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80% IT execs in APAC blame slow websites for low sales

Highlights
  • 80% IT execs in APAC blame slow websites for low sales
  • 30% IT execs in APAC don’t know how companies measure customers’ experience
  • 25-50% online sales originate from countries outside their home turf
  • 67% consumers have shopped online with retailer placed outside their country
  • DNS solutions are used by less than one-third of companies

80 per cent of Asia Pacific’s IT executives report lost sales due to poor website performance stating that customers wait only three seconds for a website to load, according to a research by Dyn. The findings reveal that ecommerce leaders across the region tie revenue loss directly to internet performance issues.

APAC has seen a shift in the way consumers shop from desktops and tablets to mobile phones, especially in countries like India, China, Hong Kong and Malaysia which are the fastest growing markets for online sales worldwide. This in turn has led to a demand for development of backend infrastructure and efficient fast performing servers to synchronise with the ever-evolving technology and rising demand of consumers.

However, according to the report, 30 per cent of APAC IT executives didn’t know if or how their company measured the performance of their customers’ experience.

“Our study finds that most retailers and ecommerce companies recognise internet performance issues, because they can tie bad customer experiences back to lost revenue,” said Martin Ryan, Managing Director at Dyn.

“The good news is that internet performance is on their radar, but the downside is that too many IT executives seem to accept that customers will abandon sales because of slow-loading, down or an inconsistent website. We all know how large an opportunity exists in the Asia Pacific Region. We want to ensure businesses maximise it,” he added.

Dyn’s survey also finds that online sales are largely driven by international shoppers. At a global level, more than two-thirds of respondents report between 25-50 per cent of their sales originate in countries outside of the country in which their headquarters is located. This means it’s increasingly important to create a consistent and speedy customer experience regardless of location.

The survey also revealed that internet retailers will need to provide better services if they want to see international online sales grow. In the past 12 months, 67 per cent of consumers surveyed have shopped online with retailers located in other countries, and if it were faster and easier, 85 per cent of consumers would consider doing it more often.

While 95 per cent of IT executives surveyed understand that slow websites are resulting in lost sales and 77 per cent agree that location affects the quality of a user’s experience, it appears that executives are at a loss for how to solve service issues. Managed DNS (Direct Numerical Simulation) solutions are used by less than one-third of companies.

Additionally, only 31 per cent monitor the end-user experience for shopping apps and less than half have analytics that monitor the path from the data center to customers, for issues like latency.

“Online and mobile shopping is on the rise around the world, meaning more opportunity for revenue growth for retailers and ecommerce companies that meet consumer needs and expectations,” said Jim Cowie, Chief Scientist at Dyn.

“This means ensuring traffic takes the most efficient route possible is more important than ever before. For this reason, monitoring tools that address latencies, traffic and the customer experience can mean the difference between a successful online presence and one that drives customers to the competition,” he added.

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