?? Let's talk about the impact of Load Testing and Early Bug Detection on improving Conversion Rates ?? and Ads Campaigns ?? for midsize e-commerce ????
Just clear and simple calculations:
Initial Scenario:
? Ad Budget: $30,000
? Current Conversion Rate: 3%
? Average Order Value (AOV): $100
? Traffic from Ads: 100,000 visitors
? Current Page Load Time: 4 seconds
? Retention Rate: 30%
Calculations:
1. Increase in Conversion Rate:
Current Conversions: 100,000 visitors * 3% conversion rate = 3,000 conversions
New Conversion Rate: 3% * 1.07 (7% increase) = 3.21%
New Conversions: 100,000 visitors * 3.21% conversion rate = 3,210 conversions
2. Increase in Revenue:
Current Revenue: 3,000 conversions * $100 AOV = $300,000
New Revenue: 3,210 conversions * $100 AOV = $321,000
Revenue Increase: $321,000 - $300,000 = $21,000
3. Improvement in Ad Efficiency:
Current CPA: $30,000 / 3,000 conversions = $10 per conversion
New CPA: $30,000 / 3,210 conversions = $9.34 per conversion
CPA Reduction: $10 - $9.34 = $0.66 per conversion
4. Increase in Retention Rate:
Current Retention Rate: 30%
New Retention Rate: 30% + 5% = 35%
5. Impact on Repeat Customers:
Current Repeat Customers: 3,000 conversions * 30% retention rate = 900 repeat customers
New Repeat Customers: 3,210 conversions * 35% retention rate = 1,124 repeat customers
Increase in Repeat Customers: 1,124 - 900 = 224 repeat customers
6. Web Core Vitals Impact:
Google’s Web Core Vitals are critical metrics for user experience, including:
?? Largest Contentful Paint (LCP): Measures loading performance. LCP should occur within 2.5 seconds of when the page first starts loading.
?? First Input Delay (FID): Measures interactivity. Pages should have an FID of less than 100 milliseconds.
?? Cumulative Layout Shift (CLS): Measures visual stability. Pages should maintain a CLS of less than 0.1.
Improving these metrics can significantly impact user experience and SEO rankings, leading to better performance across various metrics.
Conclusion:
By improving website speed through load testing and reducing the load time by 1 second, the business with a $30,000 ad budget can achieve the following:
? Increase in revenue by $21,000, thanks to higher conversion rates.
? Reduction in cost per acquisition by $0.66, making the ad spend more efficient.
? Improvement in user retention rate by 5%, leading to 224 additional repeat customers.
? Enhanced Web Core Vitals, leading to better SEO rankings and overall user experience.
These improvements highlight the significant impact that optimizing website performance can have on overall business metrics, enhancing the return on investment for digital ad campaigns.