Mobility

Meeting the Needs of the Impatient Consumer

by Marcus Jewell ‎05-10-2016 04:00 PM - edited ‎05-11-2016 05:12 AM (5,633 Views)

The average smartphone user checks their mobile device between 50 and 100 times a day  in doing so, they expect instant access to information and services. 

 

It stands to reason then that it pays to ensure the performance of mobile applications can be monitored, managed and optimised in order to guarantee availability, speed of response, and support the best customer experience (CX).

 

Indeed, new research has revealed 59 percent of businesses confirm that mobile applications are critical to their organization today. A further 54 percent say that mobile applications are only set to become more critical over the next few years1.

 

Making mobile application performance pay is all the more important given its growing importance as a revenue generator: mcommerce growth is outstripping traditional ecommerce sales by a factor of 3 to 12.

 

This trend towards mobile becoming the essential shopping companion  whenever and wherever  is therefore also contributing to higher performance expectations, where a single seconds delay in website loading time can result in a 7% loss in conversion3.

 

It is not surprising then that the same new study into the impact of application performance led 77percent of businesses to say poor application performance prevents them from maximizing peak sales periods1.

 

These peak sales periods now include Black Friday, Cyber Monday, and Christmas. If any part of your business is based online, like that of UK-based ASOS for example, it is essential to maximise the sales opportunities during these periods. ASOS recently reported a record number of shoppers visiting its website on the Black Friday and Cyber Monday discount days, when the company said it processed up to nine orders per second.

 

Almost half of ASOS customer purchases are now made via the retailer's mobile app, which attracted 1.4bn users over the six months to the end of February 2016. And the online fashion business posted an 18 percent increase in pre-tax profits to £21m during the same period.

 

The research bears this trend out, with over half (55 percent) agreeing that their organizations would see an increase in the number of transactions if they were able to double the speed of their core applications.

 

Perhaps more significantly from the point of view of the impatient customer, however, the top benefit was considered to be an increase in customer satisfaction (cited by 63 percent), and higher levels of customer loyalty – which, by definition, not only guarantees revenues now, but repeat custom well into the future. And every business knows how costly it can be to acquire new customers in comparison to retaining existing ones.

 

Ever-greater consumer expectations and, moreover, their growing impatience, are forcing more businesses to reassess their application performance. But the more advanced these applications become and the greater the number of devices they must support is set to put even more pressure on IT departments to make sure bespoke or off-the-shelf, mobile and/or cloud-based application investments pay off.

 

Only 29 percent of e-commerce IT departments feel confident that they can meet service level agreements (SLAs) that likely include page loading speeds and latency during these peak periods1. This is in spite of the fact that it these SLAs that are most likely influence bounce and conversion rates, where smartphones have the lowest conversion rate of any device at 1.18 percent4.

 

While the solution to improved conversion rates is multifaceted, and not least of which is related to the quality of the core offering, application optimisation can at least enhance performance and eliminate speed of response as a deal breaker. But simply throwing more server capacity or application delivery controllers (ADCs) at the problem is time consuming and expensive, especially when only used at peak times.

 

Instead, the virtual ADC (vADC) option can mitigate the costly risks of overprovisioning and regulate application delivery, including mobileapplications, at massive scale. Brocade vADC solutions enable IT departments to scale workloads according to demand for more reliable, responsive performance at substantially lower costs compared to a hardware solution.

 

Applications running at maximum efficiency lead to an increase in transactions and 11% more revenue

 

By streamlining application performance and the associated costs, businesses can also boost the bottom line in terms of the increased loyalty and sales generated as a result of the associated CX improvements. Considering businesses say that optimised application delivery could ultimately lead to an 11 percent increase in revenue, it is perhaps worth looking at how vADCs can help win over even the most patient consumer1.

 

Download your free White Paper Maximising the Use of Business Applications

to learn more about the latest researchfindings and Brocade vADC solutions.

 

1 Maximizing the use of business applications, Brocade 

 

2 PayPal/Ipsos research, 2015

 

3 TagMan/Glasses Direct page speed and conversion study

 

4 US eMarketer research, May 2014 to May 2015 

 

 

 

 

 

 

 

The research was conducted with independent research house Vanson Bourne and the full report, “Why Smart Organizations Maximise Application Performance 2016”, is available for download.

 

The study was commissioned by Brocade to identify and understand the challenges that businesses face in application use; from the IT department through to end-users. It consisted of 440 interviews with IT and line-of-business (LOB) decision-makers, from organizations with more than 500 employees, the sample included respondents from the U.S., UK, France, Germany, China, and Russia.