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Performance Impact<br />How Web speed affects online business KPIs<br />
Today’s Hosts<br />Hooman Beheshti, <br />VP Product, Strangeloop<br />Alistair Croll,<br />Analyst, Bitcurrent<br />Autho...
10 s<br />1 s<br />100 ms<br />10 ms<br />Zzz<br />!<br />
http://www.flickr.com/photos/spunter/393793587<br />http://www.flickr.com/photos/laurenclose/2217307446<br />
Everything is interwoven.<br />
We’re getting better<br />
Impact of page load time on average daily searches per user<br />
Impact of additional delay on business metrics<br />
Shopzilla had another angle<br /><ul><li>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</li></ul>http://en.oreilly.com/velocity2009/public/schedule/detail/7709<br />
5-12% increase in revenue<br />
Transactional<br />SaaS<br />Buy something<br />(Amazon)<br />Use an app<br />(Salesforce)<br />Media<br />Collaborative<b...
Tying web latency to business outcomes<br />
KPIs<br />http://www.flickr.com/photos/spunter/393793587<br />http://www.flickr.com/photos/laurenclose/2217307446<br />
http://www.flickr.com/photos/mrmoorey/160654236<br />
ATTENTION<br />ENGAGEMENT<br />CONVERSION<br />NEWVISITORS<br />SEARCHES<br />TWEETS<br />MENTIONS<br />ADS SEEN<br />CONV...
It’s time for an experiment<br />
Strangeloop<br />Visitor<br />Webserver<br />Decide whetherto optimize<br />Normalcontent<br />Accelerated<br />Receivepag...
What we learned<br />
Traffic levels<br />
Bounce rate<br />
% New visitors<br />
Average time on site<br />
Pages per visit<br />
Conversion rate & order value<br />
Justifying an investment in performance<br />(<br />)<br />Currentdaily orders<br />Increased<br />conversions<br />Increa...
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Impact of web latency on conversion rates

Research on the relationship between web page latency and web analytics KPIs such as time on site, bounce rate, and conversion, including experimental data from Google, Microsoft Bing, Shopzilla, and Strangeloop

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Impact of web latency on conversion rates

  1. 1. Performance Impact<br />How Web speed affects online business KPIs<br />
  2. 2. Today’s Hosts<br />Hooman Beheshti, <br />VP Product, Strangeloop<br />Alistair Croll,<br />Analyst, Bitcurrent<br />Author of O’Reilly’s Complete Web Monitoring<br />
  3. 3.
  4. 4.
  5. 5.
  6. 6. 10 s<br />1 s<br />100 ms<br />10 ms<br />Zzz<br />!<br />
  7. 7.
  8. 8.
  9. 9. http://www.flickr.com/photos/spunter/393793587<br />http://www.flickr.com/photos/laurenclose/2217307446<br />
  10. 10. Everything is interwoven.<br />
  11. 11. We’re getting better<br />
  12. 12.
  13. 13. Impact of page load time on average daily searches per user<br />
  14. 14.
  15. 15. Impact of additional delay on business metrics<br />
  16. 16. Shopzilla had another angle<br /><ul><li>Big, high-traffic site
  17. 17. 100M impressions a day
  18. 18. 8,000 searches a second
  19. 19. 20-29M unique visitors a month
  20. 20. 100M products
  21. 21. 16 month re-engineering
  22. 22. Page load from 6 seconds to 1.2
  23. 23. Uptime from 99.65% to 99.97%
  24. 24. 10% of previous hardware needs</li></ul>http://en.oreilly.com/velocity2009/public/schedule/detail/7709<br />
  25. 25. 5-12% increase in revenue<br />
  26. 26.
  27. 27.
  28. 28. Transactional<br />SaaS<br />Buy something<br />(Amazon)<br />Use an app<br />(Salesforce)<br />Media<br />Collaborative<br />Click an ad<br />(Google News)<br />Create content<br />(Wikipedia)<br />
  29. 29. Tying web latency to business outcomes<br />
  30. 30. KPIs<br />http://www.flickr.com/photos/spunter/393793587<br />http://www.flickr.com/photos/laurenclose/2217307446<br />
  31. 31.
  32. 32. http://www.flickr.com/photos/mrmoorey/160654236<br />
  33. 33.
  34. 34. ATTENTION<br />ENGAGEMENT<br />CONVERSION<br />NEWVISITORS<br />SEARCHES<br />TWEETS<br />MENTIONS<br />ADS SEEN<br />CONVERSIONRATE<br />GROWTH<br />TIMEONSITE<br />PAGESPERVISIT<br />NUMBEROF VISITS<br />x<br />ORDERVALUE<br />LOSS<br />BOUNCERATE<br />
  35. 35. It’s time for an experiment<br />
  36. 36. Strangeloop<br />Visitor<br />Webserver<br />Decide whetherto optimize<br />Normalcontent<br />Accelerated<br />Receivepage<br />Optimize?<br />Insert<br />segment<br />marker<br />Processscripts<br />Sendanalytics<br />Unaccelerated<br />Googleanalytics<br />
  37. 37. What we learned<br />
  38. 38. Traffic levels<br />
  39. 39. Bounce rate<br />
  40. 40. % New visitors<br />
  41. 41. Average time on site<br />
  42. 42. Pages per visit<br />
  43. 43. Conversion rate & order value<br />
  44. 44. Justifying an investment in performance<br />(<br />)<br />Currentdaily orders<br />Increased<br />conversions<br />Increasedorder value<br />*<br />+<br />ROI(days)<br />=<br />Cost of performanceenhancement<br />
  45. 45. Justifying an investment in performance<br />(<br />)<br />*<br />+<br />0.1607<br />0.0551<br />$10,000<br />$2,158<br />23.17days<br />=<br />=<br />$50,000<br />$50,000<br /><ul><li>Caveats
  46. 46. Your mileage will vary
  47. 47. This is just how to think about it</li></li></ul><li>Conclusions<br /><ul><li>Links between performance and business KPIs are undeniable
  48. 48. By talking the same language, IT and marketing can finally agree on what to do about it
  49. 49. Changing from “X times faster” to “$Y more money” makes the business care
  50. 50. More research is needed</li></li></ul><li>What we need next<br /># ofvisits<br />Optimized<br />0<br />10,000<br />Visitorlatency<br />Different visitors experienced different performance levels.<br />
  51. 51. What we need next<br /># ofvisits<br />21.58%better<br />0<br />10,000<br />Visitorlatency<br />Right now we have a single experiment, and a single resulting business impact.<br />
  52. 52. What we need next<br />Best 5%<br />Worst 5%<br /># ofvisits<br />Optimized<br />0<br />10,000<br />Visitorlatency<br />Visitors who were optimized fall into a range – the 5th to 95th percentile<br />
  53. 53. What we need next<br />24%<br />18%<br />14%<br />Gajillions<br />12%<br />9.5%<br />$ perday<br />0<br />0<br />10,000<br />Visitorlatency<br />If we have several experiments, we can understand the relationship better.<br />
  54. 54. What we need next<br />Gajillions<br />$ perday<br />0<br />0<br />10,000<br />Visitorlatency<br />Every web business has a curve like this hidden inside it.<br />
  55. 55. Questions? (Submit your questions using the GoToWebinar question tool)<br />
  56. 56. More information<br />Visit: www.watchingwebsites.com<br />Visit: www.bitcurrent.com<br />Twitter: @acroll<br />

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