Once you have good, relevant traffic coming to your website via either Pay Per Click (PPC) advertising or organic listings in the search engines, it is vital to get the most out of this traffic. This process is known as Conversion Rate Optimisation (CRO).
CRO can be summarised as:
Finding out why visitors are not converting
Fixing the problem
This may sound obvious but many people and companies often forget this basic principle.
Avinash Kaushik, a Google Analytics specialist states, "If you could only choose one metric to look at, Bounce Rate might be your best choice."
His definition of Bounce Rate is certainly different: "I Came – I Puked – I Left."
Although you get an overall bounce rate for your website, you need to drill down further to see the different bounce rates of different keywords and pages. The bounce rate helps you identify where you may be targeting the wrong keywords relative to the landing page. This is only the start of optimising your conversion rate but is a good starting point.