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Bounce Rate

The percentage of visitors that come to a website and leave

What is a Bounce Rate?

In internet marketing/business terminology, bounce rate is associated with the analysis of traffic to a company’s webpage. The rate (always a percentage) indicates the percentage of visitors that come to the site and leave versus those who come and view multiple pages.

 

Bounce Rate

 

The bounce rate essentially helps a company better understand how “sticky” its website is – how well it keeps visitors’ interest. Websites with lower bounce rates are more effective at attracting users and keeping them around to view multiple pages.

 

Summary: 

  • A bounce rate measures the number of website visitors who view only one page and then leave versus multiple-page visitors
  • Making sure the website effectively communicates information, is aesthetically pleasing, and is user-friendly are three key ways to keep bounce rates low
  • While it depends on industry and location, there is a standard table of ranges that explain the best to worst bounce rates

Formula for Bounce Rate

The formula for calculating bounce rate is given below:

 

Bounce Rate - Formula

 

What Keeps a Bounce Rate Low?

There are a number of different aspects to consider when making a website that will keep users around to check out more than one page. At the top of the list are:

 

1. Effective communication

With any website, the primary objective is to pass along the most pertinent information about the company and what is being sold or offered. Effectively communicating things such as contact information, all available products/services, prices, etc. is critical if the company wants to get visitors to view more than one page, thereby making the company more successful.

 

2. Aesthetics

Stimulating colors and interesting graphics, organized in a neat and orderly way, are far more likely to attract and keep viewers. The key is to make sure that in the aim to be aesthetically pleasing that the site doesn’t become overburdened with too many flashy, confusing graphics, texts, or colors.

 

3. User accessibility

Neither the two other aspects on this list – or any of the other aspects for a successful website – matter if the site isn’t user-friendly. Fast loading speeds, clearly labeled links, and even things such as audio clips to read out the names of the links, are all important. Enabling viewers to easily find and access whatever part of the site they’re interested in encourages them to stick around.

 

A Good Bounce Rate

There are a number of variables that determine what a good or bad bounce rate is. They include the industry, business type, products/services sold, and how saturated the marketplace is for companies in the industry or that sell the same or similar goods/services.

The way to determine the best rate for a certain company is to research the standard-to-above average rates for similar companies or companies within the same market space that seem to be making a decent profit.

Again, what is a good or ideal rate for one type of company, in a given city, may be completely different for a similar company in a different area. However, the rule of thumb with bounce rates is as follows:

  • Anything below 20%: An extraordinarily low bounce rate!
  • 20% – 40%: The ideal goal range for pretty much every company
  • 41% – 75%: The range that most sites actually fall into
  • 75%+: The danger zone for bounce rates

 

Related Readings

CFI offers the Financial Modeling & Valuation Analyst (FMVA)™ certification program for those looking to take their careers to the next level. To keep learning and advancing your career, the following resources will be helpful:

  • How to Get an Online Job
  • Top Online Learning Websites
  • Walmart Marketing Mix
  • List of All CFI’s Courses

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