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Ask HN: Response Time vs. Conversion Rates?

2 pointsby crivabeneover 8 years ago
Hello HN!<p>I am frequently asked to provide some financial justification around doing certain things to improve response time of web applications, especially in the e-commerce space.<p>I usually end up building a model based on response time vs conversion rate, showing how the reduction (or increase) of the first is causing a change to the latter.<p>I base the estimates on the three different models:<p>a) Amazon, where a 100ms increase in latency has a 1% hit on revenues [0] b) Google, where a 0.5 seconds increase in latency decreases traffic by 20% [1] c) Walmart, where a 1 second reduction in the response time causes a 2% increase in conversion rates and for every 100ms they grow incremental revenues by 1% [2]<p>All those numbers have been circulating from multiple sources and shown in a number of presentations, but they&#x27;re all fairly dated (some of them are from 2006!).<p>If you do, how do you handle this task? Do you have more recent statistics to base models on?<p>Thank you!<p>[0] http:&#x2F;&#x2F;blog.gigaspaces.com&#x2F;amazon-found-every-100ms-of-latency-cost-them-1-in-sales&#x2F;<p>[1] http:&#x2F;&#x2F;glinden.blogspot.com&#x2F;2006&#x2F;11&#x2F;marissa-mayer-at-web-20.html<p>[2] http:&#x2F;&#x2F;www.webperformancetoday.com&#x2F;2012&#x2F;02&#x2F;28&#x2F;4-awesome-slides-showing-how-page-speed-correlates-to-business-metrics-at-walmart-com&#x2F;

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