# Funnel Patterns

Use this reference to pick the right funnel family for the job-to-be-done and to define a bottleneck worth studying.

## Bottleneck Rules

- Start with the narrowest question:
  - where is the biggest drop?
  - where is the longest delay?
  - where do users stall even though upstream volume is healthy?
- Quantify both:
  - step conversion rate
  - absolute user count lost at each step
- The bottleneck is usually the step with the highest combination of:
  - large percentage drop
  - large absolute volume loss
  - long delay
  - strategic importance to value realization

Do not spend equal time on every step. Most of the work should go into explaining the bottleneck.

## Activation Funnels

Use when the question is whether new users reach first value.

Common steps:

- first visit or signup
- setup or onboarding start
- first meaningful action
- first value event
- second session or second value event

Good metrics:

- signup to first meaningful action
- setup completion rate
- first value event rate
- median time from signup to first value
- second-session return after first value

## Retention Funnels

Use when the question is whether users build a durable habit or repeat the core job.

Common steps:

- first value event
- day-1 return
- day-7 return
- day-30 return
- repeat value event

Good metrics:

- retention after first value
- share of users with repeat value within 7 or 30 days
- time to second core action
- repeat behavior by cohort, traffic source, or build

## Collaboration or Network Funnels

Use when value deepens after another person engages.

Common steps:

- user creates, invites, or shares
- second actor opens or responds
- second actor performs a meaningful action
- original actor returns
- multi-actor repeat usage

Good metrics:

- share or invite rate
- second-actor engagement rate
- return rate after a second actor engages
- repeat collaboration vs one-off collaboration

## Monetization Funnels

Use when the question is about trial, upgrade, paywall pressure, or churn-like behavior.

Common steps:

- pricing page or purchase intent
- trial start or checkout start
- activation before billing
- paid conversion or upgrade
- renewal or non-renewal

Good metrics:

- trial start to first value
- first value before upgrade or billing
- upgrade rate after value
- same-day or first-cycle cancellation
- usage before cancellation vs retained paid users

Key question:

- Are churn complaints actually caused by weak value realization before billing?

## Content, Marketplace, or Transaction Funnels

Use when the core loop is creation, publishing, listing, browsing, purchasing, or booking.

Common steps:

- post, publish, list, browse, or land
- engage, inquire, add to cart, respond, or begin checkout
- purchase, book, subscribe, or transact
- repeat purchase, repeat creation, or repeat response

Good metrics:

- landing to purchase
- list or post to first response
- browse to cart or checkout
- first transaction to repeat transaction
- supply-side activation vs demand-side activation

## Interpretation Patterns

- First-session drop-offs often point to expectation mismatch or onboarding friction.
- Fast first value plus weak repeat usage can mean the job is naturally infrequent or that the product is too disposable.
- Strong activation but weak conversion can mean value exists but pricing, timing, or packaging is off.
- Strong conversion but weak retention can mean the promise sells but the workflow does not become durable.
- A noisy downstream step is rarely the real constraint if an earlier step loses most users first.