Your Site's Bounce Rate, Why Important?

Summary: Improving your site's conversion rate largely starts at lowering your bounce rate. Why? Because every customer that bounces from your website is a lost opportunity to explain your value proposition and give your sales pitch.

What should you do if you have a high bounce rate? Avinash Kaushik, of Google's Conversion University, provides a great video explaining why a successful website must have a low bounce rate. While you watch the video, try to pick out reasons a high bounce rate is so detrimental.

Avinash brings out that a bounce rate between 40 - 60% is considered good. You'll never get everyone to stay on your website; nevertheless, if your bounce rate is higher than 60% you should begin by asking, Is there a problem with your website or is there a problem with your traffic sources?

A high bounce rate can occur because your traffic sources are low quality. If so, try to look for better sources of traffic. For example, if you're spending money for highly bouncing traffic through banner ads or pay-per-click advertising, cut back on this spending. You might try marketing strategies such as article writing and direct-mail instead.

If the problem is your website, then you need to use an analytics package to look at your top landing pages and see if you can understand what the visitor is looking for by seeing how he got to that landing page. Did he arrive at the landing page through a Google search? If so, look at the keywords being used to hit that landing page and make sure the landing page addresses the needs of someone searching with those keywords. Is the visitor hitting your website from a business directory such as Yahoo.com? Make sure the landing page from that directory category gives the information the customer would expect or want.

Improving your bounce rate will take time and it may take many design iterations before you finally find a solution that gives you an acceptable bounce rate. However, improving your bounce rate is worth the effort. A high bounce rate is a sure fire way to low website sales. A low bounce rate drives greater sales and means your website is making a more favorable impression with visitors.

[Video] Site Review: Family Discount Shopping Website

Summary: Today we review, Frugal Parents Online, a website that helps parents save money online by offering shopping tips. This website does a good job of using pictures to set the right tone. For a small mom-and-pop website like this, the About us is effective. It is written in the form of a letter to the reader. However, Google advertisements play too dominate a role on the homepage. It hides the quality content the owner has made available to readers. We have to always be careful not to focus so much on the revenue driving potential of our website that we obscure the focus of the website, which is to help others.

What is a Good Website Conversion Rate?

Chart based on marketing research data from MarketingCharts.com.

Summary: The best retail websites have a double digit conversion rate. If you are a retail website you do well to set a conversion rate target of greater than 5%. However, some websites, especially those that also mail customers a print catalog, can obtain a site conversion rate greater than 10%.

Just what is a good website conversion rate? For reference, Amazon.com had a 17.6% conversion rate in December 2007. This number can help us set a baseline goal for our websites.

Your website conversion rate should be one of your most tracked website statistics. Why? Because it doesn't matter how many visitors you have; if your conversion rate is zero that means your website has generated zero business. Thus, improving your conversion rate is often the most reliable and cost-efficient way to increase your sales.

Your conversion rate is calculated by dividing the number of website visitors who spent money with your company by the total number of visitors to your website. For example, if your website had 10 purchases last month and you had 100 total visitors, then your conversion rate would be 10% (e.g. 10% of customers spent money on your website).

A well designed website is generally going to have a higher conversion rate. You do well to ask yourself:

1. What is my conversion rate today?
2. Am I happy with my current conversion rate?
3. Is my current conversion rate good for my industry?
4. What can I do to improve my conversion rate?

Unfortunately, conversion rate statistics for each industry are difficult to find. I did, however, come across data from MarketingCharts.com that lists the top 10 websites on the internet by their conversion rate!

What can we learn from this list? I can identify at least two lessons:

1. That conversion rates in excess of 10% are possible for a retail site. Compare this to your site.
2. That sites that send out a physical catalog to customers dominate the conversion rate list. Perhaps you can include direct mail marketing in your budget.

This list leaves us with some questions. For example, what makes The Popcorn Factory such a successful website?

If we can learn lessons from successful websites that have proven their ability to convert website visitors into paying customers, then we can generate more income from our websites.

To accomplish this, I will soon be analyzing some of the companies from this list and sharing that analysis on my website. Please check back for the analysis.

In the meantime, why don't you examine these top ten websites and see if you can determine why they are so successful at converting website visitors into paying customers. Then apply these lessons to your website. If you'd like help improving your site's conversion rate, give me a call and tell me that you're looking for help improving your website's sales.

Is the first page your customer sees the correct one?

It’s easy to always point your customer to your home page. However, is that what your customer wants to see? If you point your customer to the wrong page on your website he may leave before he finds what he is looking for. Thus, you won’t get the sale.

This is especially a problem if your customer is visiting your website after viewing one of your advertisements. For example, if your Google ad says that you have a 50% off sale, clicking the ad should take the customer directly to your sale and not to your homepage.

Problems like this can make the difference between getting a sale and not getting a sale. Make sure your ads point the customer to the correct page.

This article, on NetMechanic.com, explains what makes a landing page profitable.