I’m very happy to announce the launch of our newly re-designed Strangeloop website. Not only does the site have a great new design, it also features a nifty tool that I’m pretty excited about:
Our online Speed:Revenue Calculator is a simple tool that lets you toggle your current monthly ecommerce revenue and find out how much more your site could be earning if you improve your page load times.
We got the idea for developing this tool when we realized that, for many of the companies we talk to on a daily basis, this is the most fundamental part of the business case they need to make for addressing their performance issues. It made sense to come up with an algorithm that we could use consistently.
How we came up with our formula
The formula is pretty straightforward: an estimated conversion rate increase of 2.5%. We arrived at this figure when we analyzed and averaged the conversion gains experienced by the most recent 20 customers who implemented Site Optimizer.
I feel that this estimate falls safely on the conservative side, compared with the industry studies performed by Bing, Amazon, Shopzilla, etc. As the diagram below shows, for these companies, performance improvements led to conversion rate increases ranging from 5% to 12%.
(To read the research that led to this chart, see my post Everything you wanted to know about web performance but were afraid to ask.)
Who is this tool for?
This calculator is intended for:
- Performance engineers
- IT people
- Anyone who needs to quantify how site speed affects their company
Why focus on ecommerce revenue?
We could have developed a similar tool for calculating increased page views, customer satisfaction, or other metrics. We may do this some day. But for now, most of the companies that are taking web performance seriously are in the ecommerce space, which is why we chose to focus on this metric.
We recognize that this tool is for ballparking purposes only, but we see that it can have a lot of value for jumpstarting conversations about performance within your organization. And it looks a lot prettier than the back of a napkin.