Conversion Funnel
The series of steps users take from first interaction to completing a desired action.
Definition
A conversion funnel visualizes the path users take from initial awareness through to completing a desired action—purchase, signup, request, or other conversion. The funnel metaphor reflects that user numbers decrease at each stage as some drop off while others proceed.
Typical e-commerce funnels include awareness → site visit → product view → add to cart → checkout → purchase. Each stage has its own conversion rate, and optimizing the weakest stages yields the biggest improvements.
Why It Matters
Funnel analysis identifies where you're losing potential customers. A small improvement at a leaky stage can dramatically increase overall conversion. Without funnel visibility, optimization is guesswork.
Understanding your funnel also helps allocate resources—investing in traffic is wasteful if the funnel can't convert that traffic efficiently.
Examples in Practice
Funnel analysis reveals 70% drop-off at checkout, focusing optimization efforts on the highest-impact stage.
A B2B company maps their funnel from first touch through sales qualification, identifying content gaps that lose leads.
Adding a progress indicator to a multi-step form reduces funnel abandonment by 25% through better user orientation.