A funnel in business analytics is a series of events that lead towards a defined goal. It can help describe “how your business and web site converts new visitors into valued customers.” That goal can be a sale, registration, or another action that was reached after a chain of preceding events. It is called a funnel because users will enter the funnel but only a small number of them will perform all of the actions that lead to the final goal.
Funnel analytics are commonly used to identify users’ progress through defined steps towards a specific goal. Typically, it helps in identifying conversion drop-downs between specific events in the funnel, be it micro-conversions or macro-conversions, and reveals which stages of the user activity may or may not contribute to attaining the desired goal.