Rise of The Hyper Connected Shopper

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?

• The Roadblocks..and Solutions
• Who is Akamai?

©2013 AKAMAI | FASTER FORWARDTM

Digital Commerce Has Become HyperConnected…


Huge upside for online retailers and commerce companies
137Mn Users Online in
2012, 26% YoY Growth
STILL only 11% pop
penetration!!

43%


Source: KPCB

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


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


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

Source: InMobi

3 out of 4 internet users in rural
India
access it on a mobile network



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


Source: Ipsos OTX/Google, Nielsen

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

Source: Guardian.co.uk; Deloitte

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

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)


Source: Gomez UEM

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

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

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


Devices

Browsers
Networks
Pages


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


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


Larger pages

Devices

More JS
More 3rd parties

Browsers
Networks
Pages
More images

More CSS

Source: httparchive.org

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


Complexity in Protecting Online Retailers
Attacks have become more sophisticated…

… and easier to carry out

Source: hackmageddon.com/, Neustar Insights DDoS Survey Q1 2013


Flash Crowds Can Be A Reason For Concern Too


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


Source: Keynote Commerce Index, Gomez Benchmarks

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

Which device?
Which browser?


Which version?
Which network type?

What latency?
IPv4 or v6?


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!!

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

Akamai — Faster Forward

We remove the complexities of technology so our
customers can capture the opportunity and meet the
demands of the hyperconnected world.


Akamai Powers The Commerce Internet


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

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

Any experience. Any device. Anywhere.

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

Rise of The Hyper Connected Shopper

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