Funnel analysis tracks how many users progress from one step of a workflow to the next, revealing where and how many drop off. Each step with significant drop-off is a friction point — and the biggest drop-off is usually the highest-leverage improvement opportunity.
When users aren't completing a key workflow — onboarding, upgrade, investigation — and you need to find the specific step causing the problem.
- Define the funnel: the specific, ordered sequence of steps a user must complete
- Instrument each step to capture who completes it and when
- Visualise the funnel: Step 1 = 100%, then % who reach each subsequent step
- Identify the step with the biggest drop — this is the priority
- Investigate the cause: session recordings, usability testing, or user interviews
- Improve that specific step and measure the change
Free-to-Premium upgrade funnel. Biggest drop: views pricing page → starts trial (60% drop). Session recordings reveal: users scroll to price, then leave to check if family members would also use it. Fix: add 'Duo' and 'Family' plan options prominently on pricing page. Conversion improves +18%.
Please contact the author for more information on these examples at linkedin.com/in/kshitijrege
- Defining the funnel incorrectly — steps must be sequential and logically required
- Looking only at aggregate numbers rather than segmenting by user type
- Optimising a funnel that leads to the wrong destination — ensure the end goal is genuinely valuable
- Lean Analytics — Croll & Yoskovitz