Funnel analysis

Funnel analysis involves mapping and analyzing a series of events that lead towards a defined goal, like an advertisement-to-purchase journey in online advertising, or the flow that starts with user engagement in a mobile app and ends in a sale on an eCommerce platform.

The term 'funnel analysis' comes from the analogy with a physical kitchen or garage funnel, which gets narrower along its length, allowing less volume to pass through it.

Similarly, an analytics funnel helps visualize how a large number of individuals enter the funnel, yet only a small proportion of them will perform the intended actions and reach the end goal on a website, eCommerce platform, application, or online game.

An analysis to determine the steps that lead to a desired goal in order to improve future interactions in the same funnel can be done for further success.

By continuously monitoring and analyzing funnels, it is possible to assess if changes to an application or platform are having a positive effect on conversion.