Welcome!

AJAX & REA Authors: Roger Strukhoff, RealWire News Distribution, Pat Romanski, Kevin Benedict, Gary Kaiser

News Feed Item

Tablets and Smartphones May Increase UK Consumer Impulse Buys by up to £1.1 billion Per Year, Indicates Rackspace Retail Research

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.

ENDS

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.

About Rackspace

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.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Cloud Expo Breaking News
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at Internet of @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, will discuss the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data and analysis are providing the pull to meet customer expectations of a widely connected, multi-dimensional universe of people, things, and information.
After a couple of false starts, cloud-based desktop solutions are picking up steam, driven by trends such as BYOD and pervasive high-speed connectivity. In his session at 15th Cloud Expo, Seth Bostock, CEO of IndependenceIT, cuts through the hype and the acronyms, and discusses the emergence of full-featured cloud workspaces that do for the desktop what cloud infrastructure did for the server. He’ll discuss VDI vs DaaS, implementation strategies and evaluation criteria.
There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how these devices generate enough data to learn our behaviors and simplify/improve our lives. What if we could connect everything to everything? I'm not only talking about connecting things to things but also systems, cloud services, and people. Add in a little machine learning and artificial intelligence and now we have something interesting...
Cloud computing started a technology revolution; now DevOps is driving that revolution forward. By enabling new approaches to service delivery, cloud and DevOps together are delivering even greater speed, agility, and efficiency. No wonder leading innovators are adopting DevOps and cloud together! In his session at DevOps Summit, Andi Mann, Vice President of Strategic Solutions at CA Technologies, will explore the synergies in these two approaches, with practical tips, techniques, research data, war stories, case studies, and recommendations.
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, has been named “Bronze Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Cloudian is a Foster City, Calif.-based software company specializing in cloud storage. Cloudian HyperStore® is an S3-compatible cloud object storage platform that enables service providers and enterprises to build reliable, affordable and scalable hybrid cloud storage solutions. Cloudian actively partners with leading cloud computing environments including Amazon Web Services, Citrix Cloud Platform, Apache CloudStack, OpenStack and the vast ecosystem of S3 compatible tools and applications. Cloudian's customers include Vodafone, Nextel, NTT, Nifty, and LunaCloud. The company has additional offices in China and Japan.
SYS-CON Events announced today that Esri has been named “Bronze Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Esri inspires and enables people to positively impact the future through a deeper, geographic understanding of the changing world around them. For more information, visit http://www.esri.com.
Cloud Computing is evolving into a Big Three of Amazon Web Services, Google Cloud, and Microsoft Azure. Cloud 360: Multi-Cloud Bootcamp, being held Nov 4–5, 2014, in conjunction with 15th Cloud Expo in Santa Clara, CA, delivers a real-world demonstration of how to deploy and configure a scalable and available web application on all three platforms. The Cloud 360 Bootcamp, led by Janakiram MSV, an analyst with Gigaom Research, is the first bootcamp that introduces the core concepts of Infrastructure as a Service (IaaS) based on the workings of the Big Three platforms – Amazon EC2, Google Compute Engine, and Azure VMs. Bootcamp attendees will get to see the big picture and also receive the knowledge needed to make the best cloud decisions for their business applications and entire enterprise IT organization.
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at 15th Internet of @ThingsExpo, Chad Jones, Vice President, Product Strategy of LogMeIn's Xively IoT Platform, will show you how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
“Distrix fits into the overall cloud and IoT model around software-defined networking. There’s a broad category around software-defined networking that’s focused on data center, and we focus on the WAN,” explained Jay Friedman, President of Distrix, in this SYS-CON.tv interview at the Internet of @ThingsExpo, held June 10-12, 2014, at the Javits Center in New York City. Internet of @ThingsExpo 2014 Silicon Valley, November 4–6, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading IoT industry players in the world.
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
“The Internet of Things is a wave that has arrived and it’s growing really fast. The concern at Aria Systems is making sure that people understand the ramifications of their attempts to monetize whatever it is they build on the Internet of Things," explained C Brendan O’Brien, Co-founder and Chief Architect at Aria Systems, in this SYS-CON.tv interview at the Internet of @ThingsExpo, held June 10-12, 2014, at the Javits Center in New York City. Internet of @ThingsExpo 2014 Silicon Valley, November 4–6, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading IoT industry players in the world.
The Internet of Things is a natural complement to the cloud and related technologies such as Big Data, analytics, and mobility. In his session at Internet of @ThingsExpo, Joe Weinman will lay out four generic strategies – digital disciplines – to exploit emerging digital technologies for strategic advantage. Joe Weinman has held executive leadership positions at Bell Labs, AT&T, Hewlett-Packard, and Telx, in areas such as corporate strategy, business development, product management, operations, and R&D.
SYS-CON Events announced today that DevOps.com has been named “Media Sponsor” of SYS-CON's “DevOps Summit at Cloud Expo,” which will take place on June 10–12, 2014, at the Javits Center in New York City, New York. DevOps.com is where the world meets DevOps. It is the largest collection of original content relating to DevOps on the web today Featuring up-to-the-minute news, feature stories, blogs, bylined articles and more, DevOps.com is where the thought leaders of the DevOps movement make their ideas known.
There are 182 billion emails sent every day, generating a lot of data about how recipients and ISPs respond. Many marketers take a more-is-better approach to stats, preferring to have the ability to slice and dice their email lists based numerous arbitrary stats. However, fundamentally what really matters is whether or not sending an email to a particular recipient will generate value. Data Scientists can design high-level insights such as engagement prediction models and content clusters that allow marketers to cut through the noise and design their campaigns around strong, predictive signals, rather than arbitrary statistics. SendGrid sends up to half a billion emails a day for customers such as Pinterest and GitHub. All this email adds up to more text than produced in the entire twitterverse. We track events like clicks, opens and deliveries to help improve deliverability for our customers – adding up to over 50 billion useful events every month. While SendGrid data covers only abo...
SYS-CON Events announced today that the Web Host Industry Review has been named “Media Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Since 2000, The Web Host Industry Review has made a name for itself as the foremost authority of the Web hosting industry providing reliable, insightful and comprehensive news, reviews and resources to the hosting community. TheWHIR Blogs provides a community of expert industry perspectives. The Web Host Industry Review Magazine also offers a business-minded, issue-driven perspective of interest to executives and decision-makers. WHIR TV offers on demand web hosting video interviews and web hosting video features of the key persons and events of the web hosting industry. WHIR Events brings together like-minded hosting industry professionals and decision-makers in local communities. TheWHIR is an iNET Interactive property.