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Performance

Impact
How Web speed affects online business
KPIs
Alistair Croll, Hooman Beheshti,
Analyst, Bitcurrent VP Product, Strangeloop
Author of O’Reilly’s
Complete Web Monitoring

Today’s Hosts
10 s
1 s
100 ms
10 ms
! Zzz
http://www.flickr.com/photos/spunter/393793587 http://www.flickr.com/photos/laurenclose/2217307446
E v e ry th in g is
We’re getting better
Impact of page load time on
average daily searches per user
Impact of additional delay on
business metrics
Shopzilla had another angle
Big, high-traffic 16 month re-
site engineering
◦100M impressions a ◦Page load from 6
day seconds to 1.2
◦8,000 searches a ◦Uptime from 99.65%
to 99.97%
second
◦10% of previous
◦20-29M unique hardware needs
visitors a month
◦100M products

http://en.oreilly.com/velocity2009/public/schedule/detail/7709
5-12% increase in
revenue
Transactional SaaS

Buy something Use an app


(Amazon) (Salesforce)

Media Collaborative

Click an ad Create content


(Google News) (Wikipedia)
Tying web latency to
business outcomes
KPIs

http://www.flickr.com/photos/spunter/393793587 http://www.flickr.com/photos/laurenclose/2217307446
http://www.flickr.com/photos/mrmoorey/160654236
ATTENTION ENGAGEMENT CONVERSION

NEW
VISITORS

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

BOUNCE
RATE
It ’ s time for an experiment
Visitor Strangeloop Web
server
Decide whether
to optimize

Accelerated Normal
Receive content
page

Opti Insert
Process mize segment
scripts marker
?

Send
analytics Unaccelerated

Google
analytics
What we learned
Traffic levels
Bounce rate
% New visitors
Average time on site
Pages per visit
Conversion rate & order value
Justifying an investment in
performance

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

$10,000 * ( 0.1607 + 0.0551 ) $2,158 23 . 17


= = days
$50,000 $50,000

Caveats
◦Your mileage will vary
◦This is just how to think about it
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
Changing from “X times faster” to “$Y
more money” makes the business care
More research is needed
What we need next

# of
visits

Optimized

0 Visitor 10,000
latency

Different visitors experienced


different performance levels.
What we need next

# of
visits

21 . 58
%
bette
0 r Visitor 10,000
latency

Right now we have a single


experiment, and a single resulting
business impact.
What we need next

Best 5% Worst 5%
# of
visits

Optimized

0 Visitor 10,000
latency

Visitors who were optimized fall


into a range – the 5th to 95th
percentile
What we need next

Gajillions

$ per
day

0
0 Visitor 10,000
latency

If we have several experiments, we


can understand the relationship
better.
What we need next

Gajillions

$ per
day

0
0 Visitor 10,000
latency

Every web business has a


curve like this hidden
inside it.
Questions?
(Submit your questions
using the GoToWebinar
question tool)
More information
Visit: www.watchingwebsites.com
Visit: www.bitcurrent.com

Twitter: @acroll

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