How do I analyze conversion funnels?

Analyzing conversion funnels involves mapping each stage, measuring conversion rates between stages, and identifying drop-off points. Use funnel visualization tools in Google Analytics or specialized platforms. Calculate conversion rate at each stage (visitors → leads → customers, for example). Identify where the biggest drop-offs occur—these are optimization opportunities. Segment funnels by traffic source, device, or user type to find patterns. Look at time between stages and abandonment points. Test improvements at high drop-off stages. Example: A funnel analysis revealed 60% drop-off at the checkout stage, leading to checkout optimization that recovered 20% of those users.