Funnel economics
Find the step where an intervention creates the most value.
Quick learn
A fictional marketplace gets 10,000 product visits. Of those, 20% start checkout and 40% of starters buy. Each order contributes ₹150 before the intervention.
Deep dive
Keep one cohort and time window. Multiply conditional step rates to estimate conversion. Compare feasible changes in absolute orders and contribution after implementation costs. Also track whether later refunds or fraud offset the improvement.
Worked decision
Baseline is 10,000 × 20% × 40% = 800 orders. Improving checkout completion from 40% to 45% produces 900 orders, worth ₹15,000 more contribution before costs.
When the decision changes
Raising checkout starts from 20% to 24% at the original 40% completion creates 160 additional orders, worth ₹24,000. If that project costs ₹12,000 and the first costs ₹1,000, the checkout-completion project has greater net value.