Conversion funnels help you understand how people behaviour in your digital product or service so that you can find opportunities to improve. They look a bit like this:
DOWNLOAD 100% |||||||||||||||||| REGISTRATION 100% |||||||||||||||||| REGISTERED 80% ||||||||||||||| ADD CARD 60% |||||||||||| BOOK TAXI 50% ||||||||||
This simple example shows how many people make it to booking in a taxi app. In this case, 20% don't register and 50% don't book. You can then start to ask questions like:
- How do we encourage a higher percentage of people to register?
- How can we make it easier to add a card?
- How do we encourage people who add a card to come back and book?
Implementing funnels in an app usually means using some app analytics framework, such as Amplitude. These tools will help you capture the data and view your funnels. If you're a product manager, you'll need to work with your product team to make sure the important analytics are implemented correctly. The hardest part is picking the important user flows to measure in your funnels.
We recommend anyone creating a digital product implements conversion funnels for key features. They are a simple and effective way of finding opportunities to improve, which will increase customer satisfaction, retention and ultimately revenue.
The book Lean Startup, by Eric Reiss gives some great examples of how to use funnels in your digital products.