A 1 Second Delay Costs $1.68 Billion a Year
Slow site speed kills your online revenue. Latest research shows online retailers are worse than ever at understanding this simple revenue boosting concept.
Amazon recently calculated that for every second delay in loading its web pages it loses $1.68 billion a year.
I’ve demonstrated the profound impact site speed has on website revenue over the years but the message just isn’t getting through. (Blink and You’ll Lose a Customer, 55% of Shoppers Abandon Poor Performing Sites)
Speeding up your website is one of the simplest things a business can do to increase its online revenue.
It delivers a permanent and perpetual increase in online business.
Unfortunately most businesses and web developers are either oblivious to this simple money making strategy or just don’t care.
Australian Business is Still Clueless Online
As the recent ClickFrenzy debacle demonstrated, businesses that should know better, simply don’t invest in reliable online services and infrastructure.
Even those businesses who didn’t participate in ClickFrenzy directly experienced problems due to inadequate or inferior infrastructure.
Their failure to do what works is mystifying.
It’s not like the knowledge or solutions and services aren’t available in Australia, they are.
These days businesses are spoilt for choice with a plethora of content distribution networks, load testing, load balancing and other scalable solutions to help all businesses from the small to the large.
There are also plenty of people who have been working in online business for the past two decades who could have advised them on how to do the job properly.
Of course that level of senior advice has a cost, and there’s always somebody else who’s prepared to do it on the cheap.
However, Australian businesses are not alone in being slow to invest and adopt the online techniques that actually work.
Websites 10% Slower in 2012 than 2011
A recent report by Strangeloop entitled State of the Union: Ecommerce Page Speed and Web Performance finds that web pages are nearly 10% slower this year than they were in 2011 at nearly 7 seconds.
And this is despite ever faster broadband speeds. (I’ll discuss the reasons for this in another post, maybe.)
But the key message from all of this is that online business owners and marketers don’t get it. They just aren’t using the available tools or implementing operational best practices.
And that ignorance or reluctance is costing them billions
Customers Have No Tolerance for Slow Websites
As the following graphics from Smartbear show, 57% of your customers will abandon your site if it takes more than 3 seconds to load.
A 1 second increase in load time results in:
- 11% fewer page views
- 16% decrease in customer satisfaction
- 7% loss in conversions
Imagine the effect of that every day for a year. It’s one of the many reasons online businesses aren’t performing anywhere near as well as they could be.
And until business takes online seriously and invests in both infrastructure and staff who really know what they are doing, it is unlikely to change.
Tips and Tricks to Speed Up Your Site
"AUSTRALIA'S retail industry is kidding itself if it sees its failed online super-sale as anything other than a disaster, a further blow to a struggling sector crucial to the wellbeing of the economy.
They can try to spin it as much as they like, but the so-called Click Frenzy was a spectacularly botched opportunity that further eroded consumer confidence in some of Australia's biggest retailers"
Bruce Guthrie, Sydney Morning Herald
Posted in: Ecommerce,Strategy