Funnel Analysis

Funnel analysis measures where people drop out of a step sequence, giving conversion problems an address.

What funnel analysis is

Funnel analysis measures where people fall out of a multi-step path: product view to cart to checkout to payment to confirmation, with the drop-off rate at each transition quantified.

Why funnel analysis matters

Every step loses some share of visitors; the question is which step loses more than it should. The funnel turns “sales are low” into “the payment step drops twice as much on mobile,” which is a problem with an address instead of a mood.

Running funnel analysis

  • Define the steps as events that actually fire in analytics
  • Compare drop-offs against your own history and segments
  • Segment by device, source, and customer type: gaps hide in slices
  • Fix the worst leak first, then re-measure

Frequently asked questions

Funnel analysis vs the sales funnel: what’s the difference?

The sales funnel is the marketing model of stages; funnel analysis is the measurement practice applied to any defined step sequence, checkout, signup, quiz, on real event data.

What’s a normal drop-off between steps?

There’s no universal number worth trusting: your baseline is the last ninety days of your own funnel, and the signal is change or a segment diverging from the rest. Chasing published benchmarks fixes other stores’ funnels.

Related terms

Sales Funnel · Conversion Tracking · Checkout Optimization · Micro-Conversion · AIDA