Track performance of key conversion paths with funnel analysis

Use funnel analysis to identify dropoff along key conversion paths

As a marketer, you are constantly reviewing data, observing performance, and then testing to see how you can achieve better results. You likely review every campaign, flow and form to determine performance, and see what could be improved.

But what about more aggregate trends?

What do open and click rates mean in the larger context of the customer’s path to purchase? How likely is it that a prospect who submits your form eventually makes a purchase? Are customers able to successfully initiate a return using your live chat? What is the likelihood of someone leaving a review after purchase?

To answer these questions, you need to zoom out and look at the full journey of how a customer reached a specific end goal, which we call a conversion action. To you as the marketer, the conversion path may seem intuitive. But oftentimes, we are blind to the obstacles that actually stop customers from successfully moving to a conversion.

Klaviyo’s funnel analysis report shows you how users progress through a series of steps along a specific conversion path. Actions along the path are listed in sequential order of how they occur. The report illustrates what percentage of total users successfully complete each step and move on to the next. This report will help you:

• Monitor performance across key conversion activities.
• Identify where customers are dropping out of key conversion funnels.
• Prioritize where to intervene or make optimizations to the user journey.

What advantage do you gain from funnel analysis?

There are many tools out there that will show you funnels of user activity, including Google Analytics, Heap, Funnelytics, etc. What makes Klaviyo's funnel analysis tool different?

No other funnel analysis tool is vertically-integrated directly into your customer stack with fast, real-time access to all of your customer data (including every integration and data source you’ve connected to Klaviyo). All of your Klaviyo engagement data (email, SMS, push, reviews, etc.) and onsite tracking is already in Klaviyo as a source of truth, giving you confidence in your data.

Gain accurate insights using vertically-integrated customer data

Traditional funnel analysis tools usually track activities across a single domain or location, such as a website. You may already look at a funnel report for how people interact with your website once they hit your landing page. The real power of funnel analysis comes from the ability to create funnels using any event metric that is logged in Klaviyo from any of your integrations.

A common tech stack for a Klaviyo customer may be made up of several integrations like an ecommerce site, subscription management tool, reviews platform, support ticket system, and social media platforms.

With each of these elements integrated into Klaviyo, you can build funnels to see how customers are interacting with your brand across all of the elements of your tech stack. For example, you may offer a subscribe-and-save option using a third-party integration and you might want to track how many first-time customers end up choosing to subscribe after their first purchase.

You could pull in a Placed Order event from your ecommerce integration, followed by a Received Email event from Klaviyo and filter this down to your “Subscription upsell” flow, then pull in a Subscription Created event from your subscription integration.

Build funnels to track key conversion paths

The funnel analysis report allows you to monitor up to 5 funnels at time. You can edit or change the metrics within these funnels at any time. Every brand will have a different tech stack, and different customer journeys that they want to explore, so the possibilities of which funnels you can build are vast. To get you started, explore some useful funnel ideas below.

Purchase journey by channel

Funnel steps:

1. Received email
2. Opened email
3. Clicked email
4. Added to cart
5. Placed order

Monitor your channel funnels to understand how successful each channel is at converting purchases. The example above shows the email-to-purchase funnel. You can filter these funnels by a specific segment, for instance, a segment of your Champion customers.

Build a funnel for each channel that you use. If you’re using SMS and mobile push notifications, you may consider building one funnel for each.

Loyalty program adoption

Funnel steps:

1. Placed order
2. Received email (filter to specific loyalty program invite email)
3. Clicked email (filter to specific loyalty program invite email)
4. Became member

If you’re using a loyalty or rewards integration, you can include those integration-specific event metrics in a funnel that allows you to track program acquisition. Depending on the flow of how you invite or incentivize customers to join your program, you will want to customize your funnel to match the journey you’ve designed.

Customer support experience

Funnel steps:

1. Placed order
2. Opened ticket
3. Initiated return
4. Closed ticket

You may have customer support software integrated with Klaviyo like Zendesk or Gorgias. You can use funnel analysis to track how many customers are opening and successfully closing tickets within a given timeframe. This can help you uncover a trend like a rise in support tickets requesting refunds, and prompt you to take a closer look at what’s happening with your products.

Lead ad to purchase

Funnel steps (using Facebook Advertising as an example):

1. Filled out lead ad
2. Received email (filter to specific lead ad flow message)
3. Clicked email (filter to specific lead ad flow message)
4. Added to cart
5. Placed order

When you’re spending money on paid social ads to acquire leads, you want to make sure that these leads aren’t dropping out of the funnel before they purchase. Add a filter to the Received email step and specify that you only want to view the impact of your designated lead-magnet flow email. This will show you everyone who received that specific email, and their subsequent journey after that first point of contact.

Abandoned cart recovery

Funnel steps:

1. Received email (filter to the specific abandoned cart flow message)
2. Clicked email (filter to the specific abandoned cart flow message)
3. Started checkout
4. Placed order

The steps may change here depending on the trigger you’re using for your abandoned cart flow. If the trigger is Started checkout, then you can skip that step in the funnel (since that’s what would have triggered Step 1) and simply have 3 steps. If your abandoned cart flow trigger is Added to cart, you can use the funnel as illustrated above. Monitor this funnel to see how many carts your flow is actually saving.

Apply filters for more granular insights

Every funnel can be filtered by segment, so you can easily view the performance of each funnel for specific customer groups. Combine the power of other tools within Klaviyo's Marketing Analytics or Advanced KDP, such as RFM analysis, to gain insights into customer behavior. If you build segments based on RFM profile properties, you can apply segment filters to your funnel report to compare the performance of your different RFM groups across key conversion activities.

You can also filter individual steps within each funnel based on properties associated with that metric.

‍

‍

For instance, Received email can be filtered by campaign name, associated flow, recipient’s email domain, and more. This level of detail allows you to fine-tune your funnels, and even compare performance within the funnel for specific campaigns.

If you ran an A/B test on an email campaign, you could view the funnel by filtering first to just message variation A, noting the results, and then filtering to variation B to see which had a greater downstream impact.

Iterate based on visible funnel dropoff

These funnels are designed to give you an easy visual of where your most dramatic dropoff points are so you can understand where you need to dive deeper and do more customer research. They can help you narrow your focus on where to put your effort. Use your research to create a hypothesis of what you could change or test in order to keep more customers in the funnel. Explore some ideas of common drop-off points and steps you may take to try and improve.

Active on site Added to cart rate Placed order rate

Active on site

• Test new header images or messaging for your site to drive more clicks.
• Enable an “add to cart” option directly from catalog pages.
• Test new incentives for first-time customers.
• Add form teasers to remind shoppers of deals and discounts.
• Be sure your site is mobile-optimized.

Added to cart rate

• Be sure your website is mobile responsive and that your Add to Cart button is easy to click on mobile.
• If your email is pointing people to a landing page or a category page, try instead pointing people to a specific product page to limit clicks and distraction.
• Don’t overwhelm users with long descriptions.
• Make sure the Add to Cart button is obvious and easy to see.
• Swap product imagery for better quality photos or try to include lifestyle shots or videos.
• Provide estimated shipping dates and clearly show stock.

Placed order rate

• Allow the option for users to checkout as guests.
• Go through the checkout experience as if you were a customer to ensure it is seamless.
• Enable technology that helps speed up and simplify the checkout process like Buy with Prime or ShopPay.
• Enable payment technology that allows you to accept a variety of payment methods beyond credit cards.
• Enable pre-orders or waiting lists for products if you tend to run out of stock often.
• Make sure your site has all proper indicators of Secure Checkout for customer peace-of-mind.