Leading analyst firm reveals the real cost of internet disruptions

‘Without the internet, Digital Experiences do not exist,’ begins Increase Revenue and Improve Customer Experience with Internet Performance Monitoring, a study commissioned by Catchpoint to quantify the financial damage from internet outages. At first glance, that might seem painfully obvious—like pointing out that water is wet.  

But pause for a moment and consider: the digital experience today isn't just an aspect of business; it is the business.  

Suddenly, the stakes feel very different.  

For e-commerce leaders, the findings in the study are a wake-up call: Internet disruptions—whether it's outright downtime, persistent latency, or sluggish-loading pages—are quietly draining millions from the bottom line, and most companies aren’t even aware they're bleeding out.

The study's key findings

The study uncovers urgent truths about Internet performance and business risk. Here’s what every e-commerce leader needs to know:

• Internet disruptions happen more often than you think: E-commerce companies average 72 disruptions per month, each one hitting revenue and customer trust.
• Revenue and customer loyalty are at risk: 65% of leaders say slow web pages are as damaging as full outages, and 69% report increased customer churn from disruptions.
• Most companies aren’t monitoring what matters: Only 32% have full visibility across the internet stack that powers their digital experiences.

The high cost of Internet disruptions  

The study, based on a survey of 261 e-commerce and technology leaders, reveals the majority of companies are losing millions of dollars every year to Internet disruptions (downtime or latency).

• 42% of companies lost over $500K in just one month, equating to $6M+ per year
• 83% reported losing more than $100K monthly

And the root cause? Poor visibility.  

Monitoring gaps leave businesses exposed

While most e-commerce firms monitor some aspects of Internet performance, the study reveals comprehensive visibility is rare. Only about one in three companies monitor the full Internet Stack across their enterprise, and even fewer do so successfully.  

The study states, “Without the appropriate technologies and tools, gaining visibility into the Internet Stack is challenging, if not impossible—but with so much to lose, that’s no excuse. The Internet is the life force of e-commerce, and monitoring performance to identify and fix disruptions quickly should be a top priority.” Essentially, most businesses are still reacting after the damage is done, often with incomplete data, manual troubleshooting, and no clear way to pinpoint the source.

The good news: IPM works—when done right.

There is good news: companies that invest in robust Internet Performance Monitoring (IPM) are seeing real results. The study describes successful IPM as the ability to quickly and efficiently identify the source of disruptions, allowing companies to fix issues fast and get back to business as usual. Those monitoring the full Internet Stack report 54% fewer losses than those without IPM, and 14% fewer than those who only monitor their most critical systems. Losses of at least $1 million are down by a third among these leaders.

But while the benefits are clear, few are implementing IPM well. Only 32% of companies monitor the full Internet Stack across their enterprise.  

That gap is the opportunity.

“Full-stack Internet Performance Monitoring is essential for digital resilience,” said Catchpoint CEO and co-founder Mehdi Daoudi. “If you can’t see what’s slowing your users down, you can’t fix it, and that’s money left on the table, customers lost, and teams burned out.”

The path forward: gaining visibility into the Internet Stack

The study highlights a critical gap: disruptions can happen at any point across the Internet Stack—whether in CDNs, APIs, DNS, routing, cloud infrastructure, or even third-party services outside a company's direct control.

Without visibility into these layers, most companies are flying blind.

While 100% of study respondents agree that Internet Performance Monitoring has a positive business impact, only a small fraction is successfully achieving full-stack observability today.

Read the full study to explore where companies are succeeding, where they are falling short, and how improving visibility can directly safeguard revenue and customer experience.

Want to dig deeper into the findings?

Join us live on May 29 at 1pm ET for a conversation with guest speaker Forrester VP, Principal Analyst Sucharita Kodali. Register for the webinar.