Why Funnel Analysis Matters
Most businesses obsess over top-of-funnel (traffic) when the biggest wins are usually mid-funnel drop-offs. Improving one stage from 10% to 15% can double overall revenue with zero additional ad spend.
Key Metrics
- Stage conversion rate = Next stage ÷ Current stage × 100
- Cumulative conversion = Final ÷ First × 100
- Drop-off rate = (1 − stage conversion) × 100
- Drop-off vs benchmark — each industry has standard rates
Benchmarks (E-commerce)
| Stage transition | Typical conversion |
|---|---|
| Visit → Product view | 30–50% |
| Product → Cart | 8–15% |
| Cart → Checkout | 40–60% |
| Checkout → Purchase | 50–75% |
How to Diagnose a Leak
- Compare each stage to benchmark. The stage furthest below is your leak.
- Watch session recordings for that stage. Talk to 5 users who dropped.
- Form a hypothesis (form friction, trust, price shock, confusion).
- Fix it. Measure over 2+ weeks.
- Repeat on the next stage.
What NOT to Do
Don't try to fix every stage at once. Focus on the worst-performing stage, fix it, remeasure, then move to the next. Sequential > parallel for attribution clarity.