If your site were one second slower, how many of your visitors would bounce? If your site were one second faster, how many additional orders would you receive? Bottom line: Do you know what one second of latency is worth to your business? Traditional approaches to performance monitoring are fatally flawed. They measure performance only in a silo, telling you how long key actions took but not putting that information into a context you can use to improve the one metric that ultimately matters: revenue. Bridging this gap requires the collection of performance and business data together, and then analyzing this data using the proper analytic methods. Using modern Real User Monitoring (RUM) techniques, Buddy Brewer will show you how to quantify the impact even one second of latency has on key business metrics like bounce and conversion rate.

1. Measuring the Business Impact
of Web Performance
1
Buddy Brewer [@bbrewer]

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Why Care About Performance?
Slow load times damage traffic and sales

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Why Care About Performance?
Slow load times also damage reputation

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Performance isn’t just one simple number
Web sites deliver good and bad experiences every day

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How Should I Approach Performance?
Performance optimization in three steps
How fast am I? How fast should I be? How do I get there?

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How fast should I be?
The industry has lagged here

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What is Real User Measurement?
JavaScript-based Real User Performance
Analytics

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Tracking Conversions
What’s a “Conversion”?
Orders
Shares, Likes, Comments
Page Views
Subscriptions
Signups
Dealer Locators
Game Item Purchase

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Measuring the impact of speed on business
Example 1: Impact of speed on conversion rate

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Measuring the impact of speed on business
Example 2: Impact of speed on bounce rate

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This Means We Can Measure Patience
And if we can measure it, we can manage it

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Example
Time range: 1 month
Median Load Time: 4.12
Visits: 25M
Conversion Rate: 2.7%
Average Order: $100

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Can We Do Better?
Speed increases drive business improvements
Median Load Time: 4.12s
Total Conversion Rate: 2.7%
Conversion Rate @ 3.0s: 4.9%

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Faster pages convert more frequently
4.12 sec
2.7%
3.0 sec
4.9%

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What Are We Playing For?
Impact is Measurable and Significant
Total Conversion Rate: 2.7%
Best Case Conversion Rate: 4.9%
Conversion Gap: 2.2%
Visits: 25M
AOV: $100

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What Are We Playing For?
Impact is Measurable and Significant
(4.9% - 2.7%) * 25M * $100 =
$55M

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What Are We Playing For?
Impact is Measurable and Significant
1 second = $55M

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BUT

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Potential vs Realistic Goals
Impossible to achieve ideal speed at 100th percentile
Median Load Time: 4.12s
Total Conversion Rate: 2.7%
Conversion Rate @ 3.0s: 4.9%

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Refining Performance Goals
We can make these more realistic and iterative
Target Load Time: 4 sec (vs 3 sec)
Percentile at 4 sec: 49
Target Percentile: 60th
Percentile Gap: 11%

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What Are We Playing For?
Impact is Measurable and Significant
(4.9% - 2.7%) * (11% * 25M) * $100 = $6M

23. Improving from
4.12 sec @ 50th percentile
to
4.0 sec @ 60th percentile
=
$6M / month

25. 100% data collection
Stored forever
Processed in real time
Correlated to things that matter

26. © 2014 SOASTA CONFIDENTIAL - All rights reserved. 26

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Customer Spotlight - Staples
Performance improvements lead to business gains
mPulse data led to changes in JavaScript, CSS
Reduced JavaScript size by 48%
Refactored CSS, reduced size by 83%
Shaved 1 full second off of Home page median load time
Shaved 6 seconds off the 98th percentile
Conversion improved by 10%

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Free Speed Assessment
www.soasta.com/performance