True Cost of Failure in Mobile and APM Solutions
August 09, 2013

Jeannie Liou
Crittercism

The mobile enterprise has arrived. In a world where there will be more devices than people on earth by 2017 according to Cisco’s Visual Networking Index (VNI), mobility will continue to transform enterprises in a profound way that cannot be ignored. The idea of being able to interact with customers, prospects, and stay attuned to competitive pressures is not new, but the velocity at which the mobile market is maturing poses a new set of challenges.

One of the main issues enterprises struggle with is identifying how many of their apps actually fail, and how often.

According to a study by Localytics, many apps are downloaded, tried once and then discarded. The first step to measuring an app’s success is tracking downloads, but download stats often provide an incomplete
 and artificially high view. High download numbers always feel like movement in the right direction, but if those customers never open the app or abandon it after a few uses, those high download numbers are ultimately part of a high churn rate.

Though there are several reasons for mobile apps to lose traction with users, one of the biggest problems can be attributed to performance issues. In fact, the average online shopper expects web pages to load in 2 seconds or less. After 3 seconds, up to 40% will abandon the site. 74% of users will abandon a mobile site after waiting only five seconds for it to load.

It goes without saying that once visitors leave, it is very difficult to get them back. 88% of online consumers are less likely to return to a site after a bad experience. More importantly, given that 90% of mobile apps are downloaded on the first day (Mobilewalla), there is no margin for error.

For enterprises, two specific costs that should be taken into consideration are remediation costs and business costs.

Remediation costs are fairly straightforward – these are costs associated with the resources required to resolve a problem. They could be in the form of man-hours (hourly costs), machine, or device costs.

Business costs affect the enterprise directly, such as reduction in customers due to limited access, opportunity cost of taking a different course of action, or even the cost of people drawn away from value adding or profit-making activities. Putting this in an employee contribution perspective, “productivity loss due to application performance issues is estimated at a loss of $42,000 per hour for each user group impacted (IT Management News).”

We can look at a prominent UK bank as a prime example of how the cost of failure for a mobile app can be quantified. The bank was hit by an IT failure recently in May 2013 that left customers unable to access their accounts through the mobile banking app. This follows another IT glitch last year that left the bank with £175m in costs, or nearly $275M. Millions of customers experienced the consequences of a faulty software upgrade that froze the bank’s systems, stopping all payments in and out of accounts.

Given these staggering numbers, enterprises need to factor in best practices for cost of failure elimination by proactively designing, developing and testing for mobile application performance. A reasonable way to reduce failure is by doing more preventative maintenance upfront. Preventative maintenance is a proactive, failure-reducing activity, and is much more cost-effective than maintenance of the repair kind.

Jeannie Liou is Marketing Manager at Crittercism.

Share this

Industry News

April 18, 2024

SmartBear announced a new version of its API design and documentation tool, SwaggerHub, integrating Stoplight’s API open source tools.

April 18, 2024

Red Hat announced updates to Red Hat Trusted Software Supply Chain.

April 18, 2024

Tricentis announced the latest update to the company’s AI offerings with the launch of Tricentis Copilot, a suite of solutions leveraging generative AI to enhance productivity throughout the entire testing lifecycle.

April 17, 2024

CIQ launched fully supported, upstream stable kernels for Rocky Linux via the CIQ Enterprise Linux Platform, providing enhanced performance, hardware compatibility and security.

April 17, 2024

Redgate launched an enterprise version of its database monitoring tool, providing a range of new features to address the challenges of scale and complexity faced by larger organizations.

April 17, 2024

Snyk announced the expansion of its current partnership with Google Cloud to advance secure code generated by Google Cloud’s generative-AI-powered collaborator service, Gemini Code Assist.

April 16, 2024

Kong announced the commercial availability of Kong Konnect Dedicated Cloud Gateways on Amazon Web Services (AWS).

April 16, 2024

Pegasystems announced the general availability of Pega Infinity ’24.1™.

April 16, 2024

Sylabs announces the launch of a new certification focusing on the Singularity container platform.

April 15, 2024

OpenText™ announced Cloud Editions (CE) 24.2, including OpenText DevOps Cloud and OpenText™ DevOps Aviator.

April 15, 2024

Postman announced its acquisition of Orbit, the community growth platform for developer companies.

April 11, 2024

Check Point® Software Technologies Ltd. announced new email security features that enhance its Check Point Harmony Email & Collaboration portfolio: Patented unified quarantine, DMARC monitoring, archiving, and Smart Banners.

April 11, 2024

Automation Anywhere announced an expanded partnership with Google Cloud to leverage the combined power of generative AI and its own specialized, generative AI automation models to give companies a powerful solution to optimize and transform their business.

April 11, 2024

Jetic announced the release of Jetlets, a low-code and no-code block template, that allows users to easily build any technically advanced integration use case, typically not covered by alternative integration platforms.

April 10, 2024

Progress announced new powerful capabilities and enhancements in the latest release of Progress® Sitefinity®.