ptimal site performance directly impacts the customer experience, preventing shoppers from abandoning retailers’ sites. However, smartphones and tablets are now impacting customer expectations regarding traditional web sites. As many as 70% of mobile shoppers expect a page to load as quickly on their phone as their desktop. But in reality, mobile pages load 3 to 4 times slower than an average web page. Join Steve Rowen, Managing Partner of Retail Systems Research (RSR), and M.J. Johnson, Director of Product Marketing for mobile and site performance at Akamai, to learn how to deliver optimized site performance.

1. #OptimizeWeb
Shift Your Web And
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4. About Retail TouchPoints
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5. Panelists
MODERATOR
Alicia Fiorletta
Associate Editor
Retail TouchPoints
Steve Rowen M.J. Johnson
Managing Partner Director of Product
RSR Marketing, Mobile and Site
Performance
Akamai

6. What Is RSR?
• Market Intelligence, focused on retail
• Context: the business challenges & opportunities that drive technology investments
• Pragmatic insights
• Powered by extensive retail experience
• Fueled by a deep bed of research data
• We help retailers keep their IT strategies aligned with corporate objectives
• We help solution providers align their products and messages with retailers’ needs
6

7. Our BOOT Methodology
Business Organizational
Opportunities
Challenges Inhibitors
Technology
Enablers
Retail Winners: Year-over-year comparable store
sales outperform inflation.
They sell more “stuff” but… they also think and act
differently than their competitors.
7

8. What Makes the Mobile Story
Unique?
• Consumer-driven
• Internal organizations not pre-established, not a free-standing operation
• Bread-and-butter component of successful, customer-centric retailing
• So is it unique, or is it just happening faster?
8

9. Winners Already Seeing More
Sales
What percent of your annual sales come from the mobile channel?
More than 5% 3-5% Less than 2% None Don’t know
Winners 17% 24% 41% 7%
Others 5% 27% 55% 9%
Source: RSR Research, September 2011
9

10. Winners Cite Mobile Presence More
Often than Peers
What Channels do you operate today?
Winners Others
83%
Stores
86%
38%
Catalog
33%
72%
Online/eCommerce
81%
31%
Dedicated mobile/mCommerce site
10%
28%
Mobile SMS campaigns
38%
28%
Downloadable mobile app
19%
48%
Social channels
48%
Source: RSR Research, September 2011
10

11. The Case for a Mobile Compass…
Smartphones' Value in Driving Traffic TO the Store
Lot of Value Some Value No Value
2011 56% 13%
2010 45% 35%
Source: RSR Research, June 2011
11

12. Only More Powerful Once In-store
Smartphones' Value Once Customer is WITHIN the Store
Lot of Value Some Value No Value
2011 26% 33%
2010 41% 48%
Source: RSR Research, June 2011
12

13. Technology: Key to Customer
Centricity
What are the TOP THREE (3) uses of in-store technologies?
2012 2011
52%
Maintain and/or improve the customer experience
69%
43%
Put actionable information into the hands of managers
32%
41%
Help the company win new customers and retain current customers
29%
41%
Increase revenue while holding down operational costs
39%
30%
Create competitive advantage and new sources of revenue generation
26%
29%
Make our employees “smarter” and better informed
51%
24%
React quickly to changes in the business environment
26%
14%
We view in-store technologies as “utilities” like light and heat: it’s just part of the cost of doing business
8%
10%
Help us keep up with the competition (avoid competitive disadvantage)
20%
13
Source: RSR Research, May 2012

14. Business Challenges
A BUMPY ROAD AHEAD
14

15. Different Lens, Different Picture
Please select the TOP THREE (3) business challenges you face in your retail stores:
Winners Laggards
Need for more consistent store execution/employee productivity
68%
33%
Need to improve customer service while holding the line on payroll costs
47%
39%
Store managers lack information they need on the selling floor – too much time spent in the back room
37%
17%
Lost sales due to store out of stocks
32%
11%
Customer dissatisfaction caused by lack of integration between the store and other selling channels
26%
22%
Price is re-emerging as an important customer concern
21%
78%
Difficulty differentiating ourselves from our competitors
21%
50%
Need to reduce shrink
16%
6%
Consumers know competitor prices for the same products
16%
28%
Need to control and streamline the returns and exchange process
5%
0%
Consumer complaints about their in-store experience
5%
11%
15
Source: RSR Research, May 2012

16. Skating Towards the Puck
Top 3 Mobile Business Challenges
Winners Others
92%
Consumers are using mobile as part of their shopping experience and we need to be there
81%
42%
We're seeing significant online traffic from mobile sources and need to respond
29%
38%
Mobile technology is moving too quickly; we can't keep up
48%
38%
Store sales are getting cannibalized; mobile can help
33%
31%
Our competitors don't have a mobile strategy
24%
23%
Our competitors have a mobile strategy and we need to respond
33%
4%
Mobile price comparison at the shelf is hurting our business
24%
Source: RSR Research, September 2011
16

17. Uncertain End-Users, Business
Processes and Technology
Top 3 Challenges to Mobile Differentiation
Winners Others
64%
Understanding and accommodating how different customer segments engage with us
60%
60%
Difficulty coordinating with other channels to create a seamless cross-channel experience
60%
44%
The consumer technology landscape evolves too quickly
25%
36%
Consumers privacy concerns over how we collect or use data
15%
28%
We don’t know what the customer perceives as valuable/differential
30%
16%
The transparency - competitors can see and copy innovations too easily
25%
16%
Consumer expectations limit how quickly we can innovate
20%
12%
The technology is not advanced enough to create the kind of experience we'd like to offer
10%
12%
We don't want to do what our competitors are doing
5%
Source: RSR Research, September 2011
17

18. Consumers Moving Too Quickly
Mobile Philosophy - Statement Agreement
Strongly agree Agree Neutral Disagree Strongly disagree
The customer has evolved so rapidly that we are forced to have a mobile presence 35% 43% 13% 6% 3%
Mobile's impact/best uses are not yet fleshed out 24% 57% 9% 9% 1%
We have completely different goals for mobile shoppers than eCommerce shoppers 9% 37% 35% 16% 3%
Source: RSR Research, September 2011
18

19. Consumer Price-Check Ignorance
What is the best policy for store employees to contend with mobile-informed consumers?
Winners Others
40%
Not yet an issue
32%
13%
Encourage employees to utilize their own devices in stores
9%
17%
Provide mobile devices to store/department mangers
18%
23%
Provide mobile devices to all employees
27%
Source: RSR Research, September 2011
19

20. Opportunities
NO SHORTAGE OF WAYS TO IMPROVE
20

21. Opportunity to Differentiate
Mobile Opportunities
Very valuable Somewhat valuable Not valuable
Deeper customer engagement to build loyalty through mobile channels 73% 25% 2%
Identify innovative mobile use cases that no one else is doing yet 61% 27% 11%
Deeper customer engagement to drive sales through personalized offers 61% 27% 11%
Deeper insights into shopper behavior through mobile site or app insights 59% 34% 7%
Empower store employees through mobile site or app access in stores 41% 41% 18%
Mobile "save the sale" at the shelf 40% 42% 18%
Stop the decline in store sales 30% 36% 34%
Mobile in-store concierge to alleviate some of the sales burden from store staff 27% 44% 29%
Disrupt other retailers by providing a mobile experience that encourages the use of my app/site at their
27% 48% 25%
shelf
Discourage the use of price comparison by offering another mobile option 16% 41% 43%
Source: RSR Research, September 2011
21

22. A Race Up the Mobile Learning Curve
Consumer Mobile Strategy
Winners Others
12%
We’ve been using it, are already targeting the right audience, and are happy with the results
5%
12%
We’ve been using it, know what we are trying to achieve, but need to know how to measure
5%
50%
We are working on selecting the right components to our mobile offering(s)
43%
15%
We would be willing to experiment if we could measure the impact we are having
14%
12%
We are willing to experiment even if we don’t yet know the outcome
19%
0%
No plans
14%
Source: RSR Research, September 2011
22

23. Organizational Inhibitors
FRUSTRATION IN THE WORKS
23

24. Stuck in the Mud
Please identify the top three (3) organizational inhibitors standing in the way of taking advantage of these opportunities:
ROI is hard to quantify 60%
Budgeting - there is little capital investment available 51%
We don't have enough eCommerce/Mobile resources to manage all the available opportunities 40%
Difficulty getting IT resources for eCommerce/Mobile projects 37%
Mobile technology changes too quickly for us to be able to make solid investments 28%
Stores don't understand the mobile, social, or cross-channel opportunities 19%
Stores are a higher technology investment priority 19%
Our executive team doesn't understand the mobile opportunity 16%
We don’t know how to turn data gained from mobile channels into actionable business intelligence 16%
The marketing organization does not understand the digital strategies we need to support eCommerce/Mobile 9%
Source: RSR Research, September 2011
24

25. Much Help Needed
Please rate the value of the following in overcoming the organizational inhibitors you face to improving the mobile customer
experience:
An executive tasked with managing and improving the overall customer experience 60%
More coordination between selling channels and marketing 51%
Solutions that don't burden our IT department 47%
More experimentation 37%
Third parties to help guide us through a bewildering mobile landscape 36%
Investment in a streamlined technology platform or infrastructure 33%
Case studies/success stories in my vertical 26%
More customer involvement in mobile development programs 24%
Source: RSR Research, September 2011
25

26. Technology Enablers
VARIED VISIONS, LOTS OF PRIORITIES
26

27. Early Days
How long has your company been actively involved in the following technology-enabled processes in attempting to improve your
Mobile presence?
More than 1 year Less than 1 year Budgeted Project Planned, not Budgeted No plans
An ecommerce site that can extend to mobile 10% 36% 18% 23% 13%
Public WiFi in stores 8% 18% 13% 5% 56%
A mobile-specific development provider 8% 21% 18% 21% 33%
Downloadable shopping app 5% 26% 5% 31% 33%
Mobile-capable content management 5% 33% 18% 33% 10%
Device/OS management and maintenance services (to keep up with changing devices) 3% 15% 18% 21% 44%
Mobile capabilities delivered via the cloud/SaaS 3% 10% 21% 23% 44%
Downloadable branded apps (games, lookbooks, etc) 3% 16% 8% 26% 47%
Write once/deploy many mobile development platform 3% 23% 23% 23% 28%
Mobile PCI certification 15% 18% 18% 49%
An advertising agency with mobile experience 23% 15% 21% 41%
Source: RSR Research, September 2011
27

28. Winners Take the Long View
How do you perceive the value of the following technologies? (% 'Very Valuable')
Winners All Others
73%
Write once/deploy many mobile development platform
35%
Source: RSR Research, September 2011
28

29. Retailer Recommendations
29

30. Shift your Web & Mobile Performance into High Gear:
Optimizing Performance for on-the-go Shoppers

31. Accelerating Innovation in a Hyperconnected World
CLOUD MEDIA MOBILE SECURITY
Cloud services market More than 90% of 10:1 ratio of connected Cyber attacks
will grow >3x by Internet traffic will be devices to Internet cost companies
2015 to $177B1 video in 2 years2 users by 20203 up to $100,000/min4
1 Gartner, 2 Cisco, 3 Akamai 4 McAfee
©2012 AKAMAI | FASTER FORWARDTM

32. The Akamai Solution Family
Service & Support from Internet Experts
Unprecedented visibility, control and collaboration
Optimize and mobilize Gain business agility Web security so you Engage your audience Monetize your network
to grow revenues by leveraging cloud can innovate fearlessly globally and at scale and control costs
Site Performance Application Performance Web Security Broadcast Video Operator CDN
Mobile Performance Cloud Performance Software Distribution Custom Networks
Advertising Decisions
Akamai Intelligent PlatformTM
©2012 AKAMAI | FASTER FORWARDTM

33. Mobile Is Reaching Critical Mass, but Is… Slow
Source: Morgan Stanley
• 80% would access mobile sites more often if fast
and reliable
• 71% expect Web sites to load on smartphones
as quickly as they do on desktops
• 74% won’t wait 5 seconds for a mobile page
download
Source: http://www.gomez.com/wp-content/downloads/GomezWebSpeedSurvey.pdf
©2012 AKAMAI | FASTER FORWARDTM

34. Why does this matter?
Clear correlation between increase in mobile site load time & abandonment
Abandonment Rate Across 200+ Web Sites / 177+ Million Page
30
Abandonment
Rate
-­‐
All
Browsers
25
Abandonment
Rate
-­‐
Abandonment
Rate
(%)
iPhone
Safari
20
15
Slower pages = higher abandonment
10
• Reduces revenue
• Increases costs
5
• Damages brand
0
0
0.5
1.5
2
2.5
3
3.5
4.5
5
5.5
6
6.5
7
7.5
8.5
9
9.5
10
10.5
11.5
12
12.5
13
13.5
14.5
15
11
14
1
4
8
Page
Load
Time
(sec.)
Source: Gomez Real User Monitoring
©2012 AKAMAI | FASTER FORWARDTM

35. Reality of Mobile Performance: Desktop vs. Mobile
3 9
Top 30 Desktop Commerce Sites Top 30 Mobile Commerce Sites
Seconds Seconds
to load to load
We haven't seen
9 seconds
since 2001!
Source: Keynote Commerce Index
©2012 AKAMAI | FASTER FORWARDTM

36. A Closer Look at a “Popular” Mobile Site
Popular mobile
pages are 300+kb in
size
…and generate over 30
requests
Images are over half of
the page size
Source: http://mobile.httparchive.org
©2012 AKAMAI | FASTER FORWARDTM

37. Latency is the Mobile Performance Killer
Network Latency: The distance between the client and the server
measured in milliseconds
RTT = 10–50 ms
Mobile Sites & Apps
GGSN
Internet
“Origin”
- m. sites
- API services
- App data
Mobile RTT = 130–250 ms
* RTT – Round Trip Time
©2012 AKAMAI | FASTER FORWARDTM

38. Problem: Too Many Round Trips
Chatty Protocols (both HTTP and TCP)
Richer Content requires more page elements
Additional Functionality (device detection, geo locations, redirects)
Mobile Sites & Apps
GGSN
Internet
“Origin”
- m. sites
- API services
- App data
©2012 AKAMAI | FASTER FORWARDTM

39. Aqua Mobile Accelerator – A Cloud Service
A cloud service built on the Akamai Intelligent
Mobile Detection & Redirect Platform, designed to improve mobile delivery by
Redirections issued from the Edge,
with device DB managed by Akamai introducing performance optimization and
intelligent services
Mobile TCP Optimizations
Network settings tolerant of latency and
data retransmission in MNO
Mobile Caching
Caching close to the MNO IP Gateway
HTTP Pipelining
Maximize TCP connections to devices
with limited resources
Dynamic Site Acceleration
Middle mile optimization
Mobile Network Map
Reduce distance to MNO IP Gateways
©2012 AKAMAI | FASTER FORWARDTM

40. Optimizing the Mobile Experience from End-to-End
First Mile Middle Mile Last Mile
GGSN
Customer Mobile Network
Infrastructure Akamai Intelligent Operator
Platform
First Mile Optimizations Middle Mile Optimizations Last Mile Optimizations
• Short distance to nearest Akamai • SureRoute • Mobile Network Map
Server • Persistent TCP connections • Akamai Mobile Protocol
• Persistent TCP connections • Connection pooling • Mobile Detection & Redirect
• Connection pooling • TCP Window optimization • Mobile Front-End Optimization
• Compression • Edge Device Characterization
©2012 AKAMAI | FASTER FORWARDTM

41. Aqua Mobile Accelerator Delivers ….
More consistent Performance by targeting the two biggest
challenges with mobile operators networks:
Reduced Roundtrips
Minimized Latency
Better connection Reliability and load times for that all-important
first hit to your mobile site
Mobile Intelligence to ensure every end user gets the right device-
specific content, whether they are on a tablet, a smartphone, or a
desktop
©2012 AKAMAI | FASTER FORWARDTM

42. ©2012 AKAMAI | FASTER FORWARDTM

43. Q&A // Submit Your Questions
Type
ques)on
here

44. Panelists
MODERATOR
Alicia Fiorletta
Associate Editor
Retail TouchPoints
Steve Rowen M.J. Johnson
Managing Partner Director of Product
RSR Marketing, Mobile and Site
Performance
Akamai

45. Thank Your For Attending This Webinar
You can download this presentation at:
http://rtou.ch/optimizeweb