Funnel analysis helps businesses to find hidden opportunities to increase conversions. It enables them to identify the drop-off points on their websites and find out how to make the most out of their traffic. 

Analyzing and optimizing the marketing funnel will help you understand the effectiveness of your marketing campaigns and customer acquisition and retention strategies.   

In this complete guide to funnel analysis, we’ll discuss how to analyze funnels to boost conversions on your website.  

Want to know more about how to increase your conversion rate? Read more articles about CRO.

What Is Funnel Analysis?

Funnel analysis is the practice of mapping users’ interactions on a website that leads to the conversion goal. The goal can be signing up, completing purchases, filling out a contact form, etc. 

Conversion funnel analysis can help you optimize the user journey on your website. By following visitors’ paths on your website, you can find out how many users reach each step of the funnel and how many come out of the bottom, becoming a new customer.

Funnels are a powerful marketing tool as they allow businesses to discover what prevents visitors from reaching their website’s goal. You will be able to track visitors’ interactions throughout your website and see how many drop out of each funnel stage to identify problems and figure out how to improve the customer journey.   

Imagine you have an eCommerce website. Here’s the path your visitors should follow to reach the conversion goal, completing a purchase:

steps to reach the conversion goal on an eCommerce website: homepage, category page, product page, shopping cart page, checkout page, thank you page

If you find out that the checkout page has a high drop-off rate through funnel analysis, it might mean there’s a problem you must fix. Maybe your checkout page design is too distracting, or you haven’t enabled guest checkout.   

Benefits of Funnel Analysis

As more and more businesses are focusing on CRO strategies, funnel analysis is becoming more important as it can show how to improve conversion rates. Let’s take a look at some of the advantages of analyzing conversion funnels:

1- Identifying High-Exit Pages

By Analyzing your marketing funnel, you will discover which web pages visitors leave your website. Sales funnel tools can show you the drop-off rate and conversion rate of each of your web pages. 

Website funnel analysis allows you to identify the pages with the highest exit rates so you can put your main focus on optimizing these areas. By improving these pages, you will plug the leaks in your conversion funnel, increasing the chances of getting more users to reach the bottom of it. 

2- Identifying the Users That Are More Likely to Convert

Customer funnel analysis enables you to track individual users and find out if they are likely to convert or not. Then, you can focus on these leads and encourage them to move further into the funnel.  

Through analyzing the sales funnel, you will be able to understand what customers want at each stage. So, you will know how to help them to get to the next stage. For example, maybe you find out some customers are not sure if your products or services are worth the price or not. You can encourage these customers to purchase by offering a discount. 

You can use Watch Them Live which is a website visitor tracking tool to track specific users using their email addresses. This way, you can easily reach out to them and send them tailored messages based on how they interact with your website and convince them to convert. 

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3- Determining the Most Effective Marketing Channels

Funnels also help you identify where your high-quality traffic comes from so you can concentrate your effort on these channels to fully leverage them. 

Using funnel software, you can see your website’s goal completions by traffic source.  This way, you can figure out which channels are bringing in high-converting traffic.  

4- Maximizing Sales

When you analyze your website funnel and know the number of users in each stage, you will be able to design strategies to keep sales coming. Sales funnel analysis will tell you how many leads, prospects, and sales opportunities you have.

sales funnel

Remember, the goal is to have a steady flow of leads to move them through the sales funnel. If you currently have more sales opportunities than leads and prospects, you might not be in a good situation. After closing all the sales, you have to start all over again to generate enough leads to convert them into paying customers.  

How to Do Funnel Analysis?

To conduct funnel analysis, you need to use website analytics tools such as Google Analytics or behavior analysis tools that provide qualitative data about visitors’ interactions on your website. Behavior analytics tools make the process of analyzing the conversion funnel much easier as you don’t need to analyze numerical data to understand user behavior. 

Below, we’ll explain how to use these two types of tools to analyze your sales funnel. 

How Does Google Analytics Use Funnel Analysis?

Google Analytics enables you to define the actions you want visitors to take as goals. For each goal, you can set up a funnel that includes the steps that lead to that goal.

After defining a goal, you can create the funnel in the “Goal details” section. Here you have to add the URL for each of the funnel stages, then turn on the funnel option. After saving the funnel steps, GA will start tracking the website visitors that enter the funnel. 

You can find your funnel visualization in the “Conversions” section under “Goals.” You can see the percentage of visitors who proceed to each stage and the funnel conversion rate, the percentage of people who have completed the goal. The funnel visualization allows you to see at what stage most people drop out, so you know where you should make improvements.  

funnel visualization on google analytics

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Conducting Funnel Analysis with Behavior Analytics Tools

A behavior analytics tool such as Watch Them Live can help you easily understand your website’s visitor behavior, which is key to marketing funnel analysis. This tool will help you get insights into users’ interactions at drop-off points and high-exit pages to understand what’s going wrong. 

Let’s see how the features this tool offers helps you analyze your website funnel:


The Heatmapping feature shows an aggregate of users’ clicks on your web pages. You can see which elements users click the most and which ones they ignore. Set up heat maps on your high-exit pages to discover what elements are probably making visitors leave your website. 

For example, if the heatmap shows you the CTA is getting few clicks, maybe you should make it more visible. 


Session Replays

The session replay feature enables you to watch video records of user sessions on your website. Unlike heatmaps, you can track individual user interactions and get more detailed insights into why visitors might be leaving your website. 

With session recordings, you can see what visitors do and what happens right before they abandon your website. Especially keep an eye on high-exit pages and see how people interact with them. How are they engaging with the content? Is there too much information overwhelming visitors? Is there anything making them frustrated? 

This powerful tool helps you detect problems and clearly understand visitors’ experiences on your website. Therefore, you can create a better experience that will encourage visitors to move further down the conversion funnel. 

session replay watch them live

Setting Goals

Just like Google Analytics, WTL lets you set conversion goals for your website and see how many people complete them. You can add as many goals as you want and keep track of visitors’ actions on your website. 

Try out Watch Them Live now and boost conversions! Choose the plan that suits you best and get your free trial. 

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Funnel analysis is a powerful way to discover why you are losing conversions. It helps you understand exactly where your website visitors drop off so you will know where to direct your focus to get the best results.

Published On: July 30th, 2021 / Categories: CRO / Tags: , /

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