Funnel charts are a type of

chart A chart (sometimes known as a graph) is a graphics, graphical representation for data visualization, in which "the data is represented by symbols, such as bars in a bar chart, lines in a line chart, or slices in a pie chart". A chart can repres ...

, often used to represent stages in a

sales process Sales process engineering is the systematic design of sales processes done in order to make sales more effective and efficient.. It can be applied in functions including sales, marketing, and customer service. History As early as 1900–1915, ...

and show the amount of potential revenue for each stage. This type of chart can also be useful in identifying potential problem areas in an organization's sales processes. A funnel chart is similar to a stacked percent bar chart.

Composition

A funnel chart displays values as progressively decreasing proportions amounting to 100 percent in total. The size of the area is determined by the series value as a percentage of the total of all values. Any funnel consists of the higher part called ''head'' (or ''base'') and the lower part referred to as ''neck''.

Examples

A typical example of a funnel chart starts with the sales leads on top, then down to the qualified leads, the hot leads and the closed deals. A business is bound to lose some number of potential deals at each step in the

and this is represented by the narrowing sections as you move from the top section (the widest) to the bottom section (the narrowest.) This allows executives to see how effective the sales team is in turning a

sales lead In marketing, lead generation () is the process of creating consumer interest or inquiry into the products or services of a business. A lead is the contact information and, in some cases, demographic information of a customer who is intereste ...

into a closed deal. A sales funnel chart can also be used to quickly communicate your organization's sales process to new members of the sales team or other interested parties. A funnel chart can be used to display

Web site A website (also written as a web site) is any web page whose content is identified by a common domain name and is published on at least one web server. Websites are typically dedicated to a particular topic or purpose, such as news, education, ...

visitor trends. It is likely that the funnel chart will display a wide area at the top, indicating visitor page hits to the

homepage A home page (or homepage) is the main web page of a website. Usually, the home page is located at the Root directory, root of the website's Domain name, domain or subdomain. For example, if the domain is example.com, the home page is likely l ...

, and the other areas will be proportionally smaller, like the downloads or the people interested in buying the product. Another example is the

order fulfillment Order fulfilment (in American English: order fulfillment) is in the most general sense the complete process from point of sales enquiry to delivery of a product to the customer. Sometimes, it describes the more narrow act of distribution or th ...

funnel chart with the initiated orders on top and down to the bottom the orders delivered to satisfied customers. It shows how many there are still in the process and the

percentage In mathematics, a percentage () is a number or ratio expressed as a fraction (mathematics), fraction of 100. It is often Denotation, denoted using the ''percent sign'' (%), although the abbreviations ''pct.'', ''pct'', and sometimes ''pc'' are ...

cancelled and returned.

Purpose of chart

Ideally the funnel chart shows a

process A process is a series or set of activities that interact to produce a result; it may occur once-only or be recurrent or periodic. Things called a process include: Business and management * Business process, activities that produce a specific s ...

that starts at 100% and ends with a lower

where it is noticeable in what stages the decrease happens and at what rate. If the chart is also combined with

research Research is creative and systematic work undertaken to increase the stock of knowledge. It involves the collection, organization, and analysis of evidence to increase understanding of a topic, characterized by a particular attentiveness to ...

data, meaning quantified measurements of just how many items are lost at each step of the sales or

process, then the funnel chart illustrates where the biggest bottlenecks are in the process. Note that unlike a real

funnel A funnel is a tube or pipe that is wide at the top and narrow at the bottom, used for guiding liquid or powder into a small opening. Funnels are usually made of stainless steel, aluminium, glass, or plastic. The material used in its constructi ...

, everything that is "poured in" at the top doesn't flow through to the bottom. The name only refers to the

shape A shape is a graphics, graphical representation of an object's form or its external boundary, outline, or external Surface (mathematics), surface. It is distinct from other object properties, such as color, Surface texture, texture, or material ...

of the

, the purpose of which is illustrative.

References

{{Refimprove, date=March 2009 Infographics Diagrams Charts

Composition

Examples

Purpose of chart

See also

References