All You Should Know About Funnel Analysis

29 Jun- 5 min read

All You Should Know About Funnel Analysis 1
To ensure high sales performance, it is necessary to constantly analyze all stages of interaction with the target consumer. For this, funnel analysis is used, which allows you to evaluate all stages – from providing data about the product to completing the transaction and paying for the product or service. Funnel analysis reveals weaknesses, the elimination of which leads to an increase in revenue and profit.

What is funnel analysis?

So, what is funnel analysis? Funnel analysis is a method of analyzing website traffic to understand user behavior and calculate conversion rates. (Smartlook)

It’s a revision of all stages of the funnel from getting the information to closing a deal and further interaction with a client. When they are regularly analyzed using quantitative indicators, many marketing campaign processes can be significantly improved.

How to Use a Funnel Analysis

Use funnel analysis to identify critical customer journey events and improve acquisition and conversion metrics. As a rule, how to use the funnel data will be predetermined by the funnel type and the funnel building & analysis system you apply for your funnel analysis product management and optimization.

First, a funnel is built based on quantitative data from the results of different stages. For example, the input (widest) part of the inverted AIDA pyramid will be the number of advertising contacts (advertising views). The final step will be the number of customers who have paid for the purchase (converted). For effective in-depth analysis, you need to create funnels with different sections: a funnel is made separately for current and new customers, by sales channels, products, target groups, regions, managers or sellers, etc.

The indicators that should be analyzed for each funnel, however, will be as follows:

  • Quantity at the input and output.
  • Conversion for each stage.
  • Overall conversion.
  • Funnel length.
  • Stage length.

Visualization of all quantitative indicators will help to understand where most of the potential buyers are lost throughout the conversion funnel analysis.

Your website funnel analysis benefits

Website funnel analysis will give your company at least three key benefits.

Increase traffic

Your analysis funnel will find and show the high-traffic, as well as high-exit pages where people are leaving. You will be able to define and eliminate the weakest parts of your marketing strategy. So, determine where high-quality visitors come from with the help of user funnel analysis.

Improve performance

The analysis of the sales funnel can significantly increase the conversion and performance of the marketing and sales departments. You can make analytical slices in different directions, optimizing each of them. This allows you to increase revenue, profit indicators and reduce fixed and variable costs. The analysis of managers’ work shows the level of their competence, diligence and the need for training.

Optimize communication

Website conversion funnel analysis will also allow you to help both the team members and stakeholders stay on the same page and make the right decisions at each stage of the deal as per the business goals and other requirements.

Ways to run advanced funnel analytics

Since funnel conversion analysis helps you get a clear vision and understanding of the user behavior across your website pages, you can improve your analysis process by combining your analytics systems with other user experience tools.

1. See what’s between events and pages

Roadblocks or some problematic high-exit pages may be more deeply analyzed per your analysis of your conversion funnel. Here you may examine what users interact with before they drop off. You may achieve that by using heat maps or session recordings from the Creabl tool or similar.

Session recordings:

All You Should Know About Funnel Analysis 2

Heat maps:

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2. Survey visitors on the page

The extra analytics data from heat maps and recordings will have given you a few hypotheses for UX improvements and design changes. An alternative way to survey visitors on the webpage is a UX audit. A usability audit is an expert assessment of how your potential customers interact with a website. Based on analytics, user behavior and key site metrics, the expert identifies interface flaws that are very critical for conversion and develops recommendations for their elimination. Thus you achieve a complex approach to advanced funnel data analysis.


As you see the evaluation of conversion (percentage of performance) by sales funnel stages and various sections is the basis of sales analysis. You can measure conversion by comparing each stage with the previous one, or you can correlate the total number of buyers at the exit of the marketing funnel to the indicators of one of the stages. When building a user funnel analysis, you can see an inverted pyramid, the widest part of which will be the flow of incoming users that are your leads. At the bottom of the funnel will be the customers who paid for the purchase. Any time you need help you may get an analysis example, use an effective analytics tool or customer journey tracking platform. Apply heat maps or session recordings to improve your product service indicators. Or learn how to how to do funnel analysis and spell out your funnel analysis amplitude data with the funnel analysis data science experts.

FAQs about funnel analysis

What is a funnel strategy?

An excellent funnel analysis example may comprise a full-funnel marketing plan that involves tailoring your marketing messages for every purchasing stage. A good strategy focuses on effective communication rather than only on sales. It considers the entire 360-degree customer journey and attempts to nurture relationships and build better brand experiences.

What is a funnel report?

Report reflects what is a funnel analysis. It identifies where customers dropped out of a marketing campaign or diverted from a defined conversion path during the interaction with your business. You may also apply the funnel report to see and compare the actions of different segments, events, etc.

Why is it essential to do funnel analysis?

To improve the conversion rate , increase the efficiency of the head and managers of the sales department, it is necessary to analyse the funnel constantly. The analysis is done in order to identify weaknesses and problem areas at each stage, as well as their causes. After the problems are identified, options for their elimination, a list of measures (with deadlines, responsible persons) is worked out.

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