Does WooCommerce Hosting Quality Impact ROI? Case Study

One of our top recommendations for improving your WooCommerce site performance is moving to a quality host.

Clients often ask “what kind of gains will I see if I spend $500 more in hosting per month?” – today we have an answer based on real data!

Will you make more money if you change host? Probably…

Will your conversion rate improve if you use quality WordPress hosting? Very likely!

Mark was on a very popular cloud hosting solution for his WooCommerce store that sells surf clothing in Australia.

Despite its popularity, the store felt slow and the conversion rates were not very impressive.

Using New Relic we could see the average application response time was 2.9 seconds. The browser load time was about 5.5 seconds.

That means the Largest Contentful Paint (LCP – AKA the conversion money metric) could not be faster than 2.9 seconds, in fact it was closer to 6 seconds on a 3G connection according to Google’s field data from real users.

Using Think with Google’s tools – we adapted the LCP ROI Calculator here for easy access – we can find out how long it takes for Mark’s Australian audience to be able to purchase anything: almost 6 seconds!

Using the ROI calculator, assuming Mark gets 10,000 visitors a month with a 2% conversion rate and a $200 average order value, if we reduce the LCP from 5.9 seconds to 4.9 seconds, Mark is likely to earn $10,000 extra revenue per year.

If we go one step further and improve the LCP to 4 seconds (totally possible and achievable!), Mark now has a chance of earning $20,000 extra every year.

Let’s see what happened when we changed Mark’s hosting to an enterprise solution that cost an extra $500 per month.

According to New Relic, the server response time is almost just 1 second now! And the browse load time is 3 seconds which means LCP is also 3 seconds.

In the ROI calculator for a faster site, this leads to a potential of $36,000 extra in revenue every year!

Would you invest $6000 a year if you made $30,000 extra in revenue? Seems like a no-brainer to us 🙂

We often see clients being very frugal with their hosting which ultimately costs them money and conversions.

The old saying goes “you have to spend money to make money” and WooCommerce is no exception.

Performance = money.

Even if you change to a more powerful host and revenue does not increase, you can always switch back to your old provider.

Do you want to find out if a quality host will improve your conversion rate and bottom line? Let’s find out together.

Work with Pros!