The goal is to perform funnel analysis for an e-commerce website.
Typically, websites have a clear path to conversion: for instance, you land on the home page, then you search, select a product and buy it. At each of these steps, some users will drop off and leave the site. The sequence of pages that leads to conversion is called ‘funnel’ . The company CEO isn’t very happy with the company sales and, especially, sales coming from new users. Therefore, she asked you to investigate whether there is something wrong in the conversion funnel or, in general, if you can create hypotheses on how conversion rate could be improved.Specifically, she is interested in :
A full picture of funnel conversion rate for both desktop and mobile
Some insights on what the product team should focus on in order to improve conversion rate as well as any anything you might discover that could help improve conversion rate.
Funnel analysis involves mapping and analyzing a series of events that lead towards a defined goal, like an advertisement-to-purchase journey in online advertising, or the flow that starts with user engagement in a mobile app and ends in a sale on an eCommerce platform. Funnel analyses "are an effective way to calculate conversion rates on specific user behaviors". This can be in the form of a sale, registration, or other intended action from an audience.
Data Science can have a tremendous impact on funnel optimization. Funnel analysis allows to understand where/when our users abandon the website. It gives crucial insights on user behavior and on ways to improve the user experience as well as it often allows to discover bugs.