CRO
Funnel Analysis
A practical CRO method for identifying where users fail to progress through key journeys.
How to use funnel analysis to spot drop-off points, understand conversion performance, and prioritise optimisation work.
What it is
glossaryFunnelA funnel represents the stages users go through from initial interaction to completing a goal, showing how many progress or drop off at each step.Open glossary term analysis is a quantitative UX and CRO method used to track how users move through a defined journey and where they glossaryDrop-offDrop-off refers to users leaving a journey before completing a desired action or reaching the next step.Open glossary term.
It breaks a journey into steps, such as landing, browsing, adding to basket, and completing a purchase, and measures how many users progress between each stage.
Unlike glossaryQualitative ResearchQualitative research explores user behaviour, motivation, and experience through non-numerical evidence such as interviews, observation, and testing. It is designed to explain why something happens rather than to measure how often.Open glossary term, glossaryFunnelA funnel represents the stages users go through from initial interaction to completing a goal, showing how many progress or drop off at each step.Open glossary term analysis focuses on glossaryBehaviourBehaviour refers to how users interact with a system, including actions, patterns, and responses.Open glossary term at scale using analytics data. It shows what is happening, but not why.
The goal is to identify glossaryFrictionFriction refers to anything that slows users down or makes it harder for them to complete a task. It can be caused by poor design, unnecessary steps, unclear messaging, or technical issues.Open glossary term points, glossaryDrop-offDrop-off refers to users leaving a journey before completing a desired action or reaching the next step.Open glossary term, and opportunities to improve glossaryConversionA conversion is any action a user takes that aligns with a defined goal, such as making a purchase, signing up, or completing a task.Open glossary term.
Funnel analysis is useful for showing where users are falling out of a journey, but it needs other methods to explain why.
When to use it
Use this method when you need to understand glossaryPerformancePerformance refers to how quickly and efficiently a system responds to user actions and processes tasks.Open glossary term across a journey.
It is most useful when:
It is less useful when:
Funnel analysis is often used alongside usability testing and user interviews to explain why issues occur.
Key takeaway
Use funnel analysis when you need a clear view of where performance breaks down across a journey.
How to run it
Set up properly
Be clear on the journey, its steps, and how each is tracked before you look at a number. A glossaryFunnelA funnel represents the stages users go through from initial interaction to completing a goal, showing how many progress or drop off at each step.Open glossary term is a glossaryModelA model is a system or representation used to process data and generate outputs, often trained to perform specific tasks.Open glossary term you impose on glossaryBehaviourBehaviour refers to how users interact with a system, including actions, patterns, and responses.Open glossary term, so its steps have to match something real.
Check what the tracking actually fires on. Steps defined by page view rather than by completed action will report progress that never happened.
Run the method
glossaryFunnelA funnel represents the stages users go through from initial interaction to completing a goal, showing how many progress or drop off at each step.Open glossary term analysis is the simplest of the behavioural methods and the easiest to misread. It tells you where people stop, never why.
- Define the steps explicitly, and only include steps everybody must pass through. Optional stages in a linear glossaryFunnelA funnel represents the stages users go through from initial interaction to completing a goal, showing how many progress or drop off at each step.Open glossary term produce glossaryDrop-offDrop-off refers to users leaving a journey before completing a desired action or reaching the next step.Open glossary term that is not loss.
- Measure how many reach each step, using unique users rather than events. Repeat visits inflate the top of a glossaryFunnelA funnel represents the stages users go through from initial interaction to completing a goal, showing how many progress or drop off at each step.Open glossary term more than anywhere else.
- Calculate the rate between consecutive steps, not from the start. A stage losing half its glossaryTrafficTraffic refers to the number of users visiting a website, app, or digital product over a given period.Open glossary term looks minor if you only ever measure against the entry point.
- Identify the largest drops in absolute numbers as well as percentage. A 60% drop on a step reaching two hundred people matters less than 10% on one reaching fifty thousand.
- Segment by device, glossaryChannelA channel is a source or pathway through which users arrive at a product, such as search, social media, paid ads, or direct traffic.Open glossary term and user type. An average glossaryFunnelA funnel represents the stages users go through from initial interaction to completing a goal, showing how many progress or drop off at each step.Open glossary term frequently hides one segment performing well and another failing completely.
Focus on where, then go elsewhere for why. glossaryFunnelA funnel represents the stages users go through from initial interaction to completing a goal, showing how many progress or drop off at each step.Open glossary term analysis earns its keep as a targeting tool for qualitative work, not as an explanation.
Capture and make sense of it
The value comes from knowing where to look. Look across the glossaryDataData is raw, uninterpreted information collected and stored so it can be analysed, processed, or used to inform decisions. On its own it carries no meaning; context and interpretation are what make it useful.Open glossary term to identify:
- The glossaryDrop-offDrop-off refers to users leaving a journey before completing a desired action or reaching the next step.Open glossary term points that cost the most in absolute terms
- Trends across segments, especially where one diverges sharply
- Differences between devices and glossaryChannelA channel is a source or pathway through which users arrive at a product, such as search, social media, paid ads, or direct traffic.Open glossary term
- Change over time, which separates a new problem from a permanent one
Use this to direct deeper investigation. A glossaryFunnelA funnel represents the stages users go through from initial interaction to completing a goal, showing how many progress or drop off at each step.Open glossary term that produces a redesign on its own has been over-interpreted.
What to look for
Focus on:
Where it goes wrong
Most issues come from:
glossaryFunnelA funnel represents the stages users go through from initial interaction to completing a goal, showing how many progress or drop off at each step.Open glossary term analysis shows what is happening, not why it is happening.
What you get from it
Done properly, this method gives you:
Key takeaway
It helps you focus on the areas that matter most.
Get in touch
If this sounds like something you need, we can help you identify where users are dropping off and how to improve conversion.
No guesswork. No assumptions. Just clear insight you can act on.
FAQ
Common questions
A few practical answers to the questions that usually come up around this method.
What is funnel analysis in UX?
Funnel analysis is a method used to track how users move through a journey and where they drop off.
When should you use funnel analysis?
Use it when analysing conversion rates, user journeys, or performance across key flows.
What tools are used for funnel analysis?
Common tools include Google Analytics, Mixpanel, Amplitude, and other analytics platforms.
What is the difference between funnel analysis and user research?
Funnel analysis shows what users do at scale, while user research explains why they behave that way.
Can funnel analysis improve conversion rates?
Yes. It helps identify where users drop off so you can focus optimisation efforts effectively.
Quick take
If you want to understand where users drop off and why conversions are not happening, start with funnel analysis.
Related Services
