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2016 Holiday Retail Tech Recap
DON DAVISEditor-in-Chief
Internet Retailer & B2BecNews
MODERATOR
VENKAT RAYAPUDIManager, eCommerce Operations
Neiman Marcus
ARTHUR VIENTEProgram Director,
IBM Watson Commerce Strategy IBM Watson Commerce
DAVID JONESPractice Director
Dynatrace
A strong holiday season for online retailers
2014 2015 2016$0.0
$10.0$20.0$30.0$40.0$50.0$60.0$70.0$80.0$90.0
$100.0
$73.6 $83.0 $91.7Online holiday sales (in billions)
11%
Source: Adobe Digital Insights
Web growth may have been even stronger
11% 12% 16% 20%
Estimated in-crease
in 2016 online holiday sales
• Store sales increased
2.4%in November-December 2016 over same months in 2015.
Source: U.S. Commerce Department
Stores made a comeback• Store traffic declined 4.4%
during the five days from Thanksgiving and sales were down 4.2%.
•Source: RetailNext• Online sales during those five
days were up 15.2%.•Source: Adobe Digital Insights
Than
ksgiv
ing
Black F
riday
Cyber
Mon
day
50% 45%31%38%
52% 61%
Where consumers planned to shop
Stores OnlineSource: Market Track
Amazon dominates Thanksgiving weekend (sales)…
…and the holiday season (traffic)
Lowe'sMacy'sKohl's
Home DepotBest Buy
TargetWal-MartAmazon
1.30%1.53%1.61%2.10%2.93%3.25%
6.69%33.88%
Percentage of traffic to retail websites
Source: Hitwise, a division of Connexity
Amazon dominates the last weekAmazon’s percentage of web sales
0%15%30%45% 33%38%44%
The Prime Now effect• Prime Now (2-hour delivery) accounted for 13% of Amazon’s late-season sales, versus 10% in 2015.
• Source: Slice Intelligence
More email, and more sales from emailBlack Friday/Cyber Monday campaigns
Black Friday Cyber Monday
01000020000300004000050000
Number of email campaigns
2016 2015
Read rates above 20%
Black Friday Cyber Monday
20% 19%13% 12%
2016 2015
41.9%
28.2%
Source: eDataSource
Search drive most sales
•But ads on social networks are driving more traffic: 3.6% in 2016 versus only 0.25% in 2015.
Source: Hitwise, a division of Connexity
Consumers browse on smartphones…
2016 2015 2014
50% 50% 56%9% 11% 14%
41% 39% 30%
Percentage of visits, by device, 2014-16
Desktop Tablet SmartphoneSource: Adobe Digital Insights
…and they buy on smartphones
2016 2015 2014
69% 73% 78%10% 11% 12%21% 17% 9%
Percentage of sales, by device, 2014-16
Desktop Tablet SmartphoneSource: Adobe Digital Insights
Poll Question:
• Six luxury retailers — Neiman Marcus, Bergdorf Goodman, Last Call, Horchow, CUSP and mytheresa.com — make up the Neiman Marcus Group.
• Founded in 1907
• 42 Neiman Marcus stores across the United States
• Two Bergdorf Goodman stores in Manhattan
• 29 Last Call clearance centers
• 3 Last Call Studios
• four CUSP stores
• Serving online customers including mobile through ecommerce websites for the last 16 years
Key Takeaways
• Focus: • Unique and personal online shopping experience
• Complexity: • Backend integration
• Product filters, pricing, availability, checkout/delivery• Gift registry• Mobile
• Achieving high performance and stability• Load testing• Team readiness—anticipate and rehearsing mitigation processes
Confidential, Dynatrace, LLC
Confidential, Dynatrace, LLC
Confidential, Dynatrace, LLC
Confidential, Dynatrace, LLC
Key Takeaways
Dynatrace US Retail Performance Benchmarks Remarkable alignment to poll results—
Good/OK/Poor distribution by end to end Page Load Time about 60%/30%/10% Industry trends
Better performance! More reliable sites! …despite increasing complexity
More third party connections, larger images, heavier scripting and interactivity On the frontend, interactivity and mobile adaption On the backend, cloud, new application frameworks and services-based approaches
Can’t forget the impact on the customer!
20
We’re drowning in a tidal wave of data…
Every day we create 2,500,000,000,000,000,000 bytes of data
That’s 2.5 QUINTILLION
05/03/2023World of Watson 2016
IBM Cognitive Engagement: Watson Marketing | Watson Commerce | Watson Supply Chain21
Working towards clarity across channels…
…through visibility across data points.
05/03/2023World of Watson 2016 22
Trying to create a seamless experience…
• Retailers don’t suffer from a lack of data• Challenge: how to leverage it!
• Channel multiplicity• Exacerbates the data challenge• Hard to connect around the customer
• Technology can sometimes get in the way of multi-channel journeys• Customers expect seamless, often get bumpy• Cognitive is emerging to help smooth this out
Key Takeaways
Removing performance friction from the experience
• A journey
• Getting the entire business on-board
• Performance #1 feature
Boarding Plane by NinaZed on flickr
Looking ahead
What to think about in 2017• Artificial intelligence is
becoming practical and useful in helping simplify business decisions
• AI also advancing on the IT front—simplify technical complexity
• Cloud platforms will drive increased personalization and agility and Innovation will accelerate
• Anticipate more sophisticated digital experiences
Curves Ahead by Jeremy Bronson on flickr
Confidential, Dynatrace, LLC
Q & A VENKAT RAYAPUDI
Manager, eCommerce OperationsARTHUR VIENTEProgram Director,
IBM Watson Commerce Strategy
DAVID JONESPractice Director
Learn More: www.dynatrace.com/trial/
Confidential, Dynatrace LLC
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