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Definition

Funnel Analysis

Funnel analysis measures how many users progress through each step of a defined sequence - signup flow, checkout, onboarding - and where they abandon it. Its output is a conversion rate per step, which turns 'checkout feels broken' into 'we lose 38% of users at the payment-method screen.'

Funnel analysis: find the leaking stepUsers completing each step of checkoutillustrative example - step conversion, not blended average, locates the leakCart viewed10,000100%Checkout started6,20062%▼ 38% drop - the leak worth fixing firstPayment entered4,10041%▼ 34% drop Order completed3,70037%▼ 10% drop Read step-to-step, not top-to-bottom: payment converts 90% - the cart-to-checkout step is where the money leaks.

Interactive diagram - hover the elements. Plotted values are illustrative examples, not measurements.

How do you define a funnel correctly?

Choose events that mark real intent stages, decide the conversion window (how long a user has to complete the next step), and decide whether steps must happen in strict order. The commonest analysis error is a funnel built from events that fire unreliably - which is why funnel work exposes instrumentation debt faster than any audit.

What is a good funnel conversion rate?

There is no universal benchmark worth trusting - flows, products, and traffic quality differ too much. What is universally useful: your own funnel, week over week, segmented by platform and acquisition source. A step whose conversion moves when nothing shipped is telling you about data quality, not users.

Example: 10,000 users view the cart, 6,200 start checkout (62%), 4,100 enter payment (66% of starters), 3,700 complete (90% of payment). The payment step converts fine; the cart-to-checkout step is where the money leaks.

In practice: Reliable funnels start with reliable events - the core deliverable of our implementation sprint.

Funnel Analysis: common questions

What is the difference between a funnel and a journey?+

A funnel tests one hypothesized path and measures completion. A journey (or path analysis) discovers which paths users actually take. Use journeys to find the real flow, then funnels to monitor it.

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