# Funnel Analysis

## Introduction to Funnel Analysis

With Hackle's User Funnel Analysis, you can **analyze step by step the process from when users enter your service to when they achieve a specific goal**.

Funnel steps can be created using events. This lets you **understand the conversion rate and drop-off rate at each step**.

Using User Funnel Analysis provides the following advantages:

* You can verify with data how improvements affect the overall service experience.
* When a problem occurs within the service, you can quickly identify the cause by seeing the before-and-after at a glance.
* By identifying the step with the highest drop-off rate in the service usage process and improving that step first, you can solve problems efficiently.

## Supported Funnel Types

Hackle currently provides three types of Funnel Analysis: Any Order Funnel, Closed Funnel, and Direct Order Funnel. You can select the appropriate type based on your analysis purpose to analyze the results you want. Funnel Analysis explores a user's event log in chronological order, and each funnel type determines the path based on different conditions.

### 1. Any Order Funnel

Counts users who ultimately completed each step, regardless of the order in which they entered each step. Any Order Funnel is well-suited for cases where it is difficult to specify the order of a user's behavioral process within a service.

#### Funnel Recognition Criteria

* **It is not required to perform Step 1 first.**
* Even if there are other actions before Step 1, they are included in the count.

![Any Order Funnel chart example](/files/fMmsb4t0saiGzen1uPZ0)

#### Aggregation Example

When users have various action sequences, the Any Order Funnel aggregates as follows:

![Aggregation criteria for Any Order Funnel](/files/UpKwY5pxVocs4w0BrQ8Y)

### 2. Closed Funnel

Based on the order of the funnel steps configured when creating the funnel, if a user performs step n **after steps 1 through n-1 based on event timestamp**, it is counted as reaching step n. "After" here means **the order based on the event timestamp**.

A Closed Funnel includes cases where users entered the first step in the service, then deviated from the order and resumed following it. It is well-suited for understanding whether a user ultimately went through the intended order (path) from the first step to the last, even if they deviated in the middle.

![](/files/Km9psKyZAQs9arjehfgX)

#### Funnel Recognition Criteria

* Based on the order of funnel steps configured when creating the funnel, **only users who perform Step 1 first are included in the count.**
* Events that occurred before Step 1 are not included in the funnel calculation. That is, the funnel **timeline is always set based on Step 1.**
* Each subsequent step must be **performed sequentially after the previous step based on event timestamp** to be recognized. That is, each step must **occur after the previous step.**
* **Other events are allowed to intervene between steps.** However, if a later step occurs first (e.g., Step 3 → Step 2), it is **not recognized as a conversion.**

#### Path Selection Criteria

* The Closed Funnel is calculated based on the **earliest valid path** among a user's actions.
* That is, the user's actions are explored in chronological order, and only the first path that satisfies the conditions is selected.
* Even if a more complete path exists later, if the path breaks at an earlier point, subsequent steps are not recognized.
* Even if the same user repeats steps multiple times, only the first path that satisfies the conditions is used.
* The path selection criteria apply equally to both Closed Funnel and Direct Order Funnel.

#### Closed Funnel vs. Direct Order Funnel

The biggest difference between Closed Funnel and Direct Order Funnel is **whether other actions between steps are allowed**.

* **Closed Funnel**: Other events are allowed between funnel steps (Loose Order)
* **Direct Order Funnel**: Other events are not allowed between funnel steps (Strict Order)

That is, in a Closed Funnel, **steps are recognized even if there are gaps between them.**

#### Aggregation Example

When users have various action sequences, the Closed Funnel aggregates as follows:

![](/files/EWxy2jG4IadWsnNH1a1O)

* User A: 1-3-2-4-5
  * Step 1 → Step 2 order is satisfied
  * Step 3 occurred before Step 2 → Order violation
  * → Result: Only Step 1 and Step 2 are recognized
* User C: 4-1-3-2-4
  * Events before Step 1 are ignored
  * Step 3 occurred before Step 2 → Order violation
  * → Result: Only Step 1 and Step 2 are recognized
* User D: 1-5-3-2-4-5-4-3-2-5
  * Applies the earliest valid path criteria: the path that satisfies conditions first is selected from the beginning, and events appearing later are not reflected if the earlier path has already broken.
  * Step 1 → Step 2 → Step 3 are satisfied
  * No valid path leading to Step 4 is formed.
  * → Result: Only Step 1, Step 2, and Step 3 are recognized

### 3. Direct Order Funnel

Direct Order Funnel is a funnel where each step must **lead consecutively to the next step based on event timestamp**. If even one other event occurs between steps, that path is not recognized. That is, only cases where **steps connect immediately without any gap are recognized.** Direct Order Funnel is well-suited for cases where you want to verify more strictly than a Closed Funnel whether a user followed the defined steps without any deviation.

![](/files/69anOc5q4EoJ3xCYIMNh)

#### Funnel Recognition Criteria

* Direct Order Funnel requires each step to **lead consecutively to the next step based on event timestamp**.
* The funnel **starts from the point Step 1 occurs**, and events before Step 1 are not included in the count.
* Each step must have **the next step occurring immediately after the previous step.**
* **If even one other event intervenes between steps, that path is not recognized.**
* Repetition of the same event (e.g., Step 2 → Step 2) is allowed, but is not recognized as a conversion unless it leads to the next step.

#### Path Selection Criteria

* Direct Order Funnel is calculated based on the **earliest valid path** among a user's actions.
* That is, the user's actions are explored in chronological order, and only the first path that satisfies the conditions is selected.
* Even if a more complete path exists later, if the path breaks at an earlier point, subsequent steps are not recognized.
* Even if the same user repeats steps multiple times, only the first path that satisfies the conditions is used.
* The path selection criteria apply equally to both Closed Funnel and Direct Order Funnel.

#### Closed Funnel vs. Direct Order Funnel

The biggest difference between Closed Funnel and Direct Order Funnel is **whether other actions between steps are allowed**.

* **Closed Funnel**: Other events are allowed between funnel steps (Loose Order)
* **Direct Order Funnel**: Other events are not allowed between funnel steps (Strict Order)

That is, in a Direct Order Funnel, **only cases where steps connect immediately without any gap are recognized.**

#### Aggregation Example

When users have various action sequences, the Direct Order Funnel aggregates as follows:

![](/files/bgn0zvJBMa0efcfJRv6g)

***

## Conversion Time

When analyzing with **Closed Funnel (Closed Order Funnel)** or **Direct Order Funnel**, you can also view the conversion time for each step.

1. Final step conversion time: Provides the average conversion time, conversion time, and median for users who converted from the first step to the final step.

![Final step](/files/9FpvRUTUNWwTblP2uzER)

2. Intermediate step conversion time: Provides the average conversion time, conversion time, and median for users converting from each step to the next step.

![Conversion time per step](/files/vuJ5uL4QmbF0FhaeDOCU)

***

## Step-by-step Walkthrough

You can start User Funnel Analysis by clicking the `Funnel` tab under `Data Analytics` in the left navigation.

![](/files/X9SeG8ASXnF173xL7hDo)

### 1. Select events per step and configure settings

1. **Configure analysis steps**

Select events for each step according to your analysis goal (e.g., funnel data up to purchase completion).

Clicking \[Select Event] in each step shows the list of events embedded in that workspace, and you can select an event from the list.

After selecting an event, you can choose detailed conditions via property filters. After selection, you can also drag steps to immediately reorder them.

Up to 10 steps can be selected, and as you select each step, the funnel chart for the selected events is displayed in the chart below.

![](/files/Typ0EfG0qVJksLJ0eHjM)

2. **Configure user groups**

Select the user group to analyze.

You can configure the type that suits your analysis goal by selecting an **Event** or a **Property**. (For example, to analyze users who completed a purchase, select the "complete\_purchase" event.)

Alternatively, if you have already created user groups, you can load a specific user group by selecting **Test Device**, **Event Group**, etc.

You can also view only users distributed through Hackle's **A/B Test** or **Feature Flag**.

Up to 3 user groups can be selected, and they are displayed in different colors in the graph depending on the configured group.

![](/files/OllqaL9rieHOmhPB8Ewt)

### 2. Select the query period, funnel type, etc.

1. **Select period and type**

You can select the period to view (3 days, 7 days, 14 days, etc.) or set a custom period via \[Custom].

Clicking the button on the right of the chart lets you change and select the funnel aggregation type.

![](/files/JxIn3l9Cf3G3glTwhEdL)

In the displayed chart, you can immediately check the conversion rate from Step 1 to Step N, the conversion rate from Step N-1 to Step N, and the number of converted users.

2. **Period comparison and data comparison**

You can compare the funnel results for your configured period with the previous day/week/month or a specific period to compare data from two periods.

Selecting the comparison period also lets you see the comparison values at a glance in the graph. The table below also shows the conversion rate difference between the 'Base Period' and the 'Comparison Period'.

![](/files/LOkBfiyKSuZoltMXpARn)

### 3. Saving the Funnel

Enter a title and description for the funnel chart so the configured data is recognizable, then click the \[Save] button in the upper right to save.

Saved funnel charts can be viewed anytime from \[Data Report] in the left navigation.

![](/files/UrUE519tE6RPkJuB9sto)

## Use Cases

Using User Funnel Analysis, you can answer the following questions:

### 1. Product acquisition

* What percentage of users converted through the sign-up entry path within 7 days?
* How did the sign-up conversion rate change after a major update?

### 2. Product usability

* At which step of the sign-up entry path did most users drop off?
* What is the final conversion rate from a user's service entry to making a purchase?
* Through which path do users convert to making a payment?
* Which part of the service is the most efficient to improve to increase revenue?

### 3. Payment/Revenue

* How did the payment funnel conversion rate change for a specific region (e.g., Japan, USA)?
* What is the highest-converting path in the payment funnel?
* At which point in the purchase process do users drop off the most?


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