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Using Funnel Analysis to Measure User Conversion Rates

Funnel analyses are an effective way to calculate conversion rates on specific user behaviors.  Think of a funnel as a series of steps toward a goal.  In an app, these goals are important user actions of your choosing.  The goal you seek to measure could signify retention (relaunching the app), engagement (reaching level 10), or monetization (completed in-app purchase).  You may even want to see how well you are converting users on upgrading from your first app to your second app.  In each case, a funnel analysis is the report of choice.

When building a funnel, you have the ability to establish the goal event, as well as each step leading towards this goal.  These steps can be within your app, or across two apps.  Keep in mind that the steps aren’t a specific user path.  Instead, they are the steps you’ve determined a user will likely reach on the way towards a goal.  A simple goal could be a user completing an “In-App Purchase” for a mobile game with the following set of steps..

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