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Business Value of Website Performance

Get a sneak peak of the Time is Money ebook from Tammy Everts. She talks about the fascinating psychology behind user experience and business performance.

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Business Value of Website Performance

  1. 1. The Business Value of Web Performance
  2. 2. @tameverts
  3. 3. Free download* meismoneybook *ends today!
  4. 4. What we SAY we expect from our online experiences
  5. 5. How do we translate that to the business?
  6. 6. Start render DNS TCP TTFB DOM loading DOM ready Page load Fully loaded User timing Resource timing Requests Bytes in Speed Index Pagespeed score 1s = $$ DOM elements DOM size Visually complete Redirect SSL negotiation
  7. 7. A brief history of performance ROI
  8. 8. 2008 Does front-end performance matter?
  9. 9. Impact of a 1-second delay A site that earns $100K per day could lose $2.5M in sales in one year
  10. 10. 2009 What business metrics does performance affect?
  11. 11. Shopzilla • Sped up average page load time from 6s to 1.2s. • Experienced a 12% increase in revenue and a 25% increase in page views. • Doubled the number of sessions from search engine marketing. • Cut the number of required servers in half. Mozilla • Shaved 2.2s off landing page load times. • Increased download conversions by 15.4%. Yahoo • Increased traffic by 9% for every 400 milliseconds of improvement. AOL • Visitors in the top ten percentile of site speed viewed 50% more pages than visitors in the bottom ten percentile.
  12. 12. 2010 Should we care about slowdowns as much as outages?
  13. 13. Average revenue loss per hour of downtime Average revenue loss per hour of performance degradation (slower than 4.4s) $21,000 $4,100 However… Source: TRAC Research
  14. 14. …website slowdowns occur 10X more often than outages. Source: TRAC Research
  15. 15. 2011 Can we compare apples to apples?
  16. 16. Source: Strangeloop
  17. 17. Source: Strangeloop
  18. 18. 2012 What can we do with a LOT of user data?
  19. 19. 2% increase in conversions for every 1 second of improvement
  20. 20. Walmart also found… Converted shoppers were served pages that were 2X faster than pages served to non-converted shoppers. Non-buyers were served category pages that were 2-3 seconds slower than category pages served to buyers. For every 100 milliseconds of improvement, incremental revenue increased by up to 1%.
  21. 21. 2015: What’s new?
  22. 22.
  23. 23. But that’s not my site
  24. 24. Conversion rate barely decreases when load times for “checkout” pages degrade
  25. 25. Conversion rate shrinks by about 50% when load time for “browse” pages increases from 1 to 6 seconds
  26. 26. Do you know how performance affects different pages on your site?
  27. 27. What is the Conversion Impact Score? The Conversion Impact Score (CIS) is a relative score that ranks page groups by their propensity to negatively impact conversions due to high load times. For each page group, the Conversion Impact Score is calculated using the proportion of overall requests that are associated with that group, along with the Spearman Ranked Correlation between its load times and number of conversions. The Conversion Impact Score will always be a number between -1 and 1, though scores much greater than zero should be very rare. The more negative the score, the more detrimental to conversions that high load times for that page group are, relative to the other page groups.
  28. 28. TL;DR How much impact does the performance of this page have on conversions?
  29. 29. Product Category Shopping cart Home Search results
  30. 30.
  31. 31. We have more questions
  32. 32. Can we better measure how performance affects user satisfaction?
  33. 33. What impact does performance have on customer lifetime value?
  34. 34. What impact does performance have on enterprise productivity?
  35. 35. Are we always measuring the right things?
  36. 36.
  37. 37. Takeaways
  38. 38. User expectations and behavior are always changing Our tools for measuring ROI are evolving Know your own business success metrics Understand your own visitors Target the best (not the slowest) pages for optimization Monitor, test, repeat
  39. 39. Free download* meismoneybook *ends today!
  40. 40. Questions?