Skip to main content
Also known as: conversion funnel, user funnel, funnel metrics

Funnel Analysis

ConceptualProductMetrics

Definition

Funnel Analysis: Funnel analysis tracks user progression through sequential steps toward a goal—signup, activation, purchase, etc. By measuring drop-off at each stage, teams identify where users get stuck and prioritize improvements. Funnels reveal optimization opportunities that aggregate metrics miss.

Example Usage

“Funnel analysis showed 40% drop-off at email verification. Adding 'resend email' and clearer instructions improved completion to 85%.”

Common Misconceptions

Optimize the biggest drop-off first. Consider effort vs. impact; sometimes smaller drops are easier wins.
Funnels are linear. Real user journeys are messy; users skip steps, go backward, and take multiple paths.
One funnel per product. Different user segments and use cases need separate funnel analysis.

Explore More Resources

Browse Tools

Discover 100+ vetted tools for every stage of your startup journey

Explore all tools

Build Your Stack

Take our personalized quiz to get tool recommendations for your startup

Start the checklist

Recommended Reading

Curated books to help you learn, grow, and succeed as a founder

View book recommendations

Listen & Learn

Top podcasts covering startups, product, growth, and entrepreneurship

Discover podcasts

Help us improve this definition

See something that could be clearer or more accurate? Let us know.

Help us improve this page

Found an error or have a suggestion? We'd love to hear from you.