Why is it not enough for a system to simply work?
Slow Systems, Fast Customer Loss – Business Lessons from Performance Failures
A Familiar Story
A customer walks into a bank to update their address. After taking a number, they wait a long time. Finally, it’s their turn but the clerk looks tense. The system is slow. Every action takes several seconds. The clerk apologizes repeatedly:
“Sorry, the system is a bit slow today…”
Eventually, the address is updated but the customer leaves frustrated. The issue wasn’t with the clerk, but with the experience. Behind the scenes, it’s a classic problem: poor application performance and lack of observability.
The World of Invisible Errors
In the digital world, “it works” isn’t enough. The real question is: how well does it work – and can we prove it?
Two key concepts help us answer that: application performance and observability. (For simplicity, we will refer to application performance as performance.)
Let’s see what performance is.
What Does Performance Mean in Business Terms?
Performance refers to a system’s speed, stability, and scalability. A slow or unstable system:
- Reduces conversion rates
- Increases customer churn
- Damages brand perception
In the banking example, the slow system prevents the clerk from working efficiently, and the customer loses trust.
How Can We Measure System Performance?
System performance shouldn’t be judged by gut feeling alone—it can and should be measured with concrete data. That’s where performance testing KPIs come into play.”
(Learn more about these KPIs)
| KPI | What it Measures | Why it Matters |
|---|---|---|
| Availability | System uptime | Critical for meeting SLAs (Service Level Agreement) |
| Response Time | Time taken to respond to a request | Slow response = poor UX = lower conversion |
| Throughput | Number of users served in a given time frame | Indicates scalability and load capacity |
| Error Rate | Percentage of failed responses | Reflects reliability and quality |
Working vs. High-Performing Systems
| Aspect | Working System | High-Performing System |
|---|---|---|
| Load Time | Acceptable but inconsistent | Fast and consistent |
| Error Handling | Reactive – fixes after the fact | Proactive – early detection and prevention |
| User Experience | Mixed feedback | High satisfaction |
| Business Impact | Complaints, churn, reputational damage | Higher conversion, customer retention |
| Decision-Making Basis | Incomplete or delayed data | Real-time, reliable insights |
💡 What Can You Do as a Business Stakeholder?
Not a developer? You can still influence system performance and transparency:
- Ask about performance: Don’t just ask “Does it work?”—ask “How fast is it?”, “Under what load?”
- Request access to metrics: A good dashboard should serve both IT and business teams.
- Support observability initiatives: These aren’t “extra costs”—they’re long-term investments.
- Use a shared language: Bridge the gap between technical and business teams with common goals and terminology.
- Learn to read the signs: Rising response times or error rates often signal bigger issues ahead.
The Takeaway
Had the bank in our story failed to act, the consequences would have extended far beyond a few frustrated customers:
- Revenue Decline: When systems are slow and transactions are abandoned, customers disengage—leading to direct financial losses and missed opportunities.
- Eroding Customer Trust: Dissatisfaction breeds negative feedback. As frustration grows, loyalty fades, and the brand’s reputation suffers lasting damage.
- Mounting Employee Stress: Constantly dealing with system issues drains morale. Over time, this leads to burnout, reduced productivity, and higher staff turnover.
- Strategic Setbacks: Poor performance undermines data-driven decision-making and weakens the company’s ability to compete in a fast-moving market.
In today’s digital landscape, competitive edge isn’t just about launching new features—it’s about how reliably and efficiently your systems perform. And just as importantly, whether you can demonstrate that performance with confidence.
This isn’t solely the responsibility of IT. It’s a shared commitment—one that involves every stakeholder working toward sustainable business success.
