Funnel Analysis
Build, track, and optimize conversion funnels to understand where users drop off and improve conversion rates.
Intermediate10 min readUpdated 2025-01-02
Funnel Analysis helps you understand how users move through your conversion process and where they drop off, enabling targeted optimization.
Overview
Navigate to Analytics > Funnels to access funnel analysis.
| Feature | Description |
|---|---|
| Custom Funnels | Build funnels with any events |
| Templates | Pre-built funnel structures |
| Step Metrics | Conversion rates per step |
| Drop-off Analysis | See where users leave |
| Time Analysis | Track time between steps |
Creating Funnels
Step-by-Step Process
| Step | Action |
|---|---|
| 1 | Click "Create Funnel" |
| 2 | Enter funnel name |
| 3 | Add description (optional) |
| 4 | Add funnel steps in order |
| 5 | Select event type for each step |
| 6 | Save funnel |
Available Events
| Event | Description |
|---|---|
| Page View | User viewed a page |
| View Content | User viewed product/content |
| Add to Cart | User added item to cart |
| Initiate Checkout | User started checkout |
| Add Payment Info | User entered payment details |
| Purchase | User completed purchase |
| Lead | User submitted lead form |
| Complete Registration | User registered account |
| Custom | Your custom events |
Funnel Example
E-commerce funnel:
| Step | Event | Description |
|---|---|---|
| 1 | View Content | User views product page |
| 2 | Add to Cart | User adds to cart |
| 3 | Initiate Checkout | User begins checkout |
| 4 | Purchase | User completes purchase |
Funnel Templates
E-commerce Template
| Step | Event |
|---|---|
| 1 | View Content |
| 2 | Add to Cart |
| 3 | Initiate Checkout |
| 4 | Add Payment Info |
| 5 | Purchase |
Lead Generation Template
| Step | Event |
|---|---|
| 1 | Page View (landing) |
| 2 | Lead (form start) |
| 3 | Lead (form submit) |
SaaS Template
| Step | Event |
|---|---|
| 1 | Page View |
| 2 | Complete Registration |
| 3 | First Action |
| 4 | Subscription |
Using Templates
| Step | Action |
|---|---|
| 1 | Click "Templates" |
| 2 | Select a template |
| 3 | Customize steps if needed |
| 4 | Save as your funnel |
Analyzing Funnels
Funnel Metrics
| Metric | Description |
|---|---|
| Users | People at each step |
| Conversion Rate | % moving to next step |
| Drop-off Rate | % leaving at this step |
| Total Conversion | Start to finish rate |
| Avg Time | Time between steps |
Reading Funnel Data
| Step | Users | Conv Rate | Drop-off |
|---|---|---|---|
| View Product | 10,000 | 100% | - |
| Add to Cart | 3,000 | 30% | 70% |
| Checkout | 1,500 | 50% | 50% |
| Purchase | 1,000 | 67% | 33% |
Total Conversion: 10% (1,000 / 10,000)
Identifying Issues
| Pattern | Problem |
|---|---|
| High drop at Add to Cart | Product page issues |
| High drop at Checkout | Checkout friction |
| High drop at Payment | Trust or payment issues |
Time Analysis
| Between Steps | Target | Issue If |
|---|---|---|
| View > Cart | < 5 min | > 30 min |
| Cart > Checkout | < 30 min | > 24 hours |
| Checkout > Purchase | < 10 min | > 1 hour |
Optimization Strategies
By Drop-off Point
| Drop-off Point | Optimization |
|---|---|
| View > Cart | Improve product page, add urgency |
| Cart > Checkout | Cart recovery emails, clear CTA |
| Checkout > Payment | Simplify form, add trust badges |
| Payment > Purchase | More payment options, fix errors |
A/B Testing
| Test | What to Compare |
|---|---|
| Product Page | Image sizes, descriptions, reviews |
| Cart Page | Layout, upsells, estimated total |
| Checkout | Number of steps, form fields |
| Payment | Payment methods, security badges |
Conversion Rate Benchmarks
| Funnel Step | Average | Good | Excellent |
|---|---|---|---|
| View > Cart | 10-15% | 20% | 30%+ |
| Cart > Checkout | 40-50% | 60% | 70%+ |
| Checkout > Purchase | 50-60% | 70% | 80%+ |
| Overall | 2-3% | 4-5% | 6%+ |
Recovery Strategies
| Stage | Recovery Tactic |
|---|---|
| Cart Abandonment | Email within 1 hour |
| Checkout Abandonment | Email with offer within 24h |
| Browse Abandonment | Retargeting ads |
Recap
Funnel Analysis provides:
- Custom Funnels - Track any conversion path
- Templates - Quick-start with pre-built funnels
- Step Metrics - Detailed conversion data
- Drop-off Insights - Know where users leave
- Time Analysis - Understand user journey speed
Use funnels to systematically improve conversion rates.
Key Takeaways
- 1Build custom conversion funnels
- 2Track step-by-step conversion rates
- 3Identify drop-off points
- 4Use pre-built templates
- 5Optimize based on data
Frequently Asked Questions
How many steps should my funnel have?
Funnels typically have 3-7 steps. Include all critical actions but avoid too much granularity which makes analysis difficult. Focus on key conversion points.
What is a good overall conversion rate?
For e-commerce, 2-3% is average, 4-5% is good, and 6%+ is excellent. Rates vary significantly by industry, product type, and traffic quality.
How often should I analyze funnels?
Review funnel metrics weekly for ongoing optimization. After making changes, wait for at least 1,000 users through the funnel before drawing conclusions.
Can I compare funnels over time?
Yes, use date ranges to compare funnel performance before and after changes. This helps measure the impact of your optimizations.
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