Statistical
Funnel conversion analysis: step pass-through, drop-off %, and overall conversion
Diagnose where prospects abandon a signup or checkout funnel by contrasting stage-to-stage conversion (B3 / B2) against cumulative top-of-funnel conversion (B3 / $B$2).
Stage pass-through vs cumulative top-of-funnel rate
Overall conversion B5/$B$2 measures Paid relative to Visitors; step conversion B5/B4 measures Paid relative to Activated. These ratios locate differences but do not explain their causes.
Paid-stage drop-off is 1 - B5/B4: 300 paid customers from 1,200 activated users gives 75%.
| Stage (A) | Users (B) | Step Conversion | Step Drop-Off | Cumulative % |
|---|---|---|---|---|
| Visitors | 10000 | 100.0% | 0.0% | 100.0% |
| Signups | 2000 | 20.0% | 80.0% | 20.0% |
| Activated | 1200 | 60.0% | 40.0% | 12.0% |
| Paid | 300 | 25.0% | 75.0% | 3.0% |
Step pass-through, drop-off, and overall funnel formulas
Notice that the product of all step conversion rates (0.20 * 0.60 * 0.25 = 0.03) equals overall conversion (300 / 10,000 = 3%).
=ROUND(B5 / $B$2, 4)Stage-to-stage drop-off rate
A zero denominator has no defined rate; display a message instead of a misleading 0%.
=IF(B4=0, "No prior-stage users", ROUND(1 - (B5 / B4), 4))Inputs and interpretation
Counts must be nonnegative and refer to the same deduplicated cohort and observation window, with successive stages forming nested subsets. Repeated events, different cohorts or incomplete conversion windows can invalidate the ratios. The overall denominator must also be positive.
Try the example
Use the original values or change them to test your understanding.