tedster - 1:58 am on Sep 14, 2012 (gmt 0) [edited by: tedster at 2:39 am (utc) on Sep 14, 2012]
I'm finding good value in using the new Analytics feature, Adjusted Bounce Rate [analytics.blogspot.com]
This custom setup requires just one more line in your tracking script. It lets you set a threshold to separate those long time-on-page bounces from short time-on-page bounces. It generates a very helpful metric for separating "real" problems from pages that are not truly a problem.
Even if Google isn't directly using bounce rate and time-on-page in organic rankings, no doubt in my mind that they are aiming at something in the area of user engagement (and so is Bing, for that matter.) So addressing areas like this in your metrics is directly improving your user engagement and in turn that most likely has a secondary effect on whatever Google is measuring. Besides that, I love working directly with user experience rather than indirect and merely technical SEO.
[edited by: tedster at 2:39 am (utc) on Sep 14, 2012]