Funnel analysis basics

Every user journey has critical moments where people decide to continue or abandon your product. Funnel analysis reveals these decision points by tracking how many users complete each step. The biggest drops show where your product creates the most friction.

Start by mapping out your key user flows. For an e-commerce site, this might be: landing page, product view, add to cart, checkout, purchase. Calculate the percentage of users who move from each step to the next.

Break down your funnel by different dimensions to find hidden insights. Mobile users might drop off at different points than desktop users. New visitors might struggle with steps that returning customers breeze through. Traffic source and user demographics can all reveal different patterns. Remember that not all drop-offs are problems. Some filtering is natural and even desirable. Focus on unexpected drops or places where competitors perform significantly better.^[1]