Path analysis

[Primarily written as a video script]

[Introduction - What and why of path analysis]

Path analysis is a powerful tool to optimize the journey users experience while interacting with your
app and website. By seeing the sequence of steps that the users are taking to perform a task, you can
clearly learn if their journey is smooth or broken.

[Visual: Show a Sankey diagram with sequential steps to purchase items in an app or on a website.
Remove the callout in red. We can also tweak the numbers and the width of the blue paths to show
that the drop-offs are really high. SME validation required.]

Let’s say you’ve created your ideal funnel to achieve the outcome you want. However, in reality, your
customers are not moving from one stage to another the way you thought they would. What could
be the problem? Where are they dropping off? Path analysis helps you find answers to these
questions.

Awa Users learn about Diwali Dhamaka Sale on the Smartbuyz website.
rene
ss

Inter
90% users click the Shop Now button in the ad.
est

Desi
70% users spend more than 5 minutes browsing items on sale.
re

Acti
Only 40% users make at least 1 purchase.
on

[In the above visual, we can highlight the drop-offs and add the callout – Opportunity for path
analysis]

[Actions you take from path analysis]

Path analysis uncovers insights for marketers as well as product managers.

As a marketer, you can discover opportunities for improving your marketing strategies and get better
results…in customer satisfaction, retention, CLTV, and more. For example, in our example of path
analysis here, you might get better results—more sales—by introducing a special discount offer for
loyal customers.

[Visual (need SME input): Path analysis shows that fewer loyal users are seen to participate in the
sale]

Funnel optimization is another key area in which path analysis helps in a big way. While creating a
funnel, you might not have a clear understanding of the events to which you should map each stage,
especially if it is an intermediate stage. Path analysis helps you find the events your users are
performing in their journey and identify the right events for the funnel stages.

[Visual (need SME input): Show the Diwali Dhamaka example with opportunities for better event
mapping]

For product managers, path analysis is a key tool to understand the ease of use of digital stores. Are
users able to find the product they need? Can they complete their purchase in a few steps, without
any hurdle? Using path analysis, they can identify friction and bottlenecks in the user journey and
redesign the website and app to create friction-free, happy paths. The goal is to enable users to
smoothly complete the task they want to perform…in the minimum number of steps. Happy paths
mean happy users and, ultimately, happy businesses.

[Visual: Show sequential steps to complete a purchase from the Smartbuyz website/app. Show that
browsing similar products and adding more items can improve the workflow (Item Added > Checkout
Not Completed > Browse similar products > Item Added > Cart Checked Out)]

Simply put, path analysis helps brands to ensure that users don’t drift away from the happy path.
This requires all teams to work together and define the right happy path and strategies to keep the
users on the happy path.

Test your understanding

You are analyzing the path that free users of Smartbuyz take to upgrade to a Paid plan. Choose 3
insights that path analysis can uncover.

 User authentication is not reliable.

 The Sign Up button is difficult to locate.
 Users like the app more than the website.
 Smartbuyz has a higher signup rate than its competitors.
 Smartbuyz spends more on Facebook ads.

[Need SME input]

How to do path analysis in WebEngage

With WebEngage, deriving insights from path analysis becomes a lot easier. You can explore as many
paths as you want. With each exploration, WebEngage will highlight useful data and insights, such as
the volume of users performing an event, the top paths, and so on.

Notes:

can add as many steps as you want

How many steps users take before transacting

What are users doing between 2 steps

Least distractions in the payment path is desirable – so avoid upselling/promoting a new feature in
that path

Don’t give direct actions.

You can visualize the sequential actions users take before or after performing a specific Event and the
various moments in which they exit your platform.

Let’s assume that you want to analyze the actions users are taking before installing your app. You
have defined a custom event called app_uninstalled.

Visual: a funnel for repeat purchases.

On your WebEngage dashboard, you can pin the paths you want to observe.

Single_path_comparison_screens_visited

[examples of filter (based on specific events (custom events like added_thru_referral) or segments):
from a particular channel (e.g. Facebook) or from paid channels]

Look ahead: the maximum period a user takes between 2 steps

Top paths: These are the paths most users are taking.

Reference:

https://knowledgebase.webengage.com/docs/analysing-paths

https://userpilot.com/blog/user-path-analysis/#What-is-user-path-analysis?