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Consider the following table that shows the comparison of people who have visited the website and those who have completed the purchase from different channels. Dropout rate is defined as the number of people who do not complete a particular transaction.  Channel Top of the funnel PurchaseApp 20000 800Instagram 8000 200Online Ads 10000 250Google search 4000 100Which of the following has the least dropout rate?AppInstagramOnline AdsGoogle Search

Question

Consider the following table that shows the comparison of people who have visited the website and those who have completed the purchase from different channels. Dropout rate is defined as the number of people who do not complete a particular transaction.  Channel Top of the funnel PurchaseApp 20000 800Instagram 8000 200Online Ads 10000 250Google search 4000 100Which of the following has the least dropout rate?AppInstagramOnline AdsGoogle Search

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Solution

To find out which channel has the least dropout rate, we first need to calculate the dropout rate for each channel. The dropout rate can be calculated as follows:

Dropout rate = (Top of the funnel - Purchase) / Top of the funnel

Let's calculate the dropout rate for each channel:

  1. App: (20000 - 800) / 20000 = 0.96 or 96%
  2. Instagram: (8000 - 200) / 8000 = 0.975 or 97.5%
  3. Online Ads: (10000 - 250) / 10000 = 0.975 or 97.5%
  4. Google Search: (4000 - 100) / 4000 = 0.975 or 97.5%

From the above calculations, it is clear that the App channel has the least dropout rate of 96%.

This problem has been solved

Similar Questions

You can see that non-app transactions have the same dropout rates. Considering that Instagram ads, online ads and Google search all redirect to the website for final product selection and payment, 97.5% seems to be the average dropout rate for the website. Now, to tackle this problem, you gathered data regarding the dropouts at each stage of the process. Stage Top of the funnel PurchaseProduct loaded on the device 22000 21500Customisations to the product made 21500 14500Add to cart 14500 10500Delivery address added 10000 7000Payment done 7000 700Returns and payment failures 700 550 Which of the following stages has the most dropouts?Returns and payment failuresDelivery address addedCustomisations to the productAdd to cart

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