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Phase 6
Event Tracking & Funnel Analysis
Event tracking and funnel analysis are the backbone of product analytics. Events capture specific user actions—like clicks, sign-ups, purchases, or feature use—while funnels show how users progress (or drop off) across critical journeys such as onboarding or checkout. Together, they help teams diagnose friction, improve conversions, and optimize the user experience. This module introduces how to define and implement event tracking, structure funnels, analyze drop-offs, and turn insights into product improvements. By the end, you’ll understand how to connect raw behavior data to measurable business impact.
What is Event Tracking?
Event tracking involves monitoring specific user interactions (events) across your product, such as clicks, form submissions, and feature usage. This provides granular insight into how users engage, not just how many visit.
Funnel Analysis: Turning Events into Journeys
A funnel is a sequence of events representing a user journey (e.g., Visited site → Signed up → Activated → Paid). Its core purpose is to identify drop-off points, quantify conversion rates, and compare journeys across different user segments.
From Data to Action
Use event and funnel data to guide your product decisions:
- Prioritize improvements: Focus on the stages with the biggest drop-off or highest business impact.
- Combine quant + qual: Use event data with surveys or feedback to understand why drop-offs happen.
- Iterate continuously: Funnels should be re-analyzed after each product change to measure impact.
- Report clearly: Build dashboards tailored to each team's focus, from marketing to engineering.