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Evaluating Design

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Funnel Analysis

2:57 with Anya Mezak

Now we’ll look at how to analyze the series of events that lead to a desired goal. This is referred to as a “funnel” because though many individuals can enter the funnel, only a small number of them will get to the intended goals. Funnel analysis is used to understand exactly what steps people use to get to a particular goal and where the user drop-off is along the way.

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    What steps does it take for someone using your product or 0:00
    service to get to their goal? 0:03
    Having these illustrated and tracked using an analytic service can help you 0:06
    identify critical breaking points in this flow and address them strategically. 0:10
    Let's continue to use Amazon.com as an example. 0:16
    First, we need to outline the steps and 0:19
    the funnel for making a purchase on Amazon. 0:22
    Aim for about 5 to 10 steps in your funnel. 0:26
    Here's ours. 0:29
    1, go to Amazon.com. 0:30
    2, search for a desired product. 0:33
    3, look at product pages. 0:37
    4, add product to cart. 0:40
    5, proceed to checkout. 0:43
    6, sign in. 0:45
    7, review check out page. 0:48
    And 8, place your order. 0:51
    Now, as you can guess, fewer and 0:55
    fewer people will go on from one step to the next. 0:57
    So really, it all begins to look like a funnel. 1:01
    If this visualization becomes hard to read, you can also use a simple bar chart. 1:06
    You'll find that one advantage of using a bar chart 1:12
    to visualize this flow instead of the more traditional funnel, 1:15
    is that it's easier to map the data while maintaining readability and scale. 1:19
    One thing that defines all funnels is they are linear. 1:24
    In our example where step number 3 is someone looking at product pages, 1:28
    it doesn't matter how many product pages someone looked at 1:33
    since it's all just one step in getting to the conversion. 1:36
    The fact that people may look at 3 products or 30 can be significant, but 1:41
    within a different research context. 1:45
    Now comes the real useful part of going through this exercise. 1:48
    If somewhere in the funnel you noticed a particularly steep drop-off, 1:53
    you know it's a problem area that you need to look into. 1:58
    As you can see here, a steep drop has appeared between adding something to 2:01
    the cart and proceeding to checkout. 2:06
    People appear to be putting your product in their shopping carts, and 2:09
    then leaving the site. 2:12
    It's quite possible that this drop-off is normal. 2:14
    So before you assume something is wrong, you'll need to gain some context. 2:17
    Understanding the historical trends for your product and your industry 2:22
    will allow you to decide if this drop-off is worrisome or completely normal. 2:26
    If in fact you find that a drop-off is unusually high, 2:33
    run a qualitative study, such as a usability test, to understand why. 2:37
    Once you think you've found a design solution and 2:44
    have tested it with a few users. 2:46
    Consider introducing it as part of an AB test 2:48
    to make sure it improves the conversation rate. 2:51
    And if the test is successful, launch to everyone. 2:54

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