Scuba Tech Library

What is Funnel Analysis

Funnel analysis helps product managers and marketing teams understand the user flow across a website. The goal of funnel analysis is to observe the steps a user takes to get to a desired outcome. For example how many steps does it take for an end-user to complete a purchase, a registration, or a lead form.

Each of the steps required to complete an outcome are a part of the buying journey. Conducting funnel analysis helps visualize how a buyer progresses through the funnel, and if there are opportunities to increase conversions, decrease drop-offs, and improve the customer experience along the way.

Benefits of Funnel Analysis

To get to the ultimate goal (a conversion), your end-users will go through a series of micro conversions. For example, a customer of an eCommerce business might go through the following buying journey:

  •  Visiting a site
  • Adding a product to the shopping cart
  • Clicking to check out
  • Completing the purchase
  • Visiting a thank you page

Visualizing the funnel helps you recognize the points of the customers' journey where they usually drop off and note which part presents the highest opportunity for improvements.

For instance, if we use this funnel as an example:


We can see that 50% of users drop off between the homepage and the registration page, indicating there may be an issue with how a user finds the registration page, or the overall UX of the registration page.

By making product experience improvements, not only are you improving the customer experience, but you’re earning the opportunity for higher conversions as well.

Analyzing the funnel

When analyzing the funnel, it’s important to:

  • Set goals and monitor KPIs for your business: For example, is there a total number of conversions you’re aiming to reach? Are you looking to reduce churn, and by how much? And by making product improvements, are you moving closer to your goal?
  • Visualize the funnel: When comparing vast amounts of data, a bird’s eye view of the funnel can help you quickly understand where your problem areas are.
  • Create subsets to understand different types of users: Seeing how different users navigate your website can help inform UX changes. For example, do first time visitors behave differently than returning visitors? How can you improve the customer journey so both subsets act similarly?
  • Pick the right tool: Finding a solution with robust analytics and visualization features will act as a one-stop shop for data collection, storage, analysis, visualization, and allow you to quickly make data-informed decisions.

Looking to improve your customer journey? Learn how Scuba can give you 360-degree visibility into your customer journey -- through a single pane of glass.

From Our Blog

customer service representative woman thumbnail

7 Metrics Telecom Brands Should Measure to Track Customer Loyalty

Have you ever been so committed to a brand that you wouldn't dream of doing business elsewhere? That's the power of customer loyalty, a positive emotional relationship between a customer and a business. 

Learn More
customer service agent thumbnail

How to Better Measure Contact Center Performance

Contact centers are critical to customer experience and retention in the telecom industry. A recent study found that 39% of customers who cancel their telecom service did so because of bad customer service. Even worse, 79% of disappointed telecom customers admitted to sharing their negative experiences with friends and family.

Learn More
netflix tv thumbnail

3 Industries Where Dark Social Will Dominate in 2022

How many times have you opened Netflix or Amazon Prime Video and cringed at the suggestions in your feed? You’re faced with a stream of content you don’t want to watch, never expressed interest in, and can’t fathom why the app considers it a good fit for you. And when that happens, how often do you text a friend or share it in a chat group, rather than reject the suggestions one by one in the app?

Learn More
digital cloud people thumbnail

8 Ways to Protect Your Data in Today's Cloud World

Remember wandering around a video store, looking at box after box, and trying to decide which movie to rent? Twenty years ago, we couldn’t imagine the idea of sitting on our couch, streaming movies directly from the cloud into our living rooms. Unfortunately for Blockbuster, they couldn’t imagine it, either.

Learn More

Make better decisions with 360° of data-backed insights.

Explore what a true self-service customer experience analytics platform can do for your business.

Click Here

Case studies