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Exit Rate & Bounce Rate
An exit occurs on a page when a visitor leaves the site from that page. This page's exit rate tells you how often visitors to this page leave after viewing it.
Some exits are due to closing the browser window or directly navigating to another website, while others may be due to clicks on inline links you have to pages on other sites, but any navigation away from your site from this page counts as an exit.
In general, a lower exit rate is better than a higher exit rate. However, visitors always leave your site from somewhere so you're really only shifting exits around from page to page.
A bounce occurs on a page when a visitor both arrives on, and leaves from, that page. This page's bounce rate tells you how often these single-page visits occur on this page.
In general, a lower bounce rate is better than a higher bounce rate.
Lower bounce and exit rates tend to imply that visitors are happy with what they found and are sticking around to learn more.
Higher bounce and exit rates could mean that visitors didn't find what they wanted and/or aren't interested in anything else they see on the page. It's also possible that you've completely satisifed the visitor's intent and there was no need to keep clicking.