It’s that time of year again. Imagery of turkeys and cornucopias have started to litter sidewalks and clutter isles in retail outlets. Children build lists for Santa Claus and parents scour the web in search of this year’s hottest new toy.
Yes, it’s holiday season. Consumers are about to open their wallets in a big way over the next two months as consumer spending reaches the highest points of the year. Ecommerce Retailers must ensure that they are adequately prepared for the load of traffic about to hit their websites.
The State of eCommerce in 2013
IBM’s seventh annual holiday readiness report detailed many startling trends related to eCommerce buyers:
- eCommerce sales have increased 10% year over year
- Mobile sales for Black Friday and Cyber Monday leapt 43% and 55% respectively over prior year
- Average order value and items per order reach new peaks
- Consumer attention hits all-time lows as average session length declines and percentage of single page sessions increase
Addressing Consumer Attention Concerns
Wait, what was that last piece? Yes, today’s eCommerce market is more vibrant than ever before with a multitude of niche/specialized outlets and storefronts for the consumer to choose from. However, while online shopping has grown in popularity, user expectations of online retailers have similarly increased. Check out these numbers:
- In 2013, the average bounce rate per website was over 34%, up from the 2011 average of 28%.
- The average session length on an eCommerce site declined 40 seconds from previous year
- Page views per session declined year over year from 2011-2013 from 9 to 7 pages
As online sales make up a larger percentage of a company’s revenue, a functioning and fast website is essential to improving customer conversion and retention rates. Let’s take a look at some of the ways website performance can affect conversion rates and revenue.
Optimization and Speed
Slow speeds play a huge role in user abandonment on a website. A Kissmetrics study found that 40% percent of shopping users who experience load times of 3 seconds or more will abandon a website.
There are hidden costs as a result of a broken or slow website, including:
- Website abandonment
- Loss of repeat purchases and customer loyalty
- Negative brand equity
- Impaired employee productivity
- Loss of advertising revenue
More than $3 billion in lost sales due to poor performance.
Of the total shopping carts abandoned on the web every year, 18% is attributed to slow pages which correlates to more than $3 billion in lost sales (across US eCommerce sites) due to poor performance. The revenue an eCommerce company can lose from poor performance makes investing in performance tools a worthwhile necessity.
Downtime and Reliability
Downtime on a website results in a significant loss in sales and in customer equity. If a customer experiences downtime their first time using a website, they are highly likely to leave for a competitor and may never return. Even for returning customers, downtime closes a door for future sales.
Improving Performance: What’s out there?
Once you’ve decided that improving web performance is worth the investment, what do you invest in? Two predominant solutions exist in the front-end web performance space. You can monitor and measure the ongoing health and reliability of your site as it relates to the end-user with Real User Monitoring or Synthetic Monitoring.
Real User Monitoring (RUM)
RUM provides value in an omni-channel environment, as it captures the experience of all users accessing your site from any device and geographic location. Most eCommerce marketers already have access to a form a real user monitoring if they utilize Google Analytics.
There are apparent limitations to this solution when it comes to diagnosing the source of the issues on your site. For instance, waterfall charts are not generated. It also lacks the ability to alert you to your problems rapidly.
For websites that are receiving heavy traffic on a regular basis a RUM solution will gather excessive data. This can hamper your ability to decipher what is actually important.
During peak periods, such as the holiday season, the vast amount of information being gathered can prevent you from being able to pinpoint certain problems.
Another technique for monitoring web performance is called Synthetic monitoring. Synthetic Monitoring uses real browsers to access a website or application and mimic consumer actions. Synthetic Monitoring allows organizations to quickly and preemptively diagnose website problems and errors.
Because of the ability of synthetic monitoring tools to perform transactional tests, organizations can identify functional issues on their site, such as the inability to complete a checkout process. Most tools, like Rigor, can alert users if the site is slow or experiencing downtime.
This preventative approach puts the company in the driver’s seat of their performance monitoring. It allows them to decrease the probability that negative effects will be incurred by end users and customers.
Synthetic Monitoring, unlike RUM, it does not capture actual user interactions. However, due to the controlled nature of synthetic monitoring, organizations can more quickly isolate and identify the causes of performance issues to ensure that any service disruption that occurs is resolved expeditiously.
In an increasingly competitive eCommerce landscape where holiday sales account for nearly 20 percent of total annual revenue, retailers must ensure that their websites are adequately prepared for the holiday rush. Consumer attention is at an all-time low, while market saturation is at an all-time high meaning websites must perform at a high level in relation to their peers.
Leveraging performance tools is a must and understanding your options is the first step to preparing your website for the chaos that is the holiday season.
Unsure how fast your site is? Try our free web tool, webperformancegrader.com, to see how your website performance stacks up against key competitors.
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