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Glossary · Measurement

What is Funnel Analysis?

Funnel analysis measures the rate at which users complete the steps of a process in order: product view, add to cart, checkout started, purchase. The loss at each step is visible separately. The break point pulling conversion rate down is found with data rather than guesswork.

Detail

The bottleneck found most often is the checkout step; shipping cost appearing at the last step, forced account creation and limited payment options are the typical causes. The funnel has to be built separately for mobile and desktop, because the loss usually concentrates on mobile and a combined table hides it. Breaking it down by traffic source is necessary too; a user arriving from social media does not follow the same funnel as one arriving from search. For the analysis to work, events have to be set up correctly and deduplicated.

Formula

Step-through rate = Users completing the step / Users completing the previous step x 100

Example

If 1,450 of the 3,000 users who add to cart start checkout and 780 complete it, the largest loss is in the move from cart to checkout and the second is on the payment screen.
FAQ

Common questions on this topic.

How is Funnel Analysis calculated?

Step-through rate = Users completing the step / Users completing the previous step x 100

If 1,450 of the 3,000 users who add to cart start checkout and 780 complete it, the largest loss is in the move from cart to checkout and the second is on the payment screen.

Why does Funnel Analysis matter?

The bottleneck found most often is the checkout step; shipping cost appearing at the last step, forced account creation and limited payment options are the typical causes. The funnel has to be built separately for mobile and desktop, because the loss usually concentrates on mobile and a combined table hides it. Breakin…

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