Reading Funnel Reports #
Funnel Metrics #
Each funnel report shows:
| Metric | Description |
|---|---|
| Entered | Customers who completed Step 1 in the period |
| Step N Count | Customers who reached this step |
| Step N Rate | % of entrants who reached this step |
| Drop-off N | Customers who left between Step N and Step N+1 |
| Completion Rate | % of entrants who completed the final step |
Analyzing Drop-offs #
The highest drop-off between two adjacent steps is where the most improvement opportunity exists.
Example: If 90% of customers who create a license never activate it, that is a massive drop-off at Step 1 to Step 2. Possible causes: confusing onboarding, wrong audience, product does not meet expectations.
Funnel Time Window #
The funnel time window defines how long a customer has to complete all steps. Choose a window that matches your expected customer journey:
– Activation funnels: 7 to 14 days
– Renewal funnels: 365 days (annual license lifecycle)
– Download engagement: 30 days
Funnel vs Cohort Analysis #
| Funnel | Cohort |
|---|---|
| Steps are ordered events | Groups customers by acquisition date |
| Shows drop-off between steps | Shows retention over time |
| Good for onboarding analysis | Good for long-term retention analysis |
| Best for identifying a specific broken step | Best for measuring overall retention trend |