Funnel analysis tracks how users or entities move through a defined sequence of steps, often representing a journey or process. It helps businesses understand where drop-offs occur and how effectively users progress toward a goal.

Common funnels include:

• Marketing funnels (impression → click → signup)

• Product onboarding funnels

• Checkout funnels

• Sales pipelines

Funnel analysis answers questions like:

• Where do users drop off?

• Which step causes friction?

• How long does progression take?

Technically, funnel analysis relies on event tracking and time-based sequencing. Events must be accurately timestamped and associated with users or sessions.

In BI tools, funnels are visualized using step charts or conversion rate breakdowns.

Funnel analysis is critical for optimization. Small improvements at key steps can significantly impact overall conversion.