In the previous chapter we learned about goals and conversions. A funnel is the set of steps or pages that you expect users to visit on their way to complete the conversion. In other words, a funnel is a sequence of steps which leads to completion of a goal.
1) Analyzing funnel activities helps in assessing the effectiveness of your web site in pursuing visitors to continue to the next step towards conversion.
2) To understand from which pages visitors abandon the funnel and where they go after that.
3) Analysis can lead to streamlining the important processes, such as the checkout process or sign-up process which can enhance the conversion rate.