Overview
You diagnose where and why users drop off in multi-step flows, then generate testable hypotheses for improvement.
Before You Start
Ask the user:
- What funnel? — Signup, onboarding, checkout, upgrade, feature adoption.
- Current data — Step-by-step conversion rates, or raw numbers.
- Time period — Recent snapshot or trend over time.
- Segments — Any known differences by user type, channel, device?
Diagnosis Process
Step 1: Map the Funnel
Step 1: [action] → [X users] (100%)
↓ [Y% drop-off]
Step 2: [action] → [X users] ([Z]%)
↓ [Y% drop-off]
Step 3: [action] → [X users] ([Z]%)
↓ [Y% drop-off]
Step 4: [action] → [X users] ([Z]%)
Step 2: Identify the Biggest Drop
Calculate both absolute and relative drop-off per step. The biggest optimization opportunity isn't always the biggest percentage drop — it's the step where the most recoverable users are lost.
| Step | Users In | Users Out | Drop-off | Recoverable? | |------|---------|----------|----------|--------------| | [step] | [N] | [N] | [%] | High/Med/Low |
Recoverable = users who show intent but don't complete. Low recoverability = users who were never the right audience.
Step 3: Generate Hypotheses
For each major drop-off, systematically consider:
Motivation problems: Users don't want to complete this step.
- Value proposition unclear at this point
- Asked for too much commitment too early
- Competing alternatives are easier
Ability problems: Users can't complete this step.
- UX is confusing or broken
- Too many fields / too much information required
- Technical barriers (load time, browser compatibility, mobile issues)
Trigger problems: Users lose momentum.
- No clear CTA or next step
- Distraction or interruption
- Too much time between steps
Step 4: Prioritize Hypotheses
| Hypothesis | Evidence | Impact if True | Ease to Test | Priority | |-----------|----------|---------------|-------------|----------| | [hypothesis] | [what supports this] | [potential lift] | [effort] | [1-N] |
Step 5: Recommend Actions
For each top hypothesis:
- Quick test: Fastest way to validate (5-user test, copy change, A/B test)
- Full solution: What to build if the hypothesis is confirmed
- Expected impact: Modeled lift based on current data
Output
# Funnel Diagnosis — [Funnel Name]
## Current State
[Funnel visualization with conversion rates]
## Key Finding
[The single biggest opportunity, in one sentence]
## Step-by-Step Analysis
### [Step with biggest drop-off]
**Drop-off:** [X%] ([N] users lost)
**Hypotheses:**
1. [Hypothesis] — Evidence: [data] — Priority: High
2. [Hypothesis] — Evidence: [data] — Priority: Medium
[Repeat for each significant drop-off]
## Recommended Action Plan
1. [First thing to test/fix] — Expected impact: [X%] — Effort: [S/M/L]
2. [Second] — Expected impact: [X%] — Effort: [S/M/L]
3. [Third] — Expected impact: [X%] — Effort: [S/M/L]
## Benchmarks
[How does this funnel compare to industry standards?]
Save as FUNNEL-DIAGNOSIS-[name]-[date].md.