What is funnel analysis?

Funnel analysis is the process of examining how potential customers move through the stages of your buying process. It helps determine where customers are dropping off so you can optimize your product and improve conversion rates.

The Buying Funnel Stages

The typical buying funnel includes three main stages:

• Top of the funnel (TOFU): This is where potential customers first become aware of your product or service. It includes things like social media posts, blog content, and search ads.

• Middle of the funnel (MOFU): This is where interested prospects start engaging more. It includes content like email newsletters, webinars, and product pages. 

• Bottom of the funnel (BOFU): This is where serious prospects make a purchase decision. It includes using the app, checkout pages, trials, etc. 

Analyzing Your Funnel & How To Optimize Your Funnel

Once you map out your buying funnel stages, you can start analyzing how prospects move through each one. For example, look at metrics like sign ups, cart abandonments, in-app purchases, etc. See where the biggest drop-offs are happening. Then make changes to optimize - add simplify your user onboarding process, build in a loyalty and referral program, integrate in-app surveys to get feedback, etc.

Continually analyzing and optimizing your sales funnel is key to driving more conversions and revenue for your business. While it does take work, the insights you gain about your customers and how to better serve them will prove invaluable.