The Drop-off Rate measures how many people leave a sales funnel before finishing the intended action, such as buying something or signing up for a newsletter.
It helps businesses see how well each part of the sales funnel works by showing where and when potential customers drop out, indicating where they might be losing interest or facing problems. 1
Formula
How Is the Drop-off Rate Calculated?
The drop-off rate is calculated by dividing the number of users who abandon a specific step, process, or action by the total number of users who started the process.
To get a percentage, you multiply the result by 100.
Here’s the formula:
Drop-off Rate = (Number of Users Abandoned / Total Users Started) * 100%2
Importance
The drop-off rate is important because it tells businesses where customers are losing interest and leaving their websites.
By identifying these spots, companies can fix problems, smoother the buying process, and help more visitors become buyers.
This means better sales and happier customers, which is great for business.3
Usage
Here are some typical applications of the drop-off rate:
- E-commerce Websites: Drop-off rates are analyzed to see where customers abandon shopping carts or fail to complete checkout, helping to identify issues in the buying process.
- Online Forms and Applications: Businesses examine drop-off rates in online forms, such as sign-ups, applications, or surveys, to see where users quit before submitting their information, indicating potentially confusing or demanding sections.
- Sales Funnels: Marketers track where prospects drop out of sales funnels to refine their strategies, ensuring that leads are effectively nurtured and converted into sales.
- Subscription Services: Companies monitor drop-off points during sign-up processes for subscriptions to understand and address barriers that prevent users from completing their registrations.
- Mobile Apps and Software: Developers use drop-off rates to determine where users stop engaging with an app or software, which helps them optimize the user interface and experience.4
Example
Consider an online store with a sales funnel that includes homepage visits, product views, adding items to the cart, and completing a purchase.
If 1000 visitors reach the product view stage, but only 300 add items to their cart, the drop-off rate at this stage is .
This high rate may prompt the store to investigate product presentation or pricing issues.
Related Terms
References:
1. UXCam. (2023, August 22). Funnel drop-off rates – benchmarks & strategies to improve. Bluespace. https://uxcam.com/blog/drop-off-rates/
2. Sveum-Stubbs, M. (2024, March 8). What is drop off rate? 11 strategies to reduce it in B2B. Twi.inc. https://www.two.inc/post/what-is-drop-off-rate-11-strategies-to-reduce-it
3. Bolf, M. (2023, October 26). How to find Funnel Drop-offs fast and stop losing conversions. Smartlook Blog. https://www.smartlook.com/blog/funnel-drop/
4. Clay, B., Esparza, S. (2009). Search Engine Optimization All-in-One For Dummies. Ukraine: Wiley. https://www.google.com/books/edition/Search_Engine_Optimization_All_in_One_Fo/xKlXjdcZ9gQC
