Site speed is a website feature that plays a key role in influencing its revenue. While it doesn’t directly affect the finances of the web platform, it certainly contributes to the circumstances that have a direct impact on the site’s revenue.
First things first, a website’s site speed is pretty much a semantical variation of its loading time, which is the amount of time it takes its pages to load. This can be crucial for the user experience of its visitors.
Introduction to Site Speed
The main objective of a website is to be a portal through which a business carries out transactions with internet users. Whether the website is a company site, an e-commerce site, or even a blog, it can be used as a marketing medium to reach out to target customers.
The internet functions to deliver convenience to users. One way it achieves this is by facilitating the swift browsing of web platforms. If a website, however, hinders this default setup due to its loading speed, it can have a negative impact on its revenue.
The average recommended loading time for websites is 3 seconds while anything that surpasses 5 seconds is considered not ideal.
How Does Site Speed Affect Revenue
If one understands the workings of the internet, it is not difficult to grasp that the loading speed of a site does indeed have an effect on its bottom line. The effect becomes more apparent if the website is actually a platform for commercial transactions.
Here are some obvious ways site speed actually affects the revenue pulled in by a website.
Site Speed Determines the Duration of Transaction
This is pretty obvious when it is logically assessed. If a website is used to carry out any form of commercial activity then the speed with which the transactions are completed is highly dependent on how fast the website loads.
Depending on what the average timeframe of each transaction on a website is, it can be further increased if the site speed is very low and its load time is too high. This will definitely affect the site’s revenue when such slow transactions are repeatedly carried out.
The accumulation of such slowly executed transactions won’t only affect the website’s current revenue, it will also lead to a reduction in possible earnings in the future. That is why it is very important for a website to put mechanisms in place that will make visitors complete commercial transactions in a flash.
Site Speed Directly Affects Conversion Rate
Any website that actively participates in commercial transactions requires a decent conversion rate if it is to grow its revenue. This means the percentage of visitors who actually make purchases or request a service must be high.
Conversion rate is an established KPI (Key Performance Index), which is why it is a vital metric for determining the success of a website. This is because web traffic alone doesn’t give an accurate assessment of a site’s revenue status. A site may have a lot of traffic but have a low conversion rate and a site with modest traffic may successfully convert over half its visitors.
One major factor that has been proven to affect a site’s conversion rate is its loading speed. This can be attributed to the fact that internet users are always time conscious when visiting websites. When web visitors enter a website that slowly loads its page, many of them become dissuaded by the apparent flaw they have encountered and head straight to the pages of properly functioning competing sites.
This leads to a drop in the revenue that is brought in by the website since its conversion rate has drastically plummeted.
Site Speed Directly Affects Bounce Rate
The bounce rate of a website is the rate at which visitors to the site quickly leave without moving to another page or completing any task. This is interpreted as the verdict of visitors on the quality of the website.
Ideally, the bounce rate of a website should be very low and close to the 50 percentile. A lot of contributing factor can, however, lead to an increase in the value. One apparent factor that influences the bounce rate of a website is its loading speed.
Since internet users ferociously loathe websites that are too slow to load, it isn’t farfetched to assume that such sites with have very high bounce rates. A high bounce rate adversely affects the revenue of the website as it eliminates the chances of converting a visitor into a committed customer.
Site speed should be among the features that are prioritised by a web developer when building a website. In fact, it should come first before all of the site’s aesthetics are handled. This is because the role it plays directly affects the commercial viability of the website.