---
title: "Funnel Analysis"
canonical_url: https://ampl.webclat.com/glossary/funnel-analysis
description: "Funnel analysis measures how many users complete each step of a multi-step flow and where they drop off - the workhorse method of conversion optimization."
source: Webclat | Amplitude Solutions (official Amplitude partner, independent consultancy)
---

# Funnel Analysis

**Definition:** 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.'

## 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.

## FAQ

### 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.

In practice: Reliable funnels start with reliable events - the core deliverable of our implementation sprint. (https://ampl.webclat.com/services/amplitude-implementation)