Glossary: Funnel Analytics
Funnel analytics measures how distinct users or wallets progress through an ordered sequence of events, quantifying conversion and drop-off at each step while preserving clear event and identity definitions.
What is Funnel Analytics?
Funnel analytics measures how distinct users or wallets progress through an ordered sequence of events toward an outcome. It calculates conversion and drop-off at each step. A trustworthy funnel defines eligible users, event order, time limits, identity rules, and whether repeated, failed, or out-of-order events count.
Funnel Analytics Explained
Funnel analytics helps you understand where people drop off before completing something.
Imagine 100 people visit a website. Then 60 create an account. Then 30 finish onboarding. Then 10 become paying users.
That step-by-step path is called a funnel because the number of people usually gets smaller at each step.
Funnel analytics shows which step is losing the most people, so teams know where the experience may be confusing, too long, or not valuable enough.
What Funnel Analytics Means For
Audience | Use Case |
|---|---|
Growth teams | Find where users drop off between awareness, signup, activation, and conversion. |
Product teams | Improve onboarding, checkout, or feature adoption flows by identifying weak steps. |
Marketing teams | Measure how campaigns turn visitors into leads, signups, customers, or active users. |
Examples
A SaaS company tracks the path from landing page visit to signup to onboarding completion to paid subscription. It finds that most users drop off during onboarding, so the team simplifies the setup process.
An e-commerce brand studies its checkout funnel and sees that many shoppers abandon their carts at the payment step. The team adds more payment options and removes unnecessary form fields.
A crypto app tracks users from wallet connection to first deposit to first transaction. It finds that many users connect a wallet but never make a deposit, showing where education or incentives may be needed.
A mobile app tracks install, account creation, profile setup, and first completed action. The team discovers that profile setup is too long and shortens it to improve activation.
The web-to-onchain journey
A common crypto product funnel is first visit → wallet connect → signature → first confirmed transaction → repeat transaction. Each step answers a different question: reach, intent, authorization, successful activation, and retained behavior. Teams can insert product-specific events, but the sequence should reflect the real user journey.
Connection and transaction states are different
A wallet connection is not a signature. A signature is not a submitted transaction. A submitted transaction is not a confirmed transaction, and a failed or reverted transaction is not a successful outcome. Track these states separately so the funnel shows the actual source of friction instead of collapsing every attempt into one step.
Related reading
Explore product analytics, Web-to-Onchain Funnel, Time to First Transaction, Wallet Activation, and the DeFi growth funnel guide.
FAQs
What is funnel analytics used for?
Funnel analytics helps teams find where users drop off before completing an important goal.
What is an example of a funnel?
A signup funnel could be: visit website, create account, complete onboarding, become active user.
Why is it called a funnel?
It is called a funnel because fewer users usually continue at each step, creating a narrowing shape.
How is funnel analytics different from growth analytics?
Growth analytics studies overall growth. Funnel analytics focuses on step-by-step user conversion paths.
Who uses funnel analytics?
Product, growth, marketing, sales, and analytics teams use funnel analytics to improve conversion.
Related Terms
A/B Testing
An experiment that compares two versions of a page, feature, or campaign to see which performs better.
Account Abstraction
Account abstraction is an approach that turns blockchain accounts into programmable smart contract wallets, enabling features like gasless transactions, social recovery, session keys, and paying fees in any token.
Activation Rate
Activation rate is the percentage of new users or wallets that complete a key activation milestone, such as a first transaction, out of all users who signed up or connected within a given period.
Active Users
Active users are distinct users, accounts, visitors, wallets, or wallet clusters that complete a defined meaningful action during a specified period; the chosen identity unit and activity rule determine the result.
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