Impact of web latency on conversion rates

Performance Impact
How Web speed affects online business KPIs

Today’s Hosts
Hooman Beheshti,
VP Product, Strangeloop
Alistair Croll,
Analyst, Bitcurrent
Author of O’Reilly’s Complete Web Monitoring

10 s
1 s
100 ms
10 ms
Zzz
!

http://www.flickr.com/photos/spunter/393793587
http://www.flickr.com/photos/laurenclose/2217307446

Everything is interwoven.

We’re getting better

Impact of page load time on average daily searches per user

Impact of additional delay on business metrics

Shopzilla had another angle
Big, high-traffic site
100M impressions a day
8,000 searches a second
20-29M unique visitors a month
100M products
16 month re-engineering
Page load from 6 seconds to 1.2
Uptime from 99.65% to 99.97%
10% of previous hardware needs
http://en.oreilly.com/velocity2009/public/schedule/detail/7709

5-12% increase in revenue

Transactional
SaaS
Buy something
(Amazon)
Use an app
(Salesforce)
Media
Collaborative
Click an ad
(Google News)
Create content
(Wikipedia)

Tying web latency to business outcomes

KPIs
http://www.flickr.com/photos/spunter/393793587
http://www.flickr.com/photos/laurenclose/2217307446

http://www.flickr.com/photos/mrmoorey/160654236

ATTENTION
ENGAGEMENT
CONVERSION
NEWVISITORS
SEARCHES
TWEETS
MENTIONS
ADS SEEN
CONVERSIONRATE
GROWTH
TIMEONSITE
PAGESPERVISIT
NUMBEROF VISITS
x
ORDERVALUE
LOSS
BOUNCERATE

It’s time for an experiment

Strangeloop
Visitor
Webserver
Decide whetherto optimize
Normalcontent
Accelerated
Receivepage
Optimize?
Insert
segment
marker
Processscripts
Sendanalytics
Unaccelerated
Googleanalytics

What we learned

Traffic levels

Bounce rate

% New visitors

Average time on site

Pages per visit

Conversion rate & order value

Justifying an investment in performance
(
)
Currentdaily orders
Increased
conversions
Increasedorder value
*
+
ROI(days)
=
Cost of performanceenhancement

Justifying an investment in performance
(
)
*
+
0.1607
0.0551
$10,000
$2,158
23.17days
=
=
$50,000
$50,000
Caveats
Your mileage will vary
This is just how to think about it

Conclusions
Links between performance and business KPIs are undeniable
By talking the same language, IT and marketing can finally agree on what to do about it
Changing from “X times faster” to “$Y more money” makes the business care
More research is needed

What we need next
# ofvisits
Optimized
0
10,000
Visitorlatency
Different visitors experienced different performance levels.

What we need next
# ofvisits
21.58%better
0
10,000
Visitorlatency
Right now we have a single experiment, and a single resulting business impact.

What we need next
Best 5%
Worst 5%
# ofvisits
Optimized
0
10,000
Visitorlatency
Visitors who were optimized fall into a range – the 5th to 95th percentile

What we need next
24%
18%
14%
Gajillions
12%
9.5%
$ perday
0
0
10,000
Visitorlatency
If we have several experiments, we can understand the relationship better.

What we need next
Gajillions
$ perday
0
0
10,000
Visitorlatency
Every web business has a curve like this hidden inside it.

Questions? (Submit your questions using the GoToWebinar question tool)

More information
Visit: www.watchingwebsites.com
Visit: www.bitcurrent.com
Twitter: @acroll

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Impact of web latency on conversion rates

by Alistair Croll

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