile phone subscribers†Base: 4,045 US adult mobile phone subscribersSource: North American Technographics® Benchmark Survey, 2008*Source: North American Technographics® Benchmark Survey, 2009 (US, Canada)†Source: North American Technographics® Omnibus Mail Survey, Q4 2009 (US)

24. Step 3: Calculate the Total Cost of Ownership

25. Costs go beyond vendor licensing or agency feesTotal Cost of OwnershipConceptualAnnualized CostsPlatform LicenseInternalStaffMarketingProfessional ServicesTotal Cost of OwnershipAnalyticsMaintenanceEtc.

26. Step 4: Build a Model to Summarize the Benefits

27. Be methodical, but don’t kill yourself adding up the penniesDon’t let ROI alone drive your decision-makingDon’t introduce more complexity than you can accurately quantifyDon’t get carried away with the “theoretical” calculations

28. SummaryGrowth in smartphone adoption is the primary driver of increased mobile Internet usageMobile services must be "convenient" or consumers will not choose to use themMobile services are a strategic investment for many companies, but the benefits can increasingly be quantified and should be as companies look to increase budgets

29. Thank youJulie Äsk+1 415.355.6002jask@forrester.comwww.forrester.com

30. How To Maximize Mobile Website And Application ROIImad Mouline - CTOAPM Solutions, Compuware

31. Smartphones Have Redefined Mobile End-Users’ Experience ExpectationsBy the end of 2011 Nielsen expects more smartphones in the U.S. than feature phonesAs of October 2010 29.7 percent of U.S. mobile subscribers own smartphonesMobile users expect rich, engaging mobile website and application end-user experiences

32. End-Users’ Mobile Experience Expectations Are Increasing

33. End-Users’ Mobile Experience Expectations Are Often Not MetResearch shows 60% of mobile Web users had a problem in the past year when accessing a Website on their phoneSocial media & customer ratings allow users to record their frustration in real-time, negatively impacting revenue and brand equity

34. Mobile Service Performance Impacts Business Results52% of consumers are unlikely to return to a website they had trouble accessing from their phone40% said they’d likely visit a competitor’s site insteadClear correlation between increase in mobile site load time & abandonmentAbandonment Rate Across 200+ Sites/177+ Million Page Views All Browsers vs. iPhone SafariSource: Gomez real user monitoring

35. More Mobile Traffic During Black Friday & Cyber MondayiOSDevices’ Page Views Across Multiple Major North American Retailers, Nov 15 – Dec 4, 2010

36. User Experiences On iPhone & Droid Suffered During Cyber MondayThe Compuware Gomez UX Index provides a gauge of user satisfaction based on the speed & availability of major retailers' mobile sitesDuring Cyber Monday The UX index dropped an average of 3 points

37. Thehighest drop of 6 points in the UX index occurred during 4 - 6 PM

38. Resulting in a significant increase in the potential number of frustrated users How To Deliver Quality Mobile Web And App ExperiencesIs it my data center?Is it an ISP or the Internet?Is it a 3rd partyprovider?Is it a browser or device?Systems management tools: “OK”…user is NOT happyThe Web Application Delivery ChainInconsistent geo performance

39. Bad performance under load

40. Blocking content delivery

41. Incorrect geo-targeted content

42. Poorly performing JavaScript

43. Inconsistent CSS rendering

44. Browser/device incompatibility

45. Page size too big

46. Conflicting HTML tag support

47. Too many objects