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The Economic Impact of Web Performance: Why Businesses Underestimate Its Value

By

B56c

9mo ago· 9 min readenInsight

Summary

The article discusses the undervaluation of web performance in businesses despite its significant economic impact. It highlights how poor performance is widespread, even among large companies, and cites a case study from Kroger where optimizing JavaScript payloads could save millions annually. The piece argues that performance improvements could lead to unpredictable but substantial gains in user behavior and revenue.

Key quotes

· 4 pulled
Each KB of JavaScript sent to the client was costing Kroger $100,000 per year, as a lower bound.
Assuming they could rebuild the site to hit Alex Russell's target of 450 KB, that's conservatively $435,000,000 per year.
Dramatic gains in performance wouldn't just lead to predictable linear gains in revenue. They would inspire unpredictably large changes in user behavior.
Why on earth would any company leave that on the table?
Snippet from the RSS feed
Web performance is one of those things so fundamental to businesses that you would expect them to absolutely nail it. If consumers care about performance, which seems to be true, then in an efficient, competitive market you would expect businesses t

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