Glossary

Funnel analysis

A method for tracking how users move through an ordered sequence of steps toward a goal, and where they drop off.

Also called: conversion funnel

Funnel analysis breaks a goal, such as completing a purchase or finishing onboarding, into an ordered sequence of steps and measures how many users make it from one step to the next. Typical e-commerce steps might be product view, add to cart, checkout started, and purchase completed.

Each step is built from underlying event tracking data, and the conversion rate between consecutive steps shows exactly where the largest share of users is lost. Funnels are frequently segmented by traffic source, device, or cohort analysis group to see whether drop-off is concentrated in a particular segment rather than spread evenly.

Funnel analysis is one of the most direct tools for prioritizing UX and product fixes, since it points to a specific step rather than an overall conversion number. Its main pitfalls are structural: a strict, linear funnel assumes users move through steps in order, when real journeys are often non-linear or span multiple sessions and devices; step-level sample sizes can get small enough to make rates noisy; and defining comparable step boundaries across web and app can be surprisingly hard.

Last reviewed September 19, 2026

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Related terms

Conversion rate The proportion of sessions, users, or clicks that complete a defined goal, such as a purchase or signup. Event tracking Capturing specific user actions, such as clicks or purchases, as discrete, named pieces of data. Cohort analysis Grouping customers by a shared starting point, such as signup month, and tracking how their behavior diverges over time. Retention analysis The study of how many users keep returning to and engaging with a product after their first use.

Related tools

Adobe Analytics Enterprise digital analytics platform within Adobe Experience Cloud for analyzing customer interactions across channels. Adobe Customer Journey Analytics Enterprise analytics that stitches web, app, call-centre and offline data into cross-channel customer journeys. Alterian Real-time CX platform combining journey analytics and orchestration, sold in tiers from a self-serve entry plan to enterprise. Amplitude Cloud-based digital analytics platform for event tracking, behavioral cohorts, session replay, and feature experimentation. Contentsquare Enterprise experience analytics platform combining session replay, heatmaps, journey analysis and error monitoring, sold on request-a-demo pricing. Countly Open-source product and mobile analytics that can be self-hosted or run as a managed private cloud, for teams with data-residency needs.

Related guides

Behavioral event data, explained How product and marketing teams turn raw clicks and actions into events, and what separates a usable event stream from a noisy one. How to analyze a conversion funnel Building a funnel in SQL, choosing ordered vs unordered steps, and the ways funnels quietly mislead once you trust them too far. How to choose a customer journey analytics tool The decision is whether you need to see the whole cross-channel journey, decide what happens next inside it, or just measure a single product's funnel. How to choose a game analytics platform Game analytics splits between standalone, engine-neutral tools and analytics bundled into a backend-as-a-service — pick based on what else you need. How to choose a nonprofit fundraising platform Donor CRMs report on their own database, not the sector; pick by who gives, how pricing scales, and whether you need membership or events too. How to choose a product analytics tool Product analytics tools split by how events get captured, who reads them, and whether in-app engagement is bundled in — decide those first.