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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  .

More Related Content

Online Performance is Business Performance - Trac Research/AlertSite

  • 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. 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
  • 3. 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?”
  • 4. 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
  • 5. Bojan Simic, Principal Analyst TRAC Research Online Performance is Business Performance
  • 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 Survey participants 300+ respondents Demographics 39% - small 34% - medium 27% - large Background
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. 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…
  • 13. 9 Average Website Availability and Occurrence of Performance Slowdowns
  • 14. 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
  • 15. 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
  • 16. 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
  • 17. Supreme School Supply Steve Lubahn, General Manager
  • 18. 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
  • 19. 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
  • 20. 2009 – Performance Issues Noticeable drop in order conversion rate Page load time increase
  • 21. 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%
  • 22. 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!
  • 23. 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
  • 25. 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?”
  • 26. 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
  • 28. 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
  • 29. 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
  • 30. Questions and Answers Bojan Simic - TRAC Research, Founder Steve Lubahn - Supreme School Supply, General Manager Ken Godskind - AlertSite, Chief Strategy Officer
  • 31. demand performance 877.302.5378 For more information, visit www.AlertSite.com .