Performance ImpactHow Web speed affects online business KPIs

Today’s Hosts

Hooman Beheshti, VP Product, Strangeloop

Alistair Croll,Analyst, BitcurrentAuthor of O’Reilly’s Complete Web Monitoring

10 s

1 s

100 ms

10 ms! Zzz

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

Everything is interwoven.

We’re getting better

Impact of page load time on average daily searches per user

50ms p

re-h

eader

100ms p

re-h

eader

200ms p

ost-header

200ms p

ost-ads

400ms p

ost-header

-0.70%

-0.60%

-0.50%

-0.40%

-0.30%

-0.20%

-0.10%

0.00%

Impact of additional delay on business metrics

50 200 500 1000 2000-5.00%-4.50%-4.00%-3.50%-3.00%-2.50%-2.00%-1.50%-1.00%-0.50%0.00%

Queries per visitor Query refinement Revenue per visitorAny clicks Satisfaction

Added delay

Per

cen

t ch

ange

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

Tying web latency to business outcomes

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

KPIs

http

://w

ww

.flic

kr.c

om/p

hoto

s/m

rmoo

rey/

1606

5423

6

NEWVISITORS

GROWTH

BOUNCERATE

LOSS

CONVERSION

RATE

ORDERVALUE

xTIMEON

SITE

PAGES

PERVISIT

NUMBEROF

VISITS

SEARCHES

TWEETS

MENTIONS

ADS SEEN

ATTENTION ENGAGEMENT CONVERSION

It’s time for an experiment

Strangeloop

Googleanalytic

s

Visitor Webserve

r

Optimize?

Decide whether

to optimize

Insertsegmentmarker

Normalcontent

Accelerated

Unaccelerated

Receivepage

Processscripts

Sendanalytics

What we learned

Traffic levels

Optimized Unoptimized0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000 8,505

4,740

Tot

al n

um

ber

of v

isit

s

Bounce rate

Optimized Unoptimized12.80%

13.00%

13.20%

13.40%

13.60%

13.80%

14.00%

14.20%

14.40%

14.60%

13.38%

14.35%

Bo

unce

rat

e

% New visitors

Optimized Unoptimized0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

10.85%

13.61%

Per

cent

new

vis

its

Average time on site

Optimized Unoptimized0:00:00

0:07:12

0:14:24

0:21:36

0:28:48

0:36:00

0:30:10

0:23:50

Tim

e (s

econ

ds)

Pages per visit

Optimized Unoptimized0

2

4

6

8

10

12

14

16

18

15.64

11.04

Pag

es

Conversion rate & order value

Conversion rate Order value

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%16.07%

5.51%

Chan

ge in

sh

oppi

ng c

art m

etri

c

Justifying an investment in performance

Currentdaily orders

Increasedconversions

Increasedorder value

Cost of performanceenhancement

* +=

ROI(days)

( )

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=

23.17days=

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 itChanging from “X times faster” to “$Y more

money” makes the business careMore research is needed

What we need next

Optimized

Different visitors experienced different performance levels.

0 10,000Visitorlatency

# ofvisits

What we need next

21.58%better

Right now we have a single experiment, and a single resulting business impact.

0 10,000Visitorlatency

# ofvisits

What we need next

Optimized

Visitors who were optimized fall into a range – the 5th to 95th percentile

Best 5% Worst 5%

0 10,000Visitorlatency

# ofvisits

What we need next

If we have several experiments, we can understand the relationship better.

24%

18%14%

12%

9.5%

0 10,000Visitorlatency

$ perday

0

Gajillions

What we need next

0 10,000Visitorlatency

$ perday

Every web business has a curve like this hidden inside it.

0

Gajillions

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

More informationVisit: www.watchingwebsites.comVisit: www.bitcurrent.comTwitter: @acroll