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Where Shoppers Drop Off: An E-Commerce Funnel Analysis Powered by TernoAI
Nistha Saini Nistha Saini
18 November 2025

Where Shoppers Drop Off: An E-Commerce Funnel Analysis Powered by TernoAI

Introduction: Understanding the Digital Shopper

Every e-commerce business thrives on one core journey: users view a product, add it to their cart, and—ideally—complete the purchase. But somewhere along that path, a significant portion of shoppers fall off.

My goal was simple:
Identify where shoppers drop off and why.

Instead of writing SQL or stitching together dashboards, I used TernoAI, a no-code analytical assistant that understands natural-language commands. Throughout this analysis, I asked TernoAI a series of prompts, and it returned complete, accurate insights within seconds.

Step 1: Reconstructing the Funnel

To begin, I asked:

Prompt:

“Find the number of unique users who viewed products, added to cart, and completed purchases in marketing_ecom.”

TernoAI scanned the datasource and returned the key funnel stages:

Funnel Stage Unique Users
Viewed Product 79,995
Added to Cart 79,995
Purchased 27,380

Immediately, two insights became clear:

1. Interest is strong.

Every user who viewed a product also added it to their cart—an extremely positive sign for product discovery and catalog quality.

2. Checkout is the problem.

Despite perfect engagement up to the cart, only one-third completed their purchase.

This is the main break point in the funnel.

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Step 2: Measuring Conversion at Each Stage

To quantify exactly how effectively users move from one stage to another, I prompted:

Prompt:

“Calculate the conversion rate for (1) view–add to cart, and (2) add to cart–purchase.”

The results were:

Step Conversion Rate
View → Add to Cart 100%
Add to Cart → Purchase 34.23%

This clearly shows that while product pages are performing exceptionally well, the checkout process is losing 66% of users.

From a business perspective, this is where optimization efforts will have the highest revenue impact.

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Step 3: Which Age Groups Convert the Best?

To understand user behavior more deeply, I asked:

Prompt:

“Which age groups have the lowest and highest purchase conversions?”

TernoAI segmented users by age and analyzed their purchase behavior:

Age Group Conversion Rate
18-24 33.59%
45-54 34.98%

While the difference may appear small, it reflects meaningful behavioral patterns:

  • Younger shoppers (18–24) explore more but hesitate during checkout—typically due to price sensitivity or lower trust.

  • Older shoppers (45–54) convert more consistently—suggesting clearer intent and stronger buying confidence.
    This insight guides more personalized marketing strategies.

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Step 4: Category-Level Performance — Where Do Users Drop Off Most?

Next, I wanted to identify whether certain product categories drive more drop-off than others.

Prompt:

“Analyze funnel conversion for each product category and show which categories have the highest abandonment.”

Since add-to-cart events didn’t include product IDs, TernoAI analyzed view-to-purchase conversions instead.

Categories with the Highest Abandonment (~76%)

  • Blazers & Jackets

  • Clothing Sets
    These categories tend to involve sizing uncertainty, higher pricing, or style risk, all common drivers of hesitation.

Categories with the Lowest Abandonment (~72%)

  • Underwear

  • Suits & Sport Coats
    These items generally offer more predictable sizing, making users more confident in purchasing.

This insight is crucial for category managers, UX teams, and merchandising strategy.

AI Insight Image

Step 5: Visualizing the Funnel

To visualize the user flow, I requested:

Prompt:

“Create a funnel chart showing number of users who viewed, added to cart, and purchased.”

TernoAI generated a clean funnel chart that made the sharp drop at the purchase stage visually unmistakable—perfect for presentations or stakeholder reports.

Step 6: Turning Insights Into Action

With the funnel mapped and drop-off points identified, I asked TernoAI:

Prompt:

“Give marketing recommendations to reduce funnel drop-off and improve conversions.”

Here are the key strategies supported by the data:

1. Optimize Checkout (Top Priority)

This is the largest source of revenue loss.

  • Enable guest checkout

  • Offer fast payment methods (UPI, Paytm, Apple/Google Pay)

  • Display shipping fees earlier

  • Add trust badges (“Secure Checkout”, “Free Returns”)

  • Reduce checkout steps

  • Send abandoned-cart reminders
    Even incremental improvements here can lift conversions meaningfully.

2. Strengthen Confidence in High-Abandonment Categories

Especially Blazers, Jackets, and Clothing Sets.

  • Enhanced size and fit guidance

  • More photos of models with height/fit details

  • Real customer reviews with images

  • Clear, flexible return policies

  • Fit-prediction tools
    Reducing uncertainty leads to higher conversions.

3. Tailor Messaging by Age Segment

For 18–24 (low conversion):

  • Student discounts

  • Buy Now Pay Later (BNPL)

  • Influencer-led content

  • Prominent return guarantees
    For 45–54 (high-intent):

  • Premium bundles

  • Loyalty program rewards

  • Personalized recommendations
    Segmentation ensures marketing feels relevant rather than generic.

4. A/B Test Key Touchpoints

A/B testing helps identify which changes truly improve conversions.

Test:

• Different checkout button text (e.g., “Complete Order” vs. “Secure Checkout”)
• Placement of trust badges, return policies, or shipping info
• One-page vs. multi-step checkout layouts
• Visibility of discounts, promo codes, or free-shipping banners
• Tone and timing of abandoned-cart reminders

Even small winning variations can create measurable lifts in conversion rates.

Conclusion: The Funnel Is a Conversation, Not Just a Metric

This analysis demonstrated how much you can uncover with the right questions.

Using TernoAI, I was able to:

  • Map the customer journey end-to-end

  • Identify the exact point of drop-off.

  • Compare behavior across age groups.

  • Understand category-level friction

  • Generate actionable, revenue-focused strategies.
    All without writing a single line of code.

Beneath every number is a shopper making a decision.

And when we understand those decisions

We can build better, more confident buying experiences.

- Your AI-Data Scientist

Turn your data into decisions with Terno.

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