# Funnel Analysis

Funnel analysis is a method used in product design and development to track how users move through a series of steps in a product, with the goal of identifying where users drop off and optimising the process. Each funnel represents key stages, such as viewing a product, adding it to a cart, and completing a purchase. As users advance through these steps, the funnel narrows, with fewer users completing the final action.

This analysis helps teams pinpoint friction points in the user journey. For example, if many users drop off after viewing a product but before adding it to their cart, it indicates a potential issue with that stage, such as unclear information or design flaws. By tracking conversion rates—the percentage of users progressing from one stage to the next—teams can identify where improvements would have the most impact.

Funnel analysis also guides product optimisation. Once problem areas are identified, designers and developers can make targeted changes to improve user flow, such as simplifying checkout or enhancing user interactions. This process often involves A/B testing, where different design versions are tested to see which leads to better user progression.

Analysing different user segments (like mobile vs desktop) can provide deeper insights into behaviour, leading to more tailored design changes. In tech, funnel analysis is frequently used to optimise onboarding, feature adoption, and purchasing processes, ensuring a smoother user experience and higher conversion rates.

#### Further Reading

{% embed url="https://uxdesign.cc/to-persuade-your-team-to-look-past-quick-wins-you-need-to-understand-the-funnel-fecb5a09aaae" %}

{% embed url="https://chartio.com/learn/product-analytics/what-is-a-funnel-analysis/" %}

{% embed url="https://clevertap.com/blog/funnel-analysis/" %}
