Funnel Chart

A funnel chart is a visualization chart that represents data in multiple stages that is progressively reducing. It is often used to show the stages of the sales process. Starting at the top, a funnel starts at 100% of some form of data. As you track down the chart, the funnel chart narrows to lower percentages. Each step should lower in percentage by a certain rate that can give information about the efficiency (or lack thereof) of a certain transition between steps.

Purpose of a Funnel Chart

Generally, a funnel chart is used to depict a process. This process ideally starts at 100% and ends at a lower percentage. As the chart shrinks going down the funnel, certain realizations can be made. One of which is finding where the most noticeable decrease happens, or the fall out. Then it is easy to identify the bottlenecks of a process. Funnel charts are extremely useful to figure out the efficiency of certain steps in a given process.

Examples of Funnels

Funnel charts can be useful for a wide variety of data, but is most often used to depict the efficiency of processes. As seen in the first chart, the funnel narrows very quickly, showing a process where data is getting narrowed quickly. The amount that makes it to the end is quite small compared to the start, but you can see that from the first step to the second step is where most of the data is lost.

Funnel chart example

In this example, the funnel is more efficient. The two parts of the funnel that have the highest rates are Leads to MQLs and MQLs to SQLs. This means that on these two transitions in the funnel is when most of the leads are lost, speaking to the efficiency of those steps. This leads to wins funnel is one of the most common uses of the funnel chart. It is referred to as the marketing funnel, or sales funnel.

An example of a marketing funnel chart with a conversion table.

How to Make a Funnel Chart

As they can be used in many ways, there are also many different ways to create a funnel chart, one of which is with Chartio. A tutorial on how to do this can be found here. There is also a great tutorial for how to create specifically a marketing funnel chart.

Steven McKim

About Steven McKim

Steven is a Senior at Virginia Tech studying Computer Science. Currently interning for Chartio, he helps with the Data School site as well as Chartio.com to keep them running smoothly and make them as user friendly and visually appealing as possible.

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