What is funnel optimization?

Funnel optimization is the process of analyzing and improving each stage of the customer journey, or 'funnel,' to increase the number of users who complete a desired action, such as making a purchase or signing up for a newsletter. This involves identifying where potential customers drop off and implementing strategies—like A/B testing, improved messaging, or simplified navigation—to reduce friction and boost conversions. Funnel optimization helps businesses maximize the effectiveness of their marketing and sales efforts, resulting in higher revenue and better customer experiences.