Funnel Tracking: How to Track and Optimize Your Funnel

Funnel Tracking: How to Track and Optimize Your Funnel cover

Funnel tracking is like pulling back the curtain and seeing what your customer is doing. It gives you the analytics to see what they are clicking and where they are leaving. These insights highlight areas for improvement, leading to higher conversions.


  • Funnel tracking refers to the process of monitoring and analyzing the steps or stages that users go through.
  • Marketing funnels attract and engage, using metrics like visitors and click-through rates to track narrowing interest and effectiveness.
  • Sales funnels track lead conversion to customers, focusing on demo-to-trial and trial-to-paid stages, using conversion and churn rates.
  • Funnel stages guide from awareness to loyalty, marking steps toward conversion and nurturing leads into advocates.
  • To build a funnel for tracking conversions, here are the essential steps you can follow:
  1. Define funnel objectives and map the customer journey from initial interaction to conversion, identifying key events for effective tracking.
  2. Tag and name key funnel events to track interactions like page visits, enabling funnel analysis for optimization and conversion improvement.
  3. Set up sales funnel steps with specific data points and filters. Define conversion criteria to tailor and optimize the user journey.
  4. Regularly analyze reports to identify drop-offs and friction, using findings to enhance funnel efficiency and boost conversions.
  • Examples of tactics that help you to improve your funnel conversion rate include:
  1. Use welcome surveys to understand customer interests, segment based on preferences, and tailor onboarding for smoother conversion progression.
  2. Enhance sales funnel conversions with in-app guidance, using interactive walkthroughs to showcase features and reduce user frustration.
  3. Use A/B testing to identify effective CTAs and optimize conversion pathways, comparing tools like tooltip versus modal prompts.
  4. Proactive in-app support enhances user experience and conversion rates by delivering targeted, contextual help to users as needed.
  5. An in-app resource center offers 24/7 assistance in various formats, catering to user preferences and driving conversions.
  • If you want an easy way to conduct funnel analysis, book a demo now to see how Userpilot can help!

Try Userpilot and Boost Your Conversion Rates to the Next Level

What is funnel tracking?

Funnel tracking refers to the process of monitoring and analyzing the steps or stages that users go through while interacting with your e-commerce website, SaaS product, or services.

The purpose of funnel tracking is to understand user behavior, identify potential points of friction or drop-off, and optimize the user journey for better conversion rates.

Marketing funnel vs sales funnel

While both are crucial for understanding customer journeys, marketing, and sales funnels serve distinct roles in guiding potential customers through the sales process. Let’s explore how each funnel operates and their unique contributions to the process.

Marketing funnel

The marketing funnel is about attracting and engaging potential customers with your brand. It starts wide at the top, capturing as many website visitors as possible, then narrows down as people become more interested in your offer.

Core metrics for marketing funnel.

Core metrics to pay attention to include the number of website visitors, click-through rates, and marketing qualified leads. Those who show interest through actions like signing up for webinars or trials. These metrics help gauge how well your marketing strategy grabs attention and encourages deeper engagement.

Sales funnel

The sales funnel takes over where the marketing funnel leaves off, focusing specifically on strategies to nurture leads and turn interested prospects into paying customers.

It’s a more focused path that begins with potential customers trying out your product or service (demo to trial) and moves towards converting them into paying customers (trial to paid), with the sales team playing a crucial role in this conversion process.

Key metrics include the conversion rate from trial to paid users and the churn rate, which measures how many customers stop using your service over time.

Tracking these metrics, including how many leads are being converted and retained, helps understand how effectively sales reps execute sales strategies to convert qualified leads into loyal customers and maintain them.

The formula for free trial conversion rate
Free trial conversion rate.

What are the essential stages of a marketing funnel?

Understanding the essential stages of a funnel is key to guiding potential customers from first hearing about your brand to becoming loyal supporters.

Each stage represents a step closer to conversion and beyond, ensuring a structured approach to nurturing potential leads.

  • Awareness: This initial stage is where potential customers first encounter your brand, often through advertising, social media, or content marketing.
  • Consideration: Potential customers consider your brand among their options by researching, comparing, and engaging with your content.
  • Action/Conversion: The focus is on converting interested individuals into customers through purchases, sign-ups, or other targeted actions.
  • Retention/Re-Engagement: This stage aims to keep customers returning through follow-up communication, support, and additional value.
  • Loyalty: The final goal is retain loyal advocates who repeatedly choose your brand and recommend it to others.
The different stages of the marketing funnel
The different stages of the marketing funnel.

Steps to build a funnel for tracking conversion rate

Building a funnel to track conversion rates involves a series of strategic steps designed to map out and optimize the customer’s journey from initial interest to final action. Here’s how to set up a framework that captures and improves the path to conversion.

Determine your funnel events

To kickstart your sales funnel for tracking conversions, the first step is to clearly articulate the objectives of your conversion funnel, such as lead generation or sales.

Begin by mapping the customer journey, charting the course from the very first interaction a potential customer has with your brand to the ultimate conversion.

Identify key events or touchpoints along this journey that are critical to achieving your goal. These events are where you’ll focus your tracking efforts to understand how effectively your sales funnel guides users toward conversion.

A miro showing how to conduct a customer journey mapping
Customer journey mapping in Miro.

Use events to collect data for your funnel

Once you’ve identified the crucial events within your conversion funnel, the next step is to use these events to gather data.

By tagging and naming each event, you systematically track interactions across the customer journey.

This involves setting up tags on your website or app for actions like page visits, form submissions, or product add-to-cart.

Naming these events clearly and consistently ensures you can easily monitor and analyze how users move through your funnel, providing valuable insights into their behavior and preferences. This data collection is essential for optimizing your funnel and improving conversions.

A screenshot of event tracking in Userpilot which helps in funnel tracking
Track events in Userpilot.

Set up conversion funnel steps

After tagging and collecting data from your identified events, the next phase involves setting up the steps of your conversion funnel in a structured manner.

This means selecting the specific data points—events and their properties—you want to analyze and decide on the filters to apply to your report.

You’ll need to define your conversion criteria, such as whether to count unique users or companies and whether conversions must follow a specific order or can occur in any order.

A screenshot of funnel analysis essential for funnel tracking
Analyze the conversion funnel steps in Userpilot.

By carefully selecting these parameters, you create a tailored funnel that accurately represents the user journey toward conversion, allowing for more precise funnel analysis and optimization efforts.

A screeshot showing the filters you can use to tailor a funnel ideal for funnel tracking
Filter options for conversion funnels.

Analyze funnel tracking reports and iterate

The final step in building your conversion tracking funnel is to regularly analyze the funnel tracking reports through detailed funnel analysis and use the insights gained from this analysis to iterate and improve.

By examining the conversion rate at each step of the funnel, you can pinpoint where potential customers are dropping off.

Identifying these drop-offs helps highlight friction areas that may deter users from progressing. This funnel analysis is crucial for understanding your funnel’s effectiveness and identifying opportunities to optimize the user journey.

You can enhance the overall conversions by continuously iterating based on your findings, making your funnel more efficient over time.

A screenshot showing customer drop off in Userpilot
Analyze your funnel with Userpilot.

Examples of marketing strategies to boost your funnel conversion

Implementing effective marketing strategies is key to boosting your funnel conversion rates and turning more prospects into loyal customers.

Here are some practical strategies to enhance each stage of your funnel, driving better results and maximizing conversions.

Offer personalized experiences using segmentation

To offer personalized experiences that significantly boost funnel conversion, start by understanding customer interests through welcome surveys and engaging them with targeted email marketing campaigns.

Segment customers based on the data collected from these surveys, such as their preferences, needs, and behaviors.

You can tailor the onboarding process and subsequent interactions to match their interests by categorizing customers into distinct groups.

This personalized approach ensures that customers receive relevant content and offers, making them more likely to engage with your brand and move through the funnel toward conversion.

A screenshot of the option personalizing the user experience through segmentation
Segment your audience with Userpilot.

Deliver in-app guidance to remove friction

Delivering in-app guidance is a powerful way to remove friction and enhance funnel conversions. Using interactive walkthroughs and tooltips, you can handhold users through your product, showcasing key features and functionalities step-by-step.

This approach helps new users understand how to get the most out of your product and reduces the chances of frustration or confusion that might lead to drop-offs.

Interactive guidance ensures users feel supported at every step, smoothing their journey towards becoming active, engaged customers.

An animation showing how you can use in-app guidance to remove friction
An example of in-app guidance to remove friction.

A/B test changes to improve conversion rates

A/B testing is crucial for identifying the most effective elements that improve conversion rates. By testing different calls-to-action (CTAs) prompts, you can discover which messaging, placement, and design lead users more effectively toward conversion.

For instance, compare the impact of a tooltip upgrade prompt, which offers guidance contextually without disrupting the user experience, against a more direct but potentially disruptive modal prompt.

A screenshot of an example of using A/B testing with a tooltip
A/B testing with tooltips with Userpilot.

Analyzing the results of these A/B tests will reveal which strategies resonate best with your audience, allowing you to refine your approach and optimize the conversion pathway. This iterative process ensures continuous improvement and higher conversions over time.

A screenshot of the results of a A/B test in Userpilot
A/B test results in Userpilot.

Offer proactive customer support across the customer journey

Proactive customer support throughout the customer journey significantly enhances the user experience and can lead to higher conversion rates.

By utilizing in-app communication tools, you can set up targeted help flows for specific audiences within your app. This approach allows you to deliver contextual help precisely when and where users need it most.

A screenshot of the options of segmenting audience to provide proactive support
Segmentation options for proactive support.

Whether they’re encountering a common challenge or need guidance on utilizing a feature effectively, proactive support ensures they receive the necessary assistance without having to seek it out.

This strategy not only improves user satisfaction but also smooths out potential friction points, encouraging users to continue their journey toward conversion confidently.

A screenshot of an example of using a tooltip to deliver content
A tooltip to offer support.

Implement an in-app resource center to offer 24/7 assistance

Implementing an in-app resource center that offers 24/7 assistance is a strategic move to enhance user support and drive conversions.

By building a resource center with various help formats, you can cater to the diverse preferences of your customers.

Whether they prefer video tutorials, step-by-step guides, FAQs, or interactive demos, offering multiple types of content ensures that every user finds the help they need in the most comfortable format.

A screenshot of setting up a resource center in Userpilot
Create a resource center in Userpilot.

Using tools like Userpilot’s resource center builder allows you to add a wide range of content and customize it to match your app’s native design seamlessly.

This approach empowers users by providing them instant access to assistance and enhances their overall experience, contributing to higher satisfaction and conversion rates.

A screenshot of the options of personalizing a resource center
Personalize your resource center with Userpilot.


The key thing that all funnel tracking needs is good analytics. Without that, you have no idea what areas in your product are a priority to fix or areas where you can perform experiments. And if you want a successful product, you can’t just abandon it; you need to iterate constantly.

Want to get started with funnel tracking? Get a Userpilot Demo and see how you can perform funnel analysis and implement methods to boost your conversion funnels.

Try Userpilot and Boost Your Conversion Rates to the Next Level

previous post next post

Leave a comment