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Sales Funnel Analysis

the sales funnel analysis guide
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In business, using a variety of sales channels such as traditional offline channels, websites, social networks is a way to increase revenue.

However, to take the correct actions in convincing customers and to convert buying behavior, Sales Funnel Analysis is critical.

If you are interested in how to do the job and apply the results of the analysis most effectively, do not miss this article. 

We have compiled the most basic information to assist you in Funnel Analysis.

What Is A Sales Funnel Analysis?

what is sales funnel analysis

The sales funnel analysis is a method to analyze and understand all of the stages inside the funnel through the numbers they have. It starts when customers first touch your business, interest, decide to buy, and agree to pay for the product/service.

This Funnel shows the number of customers in each location, such as product information search, communication with staff, adding to cart, checking the information type, and checkout.

As you know, not all people who are interested in your goods and services become actual customers and accept to pay to use your products. 

Therefore, the amount in each phase decreases gradually, forming a pattern after synthesis that looks like Funnel with a narrow bottom and wide top.

In particular, the Funnels Analysis helps businesses better understand the customer’s buying journey to make appropriate adjustments.

Specifically, to increase the purchase rate, you need to determine the number of customers that “give up” at each stage to make the right changes.

Through the information collected and analyzed, businesses can identify the causes and find solutions to increase the purchase rate to turn potential customers into official customers with high conversion rates.

Benefits Of Using Funnel Analysis

Funnel Analysis is critical in the business activities of any individual or business because it will help you determine why customers do not buy your goods or services and discover their needs and desires. 

So, sellers will make changes that will satisfy customers and decide to switch faster. Specifically, some of the benefits of performing Funnel Analysis include.

1. Individual Customers within Funnel Analysis

funnel analysis benefits 1

First, when doing Funnel Analysis, businesses will understand the customer journey, especially with individual customers.

From this information, companies can develop campaigns and actions to optimize the buying process with low shipping costs.

For example, if you find that they wonder about the price policy, promotions or discount codes are a suitable solution to increase conversions.

2. Keep Your Business on Track

funnel analysis benefits 2

At the same time, the Funnel Analysis will help your business take appropriate actions and have the correct action strategy.

Companies can optimize this process by understanding the customer, the user journey, and the factors that affect their conversion path.

In addition, the information after the analysis process helps businesses recognize and evaluate the effectiveness of the strategies they are applying.

It also helps to detect inappropriate and ineffective issues so that the business and related departments can correct themselves.

For example, businesses spend a lot of money advertising to reach customers but do not attract large numbers. If you do not conduct a Funnel Analysis, you will not find the cause, and this situation will continue to make the business lose money without getting the desired to users drop effect.

3. Promote Efficiency

funnel analysis benefits 3

In particular, the information from this analysis will help promote efficiency so that the business can earn more revenue. When you have understood the customer well and have the correct strategies and actions, the ability to convince customers is also higher with the conversion rate.

After analyzing the data and using that information effectively, businesses can increase the conversion rates of customers. It can be that this solution brings many customers and sources of income.

Besides, Funnel Analysis is the basis for adjusting appropriate actions to optimize the customer journey. As a result, businesses can do business more effectively by turning potential customers into actual customers and better retaining customers.

However, to ensure effective and accurate analysis and valuable information, you also need to keep in mind a few issues as follows:

First, determine which converted users should be in the Funnel Analysis and excluded. Therefore, the analyst needs to be knowledgeable and experienced.

Additionally, using a single one is not ideal for measuring performance for platform-driven sites where multiple workflows can exist concurrently.

Significantly during solid Internet development, customers can move to the Funnel stages, and the buying journey happens randomly.

How To Analyze Your Funnel?

how to analyze sales funnel

Suppose you are self-employed or own a business. In that case, you are indeed very interested in the problem of how to find out the reason why customers do not buy so that you can have the correct solutions to increase conversions and sales effectively. 

To analyze the sales Funnels correctly, you need to follow the following process

1. Monitor crucial KPIs for your business

sales funnel analysis 2

First, keep in mind that every stage can involve multiple target performance metrics.

You need to determine which metrics are essential for the success of your business so that during the analysis, you need to focus on them.

You can track some common KPIs: Total conversions for specific Funnel reports (for website conversion Funnels), daily subscriptions, and active users (for platform conversion Funnel Analysis).

Define the target KPIs you want to achieve in advance as a basis for analysis. This way, you will better focus your resources on this.

However, your customers are likely to follow different paths through different websites. Creating multiple ones and tracking them all for maximum conversions is why. This way, you can visualize the best conversion rates scenario.

2. Leverage heatmaps to understand user behavior

website heatmap

Next, leverage the information you can compile from the heatmap to understand customer behavior in your web-based Funnel Analysis.

Through this map, you’ll be able to identify areas where customers “stay” longer, as well as pages where bounce rates are high.

In simple terms, a heat map is a graphical representation of data in which an Eigen matrix represents the values stored as colors.

The bold color area represents the number of customers and the length of time they stay at any location on the Funnel report.

Heatmap is a dedicated utility, and you can install it on your website. This feature will record how long customers stay on the landing page and where they perform the most extended action.

As you can see, sales Funnels visualization tools with built-in heatmaps are a great option. Heatmaps show you where the most activity is on your site, and it’s a great source of information for optimization.

3. Visualize your funnels

sales funnel examples 13

At the same time, to analyze the sales Funnel effectively, you also need to visualize the model and determine the basic information in advance.

This method helps you have a more comprehensive, comprehensive, and in-depth overview and can offer optimal solutions.

Although the basic information of each conversion Funnel Analysis is the same, each type of goods and service will target a separate group of customers.

The buying behavior of customers is different, so each business will have factors to keep in mind when building a product. Therefore, in the analysis process, you need to define and simulate the customer’s purchasing process.

So, to dive deeper into the analytics framework that visualizes it, let’s focus on the information that converts through each step.

4. Funnel reordering

funnel reordering

Finally, the shape of the conversion Funnel will not be fixable. Still, it will constantly change based on customers’ behavior online, and your task is to adjust and arrange the positions regularly.

It’s not always possible for visitors to navigate linearly through your website. Reordering is a great way to analyze dynamics and uncover any possibilities to improve the user’s conversion journey.

As a result, you can get powerful insights into who passed through other pages, along with the drop rate for each page.

Once you have your conversion Funnel steps set up, wait for the data to be fully populated to understand if you need to revisit your steps.

How Can You Get Actionable Insights From Analyses?

The key in sales Funnels analysis is to collect valid, detailed information and use it effectively. When analyzing, pay attention to some unique places on the conversion Funnel and focus on some data such as:


sales funnel analysis 3

The bottleneck is a special place where you should focus your data analysis on the number of customers on the Funnel Analysis is the bottleneck.

In other words, this is the point where customers begin to “leave” the website or end their purchase process before deciding to place an order and pay.

This source of information is significant because you can identify why they decide to leave. As a result, the seller will offer the most appropriate solutions and solutions to solve this problem.

For example, you are running an online business, and after receiving a web sales report, the bottleneck in your conversion Funnel is the checkout phase. Thus, you can identify several reasons: the form of payment is not suitable, it is not convenient, etc.

The time delay between the different steps

sales funnel analysis 4

In the traditional sales method, you can directly communicate to understand the customer and see what issues they are interested in or what makes them consider.

However, you can aggregate and analyze how long they spend each stop for Internet purchases to determine what they’re interested in.

Each conversion Funnel step involves a certain amount of delay for website visitors. It is time it takes a visitor to go from one stage to the next. For example, it could be the time it takes a visitor to add a product to the cart since they landed on the product page.

Based on this information, you can know more about the quality of your products/services and whether the communication strategies you are using are appropriate or need to be changed with user research.

Determining how long customers stay on each eCommerce site or stage of the Funnels will help you determine exactly what they are interested in to optimize accordingly to Google Analytics.



Segmentation helps to give quality information valid for the analysis of the primary conversion Funnel of the customer segment. Note, each customer group will have different needs and buying journeys.

Therefore, dividing them into separate groups and modeling the Funnel for each group helps you better understand the problems they face.

Thus, understanding new customers is accurate and effective in analyzing and making decisions and actions to optimize the buying process accordingly.

Each object will have different problems; for example, senior groups are often concerned and have issues with the user guide and experience. At the same time, customers of different ages will also have a journey of different purchases.


Conversion Funnel Analysis has a significant meaning in business development activities. Through it, you can better understand customers’ buying behavior and the factors that affect their decision-making.

As a result, businesses accurately identify the reason why customers are “leaving” and find solutions to convince customers to make decisions faster.

Hopefully, you have understood Funnel Analysis, the implementation process, and how to research most effectively with the article. This source of information is an effective tool to help promote business performance.

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Key Nguyen

Key is the brainchild behind You'll often find him analyzing conversion rates, tweaking landing pages, and exploring new marketing automation software. He loves to write about sales funnel building and is always tinkering with the latest conversion optimization techniques!

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