What Is a Funnel Chart?
A funnel chart is a graphical tool that displays the percentage of a given population that falls into each category of a given data set. The data is typically displayed in descending order, with the largest category at the top and the smallest at the bottom. Funnel charts are often used to visualize sales data, where the width of each bar corresponds to the size of the sale, and the height of the bar corresponds to the percentage of sales within that category.
Funnel charts can also be used to visualize other types of data, such as the number of website visits that result in a purchase, or the number of email subscribers that result in a sale. They can even be used to show how data moves through a specific process in subsequent stages. A great funnel chart example can be anything from sales funnels to order fulfillment processes. Learn more about funnel charts on this page.
How to Create a Funnel Chart
Funnel charts are used to visualize the proportions of a whole over a series of steps. They are often used to visualize the conversion rates of a process, such as the number of leads that convert to customers. Funnel charts can be created in Excel using the pie chart tool, and then converted to a stacked bar chart. This chart type is a simple and easy way to visualize a process.
The top of the funnel is the first stage while the bottom bar of the funnel is the final stage. The bars in between indicate the various stages in descending order, forming the shape of the funnel.
Benefits of Using a Funnel Chart
A funnel chart can be used to visualize data that is collected from a survey or to track the progress of a project. The funnel shape shows the decrease of data as it moves down a subsequent stage.
One of the main benefits of using a funnel chart is that it allows you to quickly and easily see how data decreases in a process. Additionally, funnel charts are easy to create and understand, making them a popular choice for data visualizations. They are perfect for highlighting the differences between proportions at different stages of a process.
Funnel charts also make it easy to identify any areas that require improvement within the data set and are a popular tool for businesses that want to enhance their online presence or marketing campaigns. Digital marketers often assess the journey of a customer or user from initial contact to conversion using funnel charts. All kinds of businesses can benefit from this tool for their digital marketing efforts, whether they are operating a Medspa or a product-based company.
Funnel Charts in Real-Life Application
Say you’re the marketing director for a large company. You’ve been tasked with increasing the number of leads your company generates each month. To do this, you’ve decided to invest in a marketing automation tool. You set up a lead capture form on your company’s website and begin collecting data on the number of leads your new tool generates each day. After a few weeks of data collection, you create a funnel chart to visualize the data.
As you can see, the number of leads your tool generates each day is gradually increasing. This is a great trend, and you’re excited to see how it develops over time. The funnel chart allows you to track your progress and make necessary adjustments to your strategy as needed. For example, if you notice that the number of leads drops off around the middle of the funnel, you might need to adjust your marketing tool to be more effective and improve the customer experience. Being able to visualize customer dropout can help you improve your business.
These are just some components of what make a funnel chart and how they can be used.