How to measure the business impact of web performance

Post on 15-Jul-2015

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Measuring the Business Impact

of Web Performance

1

Buddy Brewer [@bbrewer]

2

5

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

5

Why Care About Performance?Slow load times also damage reputation

5

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

6

How Should I Approach Performance?Performance optimization in three steps

How fast am I? How fast should I be? How do I get there?

7

How fast should I be?The industry has lagged here

4

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

Analytics

8

Tracking ConversionsWhat’s a “Conversion”?

Orders

Shares, Likes, Comments

Page Views

Subscriptions

Signups

Dealer Locators

Game Item Purchase

9

Measuring the impact of speed on businessExample 1: Impact of speed on conversion rate

9

Measuring the impact of speed on businessExample 2: Impact of speed on bounce rate

10

This Means We Can Measure PatienceAnd 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

12

Potential vs Realistic GoalsImpossible to achieve ideal speed at 100th percentile

Median Load Time: 4.12s

Total Conversion Rate: 2.7%

Conversion Rate @ 3.0s: 4.9%

13

Refining Performance GoalsWe 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

Improving from

4.12 sec @ 50th percentile

to

4.0 sec @ 60th percentile

=

$6M / month

100% data collection

Stored forever

Processed in real time

Correlated to things that matter

© 2014 SOASTA CONFIDENTIAL - All rights reserved. 26

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Customer Spotlight - StaplesPerformance 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 Assessmentwww.soasta.com/performance