Load Testing Prior to Holiday Season Rush Can Help Reduce Cart Abandonment Rate by up to 18%

The holiday shopping season is rapidly closing in and e-commerce sites and services all over the world are preparing for one of the busiest times of the year. With expected traffic spikes on November 29th – Black Friday and December 2nd – Cyber Monday.

The pressure to capture every last sale is even greater this year as it is the shortest holiday shopping season in over a decade. 

To understand the grandeur of what is at stake if you fail to meet customer performance demands, let’s recap some stats.

• According to comScore, approximately 57.3 million Americans visited at least one online retail site on Black Friday 2012 (an 18% increase from the year prior).
• On Cyber Monday 2012 alone, sales reached 1.98B and are expected to increase by 17% in 2013.

When it comes to shopping chart abandonment, the stakes get even higher…..

• Some US analysts expect to see a shopping cart abandonment rate peak of 88% in 2013 (~6% above the average for the rest of the year).
• The total cost of abandoned shopping carts for online retailers has been estimated at more than $18 billion per year.
• Even a 1% reduction in cart abandonment can lead to a notable increase in revenue, a $2.6 billion increase in relation to total 2013 U.S. online retail sales forecast.

At this point, you might be asking yourself, but what impact does website performance really have on all this anyway? The answer is, quite a lot actually.

According to Tammy Everts’ blog, one out of five of those carts are abandoned due to slow website performance. Simply put, 18% of shoppers will abandon their cart if pages are too slow. If 18% of that loss can be attributed to slow pages, then this correlates to more than $3 billion in lost sales (across US e-commerce sites) due to poor performance.

Now, while some e-commerce sites are making appropriate preparations for expected visitor load, others are just holding their breath and suffering from ‘the ostrich effect‘ – basically just avoiding to deal with an obviously risky business situation by pretending it does not exist.

Instead of burying their heads in the sand, they should just accept that the risk is very real and extremely probable and start performance testing before it’s too late.

It’s almost embarrassing if they don’t, since cloud-based load testing tools are so accessible and affordable. It was somewhat excusable when you had hardware to install and licenses to buy, but nowadays… seriously?!

In fact, our recent State of Web Readiness report found that while shoppers demand page load speeds in the milliseconds, most e-commerce sites have response times closer to 8 seconds. This could be due to the fact that those same  e-commerce site owners surveyed overestimated their website capacity by roughly 3.4 times.

A lot of companies are preparing to meet the upcoming traffic spike and increased activity by taking appropriate measures. Some of those measures are quite easy, we wrote about a few of them a while back in another blog post called “Different types of website performance testing – Part 3: Spike Testing“.

On the up side, you already have some general data about what to expect in terms of traffic spikes. Simply knowing how traffic will trickle in on those key dates will help you to configure more realistic test execution plans.

But make no mistake, if you don’t try out the durability of your site you can’t really be sure that the correlation of all active components of your services – 3^rd parties resources or content, feeds, content management platforms, databases and internal systems – will provide for an acceptable customer experience.

Basically what we’re saying is: don’t pull an ObamaCare, load test before its too late.

Listen to Load Impact CTO and CEO discuss performance testing  prior to holiday ramp-up on the Rackspace Google Hangout.

 

Website Owners’ Overestimation of User Capacity by 3.4 Times Kills Profits and Customer Retention

An e-commerce website that grinds to halt simply because there are too many customers attempting to gain access at one time is akin to a supermarket with no parking spaces and isles so narrow that only one shopper can enter at a time, while the rest sit outside waiting to enter and make a purchase.

Few website owners would accept such poor performance and potential loss of revenue, and even fewer consumers would tolerate the waiting time. Most would just move on to another site where service is speedy and meets their expectations.

Thankfully a small, but growing, number of website owners have realized that performance management and capacity monitoring are imperative for delivering even a satisfactory customer experience, let alone an exceptional one.

It’s no coincident that roughly 30% of 500 website owners surveyed for Load Impact’s 2013 State of Web Readiness report  which includes data from performance tests of over 5,000 websites, claim to have no stability or performance problems, while about 30% of respondents also said they regularly do preventive load testing before technical changes. Those who foresee the problem take the necessary preventive steps. On the flip side, while nearly 90% of respondents said short response time is either important or very important, 23% of respondents said they don’t monitor the response time on their site at all.

How can such a gap exist when it’s so obvious that optimum performance leads to higher levels of customer satisfaction, increased conversion and greater revenue?

For the less mature e-commerce sites, current performance problems can be seen as both an opportunity and a threat. While some e-retailers are already far ahead, having scheduled load tests to maintain a sub 2 second response time (77% of all respondents believe response times should be less than 2 seconds), most haven’t even come close to realizing they have a problem. An analysis of over 5,000 load tests revealed that the average website owner overestimates capacity by 3.4 times. In fact, the average page load speed for the e-commerce sites analyzed was closer to 8 seconds – nearly twice the average latency of non e-commerce sites studied.

Clearly, big rewards can be reaped by making even small changes to website performance. A 2009 experiment by Shopzilla revealed that decreasing latency by 5 seconds (from 7 seconds to 2 seconds) increased page views by 25% and revenue by 7% to12%. And, according to SEO expert, Jason DeMers, load speed is one of the growing factors in Google’s ranking algorithm.

The Internet giants caught on to the issue of load testing and performance management long ago. Authors and consultants have written books about it, held conferences, and written blogs for years. Google even officially favors fast web sites in its search results, indirectly punishing low performers.

So why are so many e-retailers so slow to catch on about the importance of performance stability?

According to the 2013 State of Web Readiness report, lack of resources is identified as the No.1 reason for failing to monitor and optimize performance levels.  However, this is only a part of the problem.

The real explanation has more to do with striking the right balance between functionality, performance and resources, and the fact that, more often than not, optimizing two of the three means sacrificing the third. Therefore, it is often the misallocation of resources that explains a site’s poor performance. Money and time that should have been spent monitoring capacity and load speed instead went to adding additional, often frivolous, functionality.

The lack of sufficient investment in performance management is extremely common. In some ways, buying performance management services is a bit like buying insurance, you understand why you need it, but if all goes as planned you don’t actually get a chance to see the value.

Being forward thinking enough to buy something so intangible is tough.

Other fundamental website issues, such as security, have slowly climbed the ladder of being class A requirements. Even the most technically illiterate now steer clear of any feature that comes with a security concern. From our vantage point, the time has come to give performance and stability management the same time and attention – if for no other reason than it’s simply smart business.

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Read or share this  infographic based on our study’s findings.