Benchmarking Bounce Rate for Online Retailers (Part 1)



January 4th, 2015 / Nicole S

In this post we discuss the benchmark figures an online retailer should be seeking in bounce rate.

What is bounce rate?

Bounce rate is defined by Google Analytics as the percentage of single page sessions on your website. Bounce rate measures the people who click on one (1) page, usually the Home page and then exit the website. In retail a low bounce rate is excellent and a high bounce rate is an indicator of a poor customer experience.

The best retail bounce rates are 10% – the worst is 90%.

Why does bounce rates matter?

The bounce rate is the sum of your ability to connect with your customer – it is the totality of all parts, from the instore customer experience to the User experience your website provides.

In retail benchmarking you want a low bounce rate.

BENCHMARK BOUNCE RATE FROM 1 JUNE 2014 TO 30 NOVEMBER 2014

Bounce Rate Retailers Site Visits in November 2014
12%-14% H&M/Zara 38,432,833/23,898890
18%-21% Cotton On/Gap 2,150,515/26,316,023
24%-28% ASOS/theiconic 19,804,074/2,056,811
30% + Nordstrum 24,900,102
50% + Jabong 74,227,168
Comparing the top Combination bricks & mortar/online against pure online plays.

Australia

Retailer November 2014 Bounce Rate
Cottonon.com 17.15%
Theiconic.com.au 27.97%

Worldwide

Retailer November 2014 Bounce Rate
H&M.com 15.49%
ASOS.com 24.58%

In 2014 the bounce rate of combination bricks & mortar/online operators became superior to the best pure online retailers.

Many CEO’s or COO’s believe the key metric to a websites performance is website traffic. That is wrong.

For example if website traffic is the key metric then Jabong is a “better” online retailer than H&M. This is as Jabong had over 74M direct hits on their website in November 2014 whereas H&M only had slightly better than half of Jabong traffic, H&M had 38M+ direct hits.

Retailer Site Visits in November 2014 Bounce Rate 2nd Page Traffic
H&M 38,432,833 15.49% 32,479,590
Jabong 74,227,168 69.96% 22,297,841

That said H&M is a far superior online retailer than Jabong. Why? When the bounce rate is taken into account H&M is getting 32M+ customers going onto to page two or more whereas Jabong is only getting 22M+ to the second page.

H&M despite nearly half the traffic than Jabong has a 50% greater opportunity of making a sale.

H&M’s low bounce rate confirms H&M has a far superior connection with their customer than Jabong and H&M gets 11M more people closer to the shopping cart than Jabong. We note that the H&M bounce rate has trended upwards over the last 3 months from a low of 12% which is due to the expansion in 2014 of online into several new markets.

We recommend you make your websites bounce rate a key indicator in your digital teams performance review.

To get started firstly find the bounce rate to your website, match it up against our benchmarking chart. Then set achievable targets to lower the bounce rate. Our recommendation is to make sure that each month the digital team is accountable for the website’s bounce rate.

What happens if we forget about Bounce rate and just leave it to the digital team? In our May 2015 post we will illustrate how poor benchmarking can cost companies sales.

If you have any questions or seek any clarification on the above please do not hesitate to contact us, we are keen to hear of any experiences retailers have in benchmarking.




ABOUT THIS ARTICLE

Bounce rate is how ability to connect with your customers is measured. Get more insights on the bounce rates across multiple online retailers.


- Posted by




*Predikkta has sourced several external independent global tools to analyze websites.These tools do not reflect on occasion the internal website analytics, but are recognised global tools and provide accurate comparative results for measurement against competitors.

**The views in this article are those of the author