Online Performance is Business Performance - Trac Research/AlertSite


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You Can't Do Business Without Web Performance Monitoring

Businesses today hinge on web performance. The impact of poor web performance on your business can result in reduced customer satisfaction, lost revenue and damage to brand reputation.

Learn about critical capabilities needed for managing web performance in today's
complex application environment. Find out how to improve the end-user experience through best practices, ROI analysis and real-case

In this webinar we discuss:

Why your business can't survive without performance metrics.

New requirements for monitoring web applications.

Differentiators that guarantee optimal web performance.

Join AlertSite and TRAC Research for this informative webinar. Guest speaker, Steve Lubahn from Supreme School supply will highlight real
world examples of how he significantly increased online revenue.

Published in: Technology

Online Performance is Business Performance - Trac Research/AlertSite

  1. 1. 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
  2. 2. Agenda <ul><li>Marketplace analysis and perspective </li></ul><ul><ul><li>Ken Godskind, AlertSite, Chief Strategy Officer </li></ul></ul><ul><li>Latest research on business impact of online performance </li></ul><ul><ul><li>Bojan Simic - TRAC Research, Founder </li></ul></ul><ul><li>Real-World example </li></ul><ul><ul><li>Steve Lubahn – Supreme School Supply, General Manager </li></ul></ul><ul><li>Wrap-up and Q&A </li></ul><ul><ul><li>Ken Godskind, Bojan Simic, Steve Lubahn </li></ul></ul>
  3. 3. Marketplace Perspective and Analysis <ul><li>Response times and user expectations are increasing </li></ul><ul><li>Increased market competitiveness </li></ul><ul><li>Lower business risk </li></ul><ul><li>Demonstrable ROI from proactively assuring a positive end user experience </li></ul><ul><li>Cloud Computing shift </li></ul><ul><li>Online Performance = Business Performance </li></ul><ul><li>Marketplace Observations </li></ul><ul><li>Bing – page loads that were 2 seconds slower resulted in a 4.3% drop in revenue/usage </li></ul><ul><li>Google – a 400 millisecond delay caused a 0.59% drop in searches/users </li></ul><ul><li>Yahoo! – a 400 millisecond slowdown resulted in a 5-9% drop in full page traffic </li></ul>(1) Posted 5/7/10. “ What impact does Web performance have on my business?”
  4. 4. TRAC Research & Bojan Simic <ul><li>Bojan Simic founder and Principal Analyst at TRAC Research </li></ul><ul><li>End user experiences and application performance management </li></ul><ul><li>Formerly at Aberdeen Group – The Performance of Web Applications Customers Are Won and Lost in One Second, 2008 </li></ul><ul><li>Current view on the impact of Web Performance on Business Performance including new data </li></ul>
  5. 5. Bojan Simic, Principal Analyst TRAC Research Online Performance is Business Performance
  6. 6. 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 <ul><li>Survey participants </li></ul><ul><li>300+ respondents </li></ul><ul><li>Demographics </li></ul><ul><ul><li>39% - small </li></ul></ul><ul><ul><li>34% - medium </li></ul></ul><ul><ul><li>27% - large </li></ul></ul>Background
  7. 7. <ul><li>Changes in usage patterns </li></ul><ul><li>Higher expectations for availability and speed of websites </li></ul><ul><li>Dependency on 3 rd party services (CDN, Web analytics, ads, etc.) </li></ul><ul><li>Increased amount of dynamic traffic </li></ul><ul><li>Variety of Web browsers </li></ul><ul><li>Web applications accessed from mobile devices </li></ul>2 Key Trends in the Web Performance Monitoring Market
  8. 8. <ul><li>Performance data is not actionable </li></ul><ul><li>Inability to identify and resolve performance issues before business users are impacted </li></ul><ul><li>Inability to measure the business impact of performance issues </li></ul><ul><li>Lack of visibility into the quality of end-user experience </li></ul>3 Top 4 Challenges
  9. 9. <ul><li>Synthetic vs. Real End-User Monitoring </li></ul><ul><li>Inside of firewall vs. outside of firewall monitoring </li></ul><ul><li>Quality of end-user experience is NOT a single metric: </li></ul><ul><ul><li>Application availability </li></ul></ul><ul><ul><li>Application speed </li></ul></ul><ul><ul><li>Application utilization </li></ul></ul><ul><ul><li>Business impact of performance issues </li></ul></ul>4 Different Approaches for Monitoring Online Experience
  10. 10. 5 <ul><li>4.4 seconds – average delay in website response times when business performance starts to decline </li></ul><ul><li>$21,000 – estimated revenue loss due to 1 hour of downtime </li></ul><ul><li>$4,100 – average estimated revenue loss due to 1 hour of performance slowdowns </li></ul>By the numbers…
  11. 11. 6 Key Capabilities
  12. 12. 8 Key Capabilities Needed
  13. 13. 9 Average Website Availability and Occurrence of Performance Slowdowns
  14. 14. 10 <ul><li>Organization’s are losing 5.1 times more revenue per 1 hour of downtime as compared to 1 hour of slowdowns </li></ul><ul><li>Revenue generating websites are 10 times more likely to experience slowdowns than outages </li></ul><ul><li>Organizations are losing nearly twice as much revenue due to issues with performance slowdowns, as compared to issues with availability </li></ul>Preventing Revenue Loss Goes Beyond Ensuring High Availability
  15. 15. 11 <ul><li>Improve customer satisfaction </li></ul><ul><li>Avoid damage to brand reputation </li></ul><ul><li>Reduce mean-time-to-repair application performance issues </li></ul><ul><li>Make better decisions about changes to the enterprise infrastructure </li></ul>Other Operational and Business Benefits
  16. 16. 12 <ul><li>Measure the business impact of application performance issues </li></ul><ul><li>Monitor application performance for more than availability and speed </li></ul><ul><li>Identify performance issues before business users are impacted </li></ul><ul><li>Make performance data more actionable </li></ul><ul><li>Integrate end-user monitoring solutions with tools for monitoring IT infrastructure </li></ul>Recommendations
  17. 17. Supreme School Supply Steve Lubahn, General Manager
  18. 18. Supreme School Supply <ul><li>Nationwide distribution </li></ul><ul><ul><li>School forms, teacher planners, printed items </li></ul></ul><ul><li>Website presence – late 1990s </li></ul><ul><ul><li>First e-commerce site late 2006 </li></ul></ul><ul><li>Internet sales ~20% of total revenue </li></ul><ul><ul><li>Up from 8% in early 2009 </li></ul></ul><ul><li>Approximately 20% of active accounts purchase via website </li></ul><ul><li>Over 80% of site traffic via search engines </li></ul>
  19. 19. Supreme School Supply <ul><li>Monitoring critical website pages </li></ul><ul><li>Analyzing transactions </li></ul><ul><ul><li>Overall site and shopping cart performance </li></ul></ul><ul><ul><li>Using AlertSite's DéjàClick transaction recorder </li></ul></ul><ul><li>Focusing on load testing during peak hours </li></ul>
  20. 20. 2009 – Performance Issues <ul><li>Noticeable drop in order conversion rate </li></ul><ul><li>Page load time increase </li></ul>
  21. 21. Page Download Time Performance Improvement <ul><li>Page download speed reduced by ~ 2 seconds </li></ul>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%
  22. 22. Page Download Time Improvement Results <ul><li>Revenue Increase of 219.9% </li></ul>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!
  23. 23. Google Adwords Impact <ul><li>Optimized page download speeds improve return for paid search campaigns </li></ul>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
  24. 24. Benchmarking Education Competitors
  25. 25. Benefits of DéjàClick Recorder <ul><li>DéjàClick recorder c ompletely built into the browser </li></ul><ul><li>Fast and easy to use - generates testing scripts automatically </li></ul><ul><li>Recorded scripts simulate end user activity from locations all over the world </li></ul><ul><li>Combines detailed reporting and extensive global monitoring for peak-level performance analysis </li></ul><ul><li>Quick access to reports, graphs and alerts </li></ul><ul><li>Presents detailed performance and availability measurement data </li></ul>“ How are my critical online applications performing?” “ Is my shopping cart working?”
  26. 26. Summary <ul><li>Quantify your page load times </li></ul><ul><li>Isolate elements causing delays </li></ul><ul><li>Monitor performance/availability on an ongoing basis </li></ul><ul><ul><li>Watch for trends </li></ul></ul><ul><li>2x increase in average daily page load times equals a 20% increase in bounce rate </li></ul>
  27. 27. demand performance 877.302.5378
  28. 28. Wrap Up and Take-Aways <ul><li>Online Performance Is Business Performance </li></ul><ul><ul><li>Website slowdowns have a high business impact - TRAC </li></ul></ul><ul><ul><li>Greater revenue loss related to slowdowns vs. availability </li></ul></ul><ul><ul><li>Revenue generating website more likely to experience slowdowns than outages </li></ul></ul><ul><ul><li>Slowdowns more significant to e-commerce sites </li></ul></ul><ul><li>Employ pro-active approach </li></ul><ul><ul><li>Measure the business impact – Supreme School Supply </li></ul></ul><ul><ul><li>Identify issues before business users are impacted </li></ul></ul><ul><li>Leverage performance tools </li></ul><ul><ul><li>Implementing a monitoring solution is critical to improving your business </li></ul></ul>
  29. 29. AlertSite – Improving The Web Experience <ul><li>The Industry expert in application performance monitoring </li></ul><ul><ul><li>Leading Edge Technology </li></ul></ul><ul><ul><ul><li>DéjàClick true in the browser recorder </li></ul></ul></ul><ul><ul><li>Inside and outside the firewall monitoring </li></ul></ul><ul><ul><ul><li>Measure and report availability and performance </li></ul></ul></ul><ul><ul><li>60+ worldwide monitoring locations </li></ul></ul><ul><ul><li>Full service provider </li></ul></ul><ul><ul><ul><li>Load testing, security, business benchmarks </li></ul></ul></ul><ul><li>Benefits </li></ul><ul><ul><li>Understand what your applications are delivering to customers </li></ul></ul><ul><ul><li>SaaS model - no capital or infrastructure cost </li></ul></ul>
  30. 30. Questions and Answers <ul><li>Bojan Simic - TRAC Research, Founder </li></ul><ul><li>Steve Lubahn - Supreme School Supply, General Manager </li></ul><ul><li>Ken Godskind - AlertSite, Chief Strategy Officer </li></ul>
  31. 31. demand performance 877.302.5378 For more information, visit .