1. What is funnel analysis?

As we all know, funnel analysis is an important method in data analysis. Funnel analysis is an analysis model that can objectively reflect user behavior and conversion rate from the beginning to the end in terms of user behavior and data.

Take the marketing funnel model for example. The marketing funnel model refers to the transformation quantitative model that gradually transforms non-potential customers into customers in the marketing process. The value of the marketing funnel model is that it quantifies the efficiency of each link of the marketing process and helps find the weak link. In fact, it’s decomposition and quantification.

If you still don’t understand, let me give you an example.

Taking the e-commerce APP Taobao as an example, if the number of our orders decreases, we need to sort out the user’s purchase link at this time, comb through all the links from the opening of the APP to the placing of the order, and then use funnel analysis to calculate the conversion rate of each link.

If we combed the link and found that the conversion rate from searching commodities to viewing commodities is very low, then we need to see whether many searches have no results, or whether many users are not satisfied with the results in the search, so that users do not pay. In this way, the payment problem of e-commerce can be transformed into a problem of search, and the funnel analysis of the whole transformation link of search can be done again to locate the problem step by step.

Second, the role of funnel analysis

In addition to the fact that you can use funnel analysis to look at conversion rates as mentioned above, but you shouldn’t think it’s just that, funnel analysis is good for three things:

1. Monitor the conversion of users at various key nodes

When we focus on the most effective transformation path of the whole process of users, the display of funnel data can truly reflect the real behavior path of users. First, it is clear that the optimized points can improve the user experience. Second: quickly locate the loss link, targeted drilling analysis can find the optimized point, can reduce the loss and improve user retention rate.

2. Multi-dimensional segmentation to show user conversion

The objective funnel analysis can show the transformation trend, make the enterprise sensitive to the change of user behavior, and help the enterprise to capture sensitive points in a fine way. Multi-dimensional segmentation of sensitive points can improve the accuracy and efficiency of transformation analysis.

3. Compare the conversion funnel of user groups without attributes

Funnel comparison is an important part of funnel analysis. If we can do a good job of user grouping, the operation staff can observe the conversion rate of each link of the user group with different attributes and compare the difference of the conversion rate of each process step, so that other things can be adjusted accordingly.

3. Application of funnel analysis

The best known funnel model for user growth is called AARRR, from User Acquisition, User Activation, User Retention, User Payments to User Propagation.

Let’s take e-commerce APP Taobao as an example to elaborate.

1. User acquisition

In our daily life, we can see the jump link of Taobao everywhere. If you see the goods in front of you, or beautiful, or cheap, or practical, these factors may arouse your interest in the goods, which is user acquisition.

User activation

When you click on an item, you look at the reviews associated with it, and you have a basic sense of whether you think it meets your expectations.

3. Retention

In order to improve user retention, the vast majority of Taobao shops will use coupons or give rebates to some old customers to retain them.

IV. User payment

When you see some show “coupons valid within 24 hours” text, you may want to take advantage of this cheap as to buy first, greatly promote the user groups of wool psychology, business is to use this psychology, to facilitate a part of the single volume of transactions.

V. User communication

After you buy this product, you think it is worth it, good and cheap, you may recommend it to your friends and relatives, this is user propagation.

The above share is from SmartBi, more useful knowledge, please continue to pay attention to us, see you next time!