Business Value of Website Performance
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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. The Business Value of Web Performance
- 4. What we SAY we expect from our online experiences
- 7. How do we translate that to the business?
- 8. 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
- 10. A brief history of performance ROI
- 13. Impact of a 1-second delay A site that earns $100K per day could lose $2.5M in sales in one year
- 14. 2009 What business metrics does performance affect?
- 15. 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.
- 16. 2010 Should we care about slowdowns as much as outages?
- 17. 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
- 18. …website slowdowns occur 10X more often than outages. Source: TRAC Research
- 22. 2012 What can we do with a LOT of user data?
- 23. 2% increase in conversions for every 1 second of improvement
- 24. 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%.
- 27. But that’s not my site
- 30. Conversion rate barely decreases when load times for “checkout” pages degrade
- 31. Conversion rate shrinks by about 50% when load time for “browse” pages increases from 1 to 6 seconds
- 33. Do you know how performance affects different pages on your site?
- 35. 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.
- 36. TL;DR How much impact does the performance of this page have on conversions?
- 39. We have more questions
- 40. Can we better measure how performance affects user satisfaction?
- 44. What impact does performance have on enterprise productivity?
- 45. Are we always measuring the right things?
- 47. Takeaways
- 48. 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
- 50. Questions?
Editor's Notes
- The people at WalmartLabs (a technology incubator under the Walmart umbrella) knew that Walmart.com was suffering from performance issues. As a for instance, initial measurement showed that an item page took about 24 seconds to load for the slowest 5% of users. Why? The usual culprits: too many page elements, slow third-party scripts, multiple hosts (25% of page content was served by third parties), and various best practice no-nos. WalmartLabs dedicated a scrum team to one sprint of performance optimization. At the start of the process, the team performed some baseline measurements in which they used their real user monitoring (RUM) data to look at the load times of key pages and look for patterns. Then the team created targets for page performance and, at the end of the sprint, measured the impact of optimization on key metrics. Their findings showed a strong correlation between performance and conversions: • Overall, converted shoppers were served pages that loaded twice as quickly as pages served to non-converted shoppers. • This trend persisted, even on individual pages that experienced greater load times. • Non-buyers were served category pages that were 2-3 seconds slower than category pages served to buyers. • For every 1 second of improvement to load time, the site experienced up to a 2% improvement in conversion rate. • For every 100 milliseconds of improvement, they grew incremental revenue by up to 1%.