Click here to close now.




















Welcome!

IoT User Interface Authors: Continuum Blog, Glenn Rossman, Trevor Parsons, Daniel Khan, Ruxit Blog

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.

@CloudExpo Stories
In 2014, the market witnessed a massive migration to the cloud as enterprises finally overcame their fears of the cloud’s viability, security, etc. Over the past 18 months, AWS, Google and Microsoft have waged an ongoing battle through a wave of price cuts and new features. For IT executives, sorting through all the noise to make the best cloud investment decisions has become daunting. Enterprises can and are moving away from a "one size fits all" cloud approach. The new competitive field has ...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes ab...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...
Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is designed for their business. In 2015, organizations such as United Airlines, Sony...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of ...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
Amazon and Google have built software-defined data centers (SDDCs) that deliver massively scalable services with great efficiency. Yet, building SDDCs has proven to be a near impossibility for ‘normal’ companies without hyper-scale resources. In his session at 17th Cloud Expo, David Cauthron, founder and chief executive officer of Nimboxx, will discuss the evolution of virtualization (hardware, application, memory, storage) and how commodity / open source hyper converged infrastructure (HCI) so...
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
Enterprises can achieve rigorous IT security as well as improved DevOps practices and Cloud economics by taking a new, cloud-native approach to application delivery. Because the attack surface for cloud applications is dramatically different than for highly controlled data centers, a disciplined and multi-layered approach that spans all of your processes, staff, vendors and technologies is required. This may sound expensive and time consuming to achieve as you plan how to move selected applicati...
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of tech...
U.S. companies are desperately trying to recruit and hire skilled software engineers and developers, but there is simply not enough quality talent to go around. Tiempo Development is a nearshore software development company. Our headquarters are in AZ, but we are a pioneer and leader in outsourcing to Mexico, based on our three software development centers there. We have a proven process and we are experts at providing our customers with powerful solutions. We transform ideas into reality.
The web app is agile. The REST API is agile. The testing and planning are agile. But alas, data infrastructures certainly are not. Once an application matures, changing the shape or indexing scheme of data often forces at best a top down planning exercise and at worst includes schema changes that force downtime. The time has come for a new approach that fundamentally advances the agility of distributed data infrastructures. Come learn about a new solution to the problems faced by software organ...
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and a...