How Important is Online Store Design and Usability to Your Sales? Extremely.

Lessons Learned: Online Store Design Makes a Huge Difference to Order Completion and Conversion Rate.

 

Back in 2008 I was managing a hosting company in Russia. Our operations were fully automated by Parallels Business Automation Standard (PBAS), we were offering a full range of state-of-the-art hosting plans, and all of our hosting plans were competitively priced. Our sales were decent, but not spectacular, and they definitely weren’t growing as quickly as we wanted.

 

So we launched a research project to better understand our customer’s shopping experience and to pinpoint any problems. It shocked us to learn that for certain products up to 70% of our customers were not finishing their purchase. Clearly, something was happening during the purchasing process that created a barrier to completing transactions.

 

At the time we were using the standard store integration in PBAS, which was not necessarily designed to “sell,” but rather to show PHP code and PBAS API usage. User interface decisions made by programmers with knowledge of the internal code structure were perplexing to customers trying to use the store in a real-world environment.

 

To go deeper with our research we added a Kayako online chat button into every page of our online store.

 

Here are the main discoveries we made, and the changes we implemented to address these issues:

1. Customers don’t like to make difficult choices, and were simply “opting out” and leaving our store. We believed our typical customers were more or less “system administrators with degrees in Computer Science.” We wanted to impress them with flexibility and lots of interesting options, but when we started chatting with them we realized some of them, had no clue what “SLM memory limit” meant. So we reduced the number of options, renamed our resources and added simple descriptions. In short, we had to redesign our store so any person could understand and use it.

2. Multiple Call-To-Action elements were confusing and scaring regular customers away. Many customers were clicking on buttons and menu items in the shopping cart, which lead them away from the purchase process and even away from our web site. We wanted our customers to be 100% focused on the purchase, and determined that any additional information was simply defocusing clients from completing the purchase process.

3. Our customers’ emotional reaction to our web site was the fundamental driver in their purchasing decision. It became clear that long registration and configuration pages in our store were significantly reducing our sales.

4. A very slow shopping cart experience will make some people leave. Why? Because customers conclude that if the hoster’s own store is slow, their hosting will be even slower. So we had to increase our store performance.

 

It took us two months to make all these changes in the standard PBAS store, but the following results were well worth the effort. In the six months following the store changes:

•    Abandoned shopping carts were reduced by 57%
•    Online store sales increased by more than 150%

 

We shared all this information with Parallels PBAS developers who used the feedback, as well as feedback from other PBAS customers, to improve online store usability and functionality.

 

Today, PBAS Store is a ready-to-use and powerful tool. Released this month as part of Parallels Business Automation Standard 4.3.4, which includes:

•    Simple, single-page order processing to reduce ordering time
•    Redesigned, simplified, and streamlined interface
•    Easy-to-add online chat services
•    Ability to choose which resources are visible and add meaningful descriptions to them

•    Support for stand-alone deployment on a high-performance dedicated server to increase store performance
•    Many other enhancements

These enhancements demonstrate how Parallels learns from customer’s feedback to help its Partners grow their business. I am very proud to be part of this company.

I invite you to learn more about Parallels Business Automation Standard by visiting the PBAS web page, checking out the new store demo, viewing our recent webinar and upgrading to PBAS 4.3.4 today.

 

~ Alex Goncharov, Sr. Director, Product Marketing, Parallels

 

Nirvanix Shutdown: Collateral Damage in Big Players’ Price War?

The sudden shutdown of Nirvanix, an early but recently faltering participant in the “pure-play” Online Storage space dominated by the likes of AWS S3, Microsoft Azure and Google, is in large part a result of downward pressure on prices as the big players continually lower theirs. Amazon, for instance, launched S3 in 2006 and charged $0.15 per gigabyte-month. After many step-wise price cuts S3 is down to $0.095 per gigabyte-month.

Pure online storage is fast becoming the sole province of vendors who either enjoy economies of scale, or who treat their offerings as a loss-leader to get other business (or a combination of both).

Smaller players may have to add value in other ways to survive. Nirvanix was not profitable, and when their latest round of funding came up short it was the last nail in their coffin.

Understanding the Fundamentals of Cloud Security for Healthcare

Continuing our discussion from my last blog in July, perhaps it’s helpful to drive deeper into security approaches and technology for use within clouds that serve the healthcare vertical. We’ll start by focusing on the fundamentals of cloud security for healthcare. However, some of this is transferable to other verticals as well.
First fundamental: Understand the data that will reside in the cloud.
Healthcare data has something in common. It’s dangerous to manage, unless you know exactly what you’re dealing with.
As we migrate health data to the cloud, it’s important to understand the data that will reside in the cloud-based systems, in terms of compliance and security requirements. This means understanding what is PII data, and what is not, as well as dealing with specific security requirements around encryption. This includes data in flight, and at rest.

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After Nirvanix: How to assess the right cloud provider for you

By Nigel Beighton, VP of Technology, International, Rackspace

Choosing a cloud service provider is an important decision for any organisation. Cloud computing plays a central role in many businesses – from startups and SMBs to global companies – and usually involves entrusting service providers with mission-critical data and applications.

To assess potential providers and make the right choice, conducting due diligence across the following areas is essential.

Financials: As the recent closure of Nirvanix shows, it’s crucial to check a prospective provider’s financial position: past, present and future. If they are to be trusted with your data, they need to demonstrate that they have been, and should remain, financially sound.

So look for evidence of financial stability and growth over time; ask them about their financial prospects. Running a data centre requires major ongoing investment of capital, not to mention the substantial labour costs and operational budget. Are they in …

Webcast on Hybrid Cloud Strategy with VMware vCloud Hybrid Service

Because businesses need to respond more quickly to their internal and external customers as well as their competition, the agility and cost-effectiveness of moving applications to the cloud is an increasingly appealing option. Both IT and line-of-business leaders are looking for hybrid cloud solutions that not only connect and integrate their onsite and offsite environments, but also run existing and new applications in exactly the same way.

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LSI Nytro WarpDrive Cards Maximize Performance for VMware Horizon View

LSI Corporation on Wednesday announced that it is working closely with VMware to deliver breakthrough virtual desktop density for VMware Horizon View™ deployments. Collaborative testing with VMware Horizon View using a single LSI® Nytro™ WarpDrive® application acceleration card achieved concurrent support for 200 active virtual desktop infrastructure (VDI) workloads on a two-node cluster with no storage latency.
“Our testing of the LSI Nytro WarpDrive cards confirms Nytro technology can support demanding VDI workload environments with simplified management and increasing security and control,” said Mason Uyeda, senior director of technical marketing, End-User Computing, VMware. “LSI Nytro WarpDrive cards will help enable our customers to overcome the latency demands of VDI-intensive workloads to deliver high performance and return on investment.”

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Understanding the fundamentals of cloud security for healthcare

By David Linthicum

Continuing our discussion from my last blog in July, perhaps it’s helpful to drive deeper into security approaches and technology for use within clouds that serve the healthcare vertical.  We’ll start by focusing on the fundamentals of cloud security for healthcare.  However, some of this is transferable to other verticals as well.

First fundamental: Understand the data that will reside in the cloud

Healthcare data has something in common.  It’s dangerous to manage, unless you know exactly what you’re dealing with.

As we migrate health data to the cloud, it’s important to understand the data that will reside in the cloud-based systems, in terms of compliance and security requirements.  This means understanding what is PII data, and what is not, as well as dealing with specific security requirements around encryption.  This includes data in flight, and at rest.

Second fundamental:  Identity-based security …

Forrester: Cloud Computing Fuels IT Spending

As IT departments get the green light to update systems and implement solutions, cloud computing is increasingly getting a slice of those IT budgets.
Cloud computing is on the list of top IT spending priorities for next year, according to Forrester Research.
Software spending worldwide will continue to grow with a big focus on the cloud, and these worldwide trends reflect the focus of midsize firms, according to an article on MidsizeInsider.com.
The Forrester research found that companies and governments spent more than $2 trillion on hardware, software and services. In the most popular segment, software firms allocated budgets for improving mobile apps, analytics, security and collaboration software. Software spending increased last year by more than $540 billion; it is expected to grow 3.3 percent this year and 6.2 percent in 2014, the largest projection for technology categories.

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Forrester: Cloud Computing Fuels IT Spending

As IT departments get the green light to update systems and implement solutions, cloud computing is increasingly getting a slice of those IT budgets.
Cloud computing is on the list of top IT spending priorities for next year, according to Forrester Research.
Software spending worldwide will continue to grow with a big focus on the cloud, and these worldwide trends reflect the focus of midsize firms, according to an article on MidsizeInsider.com.
The Forrester research found that companies and governments spent more than $2 trillion on hardware, software and services. In the most popular segment, software firms allocated budgets for improving mobile apps, analytics, security and collaboration software. Software spending increased last year by more than $540 billion; it is expected to grow 3.3 percent this year and 6.2 percent in 2014, the largest projection for technology categories.

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Dell: “The World’s Largest Startup”

“Welcome to the world’s largest startup!”
Thus tweeted Dell Chairman CEO Michael Dell on taking the company private. Almost 70% of shareholders approved the $25 billion leveraged buyout proposed by Michael, including more than half of shareholders who are not associated with the company.
Carl Icahn, politely referred to as an “activist investor” in many accounts, had tried to wrest the company away from Dell, opining in the Wall Street Journal that “the Dell board for years presided over the loss of tens of billions of dollars in market value at the hands of CEO Michael Dell. Instead of deposing him, the Dell board froze out shareholders.

I’ve not met Mr. Icahn, but I have met with Michael Dell, and spoke on a conference panel with him in Japan many years ago, when I was young and he was younger. He was an exuberant, cocksure person who took pride in a company that he had founded, as PCs Limited, in his college dorm room.

He seems to maintain that enthusiasm today, as the company has weathered the migration of the “personal computer” as an integral component of enterprise computing, the commoditization of its core product line, and now, the advent of cloud computing.

By going private, Michael and his team – in a global enterprise that employs more than 100,000 people and generates more than $50 billion in annual revenue – can focus on how to win a significant share of the global cloud market without being subject to the whimsy of the enormous casino known as the stock market.

As for Mr. Icahn, perhaps he can explain how the acumen that served him so well in taking TWA private many years ago should’ve, could’ve, would’ve been applied to his vision of a glorious future for Dell.

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