Funnel metrics and conversion

Conversion funnels show the steps users take from first interest to completing an action. In e-commerce, this could be moving from browsing to purchasing. In SaaS, it might be going from trial to paid subscription. For example, if 1,000 users begin checkout but only 200 finish, the conversion rate is 20%. At every step, some users drop off, and these drop-offs are where the funnel leaks. To improve, you need to measure conversion rates at each step and and find ways to improve them so more user convert to the next step.

The most effective way to improve conversion is to fix the weakest step first. For instance, adding more payment options could increase checkout completion more than attracting more visitors to a funnel that already leaks. Even small gains matter. If each step improves by just 10%, the combined effect can double the overall conversion rate.