## Acquisition Metrics | Funnels There are differences in metrics: - Isolated Metrics - Actions done in a series ![[PMing_Analytics_Funnel.png]] > Funnels are basically way of analysing behaviour in a series. > It’s a metric that measures conversion rate between sequential steps in a series. - Look at each behaviour as a step, as customers will move through these series of events in an order. - It is called funnel analysis because the visualization starts with a large pool of users and get progressively smaller as we look at the subsequent steps. - The funnel shape is by design, as the user can’t perform step 3 before going through step 1, as in if step three was to receive a sandwich, and step one to open the app, the user will always go through step one. - Because of this linear flow of steps, we loose some users at every step. This is often referred to as “drop-off - The rate of completion and the rate of abandonment are two of the most useful and are considered core metrics often in any funnel, because it shows an aggregated view of the success for particular customer use case. - **Conversion Rate:** The trajectory of completion ; is expressed as a percentage. - Funnel Analysis approach is useful when you need to measure drop-off rates and failed conversions across a series of actions. **Statistical Significance:** Study about this #Abhishek - It is sort of an indicator of reliability, the closer it is to 1 (eg. 0.99) The more likely any differences observed between the segments are meaningful. And also check about *segmentation analysis*. - Funnel analysis are relevant any time we are interested in evaluating the effectiveness of a customer journey, regardless of weather there is a monetary exchange. **Types of visualization:** 1. **Steps**: It is the classic funnel visualization with columns for each step. ![[PMing_Analytics_Fav Sandwich three.png]] 2. **Trends**: Shows us how the conversion rate changes over time. ![[PMing_Analytics_Funnel Conversion Rate.png]] 3. **Metric**: Mixpanel’s big number visualization type. It shows only overall conversion rate, it doesn’t show change over time. ![[PMing_Analytics_Completion Rate.png]] 4. **Median time to convert**: Big number visualization types, it specifically focuses on how long it takes users to complete a funnel. Useful while optimising for time to convert. ![[PMing_Analytics_Median Time to Convert.png]] --- `Acquisition metrics and funnel analyses are a critical component to any product’s overall health. You cannot grow a product’s usage or a business's revenue without some meaningful customer acquisition strategy. And often, the first step towards positive change is taking good measurements and analyzing them correctly.` `There are many roles in product, growth, operations, and management where the job's primary function is to find ways to optimize and fix leaky or broken parts of a funnel. You can build an entire career around funnel analysis and optimization—and we’ve really only scratched the surface of the visibility Mixpanel can provide into different parts of any product funnel.`