The funnel drop-off rate is a metric often used in e-commerce, particularly with a web-based purchasing process involving a shopping cart. During this process, there are generally multiple steps involved for a customer to ultimately purchase a product. For example, the customer must add the desired products to their shopping cart. Then the customer must visit the shopping cart and check out. The check-out process involves steps to enter payment information and potentially other information such as a shipping address. Finally, the customer must confirm the purchase. At any point along this conversion process, the customer may end the purchase and discontinue the process. Analyzing the funnel drop-off rate can help identify steps in the process that are causing customers to discontinue engagement and are thus areas of focus for improvement.
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