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Funnel Analysis2:57 with Anya Mezak
Now we’ll look at how to analyze the series of events that lead to a desired goal. This is referred to as a “funnel” because though many individuals can enter the funnel, only a small number of them will get to the intended goals. A Funnel analysis is used to understand exactly what steps people use to get to a particular goal and where the user drop-off is along the way.
What steps does it take for someone using your product or 0:00 service to get to their goal? 0:03 Having these illustrated and tracked using an analytic service can help you 0:06 identify critical breaking points in this flow and address them strategically. 0:10 Let's continue to use Amazon.com as an example. 0:16 First, we need to outline the steps and 0:19 the funnel for making a purchase on Amazon. 0:22 Aim for about 5 to 10 steps in your funnel. 0:26 Here's ours. 0:29 1, go to Amazon.com. 0:30 2, search for a desired product. 0:33 3, look at product pages. 0:37 4, add product to cart. 0:40 5, proceed to checkout. 0:43 6, sign in. 0:45 7, review check out page. 0:48 And 8, place your order. 0:51 Now, as you can guess, fewer and 0:55 fewer people will go on from one step to the next. 0:57 So really, it all begins to look like a funnel. 1:01 If this visualization becomes hard to read, you can also use a simple bar chart. 1:06 You'll find that one advantage of using a bar chart 1:12 to visualize this flow instead of the more traditional funnel, 1:15 is that it's easier to map the data while maintaining readability and scale. 1:19 One thing that defines all funnels is they are linear. 1:24 In our example where step number 3 is someone looking at product pages, 1:28 it doesn't matter how many product pages someone looked at 1:33 since it's all just one step in getting to the conversion. 1:36 The fact that people may look at 3 products or 30 can be significant, but 1:41 within a different research context. 1:45 Now comes the real useful part of going through this exercise. 1:48 If somewhere in the funnel you noticed a particularly steep drop-off, 1:53 you know it's a problem area that you need to look into. 1:58 As you can see here, a steep drop has appeared between adding something to 2:01 the cart and proceeding to checkout. 2:06 People appear to be putting your product in their shopping carts, and 2:09 then leaving the site. 2:12 It's quite possible that this drop-off is normal. 2:14 So before you assume something is wrong, you'll need to gain some context. 2:17 Understanding the historical trends for your product and your industry 2:22 will allow you to decide if this drop-off is worrisome or completely normal. 2:26 If in fact you find that a drop-off is unusually high, 2:33 run a qualitative study, such as a usability test, to understand why. 2:37 Once you think you've found a design solution and 2:44 have tested it with a few users. 2:46 Consider introducing it as part of an AB test 2:48 to make sure it improves the conversation rate. 2:51 And if the test is successful, launch to everyone. 2:54
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