Business Value of Performance - Ann Ruckstuhl CMO DOC
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What is the business value of your online company performance?
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Business Value of Performance - Ann Ruckstuhl CMO DOC
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- 2. 2 1% Sales $680M $45M 0.2% Searches @ 1 Second 2% Conversion $244M Gartner, Walmart
- 3. The Business Value of Performance $90M Every 4 seconds $80M Additional revenue Revenue $20M Saved with 100ms 50% Operational cost reduction Savings 25% Faster time to market 500% Productivity increase Efficiency Top 5 Best performing site Customer Satisfaction
- 4. 4 “Digital Performance” MASLOW Smart Fast Easy Secure Functional Physiological Safety Love/Belonging Esteem Self Actualization
- 5. What impact does performance have on my business? SOASTA 2.5 Seconds
- 6. Nordstrom’s “Magic Number” is 3 Seconds Nordstrom
- 7. What’s Your “Magic Number”?
- 8. “CRISIS” • Impatient consumers • Spiky demand • Mobile & IoT • Dependency on 3rd parties • Complex technology • Lack insights & control
- 9. 9 Harris Interactive “Mother’s Day Online Shopping Survey” Sponsored by SOASTA, April 2015, N=2051 Will go to a competitor’s site Will never return to the site Will share their problems
- 10. Spiky Demand Is Here to Stay Seasonal Holidays Manufactured Holidays
- 11. 11 33% of orders came from a mobile device Shopify
- 12. 12 Google, SeeWhy 90% People who move between devices to accomplish a goal 2.6 Average number of devices used by a shopper during a single transaction 6.2 Number of visit an average shopper makes before buying 97% Mobile transactions abandoned
- 15. 15 o 18 = Average Number of 3rd Party Calls Per Page o Third party content can make up > 50% of page requests my
- 16. Layer 6 Presentation Layer Layer 4 Transport Layer Layer 2 Data Layer Layer 7 Application Layer Layer 5 Session Layer Layer 3 Network Layer Layer 1 Physical Layer Technology Stack Getting More Complex AngularJS CDN Payments Clouds Social Cultures Carriers CRMMarketing Advertising APM Devices
- 17. 17 Smart Need Insights & Control
- 18. 18 Performance Analytics Performance = CX + Business Outcome + IT Performance
- 19. DATA SCIENCE TO THE RESCUE
- 20. 20
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- 25. What if page load time went down to 3 seconds? Forecasting Using “What If” Predictive Analysis
- 26. 26
- 27. 27 Play Video
- 28. 28 • Build a high performance culture • Get to know your “real” users, in real time • Correlate User Experience, Business & IT metrics • Identify patterns and optimize smartly • Get the DOC
Editor's Notes
- Amazon is based on $68B of annual sales in 2013. Staples saved 1 second off their median load time and increased by conversion by 10% According to an Aberdeen Survey of 160 organizations found out, on the average, a 1-second delay in page load time equals 11% fewer pages views, a 16% decrease in customer satisfaction, and a 7% loss in conversion. That means, if your site earns $100K a day, this year you could lose $2.5M in sales. Leading up to the 2012 US election, the Obama campaign made its fundraising platform 60% faster which resulted in a 14% increase in donation conversion
- [CONFIDENTIAL NOT FOR DISTRIBUTION] And that competitive advantage is measurable. From increased online revenue, to cost savings, efficiency and ultimately customer satisfaction, the common thread for SOASTA customers is the ability to quantify the business impact of performance. Here are few great examples of how customers are winning and delivering real business value. [SPEAK TO THREE or FOUR] [Revenue] Lowe’s, who in the past measured downtime in days, transformed their performance approach with SOASTA, reducing downtime more than 75% and resulting in $80M in increased revenue. One of the world’s leading sports-related brands recently utilized SOASTA to identify that 4 seconds of improvement can net $90M in additional revenue - driving a continual push for user experience optimization and cultivating a true performance culture. [Savings] Hallmark eliminated 50% of their testing costs with increased test velocity, production validation, and ultimately reduced staff overhead by 66%. Bed Bath & Beyond utilized granular performance analytics to precisely identify where to prioritize their efforts and to quantify the value of performance improvements – in this case they found that an improvement of 100 milliseconds would yield $20 million in additional online revenue. [Efficiency] Paychex testers now build and run 15 tests in the time it took them to do 3 – delivering a higher quality experience with a 500% increase in productivity through automation. FIS Mobile collapsed 4 weeks of manual and performance testing to overnight, which helps them get to market 25% faster than before. [Customer Satisfaction] Office Depot – another leading brand that suffered public and recurring downtime, went from the being one of the Top 5 worst performing websites to being one of the Top 5 best.
- 47% of consumers expect web pages to load in 2 seconds or less (Akamai Survey)
- What’s the secret to optimize performance and conversion? Monitor (measure & correlate) Test Optimize
- Crisis in Chinese means “Danger + Opportunity” Weiji
- In 2014, 1/3 of ecommerce orders were came from a mobile device other than a computer. That up from 23% in 2013 and 12% in 2012. (Source: Shopify) In May of 2015, Google officially confirmed that there are more searches now on mobile than desktop
- A whopping 97% of mobile transactions are abandoned 64% of smartphone users expect the page to load in less than 4 seconds before they abandon the page 60% of tablet users expect the page to load in less than 3 seconds before they abandon the page
- Some of the JavaScript increase discussed already can be attributed to the rise in popularity of custom fonts. Today, 45% of pages served to mobile devices use custom fonts — up from 4% three years ago. While custom fonts are great for controlling design and branding elements, they can also incur major performance penalties. Some fonts require massive amounts of CSS code, while others use super-heavy JS. Either way, load times suffer. Your best bet? Disable custom fonts for mobile devices. If that’s not an option, then use them only where absolutely necessary, i.e., headers and key typographical elements.
- According to HTTP Archive, an average web page today makes over 18 3rd party calls. In 2012, it was 12. Complex modern app with composite front-end (Presentation Layer consisting of HTML, JavaScript, CSS, Flash and server-side codes like ASP.NET, PHP …etc.), middleware (plumbing part of the system, JAVA, C++, glue between UI and Data) and back-end (Persistent Layer consisting of database, elastic cloud computing resources … etc.). Front end is what you see, Backend is how it works.
- What are your users’ environments? Shows which Android browsers suffer from sub-par performance with a specific website With over 18,000 different Android devices, optimizing for all of them is virtually impossible A graph like this lets you quickly home in on the problematic browsers and make strategic decision – based on other variables such as traffic and conversion – as to whether or not to optimize for that particular browser
- How do users move thru your site?