Glossary

Funnel Analysis

By
Jademi Jude
00
Minutes read
June 27, 2025

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Funnel Analysis Definition

Funnel analysis is a technique used to visualize and measure how users progress through defined stages of the customer journey—awareness, consideration, and conversion. It helps marketers identify bottlenecks, optimize user flows, and improve overall conversion rates.

How Funnel Analysis Works

  • Define funnel stages (e.g., site visit → product view → checkout → purchase).

  • Track user actions and drop-off rates at each stage.

  • Analyze where users disengage and why.

  • Optimize campaigns, landing pages, or processes to improve flow.

Example of Funnel Analysis

An e-commerce brand discovers 40% of users abandon carts at checkout, prompting checkout page optimizations.

Why Funnel Analysis Matters in Advertising

  • Identifies weak points in the customer journey

  • Informs optimizations to improve conversion rates

  • Enhances campaign efficiency by reducing lost opportunities

  • Essential for performance marketing and sales process refinement

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