A recent study shows that only 9% of marketers look at “Bounce rate” to measure effectiveness of online marketing. With more than half of site visitors dropping out at the landing page, an estimated £2 billion are wasted in the UK every year to drive useless traffic.

(LONDON, UK) – Less than one out of ten marketers indicates that they use “Bounce Rate” to measure the effectiveness of online marketing, says a study conducted by House of Kaizen, the conversion rate optimization agency trusted by Avis and Nuffield Health to increase online conversion rates by more than 105%.

Over 40% of marketers rely on traffic volume, and 65% look only at the final sales generated – both metrics that taken alone don’t provide a complete vision of their marketing activities performance.

Experts agree that bounce rate, or the percentage of visitors that "Bounce" from, or leave your landing page immediately after engaging with an ad, is emerging as one of the most effective ways to determine if a marketing campaign is successful or not.

With bounce rates close to 50% cross industry, consumers are sending a clear message how they feel about the quality of content, further suggesting that UK marketing professionals are dishing out £330 million every month, half of which is wasted by directing traffic to pages that won’t convert – but rather permanently detach its visitors.

“If half of the visitors from your paid marketing campaigns are leaving at the door step, it is a clear indication that you have ignored to develop a relevant first point of contact and struggle to communicate your value proposition. Long term, what is the potential harm to your brand from sending visitors to convoluted pages that just makes them bounce away in seconds?” says Ivan Imhoff, Managing Director at House of Kaizen.

What Marketers Have to Do To Turn Visitors Into Buyers?

Online marketing spend exceeded £16 billion in the US, and £4 billion in the UK in 2010**. A majority of this will be spent on driving traffic to websites with the help of PPC, banners and e-mails.

While it is estimated that websites undergo costly overhauls every 2 to 4 years, the study by House of Kaizen suggests that few organizations are willing to implement a program of continuous improvement and site usability.

Perhaps most surprising of all, as few as 13% of marketers focus on improving conversion rates, the study reveals.

“The fact is that the majority of organizations are still using pre-historic Internet metrics such as traffic generation, while ignoring key metrics that illustrate the true effectiveness and ability of a website to convert. Bounce rate may be the most overlooked, yet critical component to successful online marketing. Perhaps marketers don’t understand how to improve it?” says Ivan Imhoff.
In an effort to showcase and educate marketers in best practice metrics, House of Kaizen has announced “The 100% Challenge”, an initiative with the promise to double the conversion rate of the winner’s website. By using a mathematical approach, advanced analytics, behavioural analysis and a/b multivariate split testing, the agency will increase a website’s conversion rate by 100% - in essence doubling the revenue of an online business. For entry details visit; www.houseofkaizen.com

“Marketing organizations who want to build competitive websites need to start looking at metrics in a new light and focus on a continuous cycle of website improvements based on empirical data as opposed to assumption,” says Ivan Imhoff.


*) Study Methodology: Survey was undertaken by Clarity UK on March 8th 2011. A total of 207 managing directors, marketing directors and managers with budget responsibility in UK companies that trade online with a turnover in excess of £250,000 were questioned. Full results are available on request.

**) Source: http://www.adweek.com/aw/content_display/news/digital/e3i2878352c385d432110ca5f8b6a33dede

Published on: 3:24PM on 10th May 2011