Sep 28

Get The Hard Numbers on How Website Speed Affects Your Conversion Rates

For anyone who thinks that conversions are all about lead generation and SEO content marketing, think again.  The entire marketing work-flow on a website is a much bigger, complicated animal than that.  What’s worse is that one of the biggest factors in conversions is not only overlooked by webmasters—it’s not even known.  We’re talking, of course, about website speed.  It’s not just something for geeks and gamers anymore—it’s vital to every day business operations and sales for any company that wants to stay competitive.

Get Your Speed Up or Go Home

Website speed is all about providing a better user experience.  When you do that, you get more engagement, higher conversions and now, a better ranking in search engines.  Put those benefits all together and you can see why website speed matters so much when it comes to creating a more effective website.

In fact, website speed is a fairly good indicator of a successful website (as long as the site is correctly setup for sales).  With the speeds of Wi-Fi networks constantly on the rise, viewers are demanding faster and faster website speeds from every site they visit.  There is no more “understanding” that the site has a lot of gifs or large content.  Webmasters are expected to have figured out ways around this by now.

The Numbers Don’t Lie

Of course, this is nothing new.  Amazon has been reporting for years that for every 100 milliseconds of latency a website experiences, a 1% loss in sales occurs.  This translates into between 7% and 10% lost sales for every second that your website takes to load!  Walmart repeated this study on their own site and found that each second of loading speed they added to their website, they experienced a 2% increase in conversions!

Realistically speaking, websites should aim for a 2-4 second loading time for their page.  The faster, the better. If you’re over 7 seconds, you’re losing a substantial amount of sales since viewers are likely to just click “back” to the search engine result pages (SERPs) or perform a new search altogether.

Here are some other numbers to sink your teeth into:

  • Almost 50% of all online surfers expect a load time of less than two seconds
  • Almost 60% of people will abandon a website after 3 seconds of load time
  • 75% of users will leave for a competitor’s website if delays are occurring

As if that weren’t enough, compare a site that loads in 3 seconds and one that loads in 5 seconds with one that loads in 1 second:

  • The 3 second site gets 22% fewer page visits, a 50% higher bounce rate and garners 22% less conversions than the 1 second site
  • At 5 second load times, the numbers drop to 35% less page visits, a 105% higher bounce rate and a whopping 38% fewer conversions than the 1 second page.

The numbers just don’t lie: the faster your site, the more views you will get, the less people “bounce” from your site and the more conversions you will make.

The Impact Website Speed Has on Conversions

More pointedly, website speed has a direct effect on the amount of conversions your site is turning.  While it might not seem too significant that only 8% of people consider slow loading time as the reason they abandon purchases, consider the following numbers for the real story:

  • Decreasing a page’s loading time from eight to two seconds increases the site’s conversion rate by 74%
  • Simply moving to a faster hosting service can improve your conversion rates significantly
  • Mozilla Firefox took 2.2 seconds off of their landing pages and increased their download conversions by 15.4% (which is equivalent to 60 million downloads)
  • Amazon reports a 1% revenue increase for each 100ms of website speed they improve upon

Taken into account, the 8% seems a lot bigger now, especially in the face of Mozilla’s impressive numbers.  In fact, even a fraction of a percent is too much business to lose for something as simple to fix as a slow website.

Website Speed Improves Your Rankings

Further, website speed is now playing a larger factor than ever in rankings.  A fast website indicates good customer experience and lower operating costs, two things that Google search engines love.  Plus, faster websites are able to be crawled and indexed faster, making them favorites of search engines.  As we all know, search engines do in fact play favorites.  This is one way to take advantage of that.

To find out more about how improving your website speed can help your conversions, your search engine rankings and of course, your bottom line, contact us right now and don’t let a slow website slow your business down.