Online performance is Business Performance
Develop | Posted February 02, 2011

Last year, TRAC Research and Supreme School Supply joined us in presenting a webinar called Online Performance is Business Performance, which offered compelling research and customer data about the impact of Web application performance and user experience on bottom line results. We weren't able to publish the audio from that event, but the results continue to be relevant to all businesses that interact with customers and other constituencies on the Web, so I wanted to recap the data for you now.


End user expectations for high availability and a fast, feel-good user experience are ever-increasing. Industry research over the past ten years has demonstrated that users' frustration threshold and the amount of time they are willing to wait for a Web page to load is steadily decreasing, dropping from eight seconds in 2001 to 5.1 seconds in 2008 to two seconds in 2009.


A widely-publicized 2008 report from Aberdeen indicated that a one-second delay in response time could cause an 11 percent decline in page views, a 7 percent drop in conversions, and a 16 percent decrease in overall customer satisfaction.


During our webinar, Bojan Simic, the founder and principal researcher of TRAC Research, presented the results of his latest research, conducted in the spring of 2010. Here's what he found:




    • 4.4 seconds is the average delay in website response times when business performance begins to decline.



    • $21,000 is the average revenue loss for one hour of website downtime.



    • $4,100 is the average revenue loss of an hour of website slowdowns.



    • Website slowdowns occur 10 times more frequently than website outages.



Based on these findings, we can deduce that website slowdowns can have twice the revenue impact on an organization as an outage. Probably, in part, because companies are now better at managing site availability.


Steve Lubahn, General Manager of Supreme School Supply, experienced first-hand the effect a slow-moving website could have on business performance. Steve saw that as his company's page load time increased, conversion rates dropped noticeably. In summer 2010, he decided to do something about it. By optimizing his site, Steve was able to reduce his site's average response time from 4.5 to 2.5 seconds. The business results were staggering:




    • 46 percent increase in page views



    • 40 percent increase in time on site



    • 12 percent decrease in bounce rates



    • 74 percent increase in average order size



And perhaps the most important ROI indicator: 219 percent increase in revenue!


The inescapable truth is that online performance is business performance. What are you doing to ensure your site is performing well for your users?


Watch the full slideshow of results below.



By submitting this form, you agree to our
Terms of Use and Privacy Policy

Thanks for Subscribing

Keep an eye on your inbox for more great content.

Continue Reading

Add a little SmartBear to your life

Stay on top of your Software game with the latest developer tips, best practices and news, delivered straight to your inbox