If you have spent a lot of time and money working on your e-commerce website to make it attractive to the customers and grow revenue, yet the sales are going flat, think of more creative ways to keep your customers on the site. This article will explain what an e-commerce store’s bounce rate is, how it works, and how to improve it and grow your revenue. We will give you some real-life examples that will make the bounce rate easier to understand.
What is the Bounce Rate?
To minimize your e-commerce store’s bounce rate, first, you have to understand how it works. The best way to explain it is to give you a simple example. Imagine that you are searching for a product on Google, and you click on an advertisement. Still, the window that appears does not lead you to the desired merchandise, or the page looks confusing and difficult to navigate. As a result, you close the website immediately. It means that you have bounced off this website because you haven’t found what you have been searching for or because your user experience was unsatisfactory. The bounce rate is the percentage of people who have opened a web page and then left without interacting with the page elements.
How to Find Out Your E-commerce Store’s Bounce Rate?
The best way to get an accurate picture of your e-commerce store’s bounce rate is to analyze each entry page’s bounce rates. You can use Google Analytics to measure the percentage of traffic to your landing pages and the total number of landing entries per page. For example, if you measure your blog’s bounce rate from the landing page’s entry, you get a more accurate percentage rather than when looking at the overall bounce rate for a given page.
Different sites and pages have different bounce rates, depending on their intended function. If you see a page on your site with a high bounce rate, you might think it’s a bad thing. A high bounce rate simply means that visitors come to your pages and then turn away without clicking on anything. In the below example from an e-commerce store, we see a 75.97% bounce rate for a particular page with a conversion of 0,52%.
Let’s look at how conversion changes together with the bounce rate using a different page from the same website as an example. On this page bounce rate is almost twice as low as in the example above, while the conversion is eight times higher. So there is a direct correlation between bounce rate and conversion (sales) for e-commerce stores.
So if you are still doubting whether your e-commerce store’s bounce rate is important, you should be pretty convinced by now.
Why Does Bounce Rate Matter for E-commerce Websites?
In our earlier example you saw how monitoring your website’s bounce rate can help you increase revenue. Bounce rate is the key to your success in e-commerce. Because it allows you to analyze each of the pages and improve them if they have high bounce rates. And as if hurting your sales and revenue wasn’t enough, bounce rates can seriously affect your rankings. The higher the percentage of visitors who leave your website without interacting with it, the worse your rankings get. Google takes note of websites with high bounce rates and your domain authority gets demoted.
There are plenty of articles on the internet talking about various UX and UI methods that help keeping your visitors on the site. If the bounce percentage is high, that means sales are flat. The average percentage bounce rate for e-commerce stores is between 40% and 50%, and you must aim for them or even lower. Below benchmarks will help you understand where your e-commerce site is in comparison to the industry’s average:
Whether your sales are low or some of your website’s pages cause a significant bounce rate, open Google Analytics, and see where the problem comes from. Analyzing the pages is likely to see from where the bounce comes and why it is. When a user opens a page and doesn’t find what he has been searching for, or the page is too slow or hard to navigate, he leaves. As a result, you lose a no sale. Sometimes some quick and simple tweaks and changes to the page content make it engaging and more catchy and help retain visitors. Sometimes you would need more complex solutions, such as API integration, personalization, recommendation engines, image search, etc.
How to Reduce E-commerce Store’s Bounce Rate?
The personalization of e-commerce is one of the best ways to remain competitive in a fast-moving e-commerce environment. It becomes easy to understand what the buyer is searching for by gathering information and tracking his behavior. As long as an e-commerce website focuses on providing a personalized experience to its customers, it doesn’t matter what persona your customers fit into. The personalization keeps the e-commerce sellers one step ahead by understanding the buyer’s intentions and giving the right information at the right time.
Whether you are a small or a big e-commerce website owner, consider using some customized recommendation system for e-commerce. AI-powered recommendation engines can slash your bounce rates by half, increase conversions and cart size and improve overall customer experience. Your website visitors will get instant recommendations of products that they may like. So even if they changed their mind about the first product, they might go ahead and purchase one of the recommended items instead.
Marketers can take advantage of e-commerce personalization to deliver unique content throughout the customer journey. It helps create long-term partnerships with customers by creating personalized ads, bespoke ads, and curated email correspondence.
Personalization requires aggregation and analysis of a lot of data using machine learning. As a result of this process, e-commerce store marketers can use this data to provide hyper-personalized product recommendations based on customer’s browsing history and behavioral analytics. Machine learning uses data to predict what the person might like. As a result, your site displays product recommendations that keep customers on the site and reduce bounce rates.
For example, if you have a customer who looks at black trousers, you might suggest shoes, tops, and accessories to complete the look or other black trousers’ models to choose from.
The more insights you gain to enrich your customer’s profile, the more targeted and personalized your messages become. Personalization is the future of e-commerce marketing. There is no better way to use it than through the use of social media and e-commerce platforms.
How to Get Started with Personalization
- Set your KPIs (bounce rate, cart size, revenue, traffic, etc.) and make a note of your site’s current performance vs. your goal.
- Understand how you want to personalize the experience for your site visitors. The decision will depend on where you expect the most impact on revenue from the personalization.
- Do your research on what’s currently available in the market of e-commerce technologies. Make your decision according to pricing, easiness of implementing the technology, and availability of support.
- Define a long term strategy for personalization and implement an optimization process to continue enhancing your recommendation engine with time.
- Before implementing the technology, segment your site to see which areas will benefit from personalization and prioritize them.
- Track and monitor your KPIs and optimize the process.
- Once you are satisfied with the initial results, begin implementing a recommendation engine across various channels and devices. So you can offer a holistic omnichannel experience for flawless shopping across all channels.
Since the COVID-19 pandemic started, the shopping has converted into its online version. From then on, the e-commerce sector has become even more competitive.
Do you want to minimize the losses, optimize the working process, and grow revenue? So take advantage of technology and AI-powered recommendation engines to enhance your user experience and personalize their shopping. Taking this step will keep you competitive and always informed about your target group’s intentions.