If you’re building a SaaS product and you care about signups actually turning into active users (not just numbers on a dashboard), you know onboarding is where things break. Maybe users stall at “verify your email” or bail on your tutorial. You can guess why, or you can actually see what’s happening with real data. That’s what funnels in Smartlook are for.
This guide is for anyone who needs to get blunt answers about where users drop off during onboarding—and wants to fix it without wasting time on fluff. You don’t need to be a product manager or a data nerd. If you can click around, you can use this stuff.
Why bother with funnels at all?
Funnels aren’t magic, but they do show you what your gut can’t: exactly where people give up. Instead of guessing why your “activated users” number is low, you’ll see the step-by-step fallout—like a crime scene report for onboarding.
Here’s what funnels are good for: - Pinpointing which screens or actions kill momentum. - Tracking changes over time (did your new welcome email actually help?). - Cutting through debates and opinions with actual user behavior.
What funnels won’t do: - Tell you why people drop (for that, you’ll need to combine with recordings, surveys, or some old-fashioned talking to users). - Fix bad onboarding for you. They’ll just show you where to look.
Step 1: Map out your onboarding flow
Before you touch Smartlook, sketch out your onboarding steps. Be brutally specific.
Most SaaS onboarding flows look something like: 1. User lands on signup page 2. Fills in signup form 3. Gets confirmation email 4. Clicks verification link 5. Sees welcome screen 6. Completes first key action (e.g., creates a project)
Write down the actual steps, not what you wish users did. If there are optional steps or weird edge cases, note them, but focus on the core path.
Pro tip: Don’t overcomplicate it. More than 6 steps and you’re probably tracking too much or your onboarding is a maze.
Step 2: Set up event tracking in Smartlook
Funnels only work if you’re tracking the right events. In Smartlook, this means setting up events for every key step in your flow.
How to set up events
- Automatic events: Smartlook automatically tracks basic page views and clicks. Sometimes that’s enough for simple flows.
- Custom events: For anything more specific (button clicks, modal closes, API calls), you’ll need to add custom events. This usually takes a developer 10–20 minutes. Don’t skip it.
Examples of events to track: - “Signup form submitted” - “Email verified” - “Welcome screen seen” - “First project created”
What to ignore: Tracking every single button or micro-interaction will drown you in noise. Stick to the milestones.
Pro tip: Name your events clearly. “signup_submitted” is better than “event_1234”.
Step 3: Build your funnel in Smartlook
Now jump into Smartlook and create a funnel using the events you just set up. This is mostly point-and-click.
How to build the funnel
- Go to Funnels in the sidebar.
- Click “Create new funnel.”
- Add your events in the order they happen during onboarding.
For example: - Step 1: “Signup form submitted” - Step 2: “Email verified” - Step 3: “Welcome screen seen” - Step 4: “First project created”
Order matters: Funnels are linear. If users can do steps in any order, you’ll need to get creative or build multiple funnels.
Ignore: Don’t add “viewed pricing page” or other distractions unless it’s truly part of your onboarding.
Step 4: Analyze the funnel and spot drop-offs
Now comes the useful part. Smartlook will show you, step by step, how many users make it through each stage and where they vanish.
What to look for
- Big drop-offs: If 50% of users disappear after “email verification,” you’ve got a red flag.
- Unexpected cliffs: Sometimes users bail at spots you thought were easy. Trust the data.
- Leaky bucket: Small drops at every step add up. Don’t ignore them.
How to dig deeper
- Click on the drop-off number in Smartlook to see session recordings of what those users did.
- Look for patterns: Did the page break? Was the copy confusing? Did they rage-click the “back” button?
- If you’re still in the dark, consider reaching out to those users for quick feedback.
Pro tip: Don’t panic about tiny sample sizes. Trends matter more than one-off oddities.
Step 5: Act, test, and keep it simple
You’ve found a drop-off. Now what? Don’t get sucked into endless debates.
Do this: - Pick the biggest drop-off. Brainstorm the most likely reasons. (Is your email going to spam? Is your first screen overwhelming?) - Make one small change. Shorten the welcome, clarify instructions, fix a bug. - Wait a week or two, then check the funnel again. Did it help? - Repeat.
Don’t bother: - Obsessing over tiny percentage changes. - Spamming your onboarding with tooltips and popups “just in case.” - Chasing every single drop-off—focus where you’ll get the most bang for your buck.
Honest take: Most onboarding issues are obvious in hindsight. Funnels just make them impossible to ignore.
FAQ: Real-world Smartlook funnel tips
Q: How many funnels should I create?
Start with one core onboarding funnel. If you have radically different user types (e.g., admins vs. regular users), build separate funnels for each.
Q: How often should I check my funnels?
Once a week is plenty for most teams, unless you’re actively testing changes.
Q: Are Smartlook’s automatic events enough?
For basic flows, sometimes. But for anything that matters, invest in custom events. It’s worth the hour of dev time.
Q: Can I use funnels to track long-term activation?
Funnels are best for short flows (like onboarding). For long-term stuff, combine with cohort analysis or retention reports.
Wrapping up: Don’t overthink it
Funnels aren’t a silver bullet, but they’re a dead-simple way to see where users fall off in your onboarding. Set up clear events, build your funnel, and look for the big drop-offs. Fix one thing at a time, and don’t let yourself get lost in the weeds. Simple changes, tested and iterated, beat fancy dashboards every time.
Get your funnel working, and you’ll finally have proof of what’s breaking—not just more opinions.