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Methodology for performance monitoring benchmarks and revenue estimates

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Best on Noibu benchmark

The “Best on Noibu” benchmark used in Noibu's performance monitoring is an ambitious but achievable performance target for ecommerce brands. To define “Best on Noibu”, we evaluate Largest Contentful Paint (LCP) for every midsize and enterprise domain monitored on our platform, and set the benchmark based on the top 25% of these domains. 

Estimating Revenue Loss Due to Slow Loading Speed (LCP)

It is well-established that website performance impacts ecommerce conversion rates and average cart value (ACV). Noibu conducted primary research to quantify this impact specifically for midsize and enterprise ecommerce businesses using our platform.

Relationship between LCP and Bounce Rate

Noibu’s study focused on the correlation between loading speed (LCP) and bounce rate, defined as the percentage of sessions that end after a single page view. While understanding conversion rate was the ultimate goal, analyzing bounce rate as a direct contributing factor to conversion rate helped isolate the impact of loading speed on user behaviour without other confounding factors.

Key findings from Noibu’s analysis based on nearly 35 million pageviews across a range of industries:

  • Fastest pages: average bounce rate of 30%
  • Slowest pages: average bounce rate of 50%

This demonstrates a statistically significant correlation between bounce rate and Loading Speed (LCP).

Revenue Loss Estimates for poor loading speed (LCP)

A common challenge for ecommerce teams is determining the return on investment for performance improvements. Noibu provides revenue loss estimates associated with slow LCP to help businesses prioritize site speed optimizations. Our model considers the following factors:

  • Improvement potential: The gap between a given page or page group’s current LCP and the “Best on Noibu” benchmark. Slow pages have the most improvement potential.
  • Importance of the page: The relative traffic of a page or page group within the site’s overall traffic.
  • Impact of loading speed on revenue: Noibu estimates revenue increases for each 500ms improvement in sitewide loading speed (LCP). This estimate is based on the study above along with industry research on site speed’s effect on conversion rate and ACV.

Based on these factors, revenue loss for LCP performance degradation is calculated as:

Revenue Lost = [improvement potential of selected page(s)] x [importance of selected page(s)] * [impact of loading speed on revenue] * [revenue in the given time period]

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