how to maximize mobile website & app roi

Imad Mouline - CTO APM Solutions, Compuware

Julie Äsk - Vice President, Forrester Research Inc.

AUDIO VIA PC SPEAKERS & PHONE# 866-900-5706 ID# 028663372

© 2010 Forrester Research, Inc. Reproduction Prohibited2 © 2009 Forrester Research, Inc. Reproduction Prohibited

How To Maximize Mobile Web Site And Application ROIJulie Äsk, Vice President, Forrester Research

December 15, 2010

© 2010 Forrester Research, Inc. Reproduction Prohibited3

People of all nationalities and incomes have sophisticated handsets

© 2010 Forrester Research, Inc. Reproduction Prohibited4

Key Questions

What 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?

© 2010 Forrester Research, Inc. Reproduction Prohibited5

“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

YE 2007 YE 2008* YE 2009**

5%

9%

17%

7%

11%

17%

Quick Messaging Device (QMD) Smartphone

Smartphone adoption is growing quickly

© 2010 Forrester Research, Inc. Reproduction Prohibited6

Mobile phone Net use is growing, but frequency is really growing

“How frequently do you access the Internet on your mobile phone?”

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 phone

Source: North American Technographics® Benchmark Surveys, 2008-2010

2007 2008* 2009**

4%7%

13%3%

5%

6%

3%

3%

3%

At Least Daily At Least Weekly At Least Monthly

In mid 2009 daily users become the majority of

mobile Net users

10%

15%

22%

© 2010 Forrester Research, Inc. Reproduction Prohibited7

Smartphone owners are by far the most active users of mobile Internet

13%

52%

16%

2%

7%

21%

11%

2%

3%

7%

5%

2%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Total Smartphone QMD Feature

Monthly

Weekly

Daily

Source: North American Technographics® Benchmark Surveys, Q2 2010

Base: 31, 343 US adults with a mobile phone

© 2010 Forrester Research, Inc. Reproduction Prohibited8

Adoption of smartphones is the primary driver of mobile Internet usage

Feature phones still represent

majority

Improving network speeds and

capacity

Smartphone adoptionCost of data

services

MobileCouponAdoption(Consumer)

Too many sites without optimized

content

Quality of experience

including site / application design

Cost of data services

Lack of consumer need or demand for Internet on the go

Consumer mobile Internet

adoption

© 2010 Forrester Research, Inc. Reproduction Prohibited9

Forrester uses a framework called the Convenience Quotient to evaluate mobile services

A product or service is

considered to be convenient if:

Σ Benefits > Σ Inhibitors

© 2010 Forrester Research, Inc. Reproduction Prohibited10

Mobile services should offer three core benefits

Convenience Quotient

Immediacy Simplicity Context

© 2010 Forrester Research, Inc. Reproduction Prohibited11

Amazon.com is an example of a very convenient service

Uses both barcode scanning and photos to create lists and offer competitive pricing.

Offers daily deals – common in mobile to take advantage of immediacy benefit.

Offers automatic sign-in plus one-click buy on purchases.

Immediacy Simplicity Context

© 2010 Forrester Research, Inc. Reproduction Prohibited12

Calculating the ROI of your mobile services may feel like

peering into a bottomless canyon and thinking … how do I

get there?

© 2010 Forrester Research, Inc. Reproduction Prohibited13

Calculating the returns on mobile is challenging — you need to be methodical

Step 1: Identify the benefits of your mobile services

– Increased revenue through consumer purchases

– Lower costs

– Increased satisfaction and loyalty

Step 2: Quantify the benefits using consumer data and modeling

Step 3: Calculate the total cost of ownership (TCO)

– Vendor costs

– Internal support

– Cannibalization of existing channels

Step 4: Build a model to summarize the financials

© 2010 Forrester Research, Inc. Reproduction Prohibited14

Step 1: Identify the benefits of your mobile service

Step 1: Identify the Benefits of Your Mobile Services

© 2010 Forrester Research, Inc. Reproduction Prohibited15

Mobile can support consumers throughout the buying cycle generating revenue …

© 2010 Forrester Research, Inc. Reproduction Prohibited16

… saving money …

© 2010 Forrester Research, Inc. Reproduction Prohibited17

… and offering convenient services

© 2010 Forrester Research, Inc. Reproduction Prohibited18

Step 2: Quantify the Benefits Using Consumer Data and

Modeling

© 2010 Forrester Research, Inc. Reproduction Prohibited19

Calculate the value of each benefit — examples

Source: January 10, 2011, “The ROI Of Mobile” Forrester Report

© 2010 Forrester Research, Inc. Reproduction Prohibited20

Calculating consumer usage is part art and part science

Source: January 10, 2011, “The ROI Of Mobile” Forrester Report

© 2010 Forrester Research, Inc. Reproduction Prohibited21

A number of factors will affect adoption and usage rates

© 2010 Forrester Research, Inc. Reproduction Prohibited22

Nu

mb

er

of

time

s u

sed

an

nu

ally

Conceptual

Next, forecast usage — with mobile, there is not often absolute displacement at least initially

© 2010 Forrester Research, Inc. Reproduction Prohibited23

In this model, you’ll also need a device forecast

Base: 41,249 US adult mobile phone subscribers *Base: 37,327 US adult mobile phone subscribers†Base: 4,045 US adult mobile phone subscribers

Source: 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)

Smartphone aggressive

70%

QMD expected

QMD alternative scenario

2015

Conceptual

© 2010 Forrester Research, Inc. Reproduction Prohibited24

Step 3: Calculate the Total Cost of Ownership

© 2010 Forrester Research, Inc. Reproduction Prohibited25

Costs go beyond vendor licensing or agency fees

Total Cost of Ownership

Conceptual

Platform License

InternalStaff

MarketingProfessional Services

Total Cost of Ownership

AnalyticsMaintenance Etc.

An

nu

aliz

ed C

ost

s

© 2010 Forrester Research, Inc. Reproduction Prohibited26

Step 4: Build a Model to Summarize the Benefits

© 2010 Forrester Research, Inc. Reproduction Prohibited27

Be methodical, but don’t kill yourself adding up the pennies

Don’t let ROI alone drive your decision-making

Don’t introduce more complexity than you can accurately quantify

Don’t get carried away with the “theoretical” calculations

© 2010 Forrester Research, Inc. Reproduction Prohibited28

Summary

Growth in smartphone adoption is the primary driver of increased mobile

Internet usage

Mobile services must be "convenient" or consumers will not choose to use

them

Mobile services are a strategic investment for many companies, but the

benefits can increasingly be quantified and should be as companies look

to increase budgets

© 2009 Forrester Research, Inc. Reproduction Prohibited

Thank you

Julie Äsk+1 415.355.6002

jask@forrester.com

www.forrester.com

How To Maximize Mobile Website And Application ROI

Imad Mouline - CTO APM Solutions, Compuware

Smartphones Have Redefined Mobile End-Users’ Experience Expectations

By the end of 2011 Nielsen expects more smartphones in the U.S. than feature phones

As of October 2010 29.7 percent of U.S. mobile subscribers own smartphones

Mobile users expect rich, engaging mobile website and application end-user experiences

End-Users’ Mobile Experience Expectations Are Increasing

End-Users’ Mobile Experience Expectations Are Often Not Met

Research shows 60% of mobile Web users had a problem in the past year when accessing a Website on their phone

Social media & customer ratings

allow users to record their frustration in

real-time, negatively impacting revenue and brand equity

Mobile Service Performance Impacts Business Results

52% of consumers are unlikely to return to a website they had trouble accessing from their phone

40% said they’d likely visit a competitor’s site instead

Clear correlation between increase in mobile site load time & abandonment

0

5

10

15

20

25

30

Abandonment Rate - All Browsers

Abandonment Rate - iPhone Safari

Page Load Time Band (sec.)

Aba

ndon

men

t Rat

e (%

)

Source: Gomez real user monitoring

Abandonment Rate Across 200+ Sites/177+ Million Page Views All Browsers vs. iPhone Safari

More Mobile Traffic During Black Friday & Cyber Monday

iOS Devices’ Page Views Across Multiple Major North American Retailers, Nov 15 – Dec 4, 2010

User Experiences On iPhone & Droid Suffered During Cyber Monday

The Compuware Gomez UX Index provides a gauge of user satisfaction based on the speed & availability of major retailers' mobile sites

During Cyber Monday •The UX index dropped an average of

3 points•The highest drop of 6 points in the

UX index occurred during 4 - 6 PM• Resulting in a significant increase in the

potential number of frustrated users

MajorISP

Local ISP

Mobile Carrier

Internet

Content DeliveryNetworks

3rd Party/Cloud Services

Browsers and devices UsersUsers

Storage

Web Servers

App Servers

DB Servers

Mainframe

Load Balancers

Mobile Components

Network

The Web Application Delivery Chain

How To Deliver Quality Mobile Web And App Experiences

Systems management

tools: “OK”

• Inconsistent geo performance• Bad performance under load• Blocking content delivery• Incorrect geo-targeted content

• Network peering problems

• Outages

• Configuration issues• Oversubscribed POP• Poor routing optimization• Low cache hit rate

• Network peering problems

• Bandwidth throttling

• Inconsistent connectivity• Configuration

errors• Application

design issues• Code defects• Insufficient

infrastructure

• Network resource shortage

• Faulty content transcoding

• SMS routing / latency issues

• Poorly performing JavaScript

• Inconsistent CSS rendering

• Browser/device incompatibility

• Page size too big

• Conflicting HTML tag support

• Too many objects

• Content not optimized for device

• Low cache hit rate

…user is NOT happy

Is it my data

center?

Is it an ISP or the Internet?

Is it a 3rd party

provider?Is it a browser

or device?

Know Your End-Users And Their Context

Can end-users complete key transactions in the mobile context? Under time pressure While on the move Often one-handed With intermittent network connections & GPS signals

What devices do they use?

What networks are they on?

What are their usage patterns?

What is their location?

What else are they doing?

Make Sure End-Users Can Access Your Mobile Content

End-user accesses a major airlines’ website using a Google search on iPhone 4

The full website is displayed

End-user enters company-name.com into iPhone 4 browser’s address field

The mobile optimized website is displayed

Validate Your Mobile Site Renders As Expected For All End-Users

iOS 4.1 – iPhone 3GSBlackBerry OS 5 – Storm 2Android 2.2 – Nexus One

Simplify – Think End-User Goals

Fewer steps to complete an end-user goal equals better perceived performance from an end-users’ perspective

Know If Your Mobile Site’s Performance And Workflow Design Compares Favorably To The Competition

Your competitors’ mobile site and app performance

contributes to shaping your customers’ expectations

Immediacy - Make Sure Your Mobile Service Performs As Expected For All End-Users

Prepare For Success

Mobile site & app traffic exceeded expectations & overwhelmed mobile delivery infrastructure

leading to slow load times & outages

Adopt A “One Web” Application Performance Management Philosophy

What constitutes mobile?

Web & mobile sites & applications often share infrastructure & web services

Important to leverage established and common best practices, metrics and technologies for both mobile and web channels

Garner operational efficiencies Identify mobile specific problems, web specific problems or both across the entire

web application delivery chain – from device to datacenter

iPad & Safari

Windows 7 & ChromeiPhone AppiPhone & Safari

How To Deliver Quality Mobile Web And App Experiences

Know your end-users and their context

Ensure end-users can access and interact with your mobile content across all devices

Simplify – think end-user goals

Immediacy - make sure your mobile service meets end-users’ expectations

Prepare for success

Adopt a “One Web” application performance management philosophy

Questions

Reduced downtime 45%

Reduced seven-step transaction time by 50%

Increased conversions 10%

Validated decision to consolidate three data centers

Achieved under 3 second response time and 99%+ availability

Reduced homepage load time from 11.3 seconds to 3.4 seconds

Improved page load times 23%

Saved 50%+ in staff and fees

Gomez Customers Enjoy Measurable Benefits

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