webinar: measuring the impact of end-to-end website optimization
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End-to-End Website OptimizationSeptember 13, 2016
CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
Welcome!Connie QuachVP, Product [email protected] | [email protected]
Mat BallProduct Marketing [email protected] | [email protected]
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
What well cover
OverviewMarket Trends
Spotlight Companies Taking Bold Steps in Business Operations (#BizOps)
How Data Science Techniques Can Be Advantageous for 2017 and Beyond!
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
Whats market doing?Racing for online revenuesOnline investmentsAmazon catch-up
Case StudiesNordstrom Dollar Shave Club seasonal readiness was super bowlToys R Us / Spreadshirt
Data Science as an advantage for seasonal readinessMarketing CampaignsAlertsRealtime visibility into user traffic
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Lets Jump In
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
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Whats the market doing?
Market Trends and Stats
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
https://www.bloomberg.com/gadfly/articles/2016-08-02/tech-giants-form-fab-five-to-dominate-stock-valuation-chart
http://fortune.com/2016/08/18/walmart-ecommerce-2/Top 5 Stock Valuations are from Tech:Apple $571BAlphabet $540BMicrosoft $441BAmazon $364BFacebook $357Bsource Bloomberg.com
Walmarts digital investments paying off:Online sales rose 11.8% to $14 billion in Q2, 2016We have the opportunity to re-imaging retail, CEO Douglas McMillonTech playing an increased role in everythingSource Fortune.com
START:Jumping in
Brick and mortar retailers are facing difficult choices. Two weeks ago Macys said it would close 100 stores, or around 15% of all stores. As you can see in this graphic from 538.com, referencing department store sales vs. non-store retailers, which are primarily online, that this trend continues to grow. In fact, and referencing 538s article, Since the recession ended in 2009, overall retail and food-service sales are up nearly 20 percent (adjusted for inflation). Department store sales, on the other hand, are down more than 20 percent. To bring Macys full circle in this story, the company showed double digit growth in online sales, and beat investor expectations in Q2.
So, with the possibilities of growth online, the heavyweights, and just about everyone else, are investing.
Go over Walmart
Go over Target
However, I believe this isnt news to this audience. This audience has known that the race is on online, but what does that really mean. Theres more pressure, the competition is fierce, and we havent even mentioned Amazons name yet. Quite simply, the race is on, and as e-commerce continues to pick up pace, its all about the customer. End-to-end optimization, for its simple name, is a challenging undertaking, but site optimization matters more today than it ever has. And tomorrow it will matter even more. Lets talk tech, and look at some trends.
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Market Trends and Stats100 stores closing, increased investment onlineDouble digit growth in online sales Q1 2016
Our business is rapidly evolving in response to changes in the way customers are shopping across stores, desktops, tablets and smartphonescontinue to invest in our business to focus on where the customer is headed CEO Terry J. Lundgren150+ hires in San Francisco digital center (2015)Merge online and store merchandising and marketing teams
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
https://www.bloomberg.com/gadfly/articles/2016-08-02/tech-giants-form-fab-five-to-dominate-stock-valuation-chart
http://fortune.com/2016/08/18/walmart-ecommerce-2/Top 5 Stock Valuations are from Tech:Apple $571BAlphabet $540BMicrosoft $441BAmazon $364BFacebook $357Bsource Bloomberg.com
Walmarts digital investments paying off:Online sales rose 11.8% to $14 billion in Q2, 2016We have the opportunity to re-imaging retail, CEO Douglas McMillonTech playing an increased role in everythingSource Fortune.com
START:Jumping in
Brick and mortar retailers are facing difficult choices. Two weeks ago Macys said it would close 100 stores, or around 15% of all stores. As you can see in this graphic from 538.com, referencing department store sales vs. non-store retailers, which are primarily online, that this trend continues to grow. In fact, and referencing 538s article, Since the recession ended in 2009, overall retail and food-service sales are up nearly 20 percent (adjusted for inflation). Department store sales, on the other hand, are down more than 20 percent. To bring Macys full circle in this story, the company showed double digit growth in online sales, and beat investor expectations in Q2.
So, with the possibilities of growth online, the heavyweights, and just about everyone else, are investing.
Go over Walmart
Go over Target
However, I believe this isnt news to this audience. This audience has known that the race is on online, but what does that really mean. Theres more pressure, the competition is fierce, and we havent even mentioned Amazons name yet. Quite simply, the race is on, and as e-commerce continues to pick up pace, its all about the customer. End-to-end optimization, for its simple name, is a challenging undertaking, but site optimization matters more today than it ever has. And tomorrow it will matter even more. Lets talk tech, and look at some trends.
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Market Trends and StatsInvesting ~ $1.5B in e-commerce in 2015, more in 2016Online sales rose 11.8% last quarter
Every 1 second of load time improvement 2% conversion rate increase
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
https://www.bloomberg.com/gadfly/articles/2016-08-02/tech-giants-form-fab-five-to-dominate-stock-valuation-chart
http://fortune.com/2016/08/18/walmart-ecommerce-2/Top 5 Stock Valuations are from Tech:Apple $571BAlphabet $540BMicrosoft $441BAmazon $364BFacebook $357Bsource Bloomberg.com
Walmarts digital investments paying off:Online sales rose 11.8% to $14 billion in Q2, 2016We have the opportunity to re-imaging retail, CEO Douglas McMillonTech playing an increased role in everythingSource Fortune.com
START:Jumping in
Brick and mortar retailers are facing difficult choices. Two weeks ago Macys said it would close 100 stores, or around 15% of all stores. As you can see in this graphic from 538.com, referencing department store sales vs. non-store retailers, which are primarily online, that this trend continues to grow. In fact, and referencing 538s article, Since the recession ended in 2009, overall retail and food-service sales are up nearly 20 percent (adjusted for inflation). Department store sales, on the other hand, are down more than 20 percent. To bring Macys full circle in this story, the company showed double digit growth in online sales, and beat investor expectations in Q2.
So, with the possibilities of growth online, the heavyweights, and just about everyone else, are investing.
Go over Walmart
Go over Target
However, I believe this isnt news to this audience. This audience has known that the race is on online, but what does that really mean. Theres more pressure, the competition is fierce, and we havent even mentioned Amazons name yet. Quite simply, the race is on, and as e-commerce continues to pick up pace, its all about the customer. End-to-end optimization, for its simple name, is a challenging undertaking, but site optimization matters more today than it ever has. And tomorrow it will matter even more. Lets talk tech, and look at some trends.
9
Market Trends and StatsQ1 revenue = $29.1B - highest sales growth in 4+ yrsProjection - #1 U.S. apparel retailer by 2017
100ms improvement increased sales by 1% $8.8M of increased sales per second(calculation based on 15 e-commerce rev of $88B)
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
https://www.bloomberg.com/gadfly/articles/2016-08-02/tech-giants-form-fab-five-to-dominate-stock-valuation-chart
http://fortune.com/2016/08/18/walmart-ecommerce-2/Top 5 Stock Valuations are from Tech:Apple $571BAlphabet $540BMicrosoft $441BAmazon $364BFacebook $357Bsource Bloomberg.com
Walmarts digital investments paying off:Online sales rose 11.8% to $14 billion in Q2, 2016We have the opportunity to re-imaging retail, CEO Douglas McMillonTech playing an increased role in everythingSource Fortune.com
START:Jumping in
Brick and mortar retailers are facing difficult choices. Two weeks ago Macys said it would close 100 stores, or around 15% of all stores. As you can see in this graphic from 538.com, referencing department store sales vs. non-store retailers, which are primarily online, that this trend continues to grow. In fact, and referencing 538s article, Since the recession ended in 2009, overall retail and food-service sales are up nearly 20 percent (adjusted for inflation). Department store sales, on the other hand, are down more than 20 percent. To bring Macys full circle in this story, the company showed double digit growth in online sales, and beat investor expectations in Q2.
So, with the possibilities of growth online, the heavyweights, and just about everyone else, are investing.
Go over Walmart
Go over Target
However, I believe this isnt news to this audience. This audience has known that the race is on online, but what does that really mean. Theres more pressure, the competition is fierce, and we havent even mentioned Amazons name yet. Quite simply, the race is on, and as e-commerce continues to pick up pace, its all about the customer. End-to-end optimization, for its simple name, is a challenging undertaking, but site optimization matters more today than it ever has. And tomorrow it will matter even more. Lets talk tech, and look at some trends.
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Industry OutlookAs enterprise digital efforts transitionto more strategic business transformations, the need to bring the customer experience and IT performance together with business outcomes becomes paramount. Jason Bloomberg, President Intellyx
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
Soback to the topic of the webinar, end-to-end website optimization, lets look at just how online retailers are trying to capitalize on every available dollar through optimizing both the back and front end.
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Industry OutlookCustomer obsession unmistakably boosts revenueI&O pros are shifting from monitoring infrastructure SLAs to including a basic understanding of technologys impact on end user experiences.
Milan Hanson, Forrester Research
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
Soback to the topic of the webinar, end-to-end website optimization, lets look at just how online retailers are trying to capitalize on every available dollar through optimizing both the back and front end.
12
Whats trending?Silos breaking down:PeopleTeamsBizOps
Continuous improvement from back-end to front-end.
Total focus on Customer Experience
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
Soback to the topic of the webinar, end-to-end website optimization, lets look at just how online retailers are trying to capitalize on every available dollar through optimizing both the back and front end.
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Company Spotlights
Bold Steps to Improve Business Operations
#BizOps
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
https://soasta.wistia.com/medias/0djcgkucqj
Sign of the times2014Synthetic + TestingTesting in LabBack-end, server-side
TodayContinuous TestingRUM guides CX + business metricsCultural buy-in on performanceAnalyze + Test + Monitor
Challenges:Last minute prep (2014)Customers expect 2-3s page load times (peak conversion)2 key sales periods
Solutions:Tools for end-to-endWhats realistic vs. whats worst case?Cultural buy-in for performance
Takeaways:Analyze / Test / Monitor framework across every feature in developmentAnything in production must pass seasonal prep guidelines as wellPerformance as a feature, everyone is bought in culturallyInstrumentation and data to back decision making
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
Big moves needing big scaleSuper Bowl Ad Campaign1000X anticipated traffic - 10 minute windowConsidered open source
Moving forward:Continuous testing, continuous integrationScalability + control + analyticsResponse time, memory + CPU usage, error rates, to the second
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Optimization and performance:CX + performance + business correlations how to?Early stages of RUMNeeded deeper analyticsBack-end to front-end coverage:Back-end APM solutionFront End - SOASTA mPulseEstablish performance and business metrics for visitors, continuously monitor resultsConnecting Optimization and IT teams for performance improvements
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
Outcome:TBDthey only have mPulse, from the STAR it seems like theyre still earlyNEED STRONGER END to END CASE
Goal:identify performance KPIs for visitorsEstablish analysis and business metrics related to performance
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The Takeaways Gimme the goods!The Back-End:Test early, often, realistically, in productionRUM (ALL user events) + perf testingConnect performance and biz teams earlyThe Front-End:Know your customer, establish metrics, SLAsContinuous feedback = faster remediationConnect teams over CX + performance
Check with your HR
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
Best practices:Know your customer, know yourself, data to actionTotal performance is crucial for business outcomeTeam ownership of performance and CXContinuously test, monitor, optimize
Top Zimbabwes Robert Mugabe here with Chinas prime ministermid Joe Biden / David CameronRight -
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Data Science 2017 and Beyond
SOASTA Data Science, whats in it for you?What-ifincreasing page speed by .5 seconds resulted in $50K annually or 5x page views?
Which pages are most impactful to my business?
Would you like the ability to remediate marketing campaign issues in realtime?
Yeaaaaah, so Im gonna need you to make promotional adjustments in realtime. Mmmkay?
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
Dont you wanna know how to improve your campaign? Dont you want visibility on how your campagin is doing?How do you optimize your campaing?What if you improved perf by x sec and see the revenue impact?
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What-If? Conversion + Page Views + CXAccurately predict potential gains from increase in page speedConversion, revenue, page views, session lengthBased on your entire user history + data science
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
Which pages matter the MOST?Which pages rank the highest for conversion, for activity?Spearmans rank correlation + ALL your user eventsWorkload prioritization
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
Realtime Campaign Tracking and RemediationCombines marketing and performance analytics in realtimeIdentifies performance issues across device type, browser, geoGuides realtime remediation of IT performance issues via alerts
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
Bringing it homeEnd-to-End OptimizationSurround back and front-end, continuously measure / test / optimize
When teams collaborate, online wins
Data science is a critical piece to gain an advantage
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
Thank youFor more, SOASTA is here!Questions???
Contact SOASTA to see how your online performance stacks [email protected]
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CONFIDENTIAL Not for Distribution | 2016 SOASTA, All rights reserved.
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