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How Funnels Work

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A funnel is a sequence of goals arranged in a way that reflects the actual flow of visitors on the website. Every funnel replicates a visitor journey that leads to a business objective such as product/service purchase, newsletter subscription, sign-ups, or any other visitor action that creates value for the website/business owner.how funnels work in VWO

You can use VWO to visualize the flow of visitors through such funnels and help you identify where most visitors drop-off or areas of optimization. For example, a simple funnel for ecommerce industry may look like:

A visitor:

  1. Clicks a recommended product on the home page
  2. Clicks Add to Cart
  3. Enters the billing information
  4. Proceeds to the payment page

Each of these steps can be treated as a goal that your visitor must perform to complete a purchase on your website. Tracking these as part of a funnel will help you get a complete picture of how visitors convert on the website and where they drop off.

Example

Consider the funnel made of Goal A > Goal B > Goal C > Goal D.

  1. Visitors will become a part of the funnel only when they complete the first goal conversion (Goal A in our example). Next, the visitor converts Goal B, the second step of the funnel, and so on.
    To record a funnel conversion, the visitor must complete every funnel goal in sequence. If visitors fail to complete a goal in the funnel, the conversion is not counted for the rest of their journey.
  2. The point where a visitors drops off is considered from the last Goal that the visitor converted in the funnel order. For example, in this screenshot, 20,734 users converted for the first goal, but only 510 users from that converted for the last goal. The drop-off rate, in this case, is calculated considering the conversion number for the last goal , that is, 97.5%.how funnels work in vwo

Funnels follow the path of the visitor journey defined by goals they convert. If the visitors fail to convert for any of the goal steps in the funnel, then they are not counted for the rest of the journey. To learn how to create a funnel, click here. To learn how to read a funnel report, click here.

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