How to do Funnel Analysis with SQL and Python

Funnel analysis is a method used by businesses to analyze the chain of events that customers traverse on their way to completing a desired goal, such as making a purchase. The AIDA model, consisting of awareness, interest, desire, and action, is often used to represent these steps. By tracking user events, actions, and drop-off points, companies can identify areas for improvement in their customer journey. Funnel health is determined by comparing the actual customer pass-through rate with an expected pass-through rate set by business goals. Drop-off points should be investigated further to determine possible reasons for customers not completing the desired action. Time to purchase is another important metric that helps track how long it takes users to move through a funnel, allowing businesses to build revenue models and forecast pipeline.