Funnels let you see exactly where users drop off in a multi-step process. How many people hit your home page and end up converting to paid customers? Which step of your registration flow is causing you to lose users?
Setting up funnels is easy, and you can filter a funnel to an exact slice of your userbase. Understand the nature of your conversion rate for your users in China, for anyone who has viewed your Demo video, or for users who signed up and discovered you via Techcrunch.
Split a funnel across different user segments. Answer questions of the form "How do signup conversions change based on the number of case studies a user downloads?", or "How often are new users upgrading to paid plans compared to new users last week?" Funnels can also be segmented by user-level properties such as install date, location, referrer, and UTM parameters.