What are Funnels in VWO?

A funnel is a sequence of goals which represents the visitor’s journey on your website. These critical visitor journeys typically track the progress towards the business objective being achieved. The business objectives could be a product or service purchase, newsletter subscription, signups or any other action of value to the business owner.

Funnels in VWO show the percentage of visitors who went on to complete the funnel and convert. It also shows the percentage of visitors who did not convert, distributed as drop-offs to the various preceding stages. VWO lets you visualize such visitor flows through a funnel which helps you identify drop-offs and subsequent areas of optimization. After setting up a funnel, you can analyze the data collected at each stage of the process and take corrective measures to improve the flow through the use of funnels.

A simple funnel for e-commerce industry may look like:

1. A visitor clicks a recommended product on the home page
2. Clicks Add to Cart
3. Enters the billing information
4. Proceeds to the payment page

Each of these steps can be treated as a goal that your visitor must perform to complete a purchase on your website. Tracking these as part of a funnel will help you get a complete picture of how visitors convert on the website and where they drop-off.

NOTE: You can set up funnels using a combination of page views or different 
actions users take along their conversion journey including click on a 
button and form submits.

Using Funnels in VWO, you can:

1. Filter your funnel report by creating an advanced custom segment using a complex and/or and bracketing logic conditions, or choose from VWO’s predefined segments
2. Use advanced filters to see visitors who travel through the funnel with a special condition such as- On a specific day of the week, during a specific hour of the day, Revenue generation over a certain limit
3. Add Observations to your funnel reports with details about your understanding of visitor flow. Refer to these notes while building your pipeline of hypotheses for testing.

For Example, consider the funnel made of Goal A > Goal B > Goal C > Goal D.

1. Visitors will become a part of the funnel only when they complete the first goal conversion (Goal A in our example). Next, the visitor converts Goal B, the second step of the funnel, and so on. To record a funnel conversion, the visitor must complete every funnel goal in a sequence. If visitors fail to complete a goal in the funnel, the conversion is not counted for the rest of their journey.
   
   
2. The point where visitors drop off is considered from the last Goal that the visitor converted into the funnel.