Acquisition funnel

The acquisition funnel maps how users discover and adopt your product. By analyzing this journey, product managers can identify bottlenecks and optimize growth strategies.

A customer acquisition funnel outlines four key stages that users move through:

• Awareness: Users discover your product through various channels
• Consideration: Prospects research your solution and compare options
• Conversion: Users take decisive action, like signing up or purchasing
• Retention: Converting one-time users into loyal, repeat customers

Key metrics to track across the funnel:

• Cost per acquisition (CPA): Average cost to acquire a new user
• Conversion rate: Percentage completing desired actions at each stage
• Channel effectiveness: Which sources bring the most valuable users
• Time to conversion: How long it takes to move through the funnel
• Drop-off points: Where users abandon the journey

Understanding your acquisition funnel helps optimize marketing spend and identify friction points that prevent successful user adoption.^[1]