A funnel graph is a graphical representation used to illustrate how data moves through a process. It is characterized by its shape, which starts wide at the top and narrows down towards the bottom. This type of chart is commonly used to visualize sales, procurement, and order fulfillment processes. It shows the number of users at each stage of the process, represented by the width of the funnel as it narrows. The funnel chart is a specialized type of graph that demonstrates the flow of users through a business or sales process.
It takes its name from its shape, which starts with a wide head and ends in a narrow neck. The values in the chart usually decrease gradually, allowing the bars to resemble a funnel. This type of chart can be used to show the number of sales prospects at each stage of a sales process, for example. A funnel chart (also called a funnel graph or funnel diagram) shows the progressive reduction of data as they move from one phase to another. It can be used to bring sales and marketing campaign reports to life with a sales funnel chart or a marketing funnel chart.
While the output of a funnel chart may inform users as a proportion of the initial amount, it is usually not necessary to perform this calculation before sending the data to a visualization application. As mentioned earlier, the funnel graph illustrates the progressive reduction of data from one stage to the next. The inverted triangle illustrates how the number of potential customers at the top of the funnel decreases as they move through the stages. It can also be combined with research data, such as quantified measurements of the number of items lost at each step of the sales or order management process, to show where the biggest obstacles lie in the process. The standard annotation options for each stage usually include showing the gross number of users or the proportion of users compared to the opening phase. The funnel graph is likely to show a large area at the top, indicating visitors' home page visits, and other areas are proportionally smaller, such as downloads or people interested in buying the product.
For some companies, the sales funnel only contains the stages related to sales, while the rest belong to the marketing team. Since funnel charts are used to describe how data moves throughout a process, it is important to have an understanding of all stages that should be visualized in this type of chart. Funnel-shaped graphs are some of the types of diagrams that are invaluable in reports presented by sales teams to explain sales results or in marketing teams to explain visitor trends and lead generation. The above method of creating a funnel chart, in which values are marked on boundaries with matching widths, is accurate but not ideal. Keep in mind that unlike a real funnel, not everything that is poured at the top flows down.