methodatlas
Method guideGrowth

Funnel Analysis

A practical method guide: clarify prerequisites and materials, understand the complete process, and look up outputs, pitfalls, and stop criteria.

ComplexityMedium
Time1-3 h
Participants1-5
FormatAsync
MaturityEstablished
Prepare plan
01

Prerequisite

What needs to be finished first

Complete firstClear scope

One measurable flow with a clear start and completion.

Without a boundary, data, perspectives, or flows become mixed.
Complete firstAccess to evidence

Relevant people and sources can be included.

Gaps remain visible; missing evidence must not be invented.
02

Preparation

What needs to be ready before start

Materials

Shared workspace, accessible sources, and a decision log.

People / roles

Product analytics · Product · Analytics

Pre-read

Clarify the question, timeframe, data access, roles, and known uncertainties in advance.

Time needed

30–60 minutes with prepared, validated event data; segment analysis may need separate time.

Setup

Create a shared version. Label facts, assumptions, and decisions separately.

03

Core question

The one question this method answers

At which step and for which cohort does the transition rate fall most?

04

Flow

Phases with goal, actions, output and pitfall

Funnel Analysis shows where people progress or drop out along a defined user journey. Comparing transition rates and user groups helps identify improvements to investigate.

Conversion funnel with rates per step

Fictional worked example

Find which defined journey step people do not progress beyond.

Frame

Describe flow, start, completion, and cohort.

Period: week 12; market: DE; device: mobile.

Steps

Record event names, rules, and known tracking gaps.

View 10,000 → cart 2,400 → checkout 1,200 → purchase 840.

Rates

Enter numerator, denominator, rate, and window per transition.

Transitions: 24%, 50%, 70%. Each denominator is the prior step.

Question

Record the anomalous step and unresolved cause as a question.

Largest absolute loss is before cart; cause remains unknown.

Fictional shop, week 12: product views 10,000, carts 2,400, checkouts 1,200, purchases 840. Step conversions: 24%, 50%, 70%; the largest absolute loss is before the cart.

Three Steps to Increase Your Conversion Rate Using Funnels

  1. 1

    Flow

    Bound the flow

    Goal

    Do all users enter at the same event?

    Inputs for this step

    • Start and completion events, intended journey

    Actions

    • Choose one user intent and order observable events.
    • Do all users enter at the same event?

    Output

    Bounded event sequence

    Bounded event sequence

    Quality check

    Do all users enter at the same event?

    Pitfall

    Event duplication inflates counts Use unique people or sessions and verify identity stitching.

    Timing: Part of the agreed work block; research may be separate.

  2. 2

    Data

    Validate events

    Goal

    Can counts and denominators be reproduced?

    Inputs for this step

    • Event definitions, identity and consent rules

    Actions

    • Check names, identity, time window, and missing events against raw data.
    • Can counts and denominators be reproduced?

    Output

    Validated event definitions

    Validated event definitions

    Quality check

    Can counts and denominators be reproduced?

    Pitfall

    Wrong denominator after filtering Calculate each transition from the cohort that actually entered.

    Timing: Part of the agreed work block; research may be separate.

  3. 3

    Rates

    Calculate transitions

    Goal

    Are cohorts and windows comparable?

    Inputs for this step

    • Unique people per step and time window

    Actions

    • Count unique people per step; divide transitions by the correct entering cohort.
    • Are cohorts and windows comparable?

    Output

    Cohort rate table

    Cohort rate table

    Quality check

    Are cohorts and windows comparable?

    Pitfall

    Tracking gap mistaken for drop-off Validate event coverage and consent differences before interpreting.

    Timing: Part of the agreed work block; research may be separate.

  4. 4

    Investigation

    Investigate drop-off

    Goal

    Is a pattern an observation or already an explanation?

    Inputs for this step

    • Drop-off points, segments, and qualitative clues

    Actions

    • Compare meaningful segments and combine anomalies with qualitative evidence.
    • Is a pattern an observation or already an explanation?

    Output

    Prioritized investigation question

    Prioritized investigation question

    Quality check

    Is a pattern an observation or already an explanation?

    Pitfall

    Segment chosen after seeing result Predefine useful segments and label exploratory findings.

    Timing: Part of the agreed work block; research may be separate.

05

Artifact

What comes out at the end

Sketch: what the artifact looks like

Funnel Analysis · Conversion-LecksNutzerfluss in Stufen, Conversion-Raten und Abbruchstellen messbar machen
Funnel AnalysisDas Visual zeigt Funnel-Stufen mit absoluten Zahlen, Conversion-Raten und einem markierten größten Leck.Conversion-Lecks sichtbar machenStufen, Mengen und Übergänge zeigen, wo Nutzer aussteigen und welches Experiment Priorität hat.Besucher10.000 · 100 %Produktseite6.200 · 62 %Sign-up1.860 · 30 %Aktivierung930 · 50 %62 %30 %50 %Drop-off analysierenlernenGrößtes LeckProduktseite → Sign-up: Angebot, Vertrauen oder FormularprüfenNächstes ExperimentHypothese am größten Abbruch testen
Form

Versioned result with question, evidence, open issues, next action, ownership, and review date.

Versioning / ownership

Record date, scope, sources, and changes. Preserve earlier observations.

Tool alternatives
  • Whiteboard or paper
  • Shared spreadsheet
  • Versioned project space

funnel-analysis-working-template.md

Prepare Funnel Analysis with a clear question, roles, and sources.

Funnel Analysis: Worksheet

Question

To be confirmed

Desired outcome

To be confirmed

Scope

Plan the full method Time: Set according to scope and available evidence

Complete this worksheet on paper or in your own document during the work.

Preparation for this scope

Method setup

  • Materials: Shared workspace, accessible sources, and a decision log.
  • Roles: Product analytics · Product · Analytics
  • Advance information: Clarify the question, timeframe, data access, roles, and known uncertainties in advance.
  • Overall time needed: 30–60 minutes with prepared, validated event data; segment analysis may need separate time.
  • Setup: Create a shared version. Label facts, assumptions, and decisions separately.

Prepare for the work steps

Flow: Bound the flow

  • Start and completion events, intended journey

Data: Validate events

  • Event definitions, identity and consent rules

Rates: Calculate transitions

  • Unique people per step and time window

Investigation: Investigate drop-off

  • Drop-off points, segments, and qualitative clues

Conversion funnel with rates per step

Frame

Describe flow, start, completion, and cohort.

...

Steps

Record event names, rules, and known tracking gaps.

...

Rates

Enter numerator, denominator, rate, and window per transition.

...

Question

Record the anomalous step and unresolved cause as a question.

...

Blank worksheet: start with a bounded question. Enter observed facts only, mark assumptions, and record open questions and sources.

Three Steps to Increase Your Conversion Rate Using Funnels

Flow: Bound the flow

Expected artifact: Bounded event sequence

Bounded event sequence

Entry:

...

  • Do all users enter at the same event?

Data: Validate events

Expected artifact: Validated event definitions

Validated event definitions

Entry:

...

  • Can counts and denominators be reproduced?

Rates: Calculate transitions

Expected artifact: Cohort rate table

Cohort rate table

Entry:

...

  • Are cohorts and windows comparable?

Investigation: Investigate drop-off

Expected artifact: Prioritized investigation question

Prioritized investigation question

Entry:

...

  • Is a pattern an observation or already an explanation?

Open questions and next steps

...

Method guide: https://methodatlas.meierhoff-systems.de/en/methods/funnel-analysis/run-sheet

06

Example output

Concrete filled scenario, fictional example

Fictional example for orientation. Counts and timings describe this case and are not universal requirements.

funnel-analysis-beispiel.md

Concrete filled scenario, fictional example

Fictional worked example

Fictional shop, week 12: product views 10,000, carts 2,400, checkouts 1,200, purchases 840. Step conversions: 24%, 50%, 70%; the largest absolute loss is before the cart.

All names and values are invented for illustration. Unresolved explanations remain questions.

07

Pitfalls

Recognize symptoms and steer against them

Quick overview, the full text is in the matching phase in the flow

  1. Bound the flowEvent duplication inflates countsView in phase
  2. Validate eventsWrong denominator after filteringView in phase
  3. Calculate transitionsTracking gap mistaken for drop-offView in phase
  4. Investigate drop-offSegment chosen after seeing resultView in phase
08

Stop criteria

When to pause, resolve prerequisites, or choose another approach

The question or boundary remains ambiguous: narrow it first.
Key data or participants are missing: label the gap and arrange access.
The group mixes observation and explanation: revisit the evidence.
An immediate safety or operational risk appears: stop and use the responsible procedures.

Where to go next?

A/B Testing workspace showing the question, observations, and next decision.
Growth
A/B Testing

Tests a plausible cause of the loss with a controlled experiment.

Growth Experiment workspace showing the question, observations, and next decision.
Growth
Growth Experiment

Tests the investigation question with a small, measurable intervention.

View in playbookSet Up a Growth Experiment LoopMove from a funnel problem to hypothesis, experiment, measurement, and next growth decision.

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