Conversion Funnel Analysis: How to Identify and Fix Drop-offs
By Daniela Diaz • Updated 2025
TL;DR: You can drive thousands of visitors, but if your funnel leaks, revenue disappears. Most teams know they’re losing sales (“60% cart abandonment”), but very few know why.
Conversion Funnel Analysis shows exactly where users bail and what causes them to leave. Instead of guessing that your price is too high, you might discover a broken button or confusing field.
- Find leaks step by step
- Diagnose friction using real recordings
- Fix the issues that actually increase revenue
On this page
What is Conversion Funnel Analysis?
Conversion funnel analysis is the review of how users move through your website or application. It tracks the path from first interaction to the final conversion, whether that is buying a product or starting a free trial.
This transforms vague complaints like “sales are low” into precise, actionable statements such as “40 percent of users abandon the Shipping page.”
The Difference Between Marketing and Conversion Funnels
Marketing funnels: nurture leads across channels, emails, content and social.
Conversion funnels: focus on what users do on your site: clicks, scrolls, forms and attempts to purchase.
Why Analysis Beats Assumption
Without analysis, optimization is expensive guesswork. You can redesign your homepage because you dislike a color palette, while the real issue is a broken checkout button on mobile.
The Core Stages of a Digital Funnel
This simplified AIDA framework works for most businesses:
- Awareness: Landing on the site.
- Interest: Exploring content or products.
- Consideration: Pricing views or adding items to cart.
- Intent: Beginning a checkout or signup flow.
- Action: Completing the conversion.
How to Conduct a Funnel Analysis with FullSession
Step 1: Map Your “Happy Path”
Define the ideal sequence a user should follow. In FullSession you can configure a custom funnel.
Example: Home → Product Page → Add to Cart → Checkout → Thank You
Step 2: Identify Drop-off Points (Quantitative)
Look at your funnel view. Which step has the sharpest decline?
- If 1000 view a product but only 100 add to cart, you have a top-of-funnel problem.
- If 100 add to cart but only 5 buy, your bottom is broken.
Step 3: Diagnose the Why with Session Replay
This is where FullSession shines.
- Click the drop-off bar
- Select “Watch Sessions”
- Review only users who abandoned at that step
Signs to look for:
- Rage clicks
- Scrolling loops
- Popup blockages
- Disabled buttons
Step 4: Check for Technical Barriers
Error monitoring reveals invisible failures: JS errors, network timeouts, API failures.
Real-World Use Cases
Optimizing the SaaS Onboarding Funnel
Problem: Users sign up, but never use core features.
Analysis: Map “Account Created → First Action.” Watch where they stall.
Fix: UI simplification or onboarding checklist.
Reducing Ecommerce Checkout Abandonment
Problem: High abandonment.
Analysis: Heatmaps on checkout reveal coupon fields, missing guest checkout, or unclear shipping.
Fix: Remove distracting coupon fields or auto-apply discounts.
Key Metrics & KPIs
- Funnel Conversion Rate: Converts ÷ Entrants × 100
- Drop-off Rate: Loss per step
- Time to Conversion: Long times = confusion
- Revisit Rate: Return loops = uncertainty
Conclusion: Stop the Leaks
Funnel analysis is the highest ROI action you can take. Fixing the exact leak that kills conversions increases revenue without more ad spend.
Frequently Asked Questions
What are the 4 stages of a conversion funnel?
Awareness, Interest, Intent, Action.
How do I calculate funnel conversion?
Conversions ÷ Entrants × 100
Why is checkout drop-off so high?
Unexpected fees, forced accounts, or technical errors. Use session replay to see which.
How often should I analyze my funnel?
Metrics weekly. Deep dive quarterly or after major changes.
Can FullSession track SaaS onboarding?
Yes. It works across apps and interfaces to show where trial users get stuck.