Consumer reaction to a poor online shopping portal

August 17, 2009

eCommerce Web Site Performance
Today
An Updated Look At Consumer Reaction To A
Poor Online Shopping Experience
A commissioned study conducted by Forrester Consulting on behalf of
Akamai Technologies, Inc.

eCommerce Web Site Performance Today

TABLE OF CONTENTS
Executive Summary ............................................................................................................................... 3

Key Findings ...................................................................................................................................... 3

The State Of Consumer Online Shopping Expectations....................................................................... 4

Web Page Rendering Should Be Kept Under 2 Seconds .................................................................... 7

Retailers Take Risks With Underperforming Sites .............................................................................. 12

Mobile Is A Nascent But Emerging Channel................................................................................... 14

Usability, Site Content, And Speed Are Key To Online Customer Loyalty ........................................ 16

Retailers Must Take Action On What They Can Affect .................................................................. 16

Appendix A: Study Objectives And Methodology Overview ............................................................... 18

Appendix B: Demographics/Data......................................................................................................... 19

Appendix C: Endnotes ......................................................................................................................... 21

© 2009, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on
best available resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®,
Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other
trademarks are the property of their respective companies. For additional information, go to www.forrester.com.

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Executive Summary
Since the rise of online shopping in the late 1990s, we have seen many evolutions in the underlying
technology infrastructure and in consumer expectations. Elements fueling these evolutions include
the rise of broadband access in homes and businesses, improvements to the usability of sites and
Web navigation such as search, the number of leading brands and retailers selling online, as well
as improvements to the underlying technology behind sites.

In the summer of 2009, Akamai Technologies commissioned Forrester Consulting to help
understand how customer expectations around online shopping have evolved and what the
implications are for retailers that fail to meet those demands. In 2006, Akamai commissioned a
study to address similar questions; this is a follow-up study to examine changes in consumer
1
expectations.

Key Findings
Based on this study of 1,048 online shoppers, Forrester‟s study yielded these key findings:

Consumers become impatient when pages take longer than 2 seconds to load. Forty-
seven percent of consumers expect to wait no more than 2 seconds for a Web page to
render. Online shopper loyalty is contingent upon quick page loading, especially for high-
spending shoppers. Fifty-two percent of online shoppers said that quick page loading is
important to their site loyalty. Sixty-one percent of online shoppers who spend more than
$1,500 online per year insist on pages loading quickly.

Poor site performance leads to shopper dissatisfaction and site abandonment more
than ever before. Twenty-three percent of dissatisfied online shoppers attributed their
dissatisfaction to the Web site being too slow or taking too long to render. Another 17%
reported dissatisfaction due to site crashes or error messages they received. One-third of
shoppers who abandoned a recent shopping session were dissatisfied with a retail site‟s
performance.

The consequences for online retailers with underperforming sites are lost sales, and
the impact reaches beyond the Web. Seventy-nine percent of online shoppers who
experience a dissatisfying visit are likely to no longer buy from that site. Also, 46% of
dissatisfied online shoppers are more likely to develop a negative perception of the
company, and 44% will tell their friends and family about the experience. With 87% of
consumers shopping in both online and retail channels, the impact of a bad online
experience reaches beyond the Web.

Mobile is a nascent but emerging shopping channel, and performance is key to
consumer adoption. Sixteen percent of consumers have shopped via mobile phones or
smartphones, but 27% of them report that it is dissatisfying due to the mobile shopping
experience being too slow. One-third of consumers report wanting to shop via their
smartphones in the future, with 5% indicating that this will be an important aspect of their
loyalty to online retailers.

It is clear that there are serious consequences for an online retailer with an underperforming site.
However, by taking steps to improve site features and performance, online retailers can look to
increase overall consumer satisfaction and ultimately increase sales. Forrester recommends that
online retailers test their Web site performance, fix easy site features and performance issues
before attempting to address larger problems, as well as improve the multichannel experience by
addressing content and functionality issues on the retail site.

-3-


The State Of Consumer Online Shopping
Expectations
Online shopping has become an everyday activity for many. And as online shopping has woven its
way into consumers‟ habits and lifestyles, their expectations have increased. Through the 2006
study, Forrester determined that a simple and easy-to-use navigational scheme is key to online
shoppers‟ satisfaction, which is still the case today (see Figure 1). Forrester found that:

Ease of use is a key factor in site loyalty. Eighty-eight percent of online shoppers
indicated that they are likely to return to a retailer‟s site if it is easy to use, particularly during
the registration, login, and checkout processes. The need for ease of use has increased
from the previous study, when only 65% of shoppers found this important.

Assurances regarding the security of personal financial information are also
important. When determining if they will continue shopping at an online store, 74% of
online shoppers want assurances that the information they enter into the site is secure. This
has also increased from the 2006 study, when only 62% of shoppers said that information
security was an important factor.

Site features and overall site performance strongly affect online shopper loyalty.
Fifty-seven percent of online shoppers insist on a rapid checkout process, up nearly 10%
from three years ago. Fifty-two percent stated that quick site loading is critical to their
loyalty, up 12% from our last study. Online shoppers also look for rich product content, with
67% of online consumers finding this important, while 60% of consumers demand an
effective site search.

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Figure 1: Most Influential Factors In Online Shoppers’ Decision To Continue Shopping At A
Site Where They Have Shopped In The Past

“Which of the following are most influential in your decision to continue
shopping with an online store where you have shopped in the past?”

Web site is easy to use 88%

Assurances that my information and computer are
74%
secure

Pictures/videos that show product details (e.g., zoom,
67%
3D, multiple colors)

Search function works well 60%

Rapid checkout process 57%

Web site loads quickly 52%

Recommendations based on previous
38%
purchase/personal interests/related services

Ability to customize the site to my needs 10%

Ability to access the Web site using mobile
5%
phone/smart phone

Base: 1,048 US online consumers
Source: A commissioned study conducted by Forrester Consulting on behalf of Akamai Technologies, July
2009

However, consumers continue to be frustrated by online shopping sites‟ performance. A variety of
factors relating to site performance affect an online shopper‟s experience (see Figure 2). Forrester
found that poor site performance caused:

Online shoppers to not complete a purchase. Consumers who were intending to make a
purchase on a site but who did not complete the transaction report frustration with overall
site performance. Twenty percent report that the sites were confusing to use, up 5% from
the 2006 study. Eighteen percent of today‟s and 2006‟s online shoppers found that the site
was too slow. Fifteen percent reported that the sites crashed or froze, preventing them from
completing their transaction; this is the same percentage that online shoppers reported in
2006.

Online shoppers to be dissatisfied with their online shopping experience. Twenty-
eight percent of today‟s shoppers had an unsatisfactory online shopping experience due to
a confusing site. This is down from a reported 31% in 2006. For 23%, the Web site
performance was the reason for their overall sense of dissatisfaction with the online
shopping experience, compared to 33% of online shoppers in 2006.

Consumers reported less dissatisfaction with their online shopping experience than they did in
2006. However, more respondents are willing to, and do, abandon purchases than ever before.

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Sixty-five percent of consumers who intend to make purchases but do not abandon the site after the
checkout process has begun, compared with only 47% from the previous study (see Figure 3).
These represent opportunities for retailers to improve customer satisfaction with their online
shopping sites and decrease abandonment.

Figure 2: Site Performance And Stability Are Key Issues In Consumers Completing Their
Transaction
“Which of the following best describes why you were not satisfied (or did not
complete the transaction)?”

Product price and/or shipping costs were higher than I 41%
was willing to pay 47%

38%
Shipping and handling problems (e.g., too costly, unclear)
36%

I didn‟t want to register with the Web site (create user 34%
name and password and record my info) 26%

28%
Web site was frustrating/confusing to use
20%

23% Online shoppers who
Web site was too slow/took too long
18% were dissatisfied
19% Online shoppers who
Web site was asking for too much information
18% abandoned transaction

19%
Checkout process was too long or confusing
16%

17%
Web site crashed/Web page froze/received error page
15%

4%
Unwilling/unable to give my credit card information online
6%

2009

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Figure 3: A Majority Of Consumers Abandon Intended Purchases In The Checkout Process

“Thinking of the last time you visited an online store where you
intended to buy a product but did not finish the online purchase, at
what point did you leave the site?”

Before beginning
the checkout, 35%

After initiating the
checkout, 65%

Base: 933 US online consumers who have abandoned a purchase
2009

Web Page Rendering Should Be Kept Under 2
Seconds
If site performance is a problem to address, what do consumers expect? Online shopping sites
need to consider a consumer‟s expectation when designing and optimizing their sites. Based on
recent survey data, Forrester found that:

Retailers should keep page rendering to under 2 seconds. Forty-seven percent of
consumers expect a Web page to load in 2 seconds or less (see Figure 4). This represents
a significant evolution in consumer expectation from the 2006 study, which showed the
majority of customer expectations at 4 seconds or fewer. In fact, Forrester found that 40%
of consumers will wait no more than 3 seconds for a Web page to render before
abandoning the site (see Figure 5).

Better Internet connections mean higher customer expectations. A major factor in the
evolution of customer expectations for Web site performance is the growing ubiquity of
broadband access among US consumers. Ninety-one percent of US online consumers
surveyed now have broadband at home (cable or digital subscriber line [DSL]), while nearly
half have broadband access at work or school (see Figure 6). In 2006, Forrester‟s
recommendation was for retail sites to target 4 seconds or fewer, reflective of the lower
broadband access rates. Retail sites must now compete with these higher expectations.

Customer loyalty is closely tied to how quickly a Web site loads. Online shopper
loyalty is contingent upon quick page loading, especially for high-spending shoppers. Fifty-
two percent of online shoppers stated that quick page loading is important to their site

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loyalty. Sixty-one percent of online shoppers who spend more than $1,500 online per year
insist on pages loading quickly (see Figure 7).

Customers get distracted when made to wait for a page to load. When consumers are
made to wait, they can become restless. Fourteen percent will begin shopping at another
site, and 23% will stop shopping or walk away from their computer. Thirty-nine percent will
begin another task on their computer and risk getting distracted from their shopping (see
Figure 8). A restless customer can become a lost sale to a retail site.

Figure 4: Consumer Expectations Of Web Page Loading Times

“What are your expectations for how quickly a Web site should load
when you are browsing or searching for a product?”

More than 4
17%
seconds

3 seconds 36%

2 seconds 30%

1 second 12%

Less than 1
5%
second

2009

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Figure 5: Forty Percent Of Consumers Will Abandon A Page If Made To Wait

Typically, how long are you willing to wait for a single web page to
load before leaving the website?

More than 4
60%
seconds

3 seconds 27%

2 seconds 10%

1 second 2%

Less than 1
1%
second

2009

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Figure 6: Broadband Access Is Now Widespread Among US Online Consumers

“For each of the below places where you shop or research products online,
please select how you connect to the Internet.”

50%
Cable modem (e.g., uses
13%
your cable TV connection)
3%

41%
Digital subscriber line
26% Home
(DSL or ADSL)
5%
Work
Modem (i.e., uses your 4%
telephone line and 1% School
requires dial up) 1%

I do not access the 1%
Internet from this location/ 41%
does not apply 85%

2009

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Figure 7: Online Shopper Loyalty Is Contingent Upon Quick Page Loading, Especially For
High Spenders

“Which of the following are most influential in your decision to continue
shopping with an online store where you have shopped in the past?”
(Responses shown for Web site loads quickly)

More than $1,500 61%

$401-$1,500 51%

The overall
average was
52%.
$151-$400 46%

$150 or less 43%

2009

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Figure 8: Many Customers Will Get Distracted And Begin To Multitask When Confronted
With A Slow Site

“When waiting for an online store‟s Web site to load, what will you typically
do?”
Wait for the Web site to
63%
load

Start working on another
39%
task, such as email

Visit another Web site in
34%
another window

Walk away from the
16%
computer

Start shopping at another
14%
online store‟s Web site

Close your browser and
7%
stop shopping

Other 2%

2009

Retailers Take Risks With Underperforming Sites
Our study shows that shoppers are frustrated and dissatisfied with retail Web sites for a number of
reasons. The majority of these unsatisfied online shoppers indicate that they will not hesitate to take
their business elsewhere. Forrester found that:

Customer frustration leads to lost sales. Seventy-nine percent of dissatisfied online
shoppers indicated that they are less likely to buy from the site again. This is up by 17%
from the 2006 study. Sixty-four percent would simply purchase from another online store,
which is up 16% from the 2006 study.

The overall brand or image of the company will also suffer. When faced with a
dissatisfying shopping experience, 46% of online shoppers are more likely to develop a
more negative perception of the company, and 44% would actively tell their friends and
family about the bad experience (see Figure 9).

The impact of a bad experience goes beyond Web sales. It is easy for the focus to be
on direct online sales when factoring in the impact of Web site performance, but a growing
consumer behavior is to research and shop online and complete purchases in stores or in
other channels. In fact, 87% of consumers surveyed report having researched products
online and then purchasing them in retail store locations. Fifty-one percent have ordered

- 12 -


the item online and then picked it up in a store (see Figure 10). This means that a retail
site‟s poor performance could result in lost in-store sales.

Figure 9: The Consequences Of Online Shopper Dissatisfaction With Retail Site
Performance

“If you find yourself dissatisfied with a shopping experience online, which
of the following are you likely to do?”

I would be less likely to buy from them again online 79%

I would be less likely to visit the website again 75%

I would purchase from another online store 64%

I would have a more negative overall perception of
46%
the company

I would tell my friends, family, and co-workers about
44%
my experience

I would contact customer service regarding my
27%
experience

I would be less likely to buy from them again offline
27%
(in their physical store location)

2009

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Figure 10: Customers Are Using Multiple Channels To Shop

“Have you researched a product
for purchase online and then
“Have you used the „buy online,
purchased it offline (e.g. at a
pick up in store‟ option when you‟ve
purchased from an online store?” retail store like Best Buy, Wal-
Mart, and Target) in the past
year?”
No, 13%

No, 49%
Yes, 51%

Yes,
87%

2009

Mobile Is A Nascent But Emerging Channel
Consumers are no longer only shopping and transacting online via computers and laptops
connected to the Internet directly or over Wi-Fi connections. Mobile shopping is also an emerging
channel, particularly for entertainment and media categories today, with 16% of online consumers
using a mobile device within the past year to shop.

Consumers are very interested in seeing how mobile will pan out. While only 16% of
current shoppers use a mobile device, consumers are interested in using these devices for
research and shopping activities in the future. Thirty-three percent of consumers would like
to find out-of-stock items in retail stores or compare prices via their mobile phones, and
31% would like to look up product information or learn about in-store promotions while
shopping (see Figure 11).

While consumers anticipate future mobile features, there are concerns today.
Consumers highlighted a number of concerns around using their mobile phones to make a
purchase. Of those, the leading concern is usability, with 33% of consumers reporting this.
Twenty-nine percent of consumers are concerned about the security of making a purchase
on their phone, and another 27% are concerned about the speed at which the mobile site
loads (see Figure 12). Before mobile devices become a more popular channel for
shopping, retail sites will need to improve performance.

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Figure 11: Mobile Shopping Is Something Consumers Want To Do More Of In The Future

“Thinking about your mobile phone/smartphone, which of the following actions
are you doing now? Which would you like to do in the future?”
Locate a nearby store to purchase a specific 20%
product 28%

16%
Check on the status of an order
28%

Look up product information while shopping in a 15%
store 31%

14%
Compare prices when shopping in a store Now In the future
33%

12%
Find or redeem a coupon/coupon code
33%

11%
Learn about an in-store promotion or event
31%

Purchase an item that was not available/in 9%
stock in the store 33%

I don‟t have/do not use my mobile phone to 74%
shop (exclusive) 54%

2009

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Figure 12: Mobile Concerns Need To Be Addressed

“Which of the following reasons, if any, describe your concerns using your
mobile phone or smartphone to make a purchase?”

It is hard to use the Web site on my mobile phone or
33%
smartphone

I am concerned about the security of purchasing
29%
goods using my mobile phone or smartphone

The website is too slow when I use my mobile phone
27%
or smartphone

It is hard to make a purchase on my mobile phone or
23%
smartphone

None, I have no concerns regarding using my
44%
mobile/smartphone to make purchases

2009

Usability, Site Content, And Speed Are Key To
Online Customer Loyalty
An analysis of the factors for ongoing customer loyalty reveals that the predominant factors in
customers shopping and purchasing from a site in the future include site usability, content, and
speed, of which more than half report them as factors. Surprisingly, 5% of customers also include
the ability to shop from a mobile device.

Retailers Must Take Action On What They Can Affect
The consequences for an online retailer with an underperforming site include diminished goodwill,
negative brand perception, increased site abandonment, and, most important, significant loss in
overall sales. However, by taking steps to improve site features and performance, online retailers
can look to increase overall consumer satisfaction and ultimately increase sales.

Test your Web site performance. As our study shows, overall Web site performance is a
key factor in a consumer‟s loyalty to a retail site. You should test how your Web site
performs where consumers put the most focus: How easy is your site to use? How long
does it take to render a page? Do you receive error messages? Is your checkout process
straightforward? Have several people test the performance and compare notes.

- 16 -


Take care of the easy fixes first. Tackle the problems that your team can fix easily first.
Then develop an achievable plan to improve those factors that may take longer to
accomplish. Seeing the benefit from addressing that low-hanging fruit will help you make
the business case for taking on more difficult issues.

Use site content and functionality that build brand image to improve the
multichannel experience. As we saw, customers shop across a variety of channels, and a
negative experience online can affect how they purchase elsewhere. By taking the time to
improve the overall site content and functionality, you can bolster the overall brand and
image of your company. Dynamic features included on your retail site help to imitate the in-
store experience for the consumer, which can lead to increased satisfaction and loyalty
from the consumer.

- 17 -


Appendix A: Study Objectives And Methodology
Overview
In April 2009, Akamai Technologies, Inc., commissioned Forrester Consulting to evaluate
consumers‟ expectations of online shopping sites and mobile shopping sites as well as the impact
on their perceptions of companies with poor-performing sites.

Specifically, Akamai Technologies commissioned this study to determine:

To what extent do poorly performing Web sites affect the behavior of online consumers?

How is shopping cart abandonment related to poor site performance?

How important is it to have a Web site that renders in a timely and appropriate manner?

What are consumers‟ expectations for the performance of the Web sites with which they
visit and transact?

What are the implications of poorly performing sites?

In July 2009, Forrester Consulting conducted an online survey of 1,048 online shoppers in the US.
This methodology was consistent with the 2006 study methodology.

- 18 -


Appendix B: Demographics/Data
In this survey, the respondents broke out as follows:

Age And Gender Distribution

18-24 years,
11%

55+ years,
31%
25-34 years,
19%
Male,
Female, 48%
52%

45-54 years, 35-44 years,
20% 19%

Base: 1048 US online consumers
Source: Online survey of US online consumers, a commissioned studyonline consumers Consulting on behalf of Akamai Technologies,
Base: 1,048 US conducted by Forrester
July, 2009
2009

Geographic Distribution

In a rural region,
16%
In a large city, 26%

In a suburb, 58%

Source: Online survey of US online consumers, a commissioned study conducted by Forrester Consulting on behalf of Akamai Technologies,
July, 2009
2009

- 19 -


Income Distribution

$100,000 or
32%
more

$75,000 to
20%
$99,999

$60,000 to
13%
$74,999

$45,000 to
14%
$59,999

$35,000 to
9%
$44,999

Under $35,000 13%

Source: Online survey of US online consumers, a commissioned studyonline consumers Consulting on behalf of Akamai Technologies,
Base: 1,048 US conducted by Forrester
July, 2009
2009

Education Distribution

Postgraduate degree 24%

Some postgraduate work 9%

Four-year college degree 28%

Two-year college/technical school 11%

Some college — no degree 20%

High school graduate 7%

Some high school or less 0%

2009

- 20 -


Appendix C: Endnotes

1
The previous study is titled “Retail Web Site Performance: Consumer Reaction to a Poor Online
Shopping Experience” by JupiterResearch, which is now a part of Forrester Research.

- 21 -

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