Funnel chart
Encyclopedia
Funnel charts are a type of chart
, often used to represent stages in a sales process
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.
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
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 visitor trends. It is likely that the funnel chart will display a wide area at the top, indicating visitor page hits to the homepage
, 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
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
cancelled and returned.
where it is noticeable in what stages the fall out
happens and at what rate
. If the chart is also combined with research
data, meaning quantified measurements of just how many items are lost at each step of the sales or order fulfillment
process, then the funnel chart illustrates where the biggest bottlenecks are in the process.
Note that unlike a real funnel
, everything that is "poured in" at the top doesn't flow through the bottom. The name only refers to the shape
of the chart
, the purpose of which is illustrative.
Chart
A chart is a graphical representation of data, 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"...
, often used to represent stages in a sales process
Sales process
A sales process, also known as a sales tunnel or a sales funnel, is a systematic approach to selling a product or service. A growing body of published literature approaches the sales process from the point of view of an engineering discipline .Reasons for having a well thought-out sales process...
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. The size of the area is determined by the series value as a percentage of the total of all values..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 sales processSales process
A sales process, also known as a sales tunnel or a sales funnel, is a systematic approach to selling a product or service. A growing body of published literature approaches the sales process from the point of view of an engineering discipline .Reasons for having a well thought-out sales process...
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
Sales lead
A sales lead, or Sales Lead, is the identification of a person or entity that has the interest and authority to purchase a product or service. This step represents the first stage of a sales process. The lead may have a corporation or business associated with the person. Sales leads are generic...
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 visitor trends. It is likely that the funnel chart will display a wide area at the top, indicating visitor page hits to the homepage
Homepage
A home page or homepage has various related meanings to do with web sites:* It most often refers to the initial or main web page of a web site, sometimes called the front page ....
, 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 fulfillment
Order fulfillment is in the most general sense the complete process from point of sales inquiry to delivery of a product to the customer...
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
Percentage
In mathematics, a percentage is a way of expressing a number as a fraction of 100 . It is often denoted using the percent sign, “%”, or the abbreviation “pct”. For example, 45% is equal to 45/100, or 0.45.Percentages are used to express how large/small one quantity is, relative to another quantity...
cancelled and returned.
Purpose of chart
Ideally the funnel chart shows a process that starts at 100% and ends with a lower percentagePercentage
In mathematics, a percentage is a way of expressing a number as a fraction of 100 . It is often denoted using the percent sign, “%”, or the abbreviation “pct”. For example, 45% is equal to 45/100, or 0.45.Percentages are used to express how large/small one quantity is, relative to another quantity...
where it is noticeable in what stages the fall out
Fall Out
"Fall Out" was the first single released by The Police. It was originally released in May 1977 and then re-released in 1979. "Fall Out" was a 7" single with "Nothing Achieving" on its B-side...
happens and at what rate
Rate
In mathematics, a rate is a ratio between two measurements, often with different units. If the unit or quantity in respect of which something is changing is not specified, usually the rate is per unit time. However, a rate of change can be specified per unit time, or per unit of length or mass or...
. If the chart is also combined with research
Research
Research can be defined as the scientific search for knowledge, or as any systematic investigation, to establish novel facts, solve new or existing problems, prove new ideas, or develop new theories, usually using a scientific method...
data, meaning quantified measurements of just how many items are lost at each step of the sales or order fulfillment
Order fulfillment
Order fulfillment is in the most general sense the complete process from point of sales inquiry to delivery of a product to the customer...
process, then the funnel chart illustrates where the biggest bottlenecks are in the process.
Note that unlike a real funnel
Funnel
A funnel is a pipe with a wide, often conical mouth and a narrow stem. It is used to channel liquid or fine-grained substances into containers with a small opening. Without a funnel, spillage would occur....
, everything that is "poured in" at the top doesn't flow through the bottom. The name only refers to the shape
Shape
The shape of an object located in some space is a geometrical description of the part of that space occupied by the object, as determined by its external boundary – abstracting from location and orientation in space, size, and other properties such as colour, content, and material...
of the chart
Chart
A chart is a graphical representation of data, 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"...
, the purpose of which is illustrative.
See also
- Exploratory data analysisExploratory data analysisIn statistics, exploratory data analysis is an approach to analysing data sets to summarize their main characteristics in easy-to-understand form, often with visual graphs, without using a statistical model or having formulated a hypothesis...
- Information graphicsInformation graphicsInformation graphics or infographics are graphic visual representations of information, data or knowledge. These graphics present complex information quickly and clearly, such as in signs, maps, journalism, technical writing, and education...
- Graphic organizer
- Mathematical diagramMathematical diagramMathematical diagrams are diagrams in the field of mathematics, and diagrams using mathematics such as charts and graphs, that are mainly designed to convey mathematical relationships, for example, comparisons over time.- Argand diagram :...
- Plot (graphics)Plot (graphics)A plot is a graphical technique for representing a data set, usually as a graph showing the relationship between two or more variables. The plot can be drawn by hand or by a mechanical or electronic plotter. Graphs are a visual representation of the relationship between variables, very useful for...