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Noble Truth #2: Poor Performance Will Halt Your Business

Ipswitch Blog| March 15 2015

| monitoring

Where the average person deals with the inconvenience of an Internet outage or poor performance, a business sees millions in losses. They see customers who are never coming back. And employees who continually lose hours in productivity. So it’s not an inconvenience or a nuisance. When your IT infrastructure and apps are performing poorly, it can actually bring your business to halt.

No pressure, IT department.

We joke, but this is an important point to highlight. IT’s role has never been more critical to a business’s success. Why? Because the systems and apps they manage play a part in almost every aspect of the business and its operations – whether it’s facilitating transactions for customers or giving employees 24/7 access to the data they need. The list of use cases is really endless, but they all require IT systems that perform as expected, when expected.


Poor Performance. Sad Face. Poor network performance = sad face


This truth – which IT administrators know all too well – is one of the 9 Noble Truths of Network, Server and Application Monitoring from our latest eGuide series. As we explain in the full version, the basic idea behind this truth is that IT systems performance can either give you a competitive advantage or lead to your downfall. Here’s a quick summary and example of both scenarios.

Reduce Conversion Rates with Better Performance

With slower transactions, you can expect a reduction in conversion rates. With poor server responsiveness and performance, you can expect frustrated customers, disgruntled employees, and poor user experiences. Oh yeah, and millions in potential losses depending on your industry:

Studies show that a one-second delay in B2C website response can correlate to a 2.1% decrease in cart size, a 7% decrease in conversions, an 11% decrease in page views and a 16% decrease in customer satisfaction. If your site earns $100,000 per day, that equates to a loss of $2.5 million in sales. Similarly, accelerating site performance translates into significant sales gains.


Noble Truth #2 Infographic Noble Truth #2 Infographic


Slow response times can be incredibly damaging to your business’ bottom line. In fact, they can be just as damaging as full-on outage. Therefore the ability to assure top-notch IT availability and performance is not only essential to end-user satisfaction, it should be considered a priority aspect of every IT department’s role.

Enabling Competitive Advantage

The good news is that 70 percent of organizations believe that IT infrastructure plays a significant role in helping them gain a competitive edge, optimizing revenue, or optimizing profit. These organizations may be onto something, as some of the biggest consumer sites in the world support these claims.

Take Yahoo! for instance. The company has estimated that every 400 milliseconds faster load time delivers a 9 percent increase in site traffic. That’s a huge number, especially if some of that traffic has the potential to result in a sale or transaction. This is just one of hundreds of possible ways that an optimized IT infrastructure can give an organization a leg up on the competition.

Discover how to enable a competitive advantage for your organization by following the leading IT infrastructure practices discussed in 9 Noble Truths of Network, Server and Application Monitoring.


Topics: monitoring

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