|By Business Wire||
|September 20, 2012 06:47 AM EDT||
Impulse purchases in the UK may have increased by as much as £1.1 billion* a year thanks to the online shopping convenience offered by smartphones, iPads and other tablet computers, suggests data from a new study.
The study, conducted by Rackspace Hosting (NYSE: RAX), the open cloud company, indicates that nearly half (48 per cent) of UK adults who use smartphones or tablets to make purchases online admit to buying things on impulse more frequently now by using their connected handheld devices – spending on average £329 extra per person per year**.
Impulse shopping on the rise
Overall, approximately 17 per cent of the study’s UK consumer respondents say mobile devices have increased their on-the-spot purchasing, with 71 per cent of this group saying that the main reason for the upswing in spending is that the process is so simple and the technology is so easy to use. Over a quarter (27 per cent) of this group also say that the experience of shopping with smartphones and tablets is better than shopping in store.
Rackspace’s research reveals that mobile shoppers are using technology in the hunt for better bargains: almost a third (32 per cent) claim that the main incentive behind making impulse purchases is to use promotional codes that save money. It also suggests that the younger generation is more decisive and tech savvy, with 62 per cent of 18-34 year-olds buying things on-the-spot today, compared to 32 per cent of 55+ year-olds.
“As more consumers turn to their mobile devices for impulse and on-the-spot purchases, retailers must make it a priority to provide the right information with the best user experience on each device type,” said Duncan Hallas, COO of Netbiscuits, a leading cloud platform for developing and delivering mobile web apps. “This survey shows that failure to deliver a mobile shopping experience that meets customers’ high expectations could mean losing business to another site who is serving a more relevant experience. With more than 110,000 web apps built on our platform, delivering more than 10 billion pages each month for our clients, we understand that having the right mCommerce strategy is key.”
Sofa surfing shoppers
The study shows that almost one in five respondents (18 per cent) make spur-of-the-moment purchases at work during their lunch break, while 62 per cent turn to their smartphones and tablets when at home relaxing. Between 7pm and midnight is the most popular time for making immediate on-the-spot purchases on mobile devices.
Clothes are the most popular impulse buy for 41 per cent of mobile shoppers, followed by books (35 per cent), music (32 per cent) and fast food or takeaways (14 per cent). Women are most likely to buy clothes (47 per cent) while men are most likely to buy music (38 per cent).
Consumer brands are traditionally fast on the uptake when it comes to adopting new technology, as they seek to cater to a new generation of sophisticated ‘on the move’ IT-savvy consumers. Domino’s, for example, is the UK and Republic of Ireland’s leading pizza delivery company with over 730 stores. They combine a fun approach to ordering pizza (either through their Apps or website) with a Rackspace cloud computing solution that can cope securely and efficiently with huge influxes of orders at peak times. It’s a cost-efficient combination of creativity and technology which, together with some pretty special toppings and sauces, has been a key contributor to their success.
Colin Rees, IT director at Domino’s, says: “Since launching our pizza apps, we’ve seen an increase in orders through our mobile service, as customers realise how easy it is to use whenever and wherever they are. More than 52 per cent of our UK delivered sales are currently taken online, so having a reliable hosting solution is absolutely essential and a fundamental driving factor in our on-going business growth.”
Storing credit card details causes security concerns
Despite many UK consumers embracing the mobile shopping experience, 60 per cent of those surveyed do not shop online at all using their smartphones or tablets. When asked about the reasons why not, more than a quarter (27 per cent) of this group said security fears prevent them and 84 per cent simply prefer to use their laptop, PC or Mac.
The study also suggests that companies at the front line of e-retailing today need to build trust in the security of online shopping as over half of smartphone or tablet owners surveyed (59 per cent) are uncomfortable with, or wary of, storing credit card details online. Nearly a quarter (22 per cent) of respondents are concerned that retailers will share their details. More than a third (37 per cent) admit that, although they are wary and have security concerns, they do it because they have to.
Of the 29 per cent of respondents who don’t store credit card details online at all, two in five (43 per cent) believe that they would spend more using a tablet or smartphone if they felt comfortable storing their details.
Fabio Torlini, VP of Cloud at Rackspace, says: “We’re a nation of bargain hunters, so tablets and smartphones make it easier than ever for consumers to keep their eyes open for great deals and snap things up wherever they are. This is good news for retailers in general of course, but our study provides some additional insight here. The retail trade still has work to do in order to convince the majority of the British public that using mobile devices to shop online is a safe, preferable and attractive alternative to logging on from their PC or visiting a store.”
Battle of the brands
When it comes to the battle of the brands, iPhone users are UK’s biggest mobile shoppers. The study reveals that 69 per cent of consumers with an iPhone use it to shop online. This is compared to 37 per cent for Android, 32 per cent for Windows Phone and 33 per cent for RIM Blackberry.
Notes to editors
The research was carried out by independent research company, Vision Critical, in August 2012 and involved 2,009 UK adults who own a smartphone and/or a tablet. It is representative of the UK adult population of smartphone/tablet owners.
* The survey utilised the latest stats on the UK adult population (18+ year-olds) from the Office for National Statistics of 49.1 million (2010). According to Ofcom’s Communications Market Report 2012, 40% of UK adults own smartphones, which would indicate that there are approximately 19.65 million (49.1 million x 0.4) adult smartphone owners in the UK. The study uses these two assumptions as a basis for information presented in this release.
The study found that 17 per cent of respondents say that their impulse spending has increased because of their mobile device. Using the assumption that there are 19.65 million adult smartphone users, this would indicate that approximately 3.35 million (19.65 million x 0.17) people have increased impulse spending in the UK because of their mobile device.
The research also found that the average monthly increase made per person because of this additional impulse spending is £27.40, or £329 (£27.4 x 12) per year (See calculation below).
Therefore, utilising the assumptions above, the estimated total sum for the average increase in spending each year thanks to smartphones and tablets would be equal to £1.1 billion (3.35 million x £329).
** The average monthly increase from impulse buying per person of £329 per year as used in this release is calculated by taking a fixed mid-point for each range indicated by the respondents in the survey (for example, the fixed midpoint for the range £0-£5 is £2.5), multiplied by the respective number of respondents who selected that range, with the resulting amounts for each range then added together (this was equal to £9,524.50). The sum was then divided by the total number of respondents for the question (347) to produce the average monthly increase spend from impulse buying (£27.40). The monthly increase was then multiplied by 12 to provide an annualised number.
Rackspace® Hosting (NYSE: RAX) is the open cloud company, delivering open technologies and powering more than 190,000 customers worldwide. Rackspace provides its renowned Fanatical Support® across a broad portfolio of IT products, including Public Cloud, Private Cloud, Hybrid Hosting and Dedicated Hosting. The company offers choice, flexibility and freedom from vendor lock in. Rackspace has been recognised by Bloomberg BusinessWeek as a Top 100 Performing Technology Company and is featured on Sunday Times list of 100 Best Companies to Work For. Rackspace was positioned in the Leaders Quadrant by Gartner Inc. in the “2011 Magic Quadrant for Managed Hosting.”
Rackspace Limited, the UK subsidiary of Rackspace Hosting®, is headquartered in San Antonio with offices and data centres around the world. For more information, visit rackspace.co.uk.
Forward Looking Statements
This press release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of Rackspace Hosting could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any statements about historical results or third party data that may suggest trends for our business or industry; any statements of the plans, strategies, and objectives of Rackspace for future operations or growth; any statements of expectation or belief regarding future events, and any statements of assumptions underlying any of the items mentioned. Risks, uncertainties and assumptions include the possibility that expected growth or success may not materialize because of the lack of acceptance of cloud computing in the marketplace or specifically, Rackspace’s cloud computing services, Rackspace's failure to execute on its operational plans, rapid technological changes that adversely affect the demand for Rackspace services, and other risks that are described in Rackspace Hosting's Form 10-Q for the quarter ended June 30, 2012, filed with the SEC on August 9, 2012. Except as required by law, Rackspace Hosting assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Sep. 27, 2016 11:15 AM EDT Reads: 946
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
Sep. 27, 2016 11:00 AM EDT Reads: 2,681
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Sep. 27, 2016 11:00 AM EDT Reads: 1,584
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
Sep. 27, 2016 10:30 AM EDT Reads: 2,185
SYS-CON Events announced today that CDS Global Cloud, an Infrastructure as a Service provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. CDS Global Cloud is an IaaS (Infrastructure as a Service) provider specializing in solutions for e-commerce, internet gaming, online education and other internet applications. With a growing number of data centers and network points around the world, ...
Sep. 27, 2016 10:30 AM EDT Reads: 2,847
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Sep. 27, 2016 10:15 AM EDT Reads: 3,150
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Sep. 27, 2016 10:00 AM EDT Reads: 2,177
Big Data has been changing the world. IoT fuels the further transformation recently. How are Big Data and IoT related? In his session at @BigDataExpo, Tony Shan, a renowned visionary and thought leader, will explore the interplay of Big Data and IoT. He will anatomize Big Data and IoT separately in terms of what, which, why, where, when, who, how and how much. He will then analyze the relationship between IoT and Big Data, specifically the drilldown of how the 4Vs of Big Data (Volume, Variety,...
Sep. 27, 2016 10:00 AM EDT Reads: 1,038
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Sep. 27, 2016 09:30 AM EDT Reads: 2,685
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...
Sep. 27, 2016 08:30 AM EDT Reads: 2,644
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
Sep. 27, 2016 08:15 AM EDT Reads: 2,632
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, will discuss recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model f...
Sep. 27, 2016 08:00 AM EDT Reads: 2,004
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Sep. 27, 2016 08:00 AM EDT Reads: 3,724
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Sep. 27, 2016 07:45 AM EDT Reads: 3,307
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
Sep. 27, 2016 07:45 AM EDT Reads: 2,518
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
Sep. 27, 2016 07:30 AM EDT Reads: 2,987
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
Sep. 27, 2016 07:15 AM EDT Reads: 1,123
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
Sep. 27, 2016 06:45 AM EDT Reads: 3,345
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
Sep. 27, 2016 06:30 AM EDT Reads: 1,916
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Sep. 27, 2016 05:30 AM EDT Reads: 1,166