Bounce handling is crucial in email marketing as it helps prevent lost messages from costing revenue. Applications can improve this by implementing proactive interface decisions, such as displaying clear explanations for bounced messages and notifying customers about the issue. Examples of effective bounce handling include displaying bounce notifications immediately in apps like Netflix, providing detailed information on account-level bounce status, and using ESPs' bounce data to inform customer workflows. By taking these steps, applications can reduce customer frustration and improve their overall experience.