Introduction to Funnels

Understanding user journeys is crucial for optimizing your website or app. Google Analytics 4 (GA4) offers powerful funnel analysis tools, but a key concept to grasp is the difference between open and closed funnels. This blog post will unpack these concepts and provide examples specifically relevant to the e-commerce industry.

Closed Funnels: The Linear Path

Imagine a funnel with a narrow top and a wider base. A closed funnel in GA4 reflects this linear path. Users can only enter the funnel at the first step, and they must complete each subsequent step in order to be counted as conversions.

E-commerce Example: Checkout Journey

GA4 offers a pre-built closed funnel called the "Purchase Journey and Checkout Journey." This analyzes users who begin checkout, proceed through steps like adding items to cart and entering shipping information, and ultimately complete the purchase. By analyzing drop-off points within this funnel, you can identify areas for improvement in your process.

Checkout Journey Funnel

The steps used in this checkout funnel are:

1. Begin checkout

2. Add shipping

3. Add payment

4. Purchase

These steps represent the typical journey a customer goes through during the checkout process after adding items to their cart, including providing shipping details, entering payment information, and finally completing the purchase.

Purchase Journey Funnel

The steps used in this purchase funnel are:

1. Session start

2. View product

3. Add to cart

4. Begin checkout

5. Purchase

These steps represent the typical journey a customer takes when making an online purchase, starting from initiating a session on the website or app, viewing a product, adding it to their shopping cart, proceeding to the checkout process, and finally completing the purchase.

Open Funnels: A More Holistic View

An open funnel allows users to enter at any stage. This provides a broader picture of user behavior. For instance, a user might land directly on a product page (skipping the browsing stage) and complete a purchase. They wouldn't be captured in a closed funnel, but an open funnel would show their journey. You can replicate the same funnel in the ‘Explore’ section in order to view the open funnel.

The data also provides insights into the number of new funnel entries (4.2K) and continuing funnel entries (1.6K), as well as the total abandonments (5,986) and abandonment rates for each step.

Features of GA4 Funnel:

1. Funnel Breakdown with Dimensions:
   Gain deeper insights into user behavior by adding dimensions such as device types or channels to your funnel analysis. By breaking down the funnel based on First User Default Channel Grouping, you can understand user paths and behavior at each stage. For instance, you can see completion and abandonment rates segmented by channels.

2. Elapsed Time Analysis:
   Explore the average time users take to progress through each step of the funnel with elapsed time analysis. For example, you can determine the average duration users spend between adding items to their cart and beginning the checkout process.

3. Next Action Exploration:
   Use the new funnel exploration tool to identify the top five actions users take after completing a specific phase of the funnel. By selecting "Event name" as the dimension and "Next Action," you can uncover post-funnel behaviors by hovering over the bars. For instance, after adding items to their cart, users may engage in actions such as page views or clicking on headers.

4. Filter Functionality:
   Customize your funnel analysis by applying filters to focus on specific data sets, such as organic users. This allows you to isolate and analyze data based on specific criteria, providing deeper insights into user behavior.

These features empower you to gain comprehensive insights into user journeys, optimize funnel performance, and make data-driven decisions to enhance your website's effectiveness.

Custom Event Funnels in Explore

For analyzing user interactions beyond the default reports, GA4's Explore feature lets you create custom funnels using events you've defined. This is where you can choose between open and closed funnels.

Example: Lead Generation Funnel

Let's say you track a "Sign Up" event which is ultimately a funnel containing various steps. You can create an open funnel in Explore to see how users from different sources (organic traffic, social media) interact with your website before signing up. This can reveal valuable insights into user engagement.

Custom Events Funnels

This represents a user funnel analysis that tracks user behaviour across six steps: Session Start, Signup, Verify Email, Verification Successful, Login, and Account Type Step-1.

Custom Events Funnels with Channels Breakdown

The data provides insights into the number of sessions and the corresponding abandonment rates for each channel at the Session Start step.

For example, the Direct channel had 2,831 sessions (100% of its total), with a 98.4% abandonment rate. The Organic Search channel had 167 sessions (100% of its total), with a 96.4% abandonment rate.

Choosing the Right Funnel Type

When should you use an open funnel versus a closed funnel? Here's a quick guide:

• Closed Funnels: Ideal for analyzing well-defined linear journeys like checkout or lead capture forms.
• Open Funnels: Best for understanding the broader user journey, including entry points beyond the first step.

In Conclusion

Unveiling the mysteries of open and closed funnels in GA4 empowers you to navigate user journeys with confidence. By strategically selecting the appropriate funnel type for your e-commerce objectives, you'll unlock a treasure trove of user behavior insights. This newfound knowledge paves the way for optimizing your website or app, ultimately driving superior conversions.