What is Funnel Analysis?

A funnel represents a series of actions you want visitors to complete in order. Each step narrows the audience, which is why it's shaped like a funnel. By measuring the conversion rate between steps, you can identify exactly where people leave and focus your optimization efforts there.

For example, a SaaS signup funnel might have four steps: visit pricing page → click start trial → complete registration form → activate account. If 1,000 people view pricing but only 50 activate, funnel analysis shows you whether the biggest drop is at the form (too many fields?) or between registration and activation (confusing onboarding?).

Funnel analysis is most useful when you define the steps based on real user intent rather than arbitrary pageviews. The best funnels are short (3–5 steps), map to a clear business goal, and are measured over a consistent time window.