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What is funnel analysis?

Knowledge Drop

Last tested: Dec 30, 2019


Funnel analysis enables you to visualize a customer journey, aggregating user behavior in stages across a workflow toward a specific outcome.

All businesses have a target outcome (or many), so funnel analysis is applicable for any product/service being sold. Google Analytics (GA), the main leaders in use of funnels, refer to these outcomes as goals that they want users to gravitate toward, (e.g. making a purchase or signing up for a service). The set of steps taken to reach that goal (e.g. the app events or page views) is referred to as a “funnel”. This is because the typical shape created when we visualize the flow of users is similar to a funnel, with users dropping off in each step.

Therefore with funnel analysis, you can see at which step users mostly drop off and use that data to optimize per stage and increase the funnel conversion rate, the % of users who make it through the funnel from the start to the end goal.

Read the following tutorials to get a better sense of when, why and how to use funnel analysis:



There’s a lot of jargon in the marketing analytics industry, so here are the most common terms/metrics you’ll find (to simplify, we focus on page views in the following examples):

  • Step(s)/stages - the page URLs leading toward a goal
  • Goal/outcomes - The target page URL that you are driving users toward
  • Conversion Rate - the % of users who make it through the funnel from the start to the goal. Note: some companies measure users, while others look at sessions (another feature)
  • Bounce Rate/Abandonment - For all sessions that start with this page, the Bounce Rate is the percentage that only had one page in the session, i.e. users who have visited only a single page before leaving.
  • Exit rate - For all page views to a page, the Exit Rate is the percentage that were the last in the session (further explanations between the difference of Exit Rate and Bounce Rate can be found here)

Some of the key advantages of using Looker are explained in this blog post

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Last update:
‎06-14-2021 06:17 PM
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