Methodology7 min

Technical vs Business Metrics

CPU and latency matter, but what does the business understand? Learn to connect technical metrics with business impact.

Engineers speak in milliseconds, percentiles, and CPU utilization. Executives speak in conversion, revenue, and customer satisfaction. This disconnect is one of the biggest barriers to performance investments.

This article shows how to translate technical metrics into business language — and why it matters.

Performance only gets priority when it speaks the language of business.

The Disconnection Problem

Typical conversation

Engineer: "We need to invest in optimization. Our p99 latency is at 800ms."

Executive: "What does that mean for the business?"

Engineer: "It's... bad for performance."

Executive: "We have other priorities."

Why this happens

  1. Different languages: technical vs commercial
  2. Different priorities: stability vs growth
  3. Different metrics: technical vs financial
  4. Different horizons: short term vs long term

Common Technical Metrics

Infrastructure

Metric What it measures
CPU utilization Processing usage
Memory usage Memory consumption
Disk I/O Disk operations
Network bandwidth Network usage

Application

Metric What it measures
Latency (p50, p95, p99) Response time
Throughput Requests processed
Error rate Failure rate
Availability Uptime

Database

Metric What it measures
Query time Query duration
Connection pool usage Connection usage
Lock wait time Contention
Replication lag Replica delay

Business Metrics

Revenue

  • GMV (Gross Merchandise Value)
  • Revenue per user
  • Average order value
  • Cart abandonment rate

User

  • Conversion rate
  • Bounce rate
  • Session duration
  • User satisfaction (NPS, CSAT)

Operations

  • Customer support tickets
  • Churn rate
  • Cost per transaction
  • Time to resolution

Connecting the Worlds

Translation framework

Technical metric
    ↓
User impact
    ↓
Business impact
    ↓
Dollar value

Examples

Latency:

Latency p95: 500ms → 200ms
    ↓
Page loads faster
    ↓
Less abandonment, more conversion
    ↓
+2% conversion × $10M/month = +$200K/month

Availability:

Availability: 99.5% → 99.9%
    ↓
Less downtime
    ↓
Fewer lost sales
    ↓
3.6h/month of avoided downtime × $50K/h = +$180K/month

Errors:

Error rate: 2% → 0.5%
    ↓
Fewer failing transactions
    ↓
Fewer support tickets, more sales
    ↓
1500 avoided errors × $30/ticket = +$45K/month

Case Studies

Amazon

Discovered that each 100ms of additional latency cost 1% in sales.

Latency +100ms = Sales -1%
For Amazon, 1% = billions of dollars

Google

Verified that pages 0.5s slower reduced traffic by 20%.

Latency +500ms = Traffic -20%
Less traffic = Less ad revenue

Walmart

Observed that each 1s of latency improvement increased conversion by 2%.

Latency -1s = Conversion +2%

Building Bridge Metrics

SLIs (Service Level Indicators)

Metrics that reflect user experience.

SLI: Checkout latency < 500ms
- Technical: latency percentile
- Business: impacts sales conversion

Composite metrics

User Experience Score = f(latency, errors, availability)

Where:
- Latency p95 < 200ms: +1
- Error rate < 0.1%: +1
- Availability > 99.9%: +1

Score 3/3 = Excellent
Score 2/3 = Acceptable
Score 1/3 = Problem

Cost per transaction

Monthly infra cost / Monthly transactions = Cost per transaction

January: $50K / 1M = $0.05/tx
February: $45K / 1.2M = $0.0375/tx (improvement!)

Communicating with Executives

What NOT to do

❌ "Our p99 latency went from 200ms to 400ms" ❌ "CPU is at 85%" ❌ "We have 50 timeouts per minute"

What to do

✅ "Our site is 2x slower, which may be causing cart abandonment" ✅ "We're near capacity limits. Without action, we may have outages during the next peak" ✅ "500 customers per hour are seeing errors at checkout, potentially losing $X in sales"

Communication template

SITUATION:
[Technical metric] is at [value], [X]% [above/below] normal.

USER IMPACT:
[What the user experiences]

BUSINESS IMPACT:
[Estimated impact in $ or business metric]

REQUIRED ACTION:
[What we need to do and how much it costs]

ROI:
[Cost of action vs cost of problem]

Example

SITUATION:
Checkout latency is at 800ms, 4x above normal.

USER IMPACT:
Payment page takes too long to load, some users abandon.

BUSINESS IMPACT:
We estimate 15% increase in cart abandonment.
With average ticket of $100 and 10,000 checkouts/day:
Potential loss: $150,000/day

REQUIRED ACTION:
Query optimization and cache addition.
Estimated cost: 2 weeks of 1 engineer (~$10,000)

ROI:
Investment of $10K to avoid $150K/day loss.
Payback in less than 2 hours.

Conclusion

The bridge between technical and business is essential for:

  1. Prioritization: performance competes with features for resources
  2. Investment: executives approve spending with clear ROI
  3. Alignment: everyone understands what matters

To build this bridge:

  1. Measure business impact alongside technical metrics
  2. Translate into language executives understand
  3. Quantify in dollars when possible
  4. Demonstrate ROI of performance investments

Latency in milliseconds doesn't pay salaries. Revenue does. Connect the two.

metricsbusinessSLOcommunication

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