Performance Impact: How web speed affects online business KPIs

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Strangeloop provides the only front-end website performance optimization (WPO) solutions that operate at the scale demanded by global ecommerce sites and enterprise applications. Learn how companies like Petco, Travelocity and O'Reilly Media use Strangeloop to make their websites faster, and increase their revenues, conversion rates, and Google search rankings. http://www.strangeloopnetworks.com

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Performance Impact:

Performance Impact How Web speed affects online business KPIs

Today’s Hosts:

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

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10 s 1 s 100 ms 10 ms ! Zzz

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

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Everything is interwoven.

We’re getting better:

We’re getting better

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Impact of page load time on average daily searches per user

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Impact of additional delay on business metrics

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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:

5-12% increase in revenue

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

Tying web latency to business outcomes:

Tying web latency to business outcomes

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

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

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NEW VISITORS GROWTH BOUNCE RATE LOSS CONVERSION RATE ORDER VALUE x TIME ON SITE PAGES PER VISIT NUMBER OF VISITS SEARCHES TWEETS MENTIONS ADS SEEN ATTENTION ENGAGEMENT CONVERSION

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It’s time for an experiment

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Strangeloop Google analytics Visitor Web server Optimize? Decide whether to optimize Insert segment marker Normal content Accelerated Unaccelerated Receive page Process scripts Send analytics

What we learned:

What we learned

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Traffic levels

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Bounce rate

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% New visitors

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Average time on site

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Pages per visit

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Conversion rate & order value

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Justifying an investment in performance Current daily orders Increased conversions Increased order value Cost of performance enhancement * + = ROI (days) ( )

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

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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 C hanging from “X times faster” to “$Y more money” makes the business care More research is needed

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What we need next Optimized Different visitors experienced different performance levels. 0 10,000 Visitor latency # of visits

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What we need next 21.58% better Right now we have a single experiment, and a single resulting business impact. 0 10,000 Visitor latency # of visits

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

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

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What we need next 0 10,000 Visitor latency $ per day Every web business has a curve like this hidden inside it. 0 Gajillions

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

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

More information:

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