Funnel

The sequence of steps from first contact to paying customer, with drop-off measured at each step.

Example

Visitors → signups → activated → paid → retained.

Important

Fix the biggest leak, not the easiest one. Founders routinely optimise the top of the funnel while losing 90% at activation.

Related terms

• Conversion rate — The percentage completing a step out of those who started it.
• Activation — The moment a new user first experiences the product's core value.
• Growth loop — A cycle where the output of using the product feeds back into acquiring more users.

Lessons that explain it

• Funnels and conversion — Find the biggest leak, not the easiest one. Most founders optimise the top of the funnel while losing 90% at activation. (12 min)

All 176 terms in the Founder glossary