THE RISING IMPACT OF INTERNET PERFORMANCE ON CUSTOMERS

March, 2015

Jim Rapoza, Senior Research Analyst, Information Technology Aberdeen Group

Matt Toy, Senior Vice President, Customer Experience Dyn

Sponsored by:

2

SPEAKERS

Jim Rapoza Sr. Research Analyst, Information Technology

Matt Toy Sr. Vice President, Customer Experience

Follow the conversation on Twitter: #ITABG

3

What we'll learn: 1. What leading organizations are doing to keep their

websites sticky and their customers engaged

2. How improving website performance can increase

business metrics across IT and marketing operations

3. How leading organizations are measuring performance

and customer interactions to deliver a better web

experience

4

ABERDEEN RESEARCH METHODOLOGY

• Survey end-users about their organization’s results from technology deployment

• Define Leaders based on quantifiable business and operational performance

• Identify characteristics, capabilities and business practices of Leaders not widely practiced by Followers

• Recommend concrete actions for Followers based on the performance advantages of Leaders

5

UNDERSTANDING END USER EXPERIENCE IS THE KEY

6

TOP INTERNET PERFORMANCE CHALLENGES FACED BY BUSINESSES TODAY

14%

17%

17%

19%

21%

28%

43%

46%

53%

0% 10% 20% 30% 40% 50% 60%

Products are not agile enough to fit our requirements

Lack proper metrics to measure performance

Lack visibility into performance from the end user perspective

Available performance data is insufficient

Lack visibility into Internet performance

Lack the necessary expertise

Complexity of web development

Lack tools to monitor web application performance

Diversity of mobile devices and browsers

Source: Aberdeen Group, January 2015

7

"We need to be able to capture user experience data on a real time basis, which lets us innovate to make applications that provide critical value to customers." - IT Manager, Payment Processing Firm.

8

Leading Businesses Pay Attention to User Experience

Organizations that are Best-in-Class in web and application performance are 80% more likely to measure end-user experience

80%

9

HIGH-END USER SATISFACTION IS THE GOAL

Best-in-Class web and application performance organizations are 2.5 times more likely to have users who are very or extremely satisfied with their user experience

10

GETTING REAL (TIME) ABOUT PERFORMANCE

Web performance leaders are TWICE as likely to monitor performance in real-time

11

THE MOVE TO MOBILITY

Corporate applications and data are accessed from anywhere and on anything. The rise of powerful tablets and smartphones and the increasing prevalence of the Bring Your Own Device trend mean that companies are delivering applications to new types of devices over networks that they have no control over or visibility into.

• Number one pressure (for 71% of organizations) is increased demand for mobile application access

• In a recent Aberdeen survey, 91% of respondents said they are using a smartphone or tablet in the workplace

12

CRITICAL INDICATORS FOR WEB APPLICATION PERFORMANCE USED BY BUSINESSES

• 87% – Application response times • 81% – Application availability • 64% – Web page views • 58% – Transaction conversion rate • 21% – Social trend analysis

13

BENEFITS OF LEADING WEB PERFORMANCE STRATEGIES

Best-in-Class Web Application Performance Businesses

Achieved Quicker Application Upgrades

Did so at 58% higher rate than all others

Proactively discovered bugs/issues in 90% or higher of cases

Reached this milestone at 2.5 times the rate of other businesses

50% or higher decrease in MTTR

3 times more likely to significantly reduce MTTR

Increased end-user satisfaction

50% more likely to increase end-user satisfaction

Source: Aberdeen Group, January 2015

14

ABERDEEN STRATEGIC RECOMMENDATIONS While Internet and web performance monitoring has been around for a while, that doesn’t mean it hasn’t changed. The rise of dynamic content, cloud computing, agile development, and smart mobile devices has dramatically changed how the performance and user experience of web content and applications is improved. Organizations looking to ensure that their Internet presence is effectively optimized should: • Be mindful that everything touches the web. Web content is no longer a separate entity from other

applications and services. Every business application and service touches your web presence in some way. Poor-performing web content can impact many areas of the business and lead to low user satisfaction and application adoption.

• See through the web. From end-user devices to cloud-based services to internal databases and servers, data from web applications and sites traverses everything. To properly manage web performance, organizations need to see all areas impacted by web performance.

• Make web performance real. When it comes to Internet performance, one of the most important factors is how well the content runs for the end user. By focusing on key performance metrics such as application availability and response times, businesses can have deep visibility into end-user experience whether the site is viewed through a traditional browser or on a smartphone or tablet.

• Understand current infrastructure. A key first step to improving Internet performance is understanding your current situation. Best-in-Class businesses know where their current infrastructure is providing value and where it is coming up short.

• Respond quickly. The longer a performance problem lasts, the bigger its impact is on user satisfaction and a company's bottom line. Effectively implemented systems are able to both increase visibility into problems and decrease the time needed to identify the root cause of an issue and repair it.

First Impressions

Matter...

@matt_toy

● 57% of people abandon a website that takes more than 3 seconds to load.

● 80% of these people will not return.

● Almost HALF will tell others about their negative experience.

-Strangeloop

Slow is the new downtime

@matt_toy

Service Matters Globally in 2013, 66% of consumers switched brands or business due to poor customer service, a 4% increase on the previous year. Some 82% of those who switched said the brand could have done something to stop them.

@matt_toy

The Human Element ● For 53% of those tested,

receiving great service triggered the same cerebral reactions as feeling loved.

● The takeaway? When it comes to customer service, it's not about what consumers think. Great service is about feelings.

-AMEX

@matt_toy

What about when you’re not in the middle? By 2020, the customer will manage 85% of the relationship with an enterprise without interacting with a human.

-Gartner

What can you do to ensure your customer experience remains flawless in the face of this shift in the way we conduct business?

@matt_toy

It’s Time 2015 will be the year that the CEO truly makes service a priority. Not only will leadership make service a priority but increasingly we will see customer service backed with dollars, technologies and people resources. If there’s one reminder that this is happening it’s the global appointments of Chief Customer Officers. Increasingly CEOs give service a seat at the executive table.

-Forbes

Understand Internet Performance

Monitor. Control. Optimize.

@matt_toy

Everyone Loves Data Two-thirds of organizations view access to real-time or nearly real- time metrics as a very important capability. However, very few companies (8%) receive their metrics as soon as they are generated. Fewer than one-fifth (18%) receive them on the same day, while at the remaining companies it can take up to four weeks for the metrics to be delivered.

-Ventana Research

@matt_toy

What metrics matter? You likely know your...

• Conversion Rate

• Retention (or Churn) Rate

• Net Promoter Score

• Average Contract Value

• Customer Lifetime Value

• Customer Acquisition Cost

• Page Load Speed

• Which servers are up and down

• If your website is down

• If your database is busy

• How much revenue you have booked today

@matt_toy

● How the networks between you and your application are performing

● How satisfied customers are with your application performance

● What is frustrating customers (little things add up)

● Where you should invest effort to improve customer satisfaction

● How your systems are interacting with each other

But what don’t you know...

@matt_toy

Apdex (Application Performance Index) is an open standard developed by an alliance of companies. It defines a standard method for reporting and comparing the performance of software applications in computing. Its purpose is to convert measurements into insights about user satisfaction, by specifying a uniform way to analyze and report on the degree to which measured performance meets user expectations.

But What’s Your APDEX?

@matt_toy

App1

App2

Servers & infrastructure

applications The internet - a network of networks

pingdom, nagios, appfirst,

catchpoint

new relic, keynote

Evergage Optimizely SiteSpect Smartling

customers / customer

experience

@matt_toy

Even Apdex is only part of the story The network (the internet) is the other

@matt_toy

Do You Know Which Carriers Your Provider Uses?

Help...

What tools are

available?

@matt_toy

Tools & Resources

● Application Monitoring ● Customer Experience ● Infrastructure & Monitoring ● Performance

THANK YOU!

Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.

THANK YOU

QUESTIONS?

If you’d like to receive Aberdeen research to your inbox,

please join our community by visiting:

www.aberdeen.com