Funnel Analysis
Analysing conversion funnels to identify drop-off points and optimise the path to purchase.
Funnel analysis is the process of tracking and measuring how users progress through a series of steps toward a conversion goal. By visualising drop-off rates at each stage, marketers can identify bottlenecks and prioritise optimisation efforts.
Key Benefits
- Identify where users abandon the conversion process
- Quantify the impact of each funnel stage on overall conversion
- Prioritise optimisation efforts based on drop-off severity
- Measure the impact of changes on funnel performance
Overall Conversion Rate: 2.5% (2,500 purchases from 100,000 initial visitors)
Key Insight: Largest drop-off occurs between Awareness and Interest (55% loss), indicating potential issues with initial value proposition or targeting relevance.
This chart shows a typical marketing funnel with conversion rates at each stage, highlighting where the biggest drop-offs occur.
| Funnel Type | Typical Stages | Key Metrics |
|---|---|---|
| E-commerce | Homepage → Category → Product → Cart → Checkout → Purchase | Add-to-cart rate, Cart abandonment, Checkout completion |
| SaaS Trial | Landing → Sign-up → Activation → Engagement → Conversion | Sign-up rate, Activation rate, Trial-to-paid conversion |
| Lead Generation | Visit → Content → Form → MQL → SQL → Opportunity → Close | Form completion, MQL-to-SQL rate, Win rate |
| App Onboarding | Download → Open → Registration → Tutorial → First Action | Day 1 retention, Onboarding completion, Feature adoption |
Stage Conversion Rate
Percentage of users who progress from one stage to the next.
Formula: (Users at Stage N+1 / Users at Stage N) × 100
Overall Conversion Rate
Percentage of users who complete the entire funnel.
Formula: (Conversions / Funnel Entries) × 100
Drop-off Rate
Percentage of users who exit at each stage.
Formula: 100% - Stage Conversion Rate
Time to Convert
Average time users take to complete the funnel.
Helps identify stages causing delays
Top of Funnel (TOFU)
Focus on traffic quality over quantity. Ensure messaging aligns with user intent and landing pages match ad promises.
Middle of Funnel (MOFU)
Reduce friction with clear navigation, compelling content, and social proof. Address objections proactively.
Bottom of Funnel (BOFU)
Simplify checkout/conversion process. Offer multiple payment options, clear CTAs, and trust signals.
Recovery Tactics
Implement cart abandonment emails, retargeting ads, and exit-intent popups to recover lost conversions.