How do top IR500 companies quantify the business impact of their online customers’ experience? How leading retailers optimize customer conversions by ensuring a quality experience.

2. Quantifying and Proactively Reducing Negative Business Impact due to Performance Issues Steve Trimbo

3. Topics Online Channels Increasing in Business Strategic Importance Increasing Complexities in Capabilities being Delivered Impact of Performance on Business Taking a Proactive Approach Summary Q & A Time

4. Online Channels Increasing in Business Strategic Importance

5. The retailer is taking control of, and overhauling its website, which has been run by Amazon.com Inc. for the last decade. Traditional retailers making strategic bets in the online channels Typically opens up to 200 stores worldwide per year, this year expects to add fewer than 10. Meanwhile, the big home improvement chain has embarked on a three-year plan to invest $1.1 billion in its supply chain and in technology, with much of that budget earmarked for the web. Macy's, Inc. continued to develop and expand its online capabilities in 2010 to accommodate future growth. This investment is part of the company's omnichannel strategy, which integrates the offerings in stores, the Internet and mobile technologies Plans to shave off $70 million to $80 million in capital expenditures over the next three to five years by reducing its bricks-and-mortar square footage by 10%. Meanwhile, it expects to double its web sales to $4 billion in the next 5 years.

6. Traditional retailers making strategic bets in the online channels Launched last year a $150 million e-commerce investment initiative. "Our margins are so much higher online, that's why it's such a growth area for us," says Ivy Chin, head of e-commerce Projects $135 million to $150 million in capital expenditures in 2011—one-third of that for e-commerce and the supply chain that supports it. "The Internet is our fastest-growing channel and a key component of our future strategy," CEO Laura Alber says In 2011 Ann will spend $25 million on improving its information technology and e-commerce infrastructure with a redesigned web site, a mobile commerce site and more international web stores, says CEO Kay Krill "Our e-commerce site traffic and business is surging," Zimmer told Wall Street analysts at the time. "As a technology Luddite, I accept responsibility for the lateness in aggressively entering into Internet marketing and social networking. It will not happen again."

7. But - Site metrics continue to be challenged Source: Forrester and Shop.Org State of Retailing Online Studies

8. Increasing Complexity in Capabilities Being Delivered

10. Tactics Varied and Complex Resorting of Site Search Different looks of Chat Product Recommendations

11. Impact of Performance on Business

12. Website performance impacts visitor behavior Abandonment Rate Across 200+ Sites / 177+ Million Page Views over 1 week / All Browsers Source: Gomez real user monitoring

13. Web & Mobile Performance Impacts Visitor Behavior Abandonment Rate Across 200+ Sites / 177+ Million Page Views over 1 week / All Browsers vs. iPhone Safari Source: Gomez real user monitoring

14. Website Performance Impacts Business Results Transaction Conversion* Rate Over Load Time Across 33 Major North American Retailers * Conversion rate computed from home page through search results Source: Gomez real user monitoring

16. Brand damage

17. More support calls

18. Increase costs

19. LOB dissatisfaction with IT*Online business doing $100K/day = $2.5M/year in lost revenue Source: Aberdeen Group - 2009

20. Why Web Performance Matters: Impact of Poor Performance 2 4.3 % second slowdown reductionin revenue/user* found that a 400 0.59 % determined that a milliseconddelay fewer searches/user* Source: Steve Souders @ VelocityConference 2009 http://radar.oreilly.com/2009/07/velocity-making-your-site-fast.html

21. Why Web Performance Matters: Benefits of Good Performance reduced page load times from ~7 seconds to ~2 seconds increase in revenue reduction in hardware costs* Reduced landing page load time by 2.2 seconds 60 M increase in conversions More downloads/year 50 % users that visit the fastest pages 50 more pages/visit than users visiting the slowest page* view % 7–12 15.4 % % Source: Steve Souders @ VelocityConference 2009 http://radar.oreilly.com/2009/07/velocity-making-your-site-fast.html

22. Taking a Proactive Approach

23. Challenge 1:Pinpointing Problems and Optimizing Performance 2. Where is the root cause? 1. What is the business impact? Customers Cloud Private Public Data Center Local ISP Virtual/Physical Environment 3rd Party/Cloud Services Web Servers App Servers DB Servers Load Balancers Browsers Mainframe Storage MajorISP Content Delivery Networks WANOptimization Web Services Mobile Components Mobile Carrier Employees Network Employees Devices

24. Challenge 2:The Application Performance Delivery Chain The Application Delivery Chain: Customer Experience More and Diverse Customers More Customers Customers Internet Data Center Virtual/Physical Environment App Tier DB Tier Web Tier Mainframe CDNs Load Balancer CDNs MajorISP Ad Providers Content Storage Network Employees Home Grown/Freeware Point Solutions Web Services Identify Identify Resolve Isolate Resolve Isolate DATA SMOG Employees Validate Validate Correlate Tool Mgt.

26. Customer expectations increasing

27. Complexity becoming more challenging

28. Resources stretched further

29. IT budgets stretched Further

30. Customer Experience Increasing in ImportanceAPM WA CEM Home Page Dashboards Funnel Reports Search Result Product Page Trends Fault Isolation Visual Replay Application Performance Management Customer Experience Management Web Analytics

34. To quantify and proactively reduce business impact due to performance issues in the customer experience delivery chain Quantify business impact of Web performance problems Automatically prioritizes performance problems by number of page views and users affected Create A Proactive Monitoring Framework Identify and resolve issues before they lead to a degraded customer experience Take a holistic – correlated approach Build on a set of integrated tools providing correlated data with end to end visibility

35. Q&A Time

36. Thank You