Online Performance is Business Performance - Trac Research/AlertSite

Online Performance Is Business Performance Bojan Simic – Principal Analyst, TRAC Research Ken Godskind, Chief Strategy Officer, AlertSite Steve Lubahn, General Mgr. Supreme School Supply demand performance

Agenda
Marketplace analysis and perspective
Ken Godskind, AlertSite, Chief Strategy Officer
Latest research on business impact of online performance
Bojan Simic - TRAC Research, Founder
Real-World example
Steve Lubahn – Supreme School Supply, General Manager
Wrap-up and Q&A
Ken Godskind, Bojan Simic, Steve Lubahn

Marketplace Perspective and Analysis
Response times and user expectations are increasing
Increased market competitiveness
Lower business risk
Demonstrable ROI from proactively assuring a positive end user experience
Cloud Computing shift
Online Performance = Business Performance
Marketplace Observations
Bing – page loads that were 2 seconds slower resulted in a 4.3% drop in revenue/usage
Google – a 400 millisecond delay caused a 0.59% drop in searches/users
Yahoo! – a 400 millisecond slowdown resulted in a 5-9% drop in full page traffic
(1) Stevesouders.com. Posted 5/7/10. “ What impact does Web performance have on my business?”

TRAC Research & Bojan Simic
Bojan Simic founder and Principal Analyst at TRAC Research
End user experiences and application performance management
Formerly at Aberdeen Group – The Performance of Web Applications Customers Are Won and Lost in One Second, 2008
Current view on the impact of Web Performance on Business Performance including new data

Bojan Simic, Principal Analyst TRAC Research Online Performance is Business Performance

About TRAC Research TRAC Research is a B2B research company specializing in IT performance management 1 Community The audience for this survey included TRAC’s community and readerships of TRAC’s publication partners
Survey participants
300+ respondents
Demographics
39% - small
34% - medium
27% - large
Background

Changes in usage patterns
Higher expectations for availability and speed of websites
Dependency on 3 rd party services (CDN, Web analytics, ads, etc.)
Increased amount of dynamic traffic
Variety of Web browsers
Web applications accessed from mobile devices
2 Key Trends in the Web Performance Monitoring Market

Performance data is not actionable
Inability to identify and resolve performance issues before business users are impacted
Inability to measure the business impact of performance issues
Lack of visibility into the quality of end-user experience
3 Top 4 Challenges

Synthetic vs. Real End-User Monitoring
Inside of firewall vs. outside of firewall monitoring
Quality of end-user experience is NOT a single metric:
Application availability
Application speed
Application utilization
Business impact of performance issues
4 Different Approaches for Monitoring Online Experience

5
4.4 seconds – average delay in website response times when business performance starts to decline
$21,000 – estimated revenue loss due to 1 hour of downtime
$4,100 – average estimated revenue loss due to 1 hour of performance slowdowns
By the numbers…

6 Key Capabilities

8 Key Capabilities Needed

9 Average Website Availability and Occurrence of Performance Slowdowns

10
Organization’s are losing 5.1 times more revenue per 1 hour of downtime as compared to 1 hour of slowdowns
Revenue generating websites are 10 times more likely to experience slowdowns than outages
Organizations are losing nearly twice as much revenue due to issues with performance slowdowns, as compared to issues with availability
Preventing Revenue Loss Goes Beyond Ensuring High Availability

11
Improve customer satisfaction
Avoid damage to brand reputation
Reduce mean-time-to-repair application performance issues
Make better decisions about changes to the enterprise infrastructure
Other Operational and Business Benefits

12
Measure the business impact of application performance issues
Monitor application performance for more than availability and speed
Identify performance issues before business users are impacted
Make performance data more actionable
Integrate end-user monitoring solutions with tools for monitoring IT infrastructure
Recommendations

Supreme School Supply Steve Lubahn, General Manager

Supreme School Supply www.supremeschoolsupply.com
Nationwide distribution
School forms, teacher planners, printed items
Website presence – late 1990s
First e-commerce site late 2006
Internet sales ~20% of total revenue
Up from 8% in early 2009
Approximately 20% of active accounts purchase via website
Over 80% of site traffic via search engines

Supreme School Supply
Monitoring critical website pages
Analyzing transactions
Overall site and shopping cart performance
Using AlertSite's DéjàClick transaction recorder
Focusing on load testing during peak hours

2009 – Performance Issues
Noticeable drop in order conversion rate
Page load time increase

Page Download Time Performance Improvement
Page download speed reduced by ~ 2 seconds
BEFORE OPTIMIZATION (APRIL,2010) AFTER OPTIMIZATION (JULY, 2010) Home page avg download – 4.50 sec Home page avg download – 2.55 sec Standard deviation – 2.25 sec Standard deviation – 1.79 sec Website availability – 98.89% Website availability – 99.86%

Page Download Time Improvement Results
Revenue Increase of 219.9%
BEFORE OPTIMIZATION (APRIL,2010) AFTER OPTIMIZATION (JULY, 2010) 3,185 visitors 4,346 visitors 5.17 avg page views 7.58 avg page views 3:25 min avg time on website 4:52 min ag time on site 37.09% bounce rate 32.88% bounce rate Avg order size of $54 Avg order size of $94 Order conversion rate 109% increase!

Google Adwords Impact
Optimized page download speeds improve return for paid search campaigns
BEFORE OPTIMIZATION (APRIL, 2010) AFTER OPTIMIZATION (JULY, 2010) 885 visitors 1,504 visitors 5.48 average page views 8.45 average page views 3:40 min avg time on website 5:04 min avg time on site 35.7% bounce rate 30.6% bounce rate 86.2% New Visits 82.6% New Visits

Benchmarking Education Competitors

Benefits of DéjàClick Recorder
DéjàClick recorder c ompletely built into the browser
Fast and easy to use - generates testing scripts automatically
Recorded scripts simulate end user activity from locations all over the world
Combines detailed reporting and extensive global monitoring for peak-level performance analysis
Quick access to reports, graphs and alerts
Presents detailed performance and availability measurement data
“ How are my critical online applications performing?” “ Is my shopping cart working?”

Summary
Quantify your page load times
Isolate elements causing delays
Monitor performance/availability on an ongoing basis
Watch for trends
2x increase in average daily page load times equals a 20% increase in bounce rate

demand performance 877.302.5378

Wrap Up and Take-Aways
Online Performance Is Business Performance
Website slowdowns have a high business impact - TRAC
Greater revenue loss related to slowdowns vs. availability
Revenue generating website more likely to experience slowdowns than outages
Slowdowns more significant to e-commerce sites
Employ pro-active approach
Measure the business impact – Supreme School Supply
Identify issues before business users are impacted
Leverage performance tools
Implementing a monitoring solution is critical to improving your business

AlertSite – Improving The Web Experience
The Industry expert in application performance monitoring
Leading Edge Technology
DéjàClick true in the browser recorder
Inside and outside the firewall monitoring
Measure and report availability and performance
60+ worldwide monitoring locations
Full service provider
Load testing, security, business benchmarks
Benefits
Understand what your applications are delivering to customers
SaaS model - no capital or infrastructure cost
www.dejaclick.com

Questions and Answers
Bojan Simic - TRAC Research, Founder
Steve Lubahn - Supreme School Supply, General Manager
Ken Godskind - AlertSite, Chief Strategy Officer

demand performance 877.302.5378 For more information, visit www.AlertSite.com .

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Online Performance is Business Performance - Trac Research/AlertSite

by KenGodskind on Jan 27, 2011

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Online Performance is Business Performance - Trac Research/AlertSite Presentation Transcript