Funnel Analysis involves using a series of events that lead towards a defined goal.
This term originated from the name of a tool called the Funnel, which is used in the kitchen or in mechanics, which gets narrower along its length, allowing less volume to pass through it. A funnel in analytics represent the same behavior where –
- A funnel is identified
- Set of users in the beginning (or top of the funnel) are identified
- These users are allowed to pass through a funnel
- Some users drop on the way
- And, some make their way out of the funnel
Funnel Analytics is the study of one or more of such events.