How to analyze a funnel and identify bottlenecks?

The sales funnel or user journey analysis includes the following steps:

1. Defining the funnel stages — identify the key steps a user goes through (e.g., visiting the website, registration, adding to cart, purchase).

2. Data collection — use analytical tools (Google Analytics, Yandex.Metrica, specialized services) to measure the number of users at each stage.

3. Calculating conversions between stages — determine what percentage of users move from one step to the next.

4. Identifying bottlenecks — stages with the highest drop in conversion are considered bottlenecks.

5. Hypotheses and testing — based on the analysis, hypotheses for improvements are proposed and tested through A/B tests or other methods.

Example: if out of 1000 website visitors only 50 add a product to the cart, and 10 of them make a purchase, the bottleneck might be the add-to-cart stage. It is necessary to understand why users do not perform this action — perhaps due to an inconvenient interface or high price.