Demystifying funnels in product analytics

  • Last Updated : September 17, 2025
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  • 5 Min Read

Funnels are a core concept in product analytics, designed to help you visualize how users navigate through your app to reach a specific goal. Whether you're managing a mobile app for ecommerce, fitness, or finance, funnel analysis helps you pinpoint where users drop off and how you can optimize their experience to boost conversions.

A funnel consists of a series of steps, typically events (user actions like taps, scrolls, and purchases) or screens (specific UI views) that a user completes to achieve a desired goal, such as signing up, making a purchase, or completing a workout. By examining these funnels, you can identify user friction points, improve user journeys, and ultimately drive business success.

Before diving into real-world funnel use cases across different industries, let’s get familiar with some essential terminology:

  • Conversion rate: The percentage of devices that complete all the steps in the funnel
  • Drop-off rate: The percentage of devices that abandon the funnel before completing all the steps
  • Steps: The series of events or screens that define the user journey through the funnel

With Zoho Apptics, creating funnels is intuitive and simple. Apptics allows you to define funnels either individually or by using a combination of screens and events. This flexibility lets you model complex journeys with precision and gain insights into both UI engagement and functional usage. Whether you're tracking onboarding, purchase flows, or subscription paths, Apptics delivers granular visibility and actionable insights.

Now that we've quickly covered the basics of funnels, let's now explore the various funnel use cases across app verticals.

eCommerce apps

Funnel 1: Product viewed → Added to cart → Initiated check-out → Payment completed

This classic sales funnel reveals the drop-off points between product interest and actual purchase. If a high percentage of customers add items to the cart but don’t initiate check-out, consider abandoned cart reminders, guest check-out options, or reducing surprise costs at check-out.

Funnel 2: Home screen → Category browsed → Product filter applied → Product purchased

This funnel helps assess how easy it is to navigate your catalog. If users exit after browsing a category but before applying filters or purchasing, your filtering UX or product categorization might need some rethinking.

Funnel 3: Push notification opened → Product viewed → Added to wishlist → Purchased

Using this funnel, measure the effectiveness of your push notifications and wishlist feature. If many users add items to the wishlist but don't return to purchase, consider sending timely reminders or promotions based on wishlist behavior.

Car rental apps

Funnel 1: Home screen → Searched for car → Selected car → Confirmed booking → Payment completed

This is a comprehensive booking funnel. High drop-off between searching and selecting may indicate irrelevant search results or limited inventory.

Funnel 2: Promotional offer viewed → Search initiated → Booking attempted → Coupon applied → Payment completed

This funnel evaluates your promotional efficacy. If users drop off after viewing a promo, it may signal confusion around the offer’s terms or poor coupon redemption UX.

Funnel 3: App installed → Account created → License uploaded → First booking completed

This funnel maps your onboarding experience. If license upload is a bottleneck, streamlining the process or offering alternative verification may reduce drop-offs.

Health and fitness apps

Funnel 1: App opened → Selected workout plan → Started workout → Completed workout → Shared results

This funnel helps to track engagement with your workout routines. Drop-offs before completion suggest the need for progress tracking, audio cues, or mid-session motivation.

Funnel 2: Notification received → Opened app → Logged daily steps → Tracked water intake

This funnel helps track daily habits for health-conscious users. If logging doesn't happen, you might need better notification timing, simplified inputs, or streak rewards.

Funnel 3: Signed up → Chose diet plan → Logged first meal → Completed weekly check-in

This funnel helps monitor early retention and engagement with diet plans. If users sign up but don’t log meals, onboarding tooltips or meal log templates could improve adoption.

Utility apps

Funnel 1: App launched → Granted permissions → Scanned first document → Saved locally

This funnel is vital for apps needing access to files or the camera. If users stall at permission prompts, consider adding pre-permission screens that explain the benefits of granting access.

Funnel 2: Opened app → Compressed files → Uploaded to cloud → Shared link

This workflow helps gauge cloud integration adoption. Drop-offs after upload could be addressed with smart sharing suggestions or auto-copy link features.

Funnel 3: Opened app → Used in-app scanner → Exported PDF → Rated app

This funnel measures satisfaction after core feature usage. If users don’t rate the app post-usage, try asking after multiple successful exports.

Finance apps

Funnel 1: Logged in → Linked bank account → Viewed dashboard → Made first transaction

This funnel highlights user trust. Drop-offs after bank linking may indicate hesitation. Improve this with secure UI patterns and clear next-step nudges.

Funnel 2: Received investment tip → Viewed tip → Made investment → Viewed returns

This funnel analyzes your educational content’s impact. If users read tips but don’t invest, either the financial product feels too risky or more contextual nudges are needed.

Funnel 3: Signed up → Added credit card → Set up budget → Received alert

This funnel maps your budgeting feature adoption. If users stop at setup, UI onboarding or pre-filled templates for budgeting can improve completions.

B2B SaaS apps

Funnel 1: Invited by team → Signed up → Set up workspace → Completed first project

This funnel monitors team adoption. If drop-offs occur while setting up the workspace, you might introduce auto-setup templates or step-by-step onboarding wizards.

Funnel 2: Signed up → Scheduled first meeting → Integrated calendar → Sent first invite

This funnel evaluates feature activation. Drop-offs before calendar integration suggest reworking permissions or offering quick setup guides.

Funnel 3: Logged in → Added team members → Shared dashboard → Exported report

This funnel is ideal for assessing collaboration and reporting flows. If users don't share dashboards, the sharing permissions UX may need simplification or better labeling.

Media and entertainment apps

Funnel 1: App opened → Browsed content → Played video/audio → Liked/shared → Subscribed

This captures the entertainment funnel from exploration to conversion. A high drop-off after liking content may imply that subscription benefits aren't clear or compelling.

Funnel 2: Opened app → Selected genre → Played video → Watched to end → Rated content

This funnel helps assess content engagement and completion. Frequent early exits could signal pacing issues, poor content recommendations, or performance lags.

Funnel 3: Push notification opened → Watched new release → Shared on social → Followed creator

This funnel is great for tracking viral engagement and creator loyalty. If follow-through is low post-share, highlight creator profiles more prominently or gamify follows.

Funnels offer a clear lens into user behavior, helping you pinpoint friction, optimize flows, and drive conversions. Regardless of your app's vertical, a well-crafted funnel can highlight opportunities for growth and retention.

With Zoho Apptics, you get the flexibility to build custom funnels using both screens and events. This ensures your funnel mirrors the actual user journey, not just a simplified view of it. Dive deeper into your analytics, compare performance across segments, and make smarter decisions grounded in data.

Whether you're a product owner, marketer, or developer, it's time to take the guesswork out of user journeys. Start building smarter funnels and let your data guide your next big move toward success.

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