One of the good ways to reduce the bounce rate of your blog is to lead the user to visit more pages on your blog. The related posts plugin YAARP does a great job that helps you do this by displaying related posts to your current article.
Another good third party related posts plugin is LinkWithin, which is available for different CMS platforms WordPress, Typepad, and Blogger, that shows related posts in a horizontal manner with thumbnails of images used in your post. The plugin looks at tags, but it also analyzes other factors like relevancy, popularity, and recency while displaying your related posts.
The plugin has a simple configuration, and offers the option to display related posts on index pages, or only on single posts.
The only drawback – LinkWithin being a third party plugin, uses it’s own servers and incase of a server downtime or any other issues , the plugin would become non functional and could affect the single post view.
Overall the plugin is worth a try. The plugin is easy to use and install, head over to LinkWithin home page and enter your blog url, select platform, no. of your stories you wish to show, download and install the plugin.